Provectus Pharmaceuticals, Inc. (PVCT.OB)

Today’s penny stock pharma pick is Provectus Pharmaceuticals, Inc. (PVCT.OB).  It is another one of those pharma plays that has what I look for in a pharma company:

1.  Promising Drug Candidates

2.  Cash in the bank

3.  Manageable debt

4. Beaten down chart

PVCT, a development-stage pharmaceutical company, through its subsidiaries, engages in developing, licensing, and marketing over-the-counter (OTC) products, prescription drugs, and medical device systems in the fields of dermatology and oncology.  Provectus Pharmaceuticals has developed various intellectual properties and technologies in the areas of imaging, medical devices, and biotechnology. The company was founded in 2002 and is based in Knoxville, Tennessee.                                                                         source: Yahoo! Finance

PVCT has two major drug candidates; PV-10 which is a therapy for metastatic melanoma and other cancers and PH-10 which is a topical treatment for a wide range skin conditions (psoriasis, atopic dermatitis, actinic keratosis, and severe acne).  The company also is designing a suite of medical device systems include therapeutic and cosmetic lasers for cosmetic treatments, such as reduction of wrinkles and elimination of spider veins, and other cosmetic blemishes; and photoactivation of PH-10 other prescription drugs and non-surgical destruction of certain skin cancers

Rather than regurgitate/update how the company is doing, I will direct you  to their latest PR that updates shareholders on the company’s progress (sounds positive, by the way) - click here for link.

What is important to know is that PVCT has the financial wherewithal to make it through this next round of clinical trials.   The company has come out and said they have “ample cash” and with no debt, I think that PVCT might be a good position trade (several months probably).

Insiders own almost 17% of the company, but they haven’t attracted much institutional interest.  Their latest PR (linked above) intimates that could change.

Let’s take a peek at the chart:

According to the company, they are planning a major announcement in conjunction with their Australian trials at Melanoma 2010 Conference in Sydney, Australia, November 4-7, 2010.  Good news there could make this stock jump.  In fact, any news could make this stock jump.  My crystal ball is telling me to expect good news, but there are no guarantees.

Here is what I am looking at for entry/exit points

Last Close:              $1.05

Buy Opinion:          $.90 - $1.15

Short Term Sell:   $1.45 (45% gain from $1 purchase price)

Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

BSD Medical Corporation (BSDM)

At $1.00, BSDM is trading near the bottom of its 52-week range.  The chart is telling me that BSDM might be ripe for a rally (or possibly a full trend reversal).

I look at this penny stock’s chart and see several things that lead me to believe that.  So, let’s start with the chart!

I look at a company whose stock has been in a decline for several months, is hitting a 52-week low with a bearish MACD and oversold stochastics…and I think this is a good deal?  I must be out of my mind.

I’m not…despite rumours to the contrary.  BSDM is a financially strong company (more on that later) that, based upon chart alone, could be ready to rally.  I am looking at recent chart candles and am seeing the setup for a rally.  Take yesterday’s “Doji” for instance.

Stockcharts.com says that Doji’s are “After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

I would expect to sellers to try and hit BSDM a few more times, but I think buyers will win the day.

BSDM also has a strong balance sheet going for it.  It has over $7 Million in cash, no debt and strong ratios.  The company can’t seem to turn the corner on profits recently, however.  The losses are not significant enough to cause any going concern issues.   This strong balance sheet gives BSDM time to “right the ship”.

I would not be surprised if BSDM didn’t get bought out.  I have nothing concrete about that….just a hunch.  Cash-rich, a smaller player in a larger market, mature products…etc, etc…

Have a great day in the market,

Jeffrey Dean, Editor

Here is what I am looking at for entry/exit points

Last Close:              $1.00

Buy Opinion:          $0.90 - $1.05

Short Term Sell:    $1.50

Long Term Sell:     $2.00+

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Cyclacel Pharmaceuticals (NasdaqGM: CYCC)

CYCC is potentially a big winner for 2010.  Its line of oncology and hematology drugs have been much in the news lately and are expected to have even bigger news (Clinical trial-type news) before year-end.

The stock is off over 50% from its 2010 high as investor fervor has subsided from several promising announcments earlier in the year.

However, CYCC might be a good penny stock/small cap company to invest in a mid-to-longterm trade.

Cyclacel’s strategy is to build a diversified biopharmaceutical business focused in hematology and oncology based on a portfolio of commercial products and a development pipeline of novel drug candidates.  source: YahooFinance.com

The news has been mostly good:

1. CYCC just received orphan drug designation for Sapacitabine in both AML and MDS.
2. The company has been added to the Russell Microcap(R) Index.  That is important to remember because almost $4 TRILLION in funds are benchmarked to this index.  It is an annual index and CYCC will have to qualify next year, but given what I see that won’t be a problem.
3. CYCC’s ongoing Phase Two clinical studies for its cancer drug candidate, Seliciclib (boy, what a name…that really rolls off the tongue!) have electrified traders and investors.

From a fundamental standpoint, CYCC is strong.  They have a decent balance sheet with no debt and they have shown an ability to raise capital whenever they need or want to.  Which is all the time! CYCC is burning through a tremendous amount of cash every quarter and needs to “feed from the public trough” constantly.  They have no meaningful revenues and must fund operations solely off of their balance sheet.  If they receive any negative news, that ability to raise cash could be compromised.

From a technical standpoint, it appears that CYCC has stabilized at between $1.50 and $2.00.  The stock is in a small uptrend, but the indicators are not confirming that trend in any significant fashion.

Having said that….the 7 month chart shows a great deal of volatility that can be played if you watch the stock closely.

CYCC has a stable of drugs that have garnered mostly positive reviews.  Their ability to raise capital whenever they want to speaks to the confidence that institutional investors have in the company (despite being dilutive to current shareholders, it is “all good”).  In fact, over 20% of the company is held by institutions.  Insider ownership is only 5%, but I would expect a low number given how many rounds of financing CYCC goes through annually.

Bottom Line:  CYCC is a worthy candidate imo.  CYCC is on traders and investors radar screen and they are just looking for that next piece of good news to start a buying frenzy again.  CYCC will try and give them that good news before year end.

Here is what I am looking at for entry/exit points

Last Close:              $1.65

Buy Opinion:          $1.50 to 1.75 (if the price drops below $1.50, wait and see if it recovers)

Short Term Sell:    around $2.50

Long Term Sell:     $4.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the under-served OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

There are several reasons that I am blogging Ladenburg Thalman Financial Services, Inc. (LTS): One is chart and the other is news.

For those who don’t know, LTS has been around since 1879 and is traded on the AMEX.  LTS engages in investment banking, equity research, institutional sales and trading, independent brokerage and advisory services and asset management services through its principal subsidiaries, Ladenburg Thalmann & Co. Inc., Investacorp, Inc. and Triad Advisors, Inc.  LTS has seen some very hard times recently with the economic downturn, but is narrowing losses and shoring up its balance sheet.  I am sure they are not pleased to be a penny stock, but they are not the only old line firm made to “eat crow” in the current economy.

The news is LTS has been added to the Russell 3000 index which has raised the profile of the company enormously.  It doesn’t hurt that inclusion in the 3000 index also automatically includes LTS in the Russell 2000.  That fact could have a huge impact on the volume for the stock as portfolios based upon the Russell Indexes are rebalanced.

The chart is what interested me….I think it will interest you, too.

If recent history holds true, then we could see a price spike with LTS again.  The oversold stochastics could give some impetus to a spike imo.

LTS does not make the CPA side of my personality happy.  They have high debt based upon their current assets and ratios are not as good as I would like to see.  They are seeing good revenue growth and losses are narrowing.  This is not a fundamental play….it is a news and chart play.

I will be interested to see if the increase of buying due to the inclusion in the Russell indexes spurs a rally in the stock….the chart looks like it the stock could be ready to pop again.  The bearish MACD looks like it could be turning (but since it is a trailing indicator, I can’t be 100% sure)

A short term play….LTS has never been a high flier.

Good luck and Great trading,

Jeffrey Dean, Editor

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

————————————————————————————————————————————————-

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

I found a penny stock that is wildly profitable, has cash-in-the-bank, no debt and is serving the large and growing Chinese market.  It has a depressed stock chart that is showing signs of bouncing off a bottom (although I never call bottoms).  It is a stock that is worth looking at for a swing or position trade (maybe a long term hold….but that is not my call).

As the title indicates, I am blogging today about China Electric Motor, Inc. (NasdaqGM: CELM). The company sells micro-motor products through its subsidiary Shenzhen YuePengCheng Motor Co., Ltd mainly in the Chinese market.

It is a company that has had a very volatile 2010, trading as high as $9.88 and as low as $4.44.  In fact, CELM is still trading near the bottom of that range…and I believe merits a look by the serious trader.

The Chart is speaking to me:

CELM tested its low for a second time in a short period which can be a sign that this move might have some strength to it.

I would watch to see if CELM can establish an uptrend.  The play is a short term one….not a day trade, but rather a swing or position trade.  The chart clearly shows that all rallies have been short ones (a couple trading days at most).  Unless the stock establishes a clear uptrend, I would keep tight stops on it and take profits on any dips.

Volume has tailed off recently.  The company needs an effective promotion or some news to drive more volume into the stock.

See my annotated chart below:

A Strong Balance Sheet

As a former CPA, I read balance sheets and income statements like anyone else reads the newspaper.  CELM’s financials are a good read.  I can tell you that CELM’s balance sheet is surprisingly strong.   As of the March 31st Q end, they had $1.16 in cash per share, no debt, $33MM in the bank……most companies would kill for that balance sheet.

From the income statement side of the ledger, sales are increasing and so are margins.

When I see a balance sheet like this, I get comfort from the fact that no matter what “bumps in the road” that the company encounters it has the financial wherewithal to survive them.

This hoard of cash also gives rise to the idea that CELM might be in the market for some acquisitions.  Nothing in their public info states that….just a hunch on my part.

Bottom Line

CELM is a strong trading idea

Here is what I am looking at for entry/exit points

Last Close:              $4.78

Buy Opinion:          $4.50 - $4.90

Short Term Sell:    $5.40

Long Term Sell:     $6.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Lofty sounding title, however I am not trying to put on airs.  As I sat down to write my blog, the title just “popped” into my head.  I think it fits.

Insmed Incorporated (INSM) is a study in contrasts.

On one hand, it is a company going the wrong way.  The stock is a penny stock that is trading for around 70 cents and has been on a steady price decline from its high of $1.32 in mid-March.   Any attempt to rally the stock has met with defeat due to persistent selling.  This “bloodletting” has resulted in INSM receiving a NASDAQ delisting letter.  They have until December to cure so I wouldn’t abandon the INSM ship on the account of that just yet.

The drug portfolio is another negative with INSM.  Their major remaining drug program (Iplex) has been put on hold for several reasons…indifferent results on several studies and the lack of proper production facilities.  They sold their manufacturing plant to Merck in 2009 as part of the sale of their follow-on biologics program.  Although the $125MM they netted in that sale has helped cushion the blow.

The stock could also take a hit when the Russell 2000 rebalances its portfolio…..INSM is due to be dropped and that could have further negative impact on the share price.

On the other hand, INSM is a company that has a great deal going for it.  As a recovering CPA, I love strong balance sheets and this company has one of the strongest ones I have seen for a small pharma company.  Thanks to Merck and the Biologics deal, INSM has a war chest of over $120MM in cash (and no debt). In fact, the stock is selling for less than cash. There is over 93 cents/share in cash when the stock is trading for only 70 cents!

INSM has got options…ones that most companies would kill for.  INSM has stopped their active drug programs, is conserving cash, but is shopping for replacement technologies and therapeutic drug candidates.  With the capital markets still recovering, who is to say that INSM can’t pick up some promising company with drug candidates that are in Phase III trials. Let’s dream, shall we?

Management could decide to sell the company and retire to a beach in Fiji.  That is not likely given the low insider ownership percentage.

There are still risks with INSM.  They could make a bad purchase, but chances are the stock (and the company) will get a huge near term lift from the announcement of any acquisition.  Since my crystal ball is in the shop, I have no idea when that might be.   However,  INSM possesses a huge safety net with their balance sheet and the fact that they can use shares as cash in any acquisition.  It might be dilutive for stockholders, but could make great long-term sense for the company.

INSM is a company that bears watching.

Good luck and great trading,

Jeffrey Dean

Editor

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Investor Soup

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

ENTR, SMOD, NMTI, HELI, CWLZ, HCP, CVA, PESI, BANR, WAG

ITIG, DTRO, TECO, BLAP, MFGD, VTSS, SRRL, EVXA, POSC, LRAL

Penny Stocks in the news!  These are just a few of the ones that made headlines recently.

EMIS, SREH, NVNC, LBSR, GSPG, AMEH, VIVK, SECI, CBAI, GRMC

Traders are Expecting ASYI to Deliver More Fast Profits!

Good Morning!

AISystems, Inc. (ASYI), is a software development company that has created a revolutionary management platform for the airline industry, called: JetEngine.

It’s a technological and money-saving innovation that’s been long overdue for the industry – and it’s a virtual gold mine for ASYI. continue