American Sierra Gold Corporation (AMNP) was all over the boards just a few months back.  An exciting new issue with two strong gold properties in Nevada and Mexico, it seemed to have no limits as to how far it could go.  However, like all promoted stocks the promotion eventually stopped, traders took profits and the stock “came back to earth”.

AMNP is at an interesting place right now.  The stock chart seems to indicate that the stock has stabilized from looking at the MACD, RSI and its price action recently.  Having said that, it made a similar base at around 47 cents in late January, but then pushed through that to now trade around 38 cents.  Is this the bottom?…I hope so!

Let’s take a look at why AMNP captured traders’ imaginations in ‘09. AMNP has two projects that seem to have great potential.  Its Urique project in the Sierra Madre Mountains of Mexico is their home run.  It is contiguous to NYSE listed company Gold Corp’s (GG) El Sauzal mine which is very profitable.  To the end of 2008, that mine had produced 1,072,000 ounces of gold and Goldcorp has reported proven and probable reserves of 470,000 ounces left on the property.  the Urique Project, encompassing 71,334 acres, has the potential to be as prolific as the El Sauzal mine according to the company.  However, the earliest revenue from that mine is expected to be 2012.

Its Discovery Day project in Nevada is small in comparison to the Urique project, but is projected to be revenue generating much, much sooner.  In fact, estimates I have read claim that the mine will produce significant revenues for AMNP by the end of the 2010 fiscal year (7-31-10).  Recent press releases touted the fact that the mine has been reopened and they are working towards production in the near term.

AMNP has what every mining and exploration company needs: Financing. The company announced, with great fanfare, an equity-based financing agreement with Tobermory Holding Ltd., a European institutional investor.  According to the latest Q available, AMNP has made two draws against that agreement totalling $800,000.  The initial commitment is for $6MM with up to an additional $10.5MM of financing available.  Of course, AMNP must hit certain milestones, but the fact that they have the financing is huge.  I will read their latest Q (whenever it is issued) to see just how the company is progressing.

AMNP’s Chart…with my annotations

AMNP has got some real potential IMO.  However….remember that for every surge in price, traders who are stuck in  losing position will sell into any strength.  There are a lot of angry traders out there….from reading the boards.  If the company decides to promote their stock again, that could make this thing fly.  Don’t forget to factor in the price of gold into your equation.  Now that the hype and hysteria have died down, AMNP actually looks like a good company with some exciting prospects.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

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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; AMNP was previously subject to a now terminated promotion agreement. 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.

The last time I blogged Coates International, Ltd. (COTE) was to tell traders to short them (Read it here).  And, I was right.  I liked the company  fundamentally, but thought that the chart was setting it up for a fall.  COTE blazed a trail across the markets back in July of ‘09 almost tripling in value from around 40 cents to $1.15.  In my earlier blog, I said the following:  “The stock might be due for a correction in the near future.  Any kind of reasonable “support” for the stock is around the 50 cent mark….so, it could fall a long way!”

Three days later, the stock was at 53 cents! A penny stock, once again!

Now, the chart is turned around.  The stock price is depressed and I think that COTE should be watched for a bounce in the near term (and it could be the next hot stock if they start landing some contracts).

Let’s talk about the company:  COTE is the creator, developer and manufacturer of the patented Coates spherical rotary valve system (CSRV System) for use in various piston-driven internal combustion engines.  It is a technology that has been under development for over 15 years and may now be “ready for its closeup”.  The company is claiming that they have created the internal combustion engine of the future.  They claim significant benefits compared to the engines of today: Increased Engine Efficiency, Lower Emissions, Reduced Lubrication Requirements, Cheaper to Manufacture, and Adaptable to Multiple Fuel Types.  Here is a link to a very informative article done on COTE by Industry Online.  I am not an automotive engineer, but it sounds like COTE has something in their CSRV technology.

With the income of a Canadian sale for $10MM ($8 MM of which remains a receivable), its Chinese manufacturing initiatives and several Beta sites that are under negotiation, it might be a good time to put COTE on your trading radar.

The chart looks good for gains!

• COTE is trading near its 52-week low ($0.28);
• Watch to see if this level acts as support for the stock…any break below 32 cents should be watched to see if a new bottom develops;
• The MACD is drifting….with good news and some buying, it could turn bullish very quickly.

Another factor to consider about COTE that gives me comfort is the insider ownership.  I like the fact that insiders own over 80% of the company.  COTE hasn’t been an overnight sensation.  My impression is that they have a core group of founders and executives that believe in the mission of the company and are in for the long haul.  I hope they get rewarded, because that means I will be rewarded too.  I have put COTE on my own personal trading radar with the idea of buying shares in the very near future.  I have a call in to the company and will update my blog with any intelligence I gather.

Do your due diligence!

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

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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 have known about Adaptec, Inc. for many years…even traded it once or twice.  It has mostly fallen off of my radar screen lately because it really hasn’t been that attractive.  I was doing screens on Stock Fetcher this morning and I was amazed to see that ADPT was on my screen for stocks that are down 8 days or more.  That speaks opportunity to me, but not in the way I normally speak about stocks.

Adaptec, Inc. provides hardware and software data center solutions globally.  Founded in 1981, it may not be around very much longer.

If you were going to put a company in your “back pocket” for awhile, this might be the one.  I am typically a short-term holder and after the most recent market meltdown, I am going to stick to that philosophy.  A long term trade to me is a month.  But, it might be a good strategy to put some Adaptec shares away in an account that is long-term.

Why?  Because of several simple reasons:

1. The company is for sale.  In December of ‘09, ADPT announced the engagement of Blackstone Advisory Partners to ” assist in the sale of the company’s assets and operations”;
2. The company is currently trading at less than its net cash position
3. The company is trading for less than tangible book value

At $3.16 in cash at the latest Q, ADPT is clearly a “free stock”.  It is unclear what premium its operations and assets will command, but I don’t think I am going out on a limb by saying that ADPT will sell for more than cash.

Here is a chart that tells the tale of the once-mighty ADPT:

• Sellers are dominating clearly…very few up days over the past two months
• The MACD is strongly bearish, but the histogram indicates that the strength of the signal might be waning
• The stochastics are oversold (no surprise there)

Here is ADPT’s website so you can do your own due diligence.

ADPT may have some bounce in the near term, especially if the stochastics continue to show an oversold signal.  However, the pay day for traders in ADPT will be the sale.  I am very curious about how the company is valuing itself.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

P.S. - I am working out of the home today and I got one of those special stories that every work-at-home parent dreams of.  My absolutely adorable 4-yr. old Daughter, Teagan, needed to be in my lap while I wrote this blog.  Needless to say, I wasn’t very efficient.  Who cares?  I am reminded how blessed I am…by her and her three siblings.

Here is a picture so you can see just how blessed I am.

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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 did a blog on Atlantic Wind and Solar, Inc. (AWSL) a few months back and am bringing it back to my members again (link to previous blog).  I think that AWSL might be a good trade for the near term and the long term.

To review:  AWSL is primarily a solar company that has taken advantage of the Ontario Government’s Feed-In-Tariff program to corner the market on rooftop solar installations in that province.  They have other projects outside of that jurisdiction, but the first projects that will make money for AWSL will be in Ontario.  I would encourage readers to view AWSL’s site.  Here is what I wrote in my previous blog:

“By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks.  They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.”

AWSL has been a hot topic on the boards and Penny Stock Chaser has been flogging it unmercifully.  AWSL was even on Tim Sykes radar for awhile and that is the company’s own fault.  They have decided to go the stock promotion route quite vigorously.  But, it is said in this business that small cap stocks don’t move without promotion…and, I believe it, too.

Let’s strip away the hype and take a look at AWSL.  Here is what I have learned from numerous sources:  PR, talks with their IR people, boards, 3rd-party articles:

• AWSL is for real;
• AWSL has partnered with major real estate developers in Ontario province like Cushman Wakefield and Remington Properties to lock up rooftops and other properties;
• They have secured a large number of contracts with the local utilities under power purchase agreements;
• They are working on several large debt financings that will capitalize the company in a big way;
• They are making noises about getting uplisted to larger exchanges (that is always a good thing for stocks)

Here is the chart so you can see what I am talking about:

• AWSL is trading in a range of between $2.50 and $2.75
• MACD is bearish, but is strengthening
• Volume has tailed off, but history shows that it can take off at any time
• Stochastics are neutral and could turn positive with more buying action

I own shares in AWSL and I bought in at around $3.75.  I guess I believed what I was writing.  The stock dividend brought my basis down to the level where I am in the black again.  However, I would like to see all of this potential become realized and I will watch with interest what effect the future news has on the stock.  I know that the shorters are betting that AWSL is all hype and will “fold like a cheap suit”.  I don’t agree.

I will actually end this blog with what I ended the last one:

“My conclusion is that traders should radar list AWSL.  If you trade it, make sure you have a tight trailing stop on it.  Take the gains as they present themselves.  If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO).  If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though.  I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.”

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

Disclosure: Long AWSL

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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.