American Power Corporation (TGMP)

I came across this heavily promoted stock late this afternoon and the hype and chart are telling me that American Power Corporation (TGMP) is ready for a fall.  It may not be today, but soon it will be heading south.

I won’t spend a great deal of time talking about TGMP, because there isn’t a lot to talk about.  This is a natural resource play (coal) that is being plastered all over the boards and is appearing in over 10 newsletters.  It has only been actively trading for a few days and has seen some strong volume and some decent price appreciation.  It has no revenues, no assets and only one recent PR of note.  That PR talks about the purchase of land in Montana for a coal plant.  I have, however, seen no news on how they are going to finance such a large project.  The company is so new they don’t even have a website.

Highly suspect!

Here is the chart…so you can see for yourself.

Volume is tailing off and a stock can only be pumped so much.  I expect to see TGMP start to fall in the next day or so.  Be on the lookout.  The overall trend is still positive (Bullish MACD and stochastics near overbought levels) and who knows what additional promotion is “coming down the pike”.

But….TGMP could fall and fall far.  If you are able to pick up 20 cents in its pending collapse, then you have made a great trade.

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

Last Close:              $1.03

Short Opinion:      $1.00 - $1.10

Short Term Sell:    $0.90

Long Term Sell:     Between $0.70 and $0.80 (don’t be greedy…I don’t know how low it will go, but take your profit and run)

Good Luck and Great Trading,

Jeffrey Dean

Editor’s Note: I was checking emails the day after I wrote this blog and I received another email on TGMP that says “Warren Buffett to take over TGMP in two months”.  Despite the laughable headline that has no basis in fact, be sure and watch out that you don’t get short squeezed on this one.  THE PUMP LIVES!

Editors’s Note II:  It has been several days since my original post and TGMP continues its run.  It looks like the stock is finally cracking (9/2/10), so be ready to play.

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 stock 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.

Santeon Group, Inc. (UBCI.OB)

I don’t cover sub-penny stocks very often, but one came across my radar that I want to share with you.: Santeon Group, Inc. (UBCI.OB)

Most sub-penny’s started out as penny’s or better, but sink down into the depths of the sub-penny market…most never to re-appear.  UBCI is reversing the process.

This is one of those plays where a new company has been put into an old shell.  This one is called Santeon Group.  The old shell, UBroadcast, Inc., was reversed into only in June of this year.

The company still has the old UBroadcast ticker (and derives some incremental income from that business), but the star of the show is Santeon Group.   Santeon has been in business for over 10 years providing business process management software for the healthcare industry. (click here for website)

In it’s last fiscal year, Santeon only booked $3.6 MM in sales…not that impressive for a 10-yr. old company.  However, Santeon is betting the farm of growth.  Their PR’s make all sorts of references to strong revenue gains in 2011 and 2012.   Santeon is supposedly debt-free and cash flow positive.  I will look with interest upon the next 10-Q to see just how strong Santeon is.

Since then there has been a steady flood of press releases about the progress that Santeon Group is making in building sales posting sales with some very recognizable names in industry: BP, O2, IBM, Microsoft, etc…

The company is also growing by addition with the purchase of two other software companies, Vu Media and X2A Consulting, LLC.  None of these additions are headline stuff, but the company has laid out a strong plan for acquisitions that could help the company grow quickly.

Let’s take a look at the chart

I get the impression from looking at the chart that UBCI is just “idling” at current levels and that it won’t be a sub-penny for very long.  The chart gives me the impression that it is near the bottom of the range for UBCI and that the next move will be up.  You can play UBCI for the short-term move or if the news it puts out is strong enough, then hold for the long term.

Bottom Line: UBCI is a sub-penny play that might be worth looking in to.  Buying 20,000 shares would cost you the equivalent of a decent dinner for two, but the upside is a great deal better than a night out.

From my research on the company, I get a strong feeling they will deliver on what they are promising.  I expect they will be issuing a steady stream of PR’s about clients landed, revenue growth, new acquisitions, etc.   I just hope they have some substantive news that traders are actually interested in.

The “fly in the ointment” is that somewhere down the road, UBCI will have to do a reverse split.  As with most penny and sub-penny stocks, stock is better than cash.  Every vendor gets paid in stock, officers are paid in stock, acquisitions are done in stock….all that stock has left UBCI with a bloated capital structure that will demand a reverse split before a year has passed.

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

Last Close:              $$0.008

Buy Opinion:          $0.005 - $0.008

Short Term Sell:   $0.015 - $0.025

Long Term Sell:     $0.1 and above

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 (Stocks under $5), 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.

Global Cash Access Holdings, Inc. (GCA)

A few weeks back, I came across Global Cash Access Holdings, Inc. (GCA) on one of my trips around the web, researched it, liked it….and then discarded it.  The stock was in a serious tailspin and I never like “falling-knife” stocks.  We all know those don’t usually end well.

But, it appears that the stock may have put in a bottom and the indicators are giving some credence to a rally.  It is a stock that given a longer time horizon might make for a good trade.  The stock is strong financially and after the hysteria about losing a big customer subsides, GCA could come back strong.

GCA (website) is a leading provider of cash access products and related services to over 1,100 casinos and other gaming properties in the United States, Europe, Canada, the Caribbean, Central America and Asia. GCA’s products and services provide gaming patrons access to cash through a variety of methods, including ATM cash withdrawals, point-of-sale debit card transactions, credit card cash advances, check verification and warranty services, and Western Union money transfers.

Why do I hate GCA? The few times I have been to a casino and needed extra cash, the exorbitant fees that companies like GCA charge tick me off.  I know they have to “make a buck”, but am too cheap to want to pay those fees.   However, that doesn’t stop them from making huge bucks from those fees to millions of willing customers.

The Fundamentals

GCA has strong fundamentals and that gives me confidence they have the ability to weather this downturn in their stock.  While L-T debt is high ($249MM), cash position and receivables are strong.  The company has good ratios and debt coverage is strong.  Cash flow continues to be strong.

The company is strongly profitable (although losing Harrah’s Casino at 14% of their overall business will hurt going forward).  Sales have plateaued during these tough economic times…which in some ways is a coup for the company.  They have maintained strong sales, margins and profitability during some difficult economic times.

The Chart

The Wild Card

Earnings are scheduled to be released Wednesday, August 4th.  I have read the analyst’s estimates and there appears to be no trepidation on the part of analysts.  We will see once earnings are released.  I have made the mistake of buying in anticipation of earnings and I don’t want you to make the same mistake.  We will see what happens once earnings are released.

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

Last Close:              $4.35

Buy Opinion:          $4.00-4.75

Short Term Sell:   $6.00

Long Term Sell:     $8.00 and above

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 trader 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.

Biomagnetics Diagnostic Corporation (BMGP)

A few weeks ago in my blog, I made a call on Biomagnetics Diagnostic Corporation (BMGP).

Here is what I said:

“I am looking for BMGP to crash and burn in the very near future. This penny stock piece of junk is still on the rise and their is no guessing when it will top off, but be ready to ride it back down.

There are no entry points or exit points with this trade…watch it for signs it is cracking.  Get in…drive it to the ground and move on.”

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.

China Precision Steel, Inc. (NasdaqCM: CPSL)

Today’s screen brought China Precision Steel, Inc. (NasdaqCM: CPSL) to my attention.  I admit that I like Chinese penny stocks because of the size of the market they are selling into and their gain history.  We in the West seem to think there is some “mystery” to Chinese stocks and we talk in hushed and reverent tones about them.

The fact is Chinese stocks are no different than any other stock and all we need to do is to apply fundamental and technical analysis to them to know if they are good trades.  No one can control news or investor sentiment however.  One thing that has held down the Chinese sector stocks is concerns over debt issues with the U.S. and other countries and concerns about Chinese Federal money policy going forward.

Those concerns shouldn’t keep you from looking at today’s stock: CPSL.

CPSL, a steel processing company, engages in the manufacture and sale of high precision cold-rolled steel products in the People’s Republic of China.  The company produces and sells precision ultra-thin and high strength cold-rolled steel products with thicknesses ranging from 7.5 mm to 0.03 mm. It also provides heat treatment and cutting of medium and high carbon hot-rolled steel strips. The company’s precision products are primarily used in the manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food packaging materials, saw blades, textile needles, and microelectronics. It sells its products primarily in the People’s Republic of China, Thailand, Nigeria, and Ethiopia.                                                                                        source: YahooFinance.com

I have read a great deal about the company and here is what I am perceiving.  They are on a growth mode with the addition of two new steel plants in 2010 and are expanding their export market efforts. Mainland China continues to be their#1 market, but this extra capacity will allow them to expand outside China’s borders.

The latest Quarter’s (3/31) financial results had nothing but good news.  Quarter over Quarter revenues increased 293.4%, company sold a record amount of steel, net profit of $2 million vs. a $3.5 million loss last year, etc, etc..

The balance sheet is good, but not great.  Cash of over $13 million, a manageable debt load with decent debt coverage and a strong operating cash flow.  The balance sheet is very clean, actually.

Insiders own almost 42% of the company with about 7% in institutional hands.   No sales or purchases have been reported lately.

Since their fiscal year end is June 30th, I would expect a run up in the shares to the announcement of earnings.  It appears that CPSL will be solidly "in the black", but earnings announcements are dangerous times to be in a stock.  Make sure that you bracket this trade properly in case the earnings "surprise" is negative.

The Annotated Chart:

Bottom Line:  CPSL is a company that is headed in the right direction.  They have weathered a downturn in their business; they have come out of that stronger imo; they are ramping up production; opening up new markets, etc...

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

Last Close:              $1.34

Buy Opinion:          $1.30 - $1.45

Short Term Sell:    $1.75 - $1.90

Long Term Sell:     $2.50 - $3.00+



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.

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.

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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.