eCrypt Technologies (ECRY) Prevents Hackers From Invading Your Privacy And Stealing Your Identity!

Good Morning!

Cyber crime is a profitable business. So profitable in fact that it’s surpassed illegal drug trafficking as a felon’s #1 moneymaker.

And wireless email users are a juicy and easy target.

· Wireless email users are expected to rise to 300 million this year

· Worldwide there’s 1 known hacker for every 15 wireless email users

· 10 million Americans will become victims of identity theft this year.

· An identity thief has only a 1 in 700 chance of being caught by law enforcement

· 70% of identity theft victims may never recover from damages to their credit rating

· 47% of identity theft victims may not be able to get a loan continue

First a personal update:  Friday’s blog was kind of “doom and gloom” when I was stuck in the middle of a power outage (second year in a row for NH).  Even thought I got power back relatively quickly, I am still shopping online for an emergency generator.  Family is fine, house is safe and my section of NH is no longer a third-world country.  It is amazing how we take important things (like power) for granted.

Now…on to stocks.

My scans today produced NightHawk Radiology Holdings, Inc. (NHWK). Nighthawk is at the end of a prolonged decline in its stock price IMO.  This might be a good time to put it on the radar.  If it recovers from its February swoon and embarks on a climb like last year, you will like me very, very much.

Here is what I am talking about (1 yr. chart for NHWK)

NHWK is actually a very impressive company.  They have a dominant market position in their industry.  They provide services to radiology groups and hospitals throughout the United States.  NHWK provides a complete suite of solutions to doctors and hospitals, including professional services, business services, and its advanced, proprietary clinical workflow technology.  The company claims to provide round-the-clock services for for approximately 1,560 sites or 27% of all hospitals in the United States.   That is pretty impressive!

What is also impressive is that they make money.  Revenues of $162 million in ‘09, but a loss in 2009 due to a $68.7MM  goodwill impairment charge (so, I wouldn’t hold it against them).  L-T debt of $77MM, but great liquidity ratios.  Plenty of cash in the bank ($32.29MM) and over $1.37 in cash per share.

Here is the 3 month chart so traders can see in greater detail what is going on.

Here is my final analysis.  The table below is a chart of NHWK’s highs and lows during the last year.  Lots of volatility and nice bounces off lows to post highs again.  A trader could make a great profit of trading these swings.

Do you see why I say that this is a great radar stock?

I will be watching it myself.

Good luck and good trading,

Jeffrey Dean

Editor

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.

Friday’s biggest price decliner on the NASDAQ was Yucheng Technologies Limited (YTEC). The only PR I could find was that the stock got downgraded from Market outperform to Market perform by Avondale, a research firm.  The stock was trading for under $7.00 on Thursday at close.  Friday saw a massive selloff and is now trading for roughly half that.

A typical market overreaction?  Maybe, but I thing that YTEC won’t be down too long.

Yucheng Technologies Limited (YTEC) describes itself as the “Leading IT Solutions Provider for the Chinese Financial Services Industry”.    Essentially, the company provides information technology (IT), software, solutions, and services to the banking sector in the People’s Republic of China

Here is what I was able to glean from the financials (9-30-09 Q)

• $1.18 in cash per share
• No long-term debt
• Strong cash position
• Great ratios
• Profitable Operations

True, the rampant growth of the company has slowed, but it is still a very strong company.  Traders and investors seem to be punishing the company for its dismal earnings report for 2009 and a less ambitious outlook for 2010.

Here is an annotated chart to demonstrate just how steep the drop was.

Of note: The stock dropped hard on Friday, but it gapped up at open today by 7 cents.  It appears that others suddenly saw YTEC as a bargain and bid the stock up.

Interesting stock to watch and now it is priced much more attractively for traders.  Will YTEC recover and close the bearish gap?  I am watching it with interest myself to see.

Be careful not to “catch the falling knife”.  My gut is telling me that the knife has stopped falling.  However, it may limp slightly downhill or sideways for awhile before it re-establishes a bullish trajectory.

The faint of heart need not apply.

Good luck and good trading

Jeffrey Dean

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There is already a huge industry in America built around converting biomass into biofuel. Most of that conversion involves sugar, corn and corn kernel starch.  These readily available feed stocks seemed to be the perfect solution as a replacement of hydrocarbon-based fuels.  What planners didn’t realize is that corn and grain prices worldwide would skyrocket as biofuels were competing with food producers and growers for a finite amount of feed. What is needed is the next generation of biofuels that don’t rely upon scarce supplies of a pricey commodity.

That is where Raven Biofuels Corporation (RVBF) comes in!
continue

RGEN posted a 52-week low on Friday and appears to be losing the hearts and minds of investors.  Could be a good time to invest!

Repligen Corporation (RGEN) is a biopharmaceutical company focused on the development of novel therapeutics for neurological disorders.  It is unique in the world of biopharma for several reasons…it has significant income already and it is sitting on a huge amount of cash.  Biopharma companies are traditionally very volatile.  Well, the pendulum for RGEN has been swinging the wrong way for quite a while.  I would not be surprised to see that pendulum swing back.

The news that “drove a stake in theheart” of RGEN’s stock price was the news that one of their drugs, a pancreas imaging agent designated RG1068, did not meet its main goal in a late-stage clinical study.  In an overreaction typical of the biopharma space, the stock tanked.  While the company tried to put a positive spin on it, it was clear that the drug has problems.  According to the company, they will determine the drug’s future after discussions with the FDA in early 2010.

What this news overshadowed, in my mind, is that RGEN is SO MUCH MORE than just this one drug.  Fiscal year end 2008 and 2009 (March 31st) showed a profit for the full year.  While the company is operating at a Quarter-over-Quarter loss this year, the company is on a run rate to book revenues of over $20MM.  The company has an absolutely ROCK SOLID balance sheet….cash and equivalents of over $42MM and NO LONG TERM DEBT.

RGEN’s recent news hasn’t been all bad either. Shortly after the RG1068 announcement, RGEN ann0unced the the Muscular Dystrophy Association (MDA) awarded them a grant for $731,000 for further research into new treatments for Friedreich’s ataxia.  This grant will support the completion of preclinical GLP toxicology testing and GMP manufacture of a drug candidate for human clinical trials.  The company believes that this funding is significant because it is evidence of support from the MDA not only provides important funding for Repligen’s research but it also provides access to a global network of scientists, physicians and patients.  This is the second research grant that RGEN has received from the MDA to support its Friedreich’s ataxia program.

To the Chart!

Clearly, RGEN is on a negative trend and no one call a bottom.  However, the stock bears watching.  It has the kind of balance sheet, revenue stream, position in the industry that makes me believe that this dip in stock price could only be temporary.  It has heavy insider and institution ownership, the short percentage is under 5% and is sitting on lots of cash.

Radar RGEN.…any good news will easily recover the lost value in the shares and the company has the financial wherewithal to “stay in the game” for a long, long time.

Good luck and good trading,

Jeffrey Dean, Editor

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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.

One of my alerts of previous months was Wind Works Power Corporation (WWPW).  It was a great stock for members!  When I profiled WWPW on November 19th, 2009 it opened around 88 cents and hit an intraday high of $1.40 just three days later. That is a potential gain of almost 60%.  Since that time,  however, the stock has “taken a break”.  It has retraced all of that gain and is trading below my alert price.  I think the time is right to take another look at WWPW.

I like wind power. I believe that it is one of the energy technologies that will help get America off the oil habit.  The challenge with companies is realizing that promise.  The high-profile “crash and burn” of Texas billionaire, T. Boone Pickens, and his failed mega wind farm in TX is just one of the black eyes the industry has gotten in recent years.

However, I understand more about WWPW and I like their business model. I have kept it on my trading radar and have talked to their IR people and I understand even more about the company.  If you read their PR and peruse their website, you will notice that they have an impressive array of projects in Canada and around the globe.  The challenge for an investor is to look beyond the hype and see if there is a business there.  I could say that I am a wind farm developer but without utility contracts, contracts with landowners, and financing, I am just a promoter.  WWPW appears to be much more than a promoter, BUT….

The important thing to understand with WWPW is that they will never complete a single wind farm project!

I will let you digest that fact for a moment.  What WWPW does is “packaging”.  They have a management team that has done before exactly what WWPW is contemplating now.  I will use their Canada operations as an example.  Currently, the company has 190 MegaWatts (MW) of wind power on the drawing boards (spread over 15 different projects).  With land locked up, plans drawn up and utility power purchase agreements in place, these projects are VERY VALUABLE.  The value of these projects is derived by applying a dollar sales multiple per megawatt and also factoring the ongoing revenues from the profits interest WWPW will retain.  According to the company, those 190 MW’s could conceivably demand a purchase price (from a utility or another energy company) of $500,000 per MW and also the company would keep a net profits interest of 5 to 20%.

Do the math in your head and it appears that WWPW could be a very valuable company in the near future.  At 53 cents, WWPW seems cheap to me based upon expectation of future earnings. I will use another company similar to WWPW as corroboration of my point.  Recently, Schneider Power, Inc. (SNE.V) was purchased by Quantum Technologies for what appears to be a high premium, but what initially drew me to SNE was that they had sold one of their wind projects off recently for a good price.  Read release here.  Schneider sold their interest for over $5 MM  and retained a profits interest going forward of up to 20%.

I apologize for going long in this blog, but I want my readers and members to understand the opportunity as I see it.

Here is the chart…which is attractive in its own right.  See my notations on the chart.

I plan on trading WWPW (probably today) and have a good feeling about it.  It is a company that has a quick path to profitability… and don’t forget that it has another 210 MW that are located in the United States and Europe that are in various stages of development.   Here is a link to an investor presentation nested on their site that makes a very strong case for WWPW (as you would expect it to) - Investor Fact Sheet

I have so much more on this company, but since I am not trying to write ‘War and Peace’, I’ll save it for another time.  WWPW might be worth taking some time to get to know.

Good luck and good trading

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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,  Investor Soup had previously been compensated to cover WWPW in November of 2009.  That agreement has expired. 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.

Reading a chart is sometimes like telling fortunes by reading tea leaves.  You may have a rare insight into a person or a situation by reading the leaves….or, you could just be full of crap!

I don’t think I am full of “it” when I recommend my members take a look at Microvision, Inc. (MVIS).  As recently as two months ago, the company’s stock hit a 52-week high of $5.75.  The stock couldn’t maintain its momentum and began to give most of the gain back and then recently announced a discounted equity offering that “finished ‘em off”.  It is a good thing to raise capital, but MVIS set the price for the stock with an offering priced at $3.00 (all to one institutional investor, by the way) and that predictably drove the price to that level.  It has recovered slightly, but still hovers around $3.19 as of Friday.

MVIS, especially with the latest capital raise, will have a strong balance sheet.  Even before this raise, the balance sheet was in good shape:  Good ratios, little or no debt, cash-in-the-bank, etc…  However, they are going to need every dollar with the burn rate that they are experiencing.  Great technology, but markets are only just beginning to be tapped and they are still in a big R & D push.

MVIS, the company, offers a technology platform that enables next generation display and imaging products.  Their main markets are displays in vehicles, projectors, wearable displays and bar code scanners.  I recommend that traders check out the MVIS Website. They have some cool technology that they think will be the standard in the years to come.

I also like the chart. The stock has taken its beating with the bad news (to traders) about the capital raise and the technical indicators are looking more favorable.

MVIS is a good radar stock, IMO.  The stock should be avoided for any break below the $3.05 range, but I don’t believe that it will break down.  The fact that an institutional investor is willing to pony up $9.3 MM for stock in a company that doesn’t make a profit, but has nice technology (and 115 patents at last count), is pretty impressive.

Long term this might be a good stock to own, but since I live in the short-term world….look for a ‘pop” in the near term.

Do your due diligence, but I like what I see with MVIS

Good luck and good trading

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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.