Feb
I must admit that I am an alternative energy junkie. I love all things alternative: I love the almost infinite variety of wind, solar, biofuel, CO2 to gas technologies that are out there. Each one of them is exciting on its own merits and each has a claim to be “The One” that makes it to the next level. Could RZ be one of the winners?
Raser Technologies, Inc. (RZ - NYSE) is (from RZ’s website) an environmental energy technology company focused on geothermal power development and technology licensing.
RZ has two divisions:
- Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology.
- Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.
RZ is making only nominal revenues with large losses every quarter. Looking through their website, press releases and 3rd party articles on them is impressive. They really appear to have some great technology and prospects. The Evergreen Clean Energy LLC joint venture seems to hold great promise. Read the release here. Evergreen, a newly-formed alternative energy fund, has agreed to fund several RZ geothermal projects in the U.S. The recent news of the appointment of a new CEO, Nick Goodman, didn’t do much for the stock, Mr. Goodman seems to have a solid resume and could be just the guy that the company needs….time will tell.
But, since we live in the real world, let’s talk RZ as it stands right now. RZ has, according to its own balance sheet, maybe two quarters of life left based upon the present cash burn. The liquidity ratios stink and the company has a great deal of debt (more than it can comfortably service along with huge R & D expenses each Q).
The chart, on its face, doesn’t offer much hope either. The prolonged bearish slide doesn’t appear to be slackening. Or does it? Candlestick chart analysis gives us some insight into the chart. Most of the sticks during this decline were long bodies or Maurbozo’s (in a declining chart, that means that sellers ruled). Buyers put little resistance and the stock was bid down every day significantly. Except, that is, for the last two days. We are actually seeing tails develop on the candles which means that buyers and sellers are struggling over the stock. In fact, yesterday’s candle shows that the sellers drove it down, but the sellers brought it back up to close near the top of its trading range. The key for RZ is to watch for confirmation that the sellers are getting “exhausted” and that the buyers are coming back in. The oversold stochastics is an important indicator, but until the MACD intensity diminishes, the stock could continue to fall.
Here is my annotated chart:
Any good news could really send this one soaring. I recommend that traders watch this one and keep it on the radar. Technology-wise, RZ appears to be a “good horse to back”. If they can get some financing for general operations and if the Evergreen deal comes through, this could be a HUGE winner.
Lots of variables, though…..
Good luck and good trading,
Jeffrey Dean
Jan
When you have been an investor/trader as long as I have, you tend to create favorites. I have my favorites certainly, stocks like JDSU, LGDI, TASR and today’s blog topic: American Oriental Bioengeneering, Inc. (AOB). I have been aware of AOB for years and have traded it/blogged it to great success.
In fact, it was one of the first stocks that I blogged on this site. You can read my blog here. I was right about it then, as this chart would indicate. AOB was profiled around $4.25 and soared to $5.70 in about a week. I was right then….I wonder if I can be right again.
Headquartered in China and with most of its sales in China, AOB’s develops, manufactures and sells plant-based pharmaceuticals, nutraceuticals and food supplements. Its product are designed to treat a wide variety of ailments under a number of brand/trade names.
The company was founded in 2001 and has enjoyed a great run. Upon reviewing the financials, I can see that AOB makes money! Every year for the last three years, they have posted a profit. Sales and profits have slowed down somewhat this year, but AOB is on track to post another profit for 2009. The balance sheet is strong with great debt coverage ratios. Debt is high at $116MM (33% of equity), but the company’s cash balances and cash flow are sufficient to service the debt easily.
Here is a two-month chart that shows the recent trading action.
AOB is a great radar stock…..It has shown strong volatility in the past and looks to me like it might be ready for a bounce. It will be instructive to see if it will hold above the current support level. Any break below it and the stock should be avoided.
Good luck and good trading,
Jeffrey Dean
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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.
Jan
I did a screen for small cap stocks on a losing streak of over 7 days and came up with several Junior Gold stocks: Golden Star Resources, LTD (GSS) and Apollo Gold Corporation (AGT). One is a company that I would suggest putting on the radar and the other is one that I be very cautious with.
Part of the reason that these companies are here is because of the slide in the price of Gold. Once gold resumes its upwards momentum, stocks like these could become supercharged
Be careful with Apollo Gold
Apollo Gold is a junior miner that is increasing revenues incrementally, but not making any money while doing it. Their losses, through 3 quarters, is almost $38MM. I realize that a great percentage of that are paper losses from writedown of assets in 2009. Then, the theory goes, if they have a strong balance sheet things should be o.k. Unfortunately, they don’t have a strong balance sheet. They have lousy liquidity ratios and long-term debt that is due and payable and has been accelerated. Things are so bad that the company has put its 50% interest in the Montana Tunnels Mine property up for sale.
Here is the chart with my annotations:
I would never suggest holding AGT long-term, but you can play the volatility. This is not a stock for the faint of heart.
A Golden Star?
Like AGT, GSS can show a steady climb since December of 2008 when it was trading for only 50 cents. GSS is significantly larger than AGT and could book over $350MM in sales for 2009. However, they are showing losses quarter over quarter, too. Their balance sheet is not pristine, either. Their ratios are better, but GSS has taken on a great deal of debt. The company is trumpeting the fact that 2009 was their best year ever, but they need to continue to increase revenues and get a handle on expenses for the investing public to be convinced.
GSS should be watched to see if it continues to decline and touches the next support level. I don’t think it will. Seller exhaustion may have set in and prices could rise.
Both companies, I can only imagine, are hoping and praying that Gold prices come back. And, it is not like gold prices have crashed, either. The spot price at 10:33 a.m today as I was writing this was $1,098.55. But, in the mind of traders and investors, gold prices are “DOWN”.
Both are good radar stocks and could run on news specific to the company or about gold in general.
Good luck and good trading,
Jeffrey Dean
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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.
Dec
Motorsports are hot! In fact, $31.5B Hot! (source: Motor Industry Council) That is how large the U.S. market for motorcycle/ATV sector is. Today’s alert company is already grabbing big handfuls of that market and has plans to get even larger.
So “Fasten your seatbelt” for my next pick: San West USA, Inc. (SNWT). continue
Dec
Living Dangerously - HTDS
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I like the company Hard to Treat Diseases, Inc. (HTDS). The name doesn’t exactly roll off the tongue, but I have blogged it in the past (read it here) and it did REALLY well for my readers. My staff also did a “technical trade report” on HTDS back in early November (read it here).
I continue to track HTDS and think that now might be a good time to take another look.
Volatility has been the keyword for HTDS. When I first profiled it, it was trading at around .01, it zoomed shortly after to .014 (a gain of over 40%). Then it dropped to .008 and zoomed back to set a 52-week high of 2.1 cents. Here is the chart so my readers can see for themselves.
Here is some background info on the company from my previous blog:
It is in the Pharma business, but not really much of a player. They have operations in Serbia and China under two separate operating divisions and appear to have a “story to tell”. .
In China they operate through Shenzhen Mellow Hope Pharm Industrial Co Ltd.. According to the company, Mellow Hope is the biggest exporter of Biological Vaccines in China. HTDS purchased Mellow Hope in February of this year in an all-stock transaction. It appears that the company has a viable product line and an active global client base. Here is a link to the Mellow Hope web site that makes for interesting reading.
In Serbia, they have a controlling interest in a company called Slavica Bio Chem Company. Their primary focus involves the enhancement and modification of existing approved drugs such as “Virazole” for the purpose of chemical repair of damage to the CNS (central nervous system), MS (Multiple Sclerosis), SARS, Hepatitis C and HIV.
The challenges I see for HTDS is making all of these positive press releases into real numbers on the income statement. Also, they have a capital structure as confusing and as byzantine as any I have seen. Their puppet masters, Minamar Group, have got all sorts of preferred, restricted, under-the-table shares that I can’t figure out the capital structure. Keep in mind, also, that pinksheets.com has given these guys CAVEAT EMPTOR (let the buyer beware) because HTDS does not report ANYTHING….at least not yet.
I told you that trading HTDS is living dangerously.
SO…..this is a short-term trade only IMO. To me this is only a chart play. Watch to see if the stock holds this resistance and turns positive again. HTDS is very like SPNG. It has such a bloated capital structure that it is almost impossible to move the stock out of sub-penny land. But, it could be a nice play right where it is.
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.
The old axiom in automotive circles is that in order to gain power, you must sacrifice gas mileage. Another way to say it is that there is an inverse relationship between power and gas mileage.
Or, at least that USED TO BE the “old saying”.
My alert company today has developed a “game changing technology” that is operational and ready to hit the road.
That company is: NeoHydro Technologies (NHYT). continue
Nov
Time to take a look at NCS?
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As a pure chart play, NCI Building Systems Inc. (NCS) is very interesting. I had posted a in-depth review of NCS to the site a few weeks back and think that now is the time to take another look at the company. The company is a manufacturer of metal products for the non-residential construction industry in the U.S. Full description: click here
My quick review of the company is that they have good revenues, decent margins, are making a profit (on reduced sales) but had some major balance sheet problems. The main revolves around their debt structure. They were in default under their agreements and the latest extension was due to lapse in late November. Did you notice that I said “had” some major balance sheet problems. Their white knight, in this case Clayton, Dubilier and Rice (CDR), rode in and “saved the day”. Here is what NCS got:
- $250 Million Equity Investment
- Debt reduction of $323 Million
- Exchange offer for convertible notes completed
Here is what they gave up: 68.5% of the company. Shareholders got whacked, but now NCS has “the resources to sustain future growth” according to the press release announcing the deal. Click here to read it.
Now that the debt and liquidity issues have been resolved, where is the lift in the stock? Let’s look at the chart and see if one might be in the offing:
- MACD is giving a bearish signal - Below the zero line
- MACD, however, looks to be turning positive and if this trend continues could cross in the near term
- Stochastics are emerging from a strong oversold position. It appears that the stock could be under accumulation again
- Recent chart history suggests that the stock usually rallies from chart setups like its current one.
Since I typically only look at short-term price action, I am looking at NCS for a near term bounce. The company fundamentals have improved with the recapitalization by the private equity firm, CDR….in fact, that is a huge endorsement of NCS by CDR.
Read both reports to understand NCS well and watch the chart.!
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.
Oct
DSCO is back!
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Thankfully, not the 70’s Dance craze! I’m talking about a stock.
Discovery Laboratories, Inc. (DSCO) has been a popular topic on the boards lately. Especially in September when positive FDA news about their signature drug, Surfaxin, made the stock skyrocket. The news was good but not spectacular. It was merely an acknowledgment by the FDA that DSCO proposed improved testing program for Surfaxin was “reasonable”. Surfaxin is their drug that is aimed at treating respiratory distress syndrome in premature infants. In addition, DSCO received guidance from the FDA on the design of its proposed limited clinical trial.
But, the market saw this as a huge endorsement for the company who had been experiencing some LONG delays in the approval process for Surfaxin.
The chart tells a compelling story:
- Upside volume resulted in two large spikes…the first (before the news came out) drove the price to $1.10, the second (when the news came out) drove the price intraday to $1.70
- Since that time, the stock has given back much of that gain to trade today at $0.94
- It appears that the stock is basing at this level and has support at around 94 cents
- The MACD is still indicating bearishness
- Stochastics indicate the stock is oversold
According to Yahoo! Finance, DSCO had a 115.27 million-share float with a short interest float 14.71 million (12.79%) of as of Sept. 25, up from 12.46% the previous month. A relatively low percentage of 4.93% of the company’s shares were held by insider and another 36.8% was owned by institutions.
It appears that DSCO continues to be a playground for the short sellers. Traders should be aware of that fact for both positive and negative reasons. If the shares advance, it could unleash a torrent of buying to cover those shorts. If the short sellers sense weakness in the stock, they will short it into the ground.
Here is the chart:
The last item concerns DSCO to hang on long enough to get Surfaxin and other pipeline drugs approved and selling. Looking at their fins, I see a company that is set up for the long haul….good cash balances, great liquidity ratios, minimal debt. It looks like DSCO has some staying power which is crucial in the pharma and biotech sector.
Radar this one and watch it closely. It may give back more of its gain in the next few days, but I see a turn to the positive coming soon.
Good luck and good trading
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Oct
GEVI is back and BETTER than ever
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Stocks that I share with members rarely fall off my radar screen. I keep track of them and watch for pullbacks or further strength and see if they present profit opportunities for my members. Well, back on September 14th, I shared with my members a company that I thought was a “Gem”, General Environmental Management Inc. (GEVI.OB). It was a nice one day trade affording my members double digit gains on the day…..actually about 40% on the day.
All of their press releases since that point have been associated with making the shift to what they believe will result in faster growth and greater profits for the company. They are in the process of changing their focus which includes an acquisition strategy that will enable the company to grow at an even faster pace.
Here is a short list of what they ave accomplished recently, I am sure you will be just as impressed as I am:
9-21-09 GEVI Signs Letter of Intent to Acquire Santa Clara Waste Water
A definitive letter of intent to acquire Santa Clara Waste Water (SCWW), a profitable, 50 year old wastewater treatment business. As one of the top 100 privately owned non-hazardous wastewater utilities in the U.S., SCWW has treated more than 2 billion gallons of wastewater. The 9-30-09 PR stated that SCWW has over $8MM in “profitable annual revenues“. Read full release Here
9-30-09 GEVI Reports Progress on Plan to Expand to Water Treatment and Waste-to-Energy Markets
Tim Koziol, GEM’s Chief Executive Officer updated shareholders on the company’s progress and said“ With this profitable business (SCWW) and the addition of GEM’s sales, marketing, operational and regulatory expertise, we believe that we can grow that business significantly in the coming years. In addition, we are actively pursuing two other complementary water treatment businesses that will give GEM even greater capacity to scale revenue.” Read full release Here
10-5-09 GEVI Retains General Pacific Partners to Focus on Future Waste Water Acquisition Opportunities
GEM CEO Tim Koziol said. “We expect to close the….SCWW transaction by November 1, 2009 as part of GEM’s overall strategy to shift the focus of the business from hazardous waste field services to the fast growing water treatment and waste-to-energy markets. GPP has been a long time financial sponsor of GEM and has the know-how and resources necessary to find and conduct diligence on complimentary wastewater management companies that can help accelerate GEM’s move into the wastewater industry.” Read full release Here
10-5-09
I will continue to monitor GEVI to see how quickly they can ramp up revenues, but the thing I am really excited about is their chart
I alerted my members at 65 cents, GEVI broke through the next resistance level at 75 cents and fell short of the next resistance level of $1.00, but still had a strong close at 80 cents. Since that time, the chart has retraced from its high down to 43 cents. To look at the chart, it appears to be consolidating…..I don’t notice any panic selloffs or strong profit taking.
The chart is showing me the following:
- Stock has retraced its recent gains
- Volume is starting to come back into the stock
- The stock is oversold and could very well bounce off this level
- The MACD is showing a weak bearish signal
My crystal ball is in the shop, but GEVI looks like it could bounce.
GEVI has great ambitions and appears to be building a company that could be a major force in their industry.
Do your due diligence and I recommend putting this one on your radar right away this morning.
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Oct
Monday is the day that SPNG (or SPNGE) returns from the dead.
Who knows how everyone’s favorite penny stock will trade. Will it trade like the last big halt, GVBP, and zooooomm on the first day back? Or will it continue to flounder. SPNG has got so many problems…most of them are of their own making.
I, for one, will watch SPNG closely. I have had an AMAZING run of success predicting where SPNG will go. If traders had followed my recommendations, they could have made HUGE profits. I will accumulate those numbers from prior posts and then post them in the future.
But, today is for fun. It’s Friday….market is down and everyone is heading out for the weekend. I know that because I am, too. Flying to Oregon with the whole family to celebrate my Dad’s 83rd birthday and spend some family time with my sister, niece and other assorted family.
But, I digress…..Here is the funniest spoof I think I have ever seen. I laughed so hard, I almost gave myself the hiccups. The subject is SPNG and it is “wicked funny” as we say in New England. I apologize in advance for the strong language, but this is FUNNY!
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