Emisphere Technologies, Inc. (EMIS.OB)

It is always a crap shoot when a trader trades pharma companies…..EVERY company has the next big drug, EVERY company is about to be swallowed up by Big Pharma for huge multiples, EVERY little pharma company is about to sign a out-licensing deal with Merck, Pfizer or other Big Pharma.  Unfortunately, most of those dreams never pan out.

Such is the case with Emisphere Technologies, Inc. (EMIS.OB). They have high hopes for their proprietary Eligen® Technology and are developing oral forms of injectable drugs or poorly absorbed compounds.

However, their “promise” appears to be wearing thin with investors.  I got a real kick reading the boards on this one.  It seems that management has been promising great things for too long with no results.

This stock is not about fundamentals, or potential or big news.  It’s about MOMENTUM.  EMIS has got it!

Take a look at the chart

Every meaningful indicator is pointing up…..how long the run will last is unknown.

• MACD is still below the zero line but has strong positive momentum
• Price has recovered from its 3-month low of $1.23 on 3-15-11
• Stochastics are increasing (but not overbought)
• RSI is doing the same
• On Balance Volume is recovering nicely

Momentum play, anyone?

EMIS suffers the disease of many small Pharma companies…..crappy balance sheet, no income and uncertain prospects.  They company has postponed the release of their 4th Q numbers so they can complete the audit.  I don’t know if I would stick around in the stock to find out how their last Q was.

Resistance is at $1.70, $1.80 and $1.95 with the 50 and 200-day MA’s at around $1.84.  Make sure you set your stops tight.

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

Last Close:              $1.59
Buy Opinion:          $1.55 – $1.65
Short Term Sell:   $1.95 (Watch and see if the MA’s will act as support on the way to $1.95)
Long Term Sell:     $2.50+

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  No positions

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.

Advanced Analogic Technologies, Inc. (AATI)

Today will be a very tough day in the market.  With the situation in Japan and the plunging Nissei, it could mean some challenges to the rest of the exchanges around the world. (I don’t want to sound callous speaking about market conditions when my heart is breaking for the millions of Japanese people affected in this earthquake/tsunami….Japan, and her people, are in my prayers).

Today’s focus stock is Advanced Analogic Technologies, Inc. (AATI).  AATI is a stock that appeals to my CPA sensibilities.  It is a very healthy company, balance sheet-wise, but is struggling to make a profit.  With such a horde of cash (over $2.00/share), they will have some time to get it right.  However, if they get it right, I am not likely to be there. But, as a swing or position trade, AATI makes sense to me.

This stock looks it could make a short term move just based on the chart!.

To the Chart!

I loaded a lot more indicators and trend lines in this chart just because I wanted confirmation of what I am seeing.

I see a stock that has been hammered and has lost 20% of its value from the January high.  The trend is clearly bearish, but the confluence of indicators leads me to believe that AATI could rebound.  This stock could have further to fall, but I would watch for any momentum shifts.  That could be a prelude for a short-term move.  You will have to see if the company puts out any meaningful news to help prolong any recovery.

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

Last Close:              $3.82
Buy Opinion:          $3.70 – $3.88
Short Term Sell:    $4.40 (be happy with a 20% – 25% gain on this one)
Long Term Sell:     $4.99+ (I think this is a pipe dream given the way it has traded lately)

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: Neither Jeffrey Dean nor BlueWave Advisors, LLC hold positions in any securities mentioned in this article and has no plans to initiate any positions within the next 72 hours.

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.

Adeona Pharmaceutical (AEN), Western Lithium (WLCDF),  Sustainable Maritime (HQS), Celldex Therapeutics (CLDX), American Power (TGMP), Calypso Resources (CLYW), Adamis Pharmaceuticals (ADMP), Jade Art Group (JADA), AI Systems (ASYI)

The title of today’s blog is one of my favorite quotes of all time.  First attributed to Dizzy Dean (the ace pitcher for the St. Louis Cardinals in the 40′s), this quote sums up how I feel about my stock picking track record.  I don’t claim perfection, but I am pretty darn good.

A little review:  I was once a stock promoter (I admit it)…the kind that Tim Sykes loves to slam.  No longer, though.  My site is now 100% independent and unbiased.  I look for Stocks under $5 (small caps, microcaps, penny and sub-penny) that I believe might offer a “above-average” return.  The fact of the matter is that I love hitting home runs.  Singles are nice, but home runs are great for my ego and for my members’ bank accounts.

I am a swing and position trader.  I may have a short-term idea occasionally (usually a short), but most of my ideas are longer-term.  I will never be a buy-and-hold investor.  I have seen too many portfolios implode because of that misguided theory.

On investimonials.com, I recently got taken to task by SPUR20 and he said that he  ” just cant trust (me) because you have no track record and only talk about the OTsCams of the world”.  Is that so?  Let’s just look at how I have done over the past few months.

The following is a summary list of my picks since August 11th.  I will show the co. name, ticker (hotlinked to my original blog) and some general comments.

Adeona Pharmaceuticals (AEN) – This stock is still in play for me.  I had a long phone conversation with the CEO yesterday and I believe that much better days are ahead for this undiscovered pharma play.  It has several drugs with blockbuster potential and at least one drug that could see approval in the next 6 to 9 months.  It is trading for only 75 cents and could be an explosive gainer over the next 6 months to a year.

Western Lithium (WLCDF) – I am still very high on this stock.  It is a pure Lithium play and NOT a scam….as so many are.   I blogged it at $1.00, said it would fall near term (and it did) and then said that it was a GREAT long-term hold.  It is currently trading at $1.25 and could go much higher.  The company could be a $10 stock in a year or two imo.

Sustainable Maritime Industries, Inc. (HQS) – I blogged it at around $2.80 and it recently topped out around $3.10 (only a 10% gain so far).  The chart is showing the stock is overbought, but with the bullish MACD (that is crossing over the “0″ line) this stock could run farther.

Celldex Therapeutics (CLDX) – A great pick!  CLDX ran to almost $5.00 intraday from my September 9th pick (40+% gain) in one month.  I hope you took profits on the way up, because now that the stock has closed the bullish gap it may trade sideways or down for a few trading sessions.   The stock surged on promising news on one of their brain cancer drugs.  Who knows what the future might hold for CLDX.

American Power Corporation (TGMP) – I knew this was going to be a good stock to short.  I just didn’t know when.  I blogged it at $1.04 and it pumped itself all the way up to $1.25 before dropping to $0.80 intraday just 9 days after my alert.  It is a stock that I would avoid like the plague.

Calypso Wireless (CLYW) - My shining star, my rocket ship.  CLYW has made me look like a genius…and the ride may not be over.  I first blogged this one at $0.02 (and bought some myself).  The stock took off zooming to $0.17 intraday (an 750% gain).  Profit-takers took much of the profit off the table almost halving the stock price, but it has since made a strong recovery.  I did what I tell all my traders to do.  I took my investment and some profit off the table and am still holding a substantial stake.  I am playing with the house’s money and loving it!

Adamis Pharmaceuticals (ADMP) – This is one of those stocks that when it takes off, it will take off big.  Shorters still torment the stock, but I believe in it firmly.  I have positions in several accounts and am still holding out great hope for it.  The lack of financing continues to dog the company, but I am hoping that something will be announced soon.  The stock has traded up and down from the $0.25 that I blogged it at, but I am hoping the company can start squeezing the shorts with some good news.

Jade Art Group (JADA) – JADA is a great company that unfortunately is a Chinese company…a sector that is depressed right now.  However, JADA is now making another move.   From my alert price of $0.34, the stock recently hit $0.42.  When the China sector comes back, this stock could really fly.

AI Systems, Inc. (ASYI) – I love the technology and the market potential, but the glacial pace of the stock has me impatient.  I did not put any of my cash in this one, because of the uncertainty of when they were going to “take off”.  ASYI is one that I have on my radar, but not in my account.

Disclosure:  Long CLYW, VPER, ADMP

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.

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.

Calypso Wireless Inc. (CLYW)

The story of Calypso Wireless, Inc. (CLYW) is being written in BIG LETTERS right now.  CLYW has been an absolute rocket over the past few days.  I was correct in my call on CLYW but I had no inkling the stock would run so far, so fast.

My blog summary stated “High risk could mean high reward with this highly speculative stock.  The other wild card is timing.  The $64,000 questions are “When is CLYW going to take off” and “Is CLYW going to take off.”.  You can read my August 25th blog by clicking on the link in this sentence.

To Review

Calypso Wireless, the company - According to CLYW’s website, they are the company behind the ASNAP™ technology for which it was granted U.S. Patent #6,680,923 titled “Communication system and method” www.uspto.gov (search U.S. patent number 6,680,923), which covers the seamless roaming of voice, video and data between Wide Area Network access points, such as cellular towers (GSM/GPRS/EDGE, CDMA, WCMDA etc.) and short-range Internet access points (such as Wi-Fi, Bluetooth, etc.).

According to what I have read, the entire mobile backbone around the globe is built on this technology.  The ability to switch access points is crucial to our current ability to “roam” and receive date and voice seamlessly.  Again, the story is that CLYW was in such bad financial shape that many cell carriers just used the technology because it appeared that the company would be going out of business.  It might be time for them to pay up!

“Fun, (almost) Free and Full of Potential – CLYW”

That was the title of my blog and CLYW has not disappointed.  My call was when it was around 2 cents and yesterday it closed at 7.4 cents.…a 270% gain

The amazing chart on CLYW

Is the run over?

With such a strong move, you would expect traders to be taking their profits off the table.  I might even take some of mine off.  However, reading the boards and any information on this deal I can gives me a feeling that traders are targeting much bigger numbers on this deal.  The boards are full of traders dissecting legal documents to determine just how real CLYW’s patent claims are against T-Mobile.

I would suggest that you watch closely what this stock does over the next few days.  Will the bullish run continue?  I sure hope so, but I could see this pulling back (which might be a good time to get in).  Read the boards remembering that much of what you read is crap and watch the chart.  CLYW could have farther to run.

My biggest regret

I only bought this in one of my accounts.  All I can say is that my oldest son will be going to a better college since I bought shares with his college money.

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  Long CLYW

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.

China Nepstar Chain Drugstore Ltd. (NPD), China Jo Jo Drugstores, Inc. (CJJD) and China Yongxin Pharmaceuticals, Inc. (CYXN)

Of course, I meant “LEGAL” drugs……The china pharmaceutical industry is an exciting sector with a great deal of competition and no true national chains.  The market is, in fact, highly fragmented and while NPD has over 2,500 stores, it owns only around 1% of the overall market.

These stocks are three of the most popular ones and they have been penny stock darlings for quite some time.  They are all volatile stocks that could be in play at any time based upon news or general China sentiment

China Nepstar Chain Drugstore Ltd. (NPD)

An earnings release this week could make things interesting for NPD.  It is scheduled for August 11th…this Wednesday.  The stock has been on a flatline for the past several months forming a durable base at around $3.  The bollinger bands have formed a tight convergence around the stock which could portend some move off this base.  Here is the chart, so you can see what I mean.

NPD is phenomenally profitable and has a very strong balance sheet.  Debt is classified as short-term debt and is significant ($68 Million), but cash ($200MM) and other debt-coverage ratios make the high debt a non-factor.

China Jo Jo Drugstores, Inc. (CJJD)

The story for CJJD is all about growth.  They are the smallest of the three companies profiled today and on the largest growth curve, but growth is easier when you are going from 29 stores (a/s March 2010) to 60 (projected by March 2011).  Having said that, CJJD is also showing (unaudited) income statement numbers that are impressive….55 MIllion revenues for ye 3/31/10 with 12.7 EBITDA.  Balance sheet is not as strong, but there are no big concerns.

China Yongxin Pharmaceuticals, Inc. (CYXN)

CYXN is a bit different from the other two because of its range of services and products…in addition to running its 79  retail stores (a/o 12/31/09), they are also heavily involved in pharmaceutical distribution as well as selling their own line of herbal remedies and medicines.  Their unaudited numbers are good, too.  Not as good as the other two, but still respectable.  For the y/e 12-31-09, the company booked $47 million top line and showed EBITDA of $7.7 million.

I would recommend staying away from CYXN until the volume issue is resolved (I have calls out to the IR firm) to try and get some details on their recent trading patterns.  CJJD is a potential short to me, but on such low volume, any position is a HUGE risk.  NPD has earnings coming out this week.  There has been no runup to earnings, so I can’t even begin to call how this will trade on Wednesday.  I like NPD, personally, but will not be trading it until I know more.

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.

HEMA, FVRG, TGLN, VIVK, TADF, HOMS, RMLX, AMCG, CBAI, ELCR

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:

1. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology.
2. 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

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.

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.

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.

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.

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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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!

I am getting sick of talking about SPNG.  I blog about it monthly.  However, my members have made serious gains trading this long and short….I have recommended both.

Come September 22nd and SPNG says “goodbye” to the day trading world.   That is the day that the reverse stock split become effective and for every 100 shares of SPNG you have, you get one.  At the time it was announced, the stock was trading around 20 cents.

Boy, did the short sellers get rich.  My last blog (read it here) I talked about how SPNG was ready to be shorted and had put out a press release essentially taunting the short sellers in the penny stock (read release here) .  It takes large cojones to spit in the face of traders. Guess what, the short sellers won!  The PR said that even the most recent short sellers were at an average of 16 cents….guess what?  The penny stock is now at 9.3 cents and the short sellers are loving it.

Here is SPNG’s chart:

Goodbye SPNG.  I will miss you.  You were fun and profitable for me.

Traders will miss SPNG, too….for about 5 minutes.  And, then we are off looking for the next play, the next hot thing and we will forget all about you.

If things don’t work out with the “Big Boys” of Nasdaq,  SPNG, you are always welcome back in penny stock land.

It seems that I am writing and blogging about SPNG about once a month.  This is my third blog on SPNG since May and we also did an in-depth research report on SPNG a few months back.  (Read #1 blog, #2 blog and research report here).

SPNG continues to be the darling of the chat rooms and the number ONE penny stock. Other small cap and penny stocks have come and gone (BEHL, HEB, BIEL, ATNO, etc…), but SPNG perseveres.  When I first wrote about SPNG back in April, I was impressed by the strides that they made turning a sponge into a cash flow machine!  I am still impressed!  SPNG has given its investors a feast of good news over the past few months.

The stock has made an impressive run-up over the last week running from 14 cents a week ago to close yesterday at $0.2130.  The chart still continues to be SPNG’s friend, but there are signs of cracks in SPNG.  Is the stock becoming overheated?  Is it going to fall like it did before when it fell from 28 cents? I think you can bet on it. Short sellers should be ready if the cracks get any larger.

Here is the chart:

Notice that the RSI and Stochastics are above upper limits and that indicates that the stock is overbought.  Notice also that the previous high ran in an overbought range for several weeks before falling.  Notice also that volume has picked up, too.  Further analysis that I did shows me that the Accum/Distribution has turned neutral and the stock 13-day MA has flattened too.  The MACD is still strongly bullish, but it has lost a little momentum.  SPNG may still run for a few more days showing some strength. (Note:  SPNG was down only slightly in after-hours trading)

That means to me that the penny stock is ready for a correction. One wild card (and something that I am surprised that the IR people put out)  was their latest press release.  They made a big deal about a report concerning short positions in SPNG.  Read it here. The report points out the 99% of short sellers in SPNG are “underwater” and the assumption they want everyone to have is that SPNG is not going down (and those short sellers are screwed). Their average cost is 16.3 cents which is not that far out of the money.  Are these short sellers going to get squeezed and start to buy in order to close out their positions?  If so, that could unleash a flood of buying that would further extend the stock.  I am not sure that is going to happen.

The piece of information that has been missing from SPNG’s press releases lately has been info on the recapitalization they announced some months back.  According to my sources, SPNG will accomplish that before the end of the year by qualifying for the NASDAQ or American exchanges. They could do it by merging with an existing company, doing their own reverse stock split…any number of ways.  With all of the eyeballs on SPNG, I am guessing that it will have a positive impact on the share price.

Now, however, I think that SPNG is setting itself up for a correction…just how big remains to be seen.

If it continues to advance then ride the momentum (trend is your friend!), but keep a tight stop on it. It is  still a worthy small cap stock and company.  Yes!  Is the market and traders making a big deal about a company that makes SPONGES?  Yes!  Does SPNG want to leave the penny stock world behind?  Yes, most definitely Yes!

I think they will be around long enough for us all to make lots of money on SPNG.  I know I have already…and plan to again.

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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.

Today’s penny stock screen gave me the name of a company that I believe has some real potential.  It is a high-risk, high-reward small cap stock play that may take a few days or weeks to realize its potential.

Enough intro…  The stock is Adamis Pharmaceutical Corporation (ADMP) and it is a penny stock that is beaten down from a chart standpoint.  There are going concern issues, concerns about the ability to fund the development and clinical trials for their suite of anti-viral drugs. and not a lot of good news on the boards.

To the Chart!

The chart looks both good and bad.  The MACD is bearish. but not overly so.  Stochastics indicate an oversold position, but to me the most telling statistic is volume.  Look at that volume!  That indicates to me that other larger players are in this stock.  If volume can remain strong and the IR people can put out some meaningful PR, this stock could fly.  The Bollinger Bands have narrowed and it is trading at the lower bands.

The wild card for this stock is contained in the June 23rd PR (read it here).  The company announced that it had begun shipping its first product:  pre-filled epinephrine syringes  (PFS) (Epinephrine Injection USP 1:1000.  According to the company, they will quickly capture a significant percentage of the $200 MM Epinephrine market with a product that is superior to what is already on the market.  I always take such pronouncements with a grain of salt, but I will be interested to see PR related to this product launch.   The company realizes that this product launch has to be successful for so many reasons:  current cash flow, good PR, showing investment community they are viable, etc…

Given what I had said about the precarious financial condition of the company, the obvious question is “what about the downside?”  While I did not get hard numbers or revenue guidance out of the company when I called them, it was clear that they believe they have turned the corner with their EPI product.    Without the release of any financial info or guidance, I  recommend that you keep a tight stop on it if numbers disappoint.

Definitely a good radar penny stock.

SpongeTech Delivery Systems Inc. (SPNG) designs, produces and markets unique lines of reusable cleaning products for car care, child care, home care and pet care usages. These sponge-like products utilize SPNG’s proprietary, patent (and patent-pending) technologies, and other technologies involving hydrophilic (liquid absorbing) foam, polyurethane matrices, or other ingredients. The Company’s sponge-like products are pre-loaded with specially formulated ingredients, such as soap, conditioner and/or wax that are released when the sponge is soaked and applied to a surface with minimal pressure. SPNG is exploring additional applications for its technology in the health, beauty and medical markets. It plans to globally brand its company as America’s Cleaning Company. The Company was founded in 1999 and is based in New York, New York.

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Featuring S’ deal with Ericsson; GD’s 5-year contract with NASIC; RGS’ credit upgrade; and LMT’s $33M training contract.

Today’s Stock Alerts include: Sprint Nextel Corp. (NYSE: S), General Dynamics Corp. (NYSE: GD), KB Home (NYSE: KBH), Regis Corp. (NYSE: RGS) and Lockheed Martin Corp. (NYSE: LMT).

Sprint Nextel Corp. (NYSE: S) – S Enters into 7-Year Innovative Network Services Deal with Ericsson

Sprint Nextel Corp. (NYSE: S) recently announced it signed a seven-year agreement with LM Ericsson, in which it will transfer the operation of its wireless and wireline networks to Swedish telecommunications equipment maker LM Ericsson, an agreement that would put the company ahead of its competitors.

Through this unique wireless and wireline network deal, valued between $4.5 and $5 billion, Ericsson would help Sprint improve its operational efficiencies, with the latter transferring about 6,000 its employees later this year to an Ericsson-owned subsidiary.

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I can’t stand cigarettes.  Let me get that said upfront.  I hate the smell of cigarettes and the stench that they leave on clothes.  When I used to visit my Mom (who smoked like a chimney),  I would leave my clothes in my car and only bring in what I was wearing that day.  The clothes I was taking off  were put in a plastic bag to keep the stench in.  Get my drift?

At the same time, I believe that it is someone’s right to smoke if they want to. However,  I reserve the right to be grumpy or speak my mind to a smoker if they are being rude or inconsiderate.

The company that I am highlighting today has a product that appeals to smokers and non-smokers alike.  It is Smoke-Free Innotec Inc.  (SFIO).

SFIO has been a darling in our chat room for several weeks.  AND NO WONDER!  In June, the stock came from nowhere (1.25 cents) and rocketed to 55 cents intraday, a 1,400% increase in the matter of just a few days.  For those who caught this rocket, it probably made their year.  It wasn’t like SFIO didn’t give some warnings that it might rise.  In late March, the stock had rocketed to 25 cents  from 5 cents.  The difference on the latest run is that SFIO didn’t drop as much.  It is trading now at around 11.5 cents.

The chart is actually telling us that the stock is slightly bearish.  It has been trading sideways for a the month of June, but has high volatility.   That trading range has been from a low of 7.5 cents to a high of 12.5 cents so far in June.

What does SFIO do?  They are touting the next generation of cigarette, a safer, more socially acceptable way to get the nicotine that smokers crave.   SFIO has come up with a “nicotine delivery system” that is designed to look like a cigarette, but is smoke-free and tobacco-free.  You can review it yourself at their site.  It is a terrible site, but it has a great deal of info.  I will update my readers over the next few days and weeks about this stock. In my talks with company officials, they state emphatically that they are not a competitor for cigarettes.  They are marketing themselves to those smokers who want a healthier alternative or those who want to enjoy nicotine in prohibited areas:  restaurants, public transportation, offices, etc…

I am recommending that everyone put this stock on their radar list, like I have.  Keep in mind that the risks are still high for the company.  SFIO has no revenues, no current orders, but is self-financing and has no appreciable debt.   The company is starting simultaneous product tests in both the U.S. and Belgium in the end of July and plan to roll out their products worldwide by the fourth quarter of 2009 if those tests are successful.

I had alerted my subscribers to SPNG at 2.1 cents back in early May.  In the same vein, I think SFIO bears watching.  This stock may have some running to do over the next few months.  Whether it becomes the next Phillip Morris I can’t say, but it might worth a few good puffs (sorry, couldn’t resist a smoking pun).

Featuring NOK’s $650M purchase of Nortel Networks, GT’s $60M write-down for Q3; DTV’s market position; CTIC’s scheduled data release for its lymphoma drug candidate; KO’s performance in the recession; and AUY’s immediate listing on the FTSE Gold Mines Index.

Today’s Stock Alerts include: Nokia Corp. (NYSE: NOK), Goodyear Tire & Rubber Co. (NYSE: GT), The DIRECTV Group Inc. (NYSE: DTV), Cell Therapeutics Inc. (NASDAQ: CTIC), The Coca-Cola Company (NYSE: KO) and Yamana Gold Inc. (NYSE: AUY).

 Nokia Corp. (NYSE: NOK) Stock Alert – Nokia Siemens to Buy Nortel Networks Wireless Operation for $650 Million.

 Nokia Corp. (NYSE: NOK) announced this weekend it will buy Nortel’s wireless operations for $650 million.  The deal to buy Nortel’s LTE and CDMA assets provides Nokia a strategic opportunity to enhance its presence in North America, the company said.

Nokia’s purchase must now be approved by U.S. and Canadian courts because of Nortel’s bankruptcy status, Nokia said, and also stating it anticipates approvals of both courts by July.  The company characterized the acquisition of Notel’s wireless operations as “a significant step towards strengthening its leadership” in LTE wireless technology. continue