American Power Corporation (TGMP)

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

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

Highly suspect!

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

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

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

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

Last Close:              $1.03

Short Opinion:      $1.00 - $1.10

Short Term Sell:    $0.90

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

Good Luck and Great Trading,

Jeffrey Dean

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

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

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stock market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

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.PK)

WARNING:  This is a highly speculative stock play

One of my members, Bill P., sent me an email last week about Calypso Wireless Inc. (CLYW.PK).  He said that it could be a huge payday for the right investor.  Having heard such pronouncements from many emailers over the years, I was highly skeptical.  I did my research and I am less skeptical.  However, this is a highly speculative play and should be viewed as such.

Here is what Bill wrote:

Calypso Wireless has significant patents for switching from towers to wifi on the fly.  They presently have a lawsuit against a major shareholder which will probably be settled by a mediator.  It would be more beneficial to go to trial, but they need to organize and go after T Mobile which has infringed on its patents.  Apple, htc, sprint, and motorola have all infringed on the patents.

T Mobile will be the first and are scheduled for court today.  They must submit their side of the argument today.  This will then go to December for court or for T Mobile to come up with a settlement which should be hundreds of millions of dollars.  Next would be the other companies that would follow suit.

Huge paydays are ahead for Calypso Wireless.  This was a $6.00 stock 6 years ago.  It could very easily be there before the end of next year, maybe sooner.  It should be moving forward from the .02 to .03 trading range. Most in the know investors look for this to be at least .50 cents by December.  Not a bad return. This will happen.  Calypso will clean up their internal problems in the next 90 days and as a united board of directors, they will take down the big guys and receive huge royalties. Could be a HUGE pop. (emphasis added by me)

Bill is an individual investor who runs a business.  My conversations with him lead me to believe that he is a serious investor….so I looked deeper into this stock and found that he may be on to something.

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!

The court cases - CLYW has a case against a former officer and shareholder, Drago Daic and his ex-wife Cathy.  According to what I have read, Drago was brought into the company to help “perfect” the patents.  Instead, he made a power grab and has laid claim to the patents themselves.  The case has been submitted to arbitration and the hope (from Bill and message board types) is that arbitration will pass on issuing a judgement and then the company can proceed with a court case to defeat Drago and his claims to the patents.

The second case (and most important) is the case that has been filed against T-Mobile.  This is the first of a number of suits expected to be filed against other cellular carriers.  This suit is expected to set precedent that T-Mobile infringed on Calypso’s patents and, by default, the rest of the cellular industry.  The financial ramifications could be in the hundreds of millions for CLYW.

The decline and fall of CLYW

The chart illustrates the collapse of CLYW and the fact that it has treaded water for the last several years.

JADE ART GROUP INC (JADA.OB)

This is a quick update on a stock that I have covered frequently over the past few months:  Jade Art Group, Inc. (JADA)

It looks like JADA could be in play today!

Yesterday, the stock saw a massive selloff based upon uninformed traders who saw that JADA’s revenues dropped by 50% over the previous quarter.  The selloff was completely reasonable given the news of the drop.  However, the press release issued by the company was interesting in the way it was presented.  The press release only talked about how the current 2nd Q was such an improvement over the previous year’s Q:

• Revenues were up 42% over the previous Q
• Gross profit was $1.9 million, compared to $1.1 million in the second quarter of 2009.
• Net income in the second quarter of 2010 was $1.1 million, an increase of nearly 200% compared to net income of $0.4 million in the second quarter of 2009.
• Basic and fully diluted earnings per share in the second quarter of 2010 were up $0.01 from $0.00 in the second quarter of 2009.

BUT (and that is a big but)….Revenues dropped over 50% from the previous fiscal quarter.  It appears, from looking at historical financials, that their business is cyclical.  Most traders seem not to be aware of that.

Here is the chart:

Yesterday’s big selloff is a great buying opportunity imo!  This is a great company that is steadily increasing EPS…margins are good, cash in increasing.  Cyclical companies get punished for putting out numbers like these for the second Q, but savvy investors take advantage.

The knife might fall further for today, but I believe that you will see JADA make a strong recovery soon.  Watch it closely for any turn.

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

Last Close:              $0.34

Buy Opinion:          $0.30 - $0.37

Short Term Sell:   $0.45

Long Term Sell:     $0.70

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market (Stocks under $5), or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Santeon Group, Inc. (UBCI.OB)

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

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

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

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

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

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

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

Let’s take a look at the chart

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

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

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

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

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

Last Close:              $$0.008

Buy Opinion:          $0.005 - $0.008

Short Term Sell:   $0.015 - $0.025

Long Term Sell:     $0.1 and above

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market (Stocks under $5), or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

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.

AISYSTEMS, INC. (ASYI)

I get calls from Investor Relations people all the time.  They all want me to know about their client, company X, that will be the next best….whatever.  They are all earnest and mean well, but I don’t always trust them.

One IR guy that I do trust brought me AI Systems, Inc. (ASYI).

He arranged for me to talk with the President of the company, Stephen Johnston, several times.  Despite Mr. Johnston’s understandable reticence to give me anything meaty, his passion for and confidence in his company came through clearly.   I shouldn’t get too excited because I have been lied to by many IR guys and company personnel.  But, I don’t think Mr. Johnston is lying.

I also think that ASYI is a company that traders should put on their radar.  It is a longer-term prospect given its chart and current situation (no rev’s, no customers and little cash).

Sounds like a deal you can’t pass up?  Right?

ASYI is a specialty software company that is targeted to the Airline Industry.  They are offering a suite of software services that “Can change the airline industry as we know it“.  Those words came out of Mr. Johnston’s mouth and I am quoting them.  Let’s look at what is behind his bravado.

Currently, airlines plan their overall schedules (route, crew, fleet and maintenance) in a process that closely resembles a Rube Goldberg machine.  For the largest airlines, it takes literally hundreds of personnel many weeks to create an overall schedule for the airline.  And, it takes weeks and weeks to create…all at enormous cost to the airline.

According to ASYI’s latest press release, “The end-to-end process (of creating the master schedule) is extremely time consuming, inflexible and often hinders an airline’s ability to achieve and sustain profitability. Utilizing current technologies to create an airline business plan and schedule has become a highly complex, expensive and often error prone process typically taking weeks to months to complete.”

If there are any deviations in the schedule (Weather, Flight Delays, Broken Planes, Icelandic Volcanoes), then the process must start again.   The Icelandic Volcano of 2010 is a perfect example of what I mean…ASYI believes their software could have saved the airlines MILLION$ during this crisis alone.  ABC News reported (read it here) that airlines lost billions ($200MM per day) while the volcano had air travel shut down.  According to Mr. Johnston, what airlines lacked was a way to quickly, efficiently and effectively change their schedules.  There was NO WAY given the current way that schedules are  constructed for airlines to change quickly.

That is what ASYI is counting on.  They have created several pieces of software (jetEngine Business Planning Software (BPS) and jetEngine O/S) that could change forever the way that airlines manage their business.

The BPS software has been released and is currently on the market.  However, no sales have been reported yet as the company is “working with several major airlines” who have expressed interest in both the BPS and O/S software.  According to the company, the biggest impediment to full adoption is the airlines’ decentralized decision making structure and the cost of the software.  The BPS software will cost airlines $1MM annually (which is a big number to swallow) and the O/S software is double that.  The O/S (due out in 2011) will also include a $0.40 per passenger fee.

However, ASYI is counting on a cost/benefit analysis that clearly shows how much money airlines will MAKE using their software.  Mr. Johnston told me of a collaborative study that was done with a major domestic airline.  The airline gave ASYI all of their schedule data for a previous year and the company then ran those numbers through their program.  According to Mr. Johnston, the use of ASYI’s software would have resulted in an increase in EBITDA of $300 MILLION dollars.

The benefits to ASYI are clear: The passenger fee alone could mean millions upon millions to ASYI since the major airlines routinely fly 100 MILLION passengers annually.  In addition, it is important to note that there are well over 1,000 passenger airlines who are potential customers for ASYI’s software and at a million dollars per installation that could mean big dollars for the company.

Sounds great, but what’s the catch?

The catch is getting someone to buy the software.  ASYI has been around for several years and seemingly had it made a few years back with the signing of a $35 Million dollar contract with AeroMexico.  They were going to be the test bed for the new software.  It looked like everything was going to turn out well for ASYI.  Then the global recession hit the airline industry hard (AeroMexico too) and ASYI lost a great deal of momentum as well as the perfect test bed for their product.

The company has adopted a bunker mentality…dumping payroll (firing their CFO and COO recently) and keeping operations “lean and mean”.

The chart isn’t much help

With a bloated capital structure (over 90 Million shares in the float), I am curious how the company will generate trader interest.  They have done some promotion in the past, but that didn’t seem to lift the stock for very long.  I have a feeling that it will be news that drives this stock.  If they are able to start closing some customers in the near term, they might be able to reach their goal of being cash flow positive by 3Q 2011.

Bottom Line:

If I had a “Top Stocks for the New Millennium” list, I would put ASYI on it.  It is not a great stock to trade now (and that is management’s fault for large part), but the stock is all about the future.  I would like to see management and their investment bankers work the price down and tighten up the bid/ask spread.  Very few traders want to buy a software company with a market cap of $66MM that has no clients, no revenues and little cash in the bank.

HOWEVER, I am going to watch ASYI because I think it has real “home-run potential” .  I will watch with interest to see if the company can truly “revolutionize the airline industry”.

I will keep you posted.

Here is what I am looking at for entry/exit points (There is a little bit of fantasy about these numbers since ASYI doesn’t trade predictably yet)

Last Close:              $0.49

Buy Opinion:          $0.20 - $0.30

Short Term Sell:    $0.75

Long Term Sell:     $1.50

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market (Stocks under $5), or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

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; Investor Soup covered this company under an expired promotion contract in June 2010. 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.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Global Cash Access Holdings, Inc. (GCA)

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

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

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

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

The Fundamentals

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

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

The Chart

The Wild Card

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

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

Last Close:              $4.35

Buy Opinion:          $4.00-4.75

Short Term Sell:   $6.00

Long Term Sell:     $8.00 and above

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average trader is aware of them.

—————————————————————————————————————————————

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.

JADE ART GROUP INC (JADA.OB)

I blogged JADA  a few months back and hit the nail on the head with my call.  The chart looked to me to be setting itself up for a move and I was right.  The stock delivered almost a 50% gain over a week’s time.

I was very pleased with myself and with JADE ART GROUP INC (JADA.OB).  I think the time is right to take another look at JADA.

Jade Art Group Inc. is a seller and distributor in China of raw jade, which has uses ranging from decorative construction material for both the commercial and residential markets to high-end jewelry.

The stock itself is currently trading at around $0.36 and its prices have swung from a 52-wk. low of $0.15 to a high of $1.09.  The stock itself is not having a good 2010 being down 45% for the year and 67% from its April 5th high of $1.09.

I am not seeing a near-term pop with JADA due to any technical analysis.  In fact, the momentum (and volume) has plateaued.  But, that does not mean that JADA is not a good trade.

The chart is showing that JADA is trading near the 2010 base of around 35 cents.  This is the base that the stock used in its April move and could with its next move.

I am willing to wait around to let JADA be rediscovered.  The company is in strong financial condition with a strong balance sheet and profitable operations.  In fact, as of March 31, 2010, Jade Art Group had cash and cash equivalents of $5.7 million, up from $147,392 as of December 31, 2009. Current assets and current liabilities as of March 31, 2010, were $11.7 million and $3.2 million, respectively, yielding working capital of $8.5 million.

JADA has made it known they are looking to diversify (vertically within the Jade business and beyond) and with strong financials and strong balance sheet, they could easily snap up another company.  All it is going to take for JADA to fly again is the next earning release, news of an acquisition, traders rediscovering it, etc….

The risks are small, but it is good to be aware of them.  JADA has only one source for its Jade (albeit on a 50-yr. exclusive contract) and a limited number of customers (under 10).  Any political upheavals, market glut, government intervention (it is China after all) could negatively impact the stock….I don’t see that happening however.

I think I will be right on JADA again!

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

Last Close:              $0.38

Buy Opinion:          $0.33 - 0.45

Short Term Sell:   $0.65

Long Term Sell:     $1.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks,micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Provectus Pharmaceuticals, Inc. (PVCT.OB)

Today’s penny stock pharma pick is Provectus Pharmaceuticals, Inc. (PVCT.OB).  It is another one of those pharma plays that has what I look for in a pharma company:

1.  Promising Drug Candidates

2.  Cash in the bank

3.  Manageable debt

4. Beaten down chart

PVCT, a development-stage pharmaceutical company, through its subsidiaries, engages in developing, licensing, and marketing over-the-counter (OTC) products, prescription drugs, and medical device systems in the fields of dermatology and oncology.  Provectus Pharmaceuticals has developed various intellectual properties and technologies in the areas of imaging, medical devices, and biotechnology. The company was founded in 2002 and is based in Knoxville, Tennessee.                                                                         source: Yahoo! Finance

PVCT has two major drug candidates; PV-10 which is a therapy for metastatic melanoma and other cancers and PH-10 which is a topical treatment for a wide range skin conditions (psoriasis, atopic dermatitis, actinic keratosis, and severe acne).  The company also is designing a suite of medical device systems include therapeutic and cosmetic lasers for cosmetic treatments, such as reduction of wrinkles and elimination of spider veins, and other cosmetic blemishes; and photoactivation of PH-10 other prescription drugs and non-surgical destruction of certain skin cancers

Rather than regurgitate/update how the company is doing, I will direct you  to their latest PR that updates shareholders on the company’s progress (sounds positive, by the way) - click here for link.

What is important to know is that PVCT has the financial wherewithal to make it through this next round of clinical trials.   The company has come out and said they have “ample cash” and with no debt, I think that PVCT might be a good position trade (several months probably).

Insiders own almost 17% of the company, but they haven’t attracted much institutional interest.  Their latest PR (linked above) intimates that could change.

Let’s take a peek at the chart:

According to the company, they are planning a major announcement in conjunction with their Australian trials at Melanoma 2010 Conference in Sydney, Australia, November 4-7, 2010.  Good news there could make this stock jump.  In fact, any news could make this stock jump.  My crystal ball is telling me to expect good news, but there are no guarantees.

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

Last Close:              $1.05

Buy Opinion:          $.90 - $1.15

Short Term Sell:   $1.45 (45% gain from $1 purchase price)

Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

BSD Medical Corporation (BSDM)

At $1.00, BSDM is trading near the bottom of its 52-week range.  The chart is telling me that BSDM might be ripe for a rally (or possibly a full trend reversal).

I look at this penny stock’s chart and see several things that lead me to believe that.  So, let’s start with the chart!

I look at a company whose stock has been in a decline for several months, is hitting a 52-week low with a bearish MACD and oversold stochastics…and I think this is a good deal?  I must be out of my mind.

I’m not…despite rumours to the contrary.  BSDM is a financially strong company (more on that later) that, based upon chart alone, could be ready to rally.  I am looking at recent chart candles and am seeing the setup for a rally.  Take yesterday’s “Doji” for instance.

Stockcharts.com says that Doji’s are “After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

I would expect to sellers to try and hit BSDM a few more times, but I think buyers will win the day.

BSDM also has a strong balance sheet going for it.  It has over $7 Million in cash, no debt and strong ratios.  The company can’t seem to turn the corner on profits recently, however.  The losses are not significant enough to cause any going concern issues.   This strong balance sheet gives BSDM time to “right the ship”.

I would not be surprised if BSDM didn’t get bought out.  I have nothing concrete about that….just a hunch.  Cash-rich, a smaller player in a larger market, mature products…etc, etc…

Have a great day in the market,

Jeffrey Dean, Editor

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

Last Close:              $1.00

Buy Opinion:          $0.90 - $1.05

Short Term Sell:    $1.50

Long Term Sell:     $2.00+

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.