Happy Labor Day weekend folks! I hope you all get a chance to enjoy your time away from your jobs, but if you still want to check out a few stocks for Tuesday – I can help with that!

Two stocks that could be receiving a massive encore are Federal National Mortgage Association (OTCBB: FNMA) and Freddie Mac (OTCBB: FMCC) and both stocks were up over 10% on Friday. It turns out that the The Federal Housing Finance Agency is suing 17 major banks for almost $200 billion bucks and these stocks could get a piece of that pile of cash! Checkout the charts… It looks like there could be a good amount of room on both of them, but especially FMCC!

Make sure you SIGN UP for my FREE EMAIL ALERTS! Recent Article Winners:CIGX 75%, CRWV 172%, LGFTY 198%

One stock that is starting to get its groove back irrespective of the market is a Chinese e-commerce clothing company called Mecox Lane Limited (NASDAQ: MCOX). Trading as high as $18.50 at its IPO debut last year has fallen to as low as $1.43 on August 26! Since then, MCOX has been on a major bounce mission and is turning into a positive reversal real quick! The only problem I see is the stock could be overextended at this point, so you will want to watch this one for a possible pullback.

The technology-based company Flow International Corp. (NASDAQ: FLOW) that provides waterjet cutting, surface preparation, and cleaning solutions has steadily dug itself out of its hole over the past two years to produce a solid net income of $766k. This stock is also a little overextended and it might be wise to watch for a further pullback – though it looks tempting at these levels!

I think this next stock is total junk, but Crowne Ventures Inc (PINK: CRWV) does actually look like it could bounce a little bit here. Of course, that is only if whoever is holding the majority of the “company’s” shares doesn’t decide to drop all of them on investors’ heads…

The Bottom Line

Be smart out there and only invest money that you can risk… I hope all my readers are able to make some solid profits over the next month even though this is one of my least favorite months for trading/investing. You may want to pick your trades with a little more caution than usual, but there are always some stock/stocks that will move regardless of the macro environment!

Make sure you SIGN UP for my FREE EMAIL ALERTS! Recent Article Winners: CIGX 75%, CRWV 172%, LGFTY 198%

Good Luck,

Ian Decker

Disclosure: No Position

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 opportunitiespresent 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.

ThermoGenesis Corp. (KOOL)

I like the alliteration with this stock ticker.  It’s fun and memorable.  It is also a darn good stock: ThermoGenesis Corp. (KOOL)

Here is my edited version of the description from Yahoo! Finance:  ”ThermoGenesis Corp. operates as a supplier of products targeting the worldwide adult stem cell market. It offers devices that enable the collection, processing, and cryopreservation of stem cells and other cellular tissues from cord blood and bone marrow used in the practice of regenerative medicine.”

KOOL has a market cap of only $32.86MM, share price of $2.01, Cash of $13.55MM ($.82/sh) and NO DEBT.  Quarterly burn is low compared to total cash ($800K last Q) and, while the company is not profitable, the losses are minor.

KOOL’s chart has been a wild ride in 2011…..the stock started the year around $4.00 before dropping to a 2011 low of $1.95.

Is the time right to play KOOL?  Let’s check the chart.

KOOL is off almost 50% from its 2011 highs and appears to have put in a bottom (support) around $1.95.  That should be your stop loss…..if you play this one.

The chart is showing:

1.  A recent selloff is petering out

2.  MACD is bearish, but without much momentum and is “tickling” the zero line.  Any good news and this stock could quickly turn bullish

3.  Stochastics are oversold and could add some “oomph” to any rally

The Bottom Line

KOOL seems to be a reasonably safe play to me.  The strong (and clean) balance sheet appeals to my accountants personality.  The industry (Stem Cells) that it is most closely associated with is a highly volatile one and, while depressed currently, it could come roaring back any time.  Just let President Obama make another stem cell speech and this stock could zoom.  I can’t see much negative.  With announcements of FDA approvals, new markets being opened up in India and China, successful capital raises….the news is mostly good for KOOL.  (psst…someone should inform the stock price)

Remember….This is not an investment, but a trade.  I am not putting KOOL in my IRA to hold until retirement, but I might buy some shares to speculate.

Have fun 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.

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.

UNILAVA CORPORATION (OTC BB: UNLA.OB)

I love small caps…most of them are “story deals” and claim to have the next, newest, greatest thing, technology or gold reserves.  Today’s pick has some of that buzz, but is actually an operating company that could be a small cap supernova.  Trading for around 2 cents with a reasonable float (around 47MM shares), this could be a a great speculative trade.  I think it should be on the small cap trader’s radar.

Unilava Corporation (UNLA) is a company that is in the telecom space (all over the telecom space, in fact).  It has a grab bag of businesses (online Yellow Page advertising, communication services, owns and operates cellular towers, providing long distance phone service, mobile advertising services, etc.) that gave the company top-line revenues to over $5MM in 2010 (down from $7MM in 2009).

The play for me is in the future of UNLA.  If it continues to limp along with its current bag of businesses, it is not an interesting stock to play.  However, the company is on an acquisition binge that will, most likely, change the face of the company .

The company has announced LOI’s on several acquisitions over the past few months (HEXA2 and China Dragon Telecom).  Talking with the company tells me these acquisitions are for real and there will be a number more in the months to come.  These are all revenue/income producing businesses that have great potential (according to the company).  UNLA’s strategic relationship with China WiMax (CHWM) is still PR fluff, but it could be beneficial to the company if they can begin to execute on their plans.  All of this is in the public record….look at Yahoo! Finance for more detail.

I am in the process of getting interview with key players in this little drama (CEO of Unilava, CEO’s of the companies to be acquired, etc..) and will let you know more once I know more.

Taking a look at the chart

The chart for UNLA is not especially strong.  You can see days with strong volume followed by several days of no volume.  I would like to see the company do some “responsible” promotion in conjunction with positive news and get this stock more visibility to retail investors.  They need to get someone doing IR that actually returns phone calls (a pet peeve of mine).

Support is at the $.015 level with resistance between $0.275 and $.03.   The 52-week high was around $.60 (April of 2010), but the stock shows no indication of going back to those levels….yet.

Bottom Line

UNLA is a high risk/high reward play.  I am doing more research on the company which I will share in future blogs.  I bought shares in the company at current levels and think this could be a nice little gainer for me (if they can execute on their acquisition strategy and get the market to care).

I will keep you posted.  In the meantime, do your own due diligence.

Disclosure: Long UNLA

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.

DGSE Companies, Inc. (AMEX: DGSE )

DGSE Companies, Inc. (more familiarly known as Dallas Gold and Silver Exchange, Inc.) is an interesting stock play.  I believe it has a strong upside and little downside.

DGSE, on its face, is not that exciting.  The company buys and sells jewelry, bullion products, and rare coins to the wholesale and retail customers in the United States through its network of retail stores (It has 4 stores) and through an amazing array of web portals and landing pages (over 900 at last count).  You can buy and sell gold, rare coins, watches and other precious metals through sites like DGSE.com, CGDEinc.com, SGBH.com, SuperiorPreciousMetals.com, SuperiorEstateBuyers.com, USBullionExchange.com, Americangoldandsilverexchange.com, and FairchildWatches.com.

If you took a quick snapshot of DGSE, you might wonder why I am so high on it.  It is a low margin business, revenues are decreasing year-over-year and the company didn’t turn an operating profit in 2010.  In their 10-K, management explained the decrease as “….primarily the result of a $3,082,000, or 22.0% decrease in rare coin
and jewelry sales. The decreases in rare coin and jewelry sales were due to a sluggish retail environment where there appears to be less interest in rare coins as compared to bullion related products.”

But, I am still bullish on DGSE and here’s why:

NTR – This alliance between NTR and DGSE makes all the difference for me in my opinion of the company.  Without this alliance, I would not be interested in DGSE at all.    Margins are too low, there’s too much competition and the company has underperformed over the past few years.  That will all change with NTR! NTR Metals is a privately-held metals “market maker” as well as being a leader in bullion minting and industrial and commercial precious metals refining.

They were the white knight that came in and rescued DGSE when their prior equity partner and bander, Stanford International Bank, (part of Billionaire R. Allen Stanford’s failed financial empire) faltered in 2009/2010.  Suddenly, DGSE had no financial partner and was in danger of being swallowed up in the mess.  NTR came in and bought out Stanford’s equity (for a really good price) and then negotiated further equity agreements.  NTR has notified management of DGSE that they are exercising their agreement to buy 1,000,000 shares of the company at $6/share which would give NTR control of the company.

The other thing to be aware of is that NTR is a major player in the refining, minting and sales of gold and silver bullion.  That is a GREAT partner for DGSE. It especially makes their new venture even more attractive.

Bullion Express Locations – The majority of gold bought and sold for retail customers does not even reach the hands of the consumer.  Most are kept “on account” with a reputable bank or depository.  That is not the case with DGSE’s new retail concept.  They call it Bullion Express.  You walk in, buy your gold and walk out with it.  Their first two locations in Dallas, TX and Woodland Hills, CA are expected to be very successful.  Each store is capable of bringing another $25MM or $30MM of revenues to DGSE and with the ability of NTR to supply each location, should be highly profitable.

If these stores prove to be as profitable as management believes, then it is not out of the realm of possibility that DGSE could open up 20 or 30 Bullion Express locations nationally…….BECAUSE NTR has processing and refining locations in over 40 cities in the U.S.!

DGSE Chart

In my opinion, DGSE is not a chart play.   It is a stock that has a very interesting future and it will be driven by news going forward.  Having said that…..the stock does have a chart and it is illustrative of the positive impact on NTR.

After its most recent run-up, the stock has stabilized at current levels.  NTR’s purchase of the controlling interest in DGSE (at $6) certainly puts in a strong support at the $6 level.  An interesting fact to note is that NTR has been a consistent buyer ever since they became involved with the company.  If you look at the insider transactions on Yahoo! Finance, you will see a steady pattern of buys from NTR.  I just don’t see NTR as a seller in the weeks and months to come and that will give even more support to the stock.

Bottom Line:

The NTR deal is the “game changer” for DGSE. NTR, through DGSE, now has a public vehicle they can maximize for value….and, I think that is what they are going to do.  It probably won’t be an overnight move, but I believe the direction for the company is up, up, up!

DGSE has to do a better job of getting the word out to investors and make sure they know just how different DGSE is.  Gold and Silver companies like DGSE are, in many people’s minds, one step above pawn shops (in fact…DGSE used to own several pawn shops).  This new Bullion Express and the NTR relationship could change that perception very quickly.

Have a great day in the market,

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.

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.

Zhone Technologies Inc. (ZHNE)

I am looking at a chart play on Zhone Technologies, Inc.  The company is in the VOIP equipment business and while last quarter was not so hot, management is maintaining its full-year guidance going forward.  Shipments (hence sales) not made last quarter due to adverse weather conditions will be made in the current quarter according to management.  Cash is strong and debt is manageable.  Based on current sales, they are turning their inventory, on average, once a quarter.  I would like to see that turnover pick up and better management of inventory, but it is acceptable for now.  They are still posting minor losses quarterly and annually, but long term prospects look good.  I would like to see some buyout rumors start on this one to really drive the stock.  The boards are buzzing with rumors about a possible buyout.

According to Yahoo! Finance this is what ZHNE does:

Zhone, together with its subsidiaries, designs, develops, and manufactures communications network equipment for telecommunications, wireless, and cable operators worldwide. It offers single line multi-service (SLMS) architecture, which provides support for voice over Internet protocol (VoIP) and IP entertainment by integrating access, transport, customer premises equipment, and management functions in a standards-based system. …………  sells its products to network service providers that offer voice, data, and video services to businesses, governments, utilities, and residential consumers, as well as telecommunications carriers. The company offers its products and services through channel partners, which include distributors, resellers, system integrators, and service providers. Zhone Technologies, Inc. was founded in 1999 and is headquartered in Oakland, California.

Taking a look at the Chart:

I deliberately ran some short-term indicators on this stock.  The stock is trading near a range that has been support in the past and appears to be acting that way again.  The bearish MACD momentum has disappeared and with the MACD line in position for a cross, this could be a good stock to watch.  Stochastics are improving (higher highs, higher lows) and the stochastics line has crossed over its signal line.  Volume has tailed off slightly, but look for any good news or some buying to help this stock run.

Bottom Line

Zhone is a safe play imo.  The company has a decent balance sheet, is flirting with profitability and is in a growing and vibrant market.  They are not the market leader and that is why I think that a buyout is a definite possibility.  I can never say when and if a buyout would occur, but I am watching this one.  The stock looks to be in a strong support level for the stock and could rebound off of these levels.  Resistance on the way up look like $2.35, $2.55 and the recent high (around $2.80).  Support is $2.14 and $2.20.

Definitely a good radar play.

Thanks,

Jeffrey Dean

Editor

Western Lithium USA (WLCDF)

I blogged this company back in 2010 and was very high on it.  I have seen many lithium expoloration companies get promoted and then fall (LTUM, AMEL, etc…), but I believed that Western Lithium (WLCDF) was different.  Read my first blog HERE.  I had said that it was going to drop back in September (and it did), but that it was a solid company and after the froth was off the stock, then it might go on another run.

The stock did drop to around $0.90 in September and then ran to a 2010 high of $1.67.  It made me look very smart.

You can read my previous blog to see what I like about this lithium exploration company.  To update you: Working capital as of March 31st, 2011 was in excess of $14.5 Million with cash of over $10MM.  The company has solidified its hold on the Kings Valley Property and exploration data is showing that is highly prospective for Lithium.  The company won’t make any money soon, but the long-term (and near term) potential is very strong.

For all of the good news on the company, my play is short-term and based on the chart.

WLCDF Chart

Here is what I see...a chart that looks like it might be in a reversal mode.

• Stock is trading at a 2011 low
• Indicators (MACD, RSI, Stoch.) are showing a reversal
• MACD is crossing….still bearish, but bearish momentum has stopped
• Severely oversold RSI is rebounding

Bottom Line

WLCDF bears watching.  It appears to be a well-run company in an industry that is rife with scams.  If you want to play Lithium for the short and long term, you might want to take a look at WLCDF.

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.

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.

Chart Play on Radian Group Inc. (RDN)

Personally, I hate PMI…and that is the business that Radian Group, Inc. (RDN) is in.  PMI is Private Mortgage Insurance and is the insurance that homeowners are forced to purchase when they are putting up less than 20% down when they purchase a house.  I have always been able to put a full 20% down on any  house I have bought (thankfully!) and have never had to deal with it.  I have, however, had many friends and family that have had to use it.  With the push for home ownership over the past decades, it seemed like a scam that Radian and other companies (like PMI and MTG) would push such high rate insurance on desperate homeowners.  Radian made tons of money over the past few years and enjoyed hefty profits and a high stock price….that is until the meltdown of 2008.

The worm has turned and now RDN is the one that needs some help.  I won’t go into great detail about the problems that RDN is facing, except to point you to their own earnings conference call from May 5th:  Click here to read.

All of this bad news is being reflected in the stock price.  RDN continues to make new 52-week lows.

The Chart on RDN

I see a short term “scalp” that seems to be setting itself up on Radian:

• Trend is down…but, the stock seems to like to rally periodically.  That is what I want my readers to look for!
• MACD is still bearish, but momentum is weak
• Stochastics are showing the stock is severely oversold
• RSI is saying the same
• OBV and Accum/Dist are showing the distribution in the stock is continuing

The Bottom Line

RDN does not appear to be in danger of bankruptcy…in the near term.  They actually have decent capital ratios, cash in the bank and while some 52% of their insurance portfolio is impaired in some way, the company actually is stating that they are confident that a large percentage of those loans will ultimately perform.  Seems like a huge stretch to me, but they seem to believe it.

The challenge in any stock that is dropping like RDN is picking the bottom.  Don’t know when that will be frankly, but the indicators are telling me that this stock could rise soon.  It may be only a short-term pop, but I could see the stock hit $6.00 again on any recovery.

Have fun,

Jeffrey Dean Brown

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.

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.

Atlantic Wind & Solar, Inc. (AWSL.PK)

I was a believer once in Atlantic Wind & Solar, Inc. (AWSL.PK) and I think I am a believer again.  I’ve liked the story ever since I heard about it….I even blogged it a few times on Investor Soup.  It was a story stock (since it had no revenues or signed contracts), but it was compelling nonetheless.  I liked the green energy angle, partnerships with quality companies like Cushman Wakefield and the guaranteed contract nature of the company’s relationship with the Ontario Power Authority (OPA).

Here is a short synopsis of AWSL: They partner with government agencies, corporations, associations, land and business owners, to install, service, manage solar and wind installations that can range from a single rooftop to a full parks.

AWSL ,however, hasn’t performed like I had hoped.  AWSL could not sustain its trading momentum for the latter part of 2009 into 2010.  The chart shows a steady decline since the highs of mid-2009 (in the $4.75 range).  Several things hurt the stock:  The much vaunted rooftop installation contracts with the Ontario Power Authority never seemed to get approved and several stock distributions brought the price down.  Even more damaging was the bad publicity they got based on some stock promotions they did around that time….the most notorious of which was Penny Stock Chaser (PSC).  Tim Sykes (read it here) picked up on the crap that PSC was doing (for which the owners were indicted and fined) and dragged AWSL through the mud along with them.  AWSL wasn’t guilty of anything, but when Sykes is grandstanding it is hard to know what is true and what isn’t.  However, I sold my holdings in 2010 and have been looking for the right time to get back in.  Is now the right time? I still hold a few shares due to several stock dividends the company gave to shareholders in 2010, but could be buying back in.

I am putting AWSL back on my radar and suggest you do the same. Their news today was very promising and the fact they are addressing the OPA is a very good thing.  The language from the PR sums it all up with AWSL “confirming that 26 of their initial Power Purchase Agreement applications, all applied for last year between June and December, have been successfully processed by the OPA and have moved into their final review queue, with expectations of being released in the next round of Capacity Allocation Exempt approvals.”

These contracts could mean hundreds of millions to AWSL and actually make them a real, revenue-generating, profitable company. With the award of these contracts, the company has the option of developing these sites or selling them off.  Valuation is easy because AWSL has a 20-year guaranteed contract with the OPA.  That could mean some big bucks for AWSL and its shareholders.

Here is a peek at the chart:

The chart is showing me the following:

• The stock is bouncing off of its 52-wk lows
• Bullish gap this morning is a good sign
• RSI is increasing
• MACD, while still bearish and below the “0″ line, is improving and has made a cross
• Stochastics are mid-range and are showing that accumulation is coming back into the stock
• 52-wk. high was $3.60
• Volume is still light, but I expect news to increase the turnover (if they can deliver it soon)

The Bottom Line

AWSL seems the stock could be ready to awake from its long slumber. With the approval of the OPA contracts, AWSL becomes a very valuable company.  The company has secured the financing it will need to execute on these potential installations……however, they can’t act on anything unless they are awarded.  The biggest risk is if these contracts do not get approved.  If that happens, this stock is headed down, down, down.  I don’t see that happening.

Good luck and great trading,

Jeffrey Dean

Disclosure: Restricted Stock under previous stock distributions.

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 except as noted above; 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.

A stock market icon died yesterday at 84 years old.  He passed peacefully in the company of family and will be greatly missed by many.

You probably did not read or hear anything about his passing, because he was a very small icon.  In fact, he was a stock market icon only to me.  It was Kenneth Dean Brown, my Dad.

I will miss my Dad…as any son would. His extended family (Sister, Son & Daughter-in-Law, Daughter, 5 grandkids, one great grandchild and lots of nieces and nephews) will miss him, too.

Jeffrey Dean, Kenneth Dean and Nicholas Dean Brown

3 generations: Son, Father and oldest Grandson

But, it is appropriate to remember him on the pages of a stock market blog because my Dad LOVED the markets.  He passed that love along to me.

Dad was a very successful businessman and in his 40′s he took a huge risk and left his job as National Sales Manager for a large Food Equipment manufacturing company to start a company called Process Engineers, Inc.  It was a Food Equipment manufacturing and engineering company that due to my Dad’s excellent management and sales skills blossomed into a powerhouse.  My Dad’s specialty was wine and winery equipment.  During the 70′s and 80′s, the wine industry exploded and my Dad made millions supplying all of the equipment that wineries use.  His strong work ethic and personal integrity made him a trusted vendor and friend for most of the top wineries in Napa and Sonoma Valleys, Central California and even into Washington State.  My Dad was a personal friend to the key people at prestigious wineries such as Caymus, Sterling Vineyards, J. Pedroncelli, Arbios Vineyards, Landmark Vineyards and others.

Dad didn’t just make money…he saved it.  Dad was very frugal.  Having lived through the Great Depression, Dad spent money wisely and invested! He saw his father struggle for much of his life farming the Eastern Colorado Sandhills near Sterling, Colorado.  My Grandfather only started to pull out of his financial tailspin when he started investing in the stock market.  Dad watched and learned.

Dad was his own money manager.  He made all his own investment decisions on his portfolio and did extremely well.  I tell the story often that my Dad tried to teach me the markets when I was 14 years old.  In those days, investors pored over the old S&P books to find stocks to invest in.  I did the same and finally picked my one stock, then called Wheelabrator Frye, and invested my summer job earnings.  Wouldn’t you know it…..my stock doubled in the space of a few months.  My Dad thought he was a genius for teaching me so well and that I was destined for stock market greatness.  It wasn’t to be.  I was a teenager more interested in sports and girls than the markets. (What a dummy I was!)

Dad was very competitive, too.  He liked to win.  After retirement, for fun, Dad split his portfolio and put half of it with a professional money manager.  He would gleefully report to me how he was beating his money manager’s returns on a regular basis!

My Dad was very proud that I had made the markets my career.   Even though he had a different investment focus, I enjoyed our talks about the market and individual stocks.  He enjoyed reading my blogs on Investor Soup.  He supported me on my decision to get more involved in investor relations with such companies as Adamis Pharmaceuticals (ADMP) and New World Gold Corporation (NWGC).

I didn’t just learn from my Dad’s successes, I learned from his failures, too.  My Dad was raised on Modern Portfolio Theory that said “The markets, even considering occasional downturns, will always go up.   It is important to have your portfolio sufficiently diversified across many sectors to protect yourself from downturns in other sectors”.  That theory worked great for my Dad until the market crash of 2008 when EVERY sector and EVERY industry went down.

My Father was in poor health over the past few years and this correction almost killed him (I am not joking).  He saw his portfolio get decimated.  His dreams of a comfortable retirement were threatened.  Thankfully, his portfolio has recovered sufficiently that he had no worries.

My focus on day-trading and swing-trades would make him break out in a cold sweat, but that is where I feel the highest gains and greatest security in these challenging times comes from imo.  I am sure Dad would agree.

We plan on getting the family together in May or June.  Not for a wake or memorial service, but a celebration.  We will gather everyone in the extended Brown clan for a party.  We will take over a restaurant, eat good food, drink good wine (of course!) and tell funny stories about Ken Brown.  I wish you could be there.

We are comforted by the fact my Dad is in heaven having a great reunion with family that have gone on before.  He is healthy, vibrant, in a new body and I look forward to seeing him again someday.

Thank you for listening,

Jeffrey Dean Brown

Allezoe Medical Holdings, Inc., (OTC.BB:ALZM)

…and, I am celebrating!

It was never a question of ‘IF” with Allezoe Medical Holdings, Inc., (OTC.BB:ALZM), but “WHEN”.

When would the pump stop and ALZM be shown for the POS that it is?!  That is now….ALZM is dropping like a rock.  It is so predictable…the challenge with ALZM was finding when it would crack.  The promoters on this one had some very deep pockets and pumped this one sky high.

My blog on March 28th (read it here) correctly spotted the pump, but I left it open-ended about when to jump on.  I honestly didn’t know how long the pump would last.  Not long enough!  It started cracking within days after my blog and has hit a low of $0.74 today.

Look at this chart!

I expect the class action suits to start any day now and these promoters will have moved on to their next POS stock….which I will bring to you.

A big win for Investor Soup!

Have a great day in the market.

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.

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.

Claude Resources, Inc. (CGR)

I came across a relatively unknown gold play called Claude Resources, Inc. (CGR).  I have done my research and I think that it is worth taking a look at.

It is a producing gold mine with some very interesting development and exploration properties.   You can do more DD from their excellent website.

Here is an financial abstract from their latest PR

Financial Highlights:

Very impressive!

A look at the Chart

I loaded the chart with all manner of indicators and overlays to see what I can come up with.  There are some indications the stock is completing the right shoulder on a “head and shoulders” pattern.  It is not a classic setup, but it might have some relevance to CGR.  It also appears their is some bullish pressure on the stock:  It is bouncing off of the bottom bollinger band (which could mean the move is to $2.71), the MACD has lost its bearish momentum and is approaching the “o” line, Stochastics are oversold, accum/dist is positive, etc…

Bottom Line:

CGR is a real company.  With their recent $50 MM equity raise, profitable operations, promising exploration efforts…..I think CGR could be a winner for my members.  The one negative I have on them is their capital structure.  They have a large number of shares outstanding (not an obscene amount), but still a large number.  If they continue to be profitable, I would like to see them do a buyback.  A reverse split would be lethal to the stock…they must know that.

Here is what I am looking at for CGR:

Last Close:              $2.38
Short Term Sell:   $2.71ish
Long Term Sell:     $3.00+ (if it can break and hold above the top bollinger band)
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.

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.

MabCure, Inc. (MBCI.OB)

Another day…another BioTech firm! I have found another biotech firm that I believe shows real promise: MabCure, Inc. (MBCI.OB)

MBCI is developing unique (their words) and highly specific monoclonal antibodies (MAbs), which they are developing as diagnostic tools, imaging agents, and drugs to treat lethal cancers, such as ovarian and prostate cancers.   Initially, MabCure’s is focusing on developoing its novel MAbs as diagnostic tools for the detection of ovarian and prostate cancers at an early stage, when these diseases are still localized and highly curable.

The potential for such a tool is enormous.  My stepmom died in 2009 of Pancreatic Cancer.  She died within EIGHT days after diagnosis.  She was an incredibly healthy woman who had a ticking time bomb inside of her.  No one knew and we lost her too soon and too young.  I see, from my own life, how early detection can save lives.   I am not clear from their PR’s or the website just how far they are away from getting FDA approval for their initial product, but I have contacted the company to get more info.   They have no stateside IR contact…so, I will wait and hope they respond to my email.

The company announced some financing news that should carry them for the next few quarters.  It is not a true raise, but rather a tranche-based $10 MM raise .  They have an agreement with a firm for up to $10 MM in equity financing at the current market prices.  Their recent PR about the good results from ongoing tests and studies is encouraging.  MBCI presented a paper at a recent convention said an experimental test successfully used antibodies to detect ovarian tumor cells in the blood with 94% accuracy. MBCI said its monoclonal antibodies produced no false positives — that is a huge endorsement of the efficacy of their technology. (Read PR here)

In the meantime, I have MBCI on my radar.

MBCI Chart Study

MBCI offers several attractive data points:

• The stock is trading at its 2011 lows
• MACD is slightly bearish with no real momentum
• Oversold Stochastics could add some impetus to a rally

I don’t see much further downside on the stock….selloff volume has been light, there are no negative news story to explain the latest dip, it is a biotech so its continuing losses and no revenues are to be expected.

It is interesting that its 52-wk. low and high happened within one week of the other: The low was 21 cents on July 22nd and the high was 87 cents just 7 calendar days later.  I would have loved to be on that ride!

Let’s see if MBCI can do it again!

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

Last Close:              $.30
Buy Opinion:          $.28 – $35
Short Term Target   $0.50
Long Term Target:     $1.00+

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.

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.

VALCENT PRODUCTS INC (VCTZF.PK)

I am always on the lookout for the next, hot small cap stock!  And, I think I might have found it.  It is called VALCENT PRODUCTS INC (VCTZF.PK).

The company is engaged in something called “High Density Renewable Food Production”…..whatever that is! In fact, it is a pioneer and a leader in its “field”.  I put the word field in quote because Valcent is engaged in agricultural production, but has no “field” that it grows it crops in.

It is engaged in Vertical Farming with its Verti-Crop™ agricultural production system….a self-contained, super “greenhouse”.

Since a picture is worth a thousand words”….here is the Verti-Crop™ system:

Their proprietary system uses rotating hydroponic technology to enable high-density agricultural production.  Their growing units are sealed, climate-controlled state-of-the-art warehouses or greenhouses.  The company’s studies indicate that “more plants can be grown in less space producing crop yields of up to 20 times more than conventional farming methods”.

Their system has a number of bullet point benefits:

• Reduces Land Use – equivalent crops can be grown on 1/10th (or less) of the land normally used for food production.  The company claims their system is perfect in urban or high density situations.
• NO Negative Environmental Impact – the units are sealed from the outside air and are not contaminated by pests or blight and hence do not need pesticides or herbicides (the ultimate “green” ag model)
• Increased Crop Yields – The company claims that its system can increase crop yields by as much as 20 times over conventional agriculture methods.
• Saves enormous amounts of water - Their system is reported to use only 5 to 10% of what conventional farming methods do

The company told me there is enormous interest from growers, grocery retailers and food processors.  With the exception of the Paignton Zoo, the company doesn’t have any other commercial scale projects currently in operation.  However, the news that the company has entered into a test with a “major UK and European Food Processor” is certainly good news. (Read PR)  I would also recommend you look at Valcent’s UK site, so you can do your own DD.  It has much more information.  I suggest downloading the “Brochure 2010″ off of their home page.

An interesting anecdote

I had a conversation with someone from the company and they told me an interesting story about how unique and “special” VCTZF’s vertical farming process is.  The main project they have right now is at Paignton Zoo in the UK.  My contact told me how successfully the test is going.  The output from the facility is being used to feed the residents of the zoo.  When, a few months ago, there was no fresh produce available from the Verti-Crop™ system (due to growing cycles), the zoo officials had to buy traditionally-grown produce from local suppliers.  The animals complained!  The gorillas were throwing the non-VertiCrop produce back at the trainers.  They liked Valcent’s produce much, much better.

While I had fun teasing my contact, the point he was making about the quality and taste of the produce was well taken.  I would be interested to see some data about the quality of their output versus traditional agriculture product.  I know that every Whole Foods in the world would beat a path to Valcent’s door if they can deliver organic produce that tastes good and is affordable.

The Chart

The chart appears to have found a trading range (and some support) at current levels.  It still has some volatility within these ranges, but this seems like a good base…..possibly for the next move up.

Bottom Line

Valcent is still a development-stage enterprise with only a few beta sites in operation.  They are not the only company (public or private) engaged in vertical farming, but they seem to have an edge…imo.

Since there is no momentum or trend with this stock, it is difficult to predict any jumps in the near future.  Any significant jumps will probably be news-driven.  I am betting the news will be good. The company is soon to close on its second tranche of financing at reasonably favorable terms, it has issued revenue guidance for 2012 or $15 to $30 million and it is the kind of project that could catch fire with the imaginations of the marketplace.

According to my contact, this is not a vanity project that they hope will make money someday.  Each unit costs around $1.1 Million to build and can generate that amount of revenue (on average) annually. The example he gave me of a salad crop grown in a Verti-Crop™ system (lettuce, tomatoes, peppers) would produce 145,000 lbs of produce annually…on less than 1/8th the acreage.

I am going to watch Valcent with interest going forward.  I suggest you do the same!

Happy trading,
Jeffrey Dean

Editor

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.

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

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.

This has been one of the most successful newsletter picks in recent memory.  ALLEZOE MEDICAL HLDG (ALZM.OB) has been a rocket ever since it catapulted onto the microcap scene a few weeks ago.  I have been watching this one and, not trusting the pump, didn’t jump on the bandwagon.  I think that NOW is a good time to play the downside on ALZM.  It is a bit of a banana peal…so be careful with it.

Look at this chart!

From its launch, ALZM has only gone up.  I checked on www.thehotpennystocks.com and it is still the #1 newsletter pick.  The promoters of this one have been putting huge money on its promotion and it shows.  This stock is so new that none of the indicators will even print on the chart because there isn’t enough trading time to register.

Is there any steak behind the sizzle?

None that I can see. The company has no revenues, no cash and, other than a few PR’s, nothing much to recommend it.  Even its acquisition of Organ Transplant Systems comes with no meaningful information….is it revenue-producing?  If not, what is the reasonable expectation of when and how much?  etc… etc….

The challenge with this stock will be timing the drop.  I am looking at this stock (when it breaks) dropping well below a $1 in the future.  When?  I honestly can’t say.  The stock has defied all logical explanation to date.  It may continue to do so.  Look at the volume bars…all accumulation except one day.  Impressive! This is a radar stock only…imo.

Good luck and be careful with this one.

Jeffrey Dean

Editor’s Note – 3/30/11: Since I first alerted you to ALZM, lots of other people have jumped on the bandwagon (even the august penny stock personage of Tim Sykes).  ALZM broke yesterday and today, but the promoters are fighting it “tooth and nail”.  I am curious how long they can keep this POS going! Remember….I said this stock was a “banana peel”.  Be careful if you trade it.

Living under a cloud:  A story of a Chinese Small Cap

China Electric Motor, Inc. (CELM)

As a recovering CPA, I have watched with interest the ongoing saga of the Chinese Small Cap sector.  I have a good friend, Larry Isen of Emergingchinastocks.com, that may lose tons of money because he was backing China Media Express Holdings (CCME).  CCME is just the latest of the China stocks that have gotten slammed for accounting “irregularities”.  It’s is on a trading stop and has been for over a week.  No one knows when it will start trading again, but we know this means they were making the numbers up.  During my CPA career, I was involved in several “fraud audits”.  In those cases, we thought that something rotten was going on and it was our job to find it and document it.  What I found amazing is the lengths company officers will go to hide their lies, greed and avarice.

China Electric Motor, Inc. (CELM) is a company that I have been watching for awhile.  It has been the subject of many articles questioning the veracity of its financials during its current slide.  And, unless the company is caught “cooking the books”, it might be a time to look at CELM.

On its face, CELM is a great trade.  It has the typical Chinese clean and pristine balance sheet.  ($1.66/share in cash, no debt, liquidity ratios through the roof, growing/profitable sales) and the chart is depressed, but looks like it might be ready for a reversal.  Who wouldn’t like this stock? One worrying fact is that the company’s annual 10-K has not been released.  It is past due and I wonder if we will get any CCME-type surprises with its release.

What attracted me was the chart.

CELM’s chart

Here is what I see:

• The prolonged downtrend seems to be losing its momentum (the stock is up sharply today).
• The RSI and Stochastics are supporting each other in the contention this stock is seriously oversold.
• Bearish MACD momentum is declining and the MACD line is moving upwards.  It is still far from the zero line, but the indicators are looking positive.
• Support from this level is the recent low of $2.96

Here is what I am looking at:

Last Close:              $3.08
Short Term Sell:   $3.75
Long Term Sell:    $4.05+ (if it gets above the 50-day MA, test it to see if that acts as further support)
Stop Loss:              $2.96

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.

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.

LMCO and RMGX

GREEN is hot!  Everyone from Obama to the simple homeowner has the opportunity to go green in the current world we live in:  Wind, Solar, Biofuels….all offer an alternative to our current energy crisis.

What could be better than helping to save the environment while having a good chance of making money at the same time? Why blindly just give to environmental charities when you can be proactive by investing in companies whose products and services have a direct effect on the health of the environment for everyone?  The environment is a hot topic, as it should be, as we only have one and it needs to be treated with care.  Fortunately, there are a multitude of so-called “green” companies who endeavor to do good while making profits.  I have unearthed two of these little gems that I believe have much upside potential.

DPOLLUTION INTL INC  (BB:RMGX) This company manufactures and distributes patented fuel conditioning devices for improving combustion efficiency and lower pollution emissions of a gas or diesel engine. Formerly known as Dpollution Inc., the company changed its name to DPOLLUTION International Inc. in July, 2010.  At the end of last year, the company announced that its fuel reconditioning device has been proven to “crack” longer chain Hydrocarbons into shorter molecules.  This cracking allows the fuel to burn more efficiently and completely.   Basically, this product is supposed to make cars and other vehicles run cleaner.

Technically, price has dropped down to $0.24 after hitting resistance at 40 cents per share.  It has since found support in the 24 cent area where it appears to be building a base.  The other indicators are giving some support to the notion the stock could stage a turnaround.

Next on the list of companies doing good things for the environment is Li-ion Motors Corp (OB:LMCO), a development-stage technology company engaged in the design and engineering of emission-free automotive propulsion systems utilizing the lithium battery technology in the United States, Europe and the Middle East. The company sells electric, lithium powered and converted vehicles. Its product line includes cars, motor cycles, mopeds, and power sport vehicles. Formerly known as EV Innovations Inc., the company changed its name to Li-ion Motors Corp. in February 2010.  Basically its claim to fame is lithium batteries for electric transportation.

The company is making great strides in getting its product into the hands of corporations and consumers alike.  The BIG NEWS for the company was its impressive win in last year’s X-Prize competition.  Here is the headline:

LI-ION MOTORS CORP WINS $2.5M IN THE PROGRESSIVE INSURANCE AUTOMOTIVE X PRIZE COMPETITION

This is a huge validation of their technology and a base to build on.  The question is, “Can the company build on this”.  Don’t expect LMCO to challenge GM and Toyota for the lead in EV cars.  LMCO is undercapitalized and are very far away from achieving any kind of sustainable production.  However…they are in for the fight.

Technically, shares have dropped below the 200-day moving average at $1.02, but might find support at the 50-day MA line of $0.91  The indicators are going against the stock right now, so I would keep this on your radar right now.  It is a heavily promoted stock and has been known to make some big one and two-day moves.

Just like with any micro-cap company, be sure to use caution when investing.  Anything can and does happen with these little dynamos!

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.

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

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 RMGX; nor have they received compensation of any kind RMGX.  LMCO was a compensated pick under several previous expired agreements.  It is not currently under any contract with Investor Soup. 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.

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.

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

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.