14
Mar

Advanced Analogic Technologies, Inc. (AATI)

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

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

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

To the Chart!

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

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

sc-17-1

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

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

Good Luck and Great Trading,

Jeffrey Dean

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

About InvestorSoup

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

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Disclaimer

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


Category : General Commentary | Blog Bookmark and Share
11
Mar

Synovus Financial Corp. (SNV)

Given the rate that banks continue to fail in 2011, bank picks have more risks than many sectors.  But….we small cap traders love risk.

One stock that I think could be a better risk is Synovus Financial Corp. (SNV). The bank has taken its lumps, along with the entire industry, but appears to have weathered the storm.  I blogged it back in November of 2009 when it was around $2.23.  Patient investors only had to 4 months for the stock to hit $3.85….a 72% gain

SNV could be primed to make another move…imo.

SNV is a super-regional bank holding company with approximately $30 billion in assets and is based in Columbus, Georgia. a diversified financial services and bank holding company, provides commercial and retail banking, financial management, insurance, and mortgage services in Georgia, Alabama, South Carolina, Florida, and Tennessee

To the Chart:

The first thing I notice with this chart is the Ascending Triangle pattern (as notated on the chart). The stock is trading between its 50 and 200-day MA’s with the 50-day on top.  The MACD, while still below the zero line, has made a cross and is showing bullish momentum.  The Stochastics are bouncing out of oversold conditions and it appears that some accumulation is going on.


sc-161

Bottom Line:

Synovus is a crappy bank that has yet to make a profit during this turnaround.  When I spoke with company personnel in 2009 for my previous blog, the person I spoke with said they had hopes of turning a profit in 2010.  That DID NOT HAPPEN…however, the bank has done some great work cleaning up its balance sheet.  However with almost a BILLION dollars of Obama’s money under TARP, SVN is under pressure to pay that back.  They can either float another dilutive stock offering or put the bank up for sale.  I am rooting for the second option.

SNV has over $4.70 in cash per share, has paid down some debt and has taken massive writeoffs to get their capital coverage ratios in line with banking guidelines.  However, not everything is rosy with the bank.  Short interest continues to be very high with over 8% of shares short as of 2-15-11.  That number has come down, but is rather high.

SNV is not a stock to buy in your IRA, but its volatility makes it a nice stock to trade.

Here is what I am looking at for entry/exit points:
Last Close:              $2.55
Buy Opinion:          $2.50 and above (watch the chart and make sure the momentum is going your way)
Short Term Sell:   $2.90′s (Watch to see how much momentum the stock has when it approaches resistance at around $2.90)
Long Term Sell:     $3.50+

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, 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.

Category : General Commentary | Blog Bookmark and Share
10
Mar

WebMediaBrands Inc (WEBM)

I have yet to see the movie ‘Social Network’, but I have heard only good things about it.  The story of how Facebook (and other social media sites) have revolutionized how people interact in the cyber (and real) world is very compelling.  And, the story goes on.

Companies have been searching for ways to monetize this communication revolution and today’s focus stock has found that way: WebMediaBrands Inc (WEBM).

Here is the company description off of Yahoo! Finance:

WEBM, an Internet media company, provides content, education, trade shows, and online job board services for media and business professionals primarily in the United States. It operates mediabistro.com, which provides content, career, and educational resources about media markets and industry verticals comprising new media, TV news, advertising, public relations, publishing, design, mobile, and the semantic Web; Socialtimes.com and Allfacebook.com that offer content about the developments in social media, social networks, and social gaming; other content Websites consisting of Graphics.com, AdsoftheWorld.com, BrandsoftheWorld.com, SemanticWeb.com, and TVNewser.com; and e-commerce Websites, including FreelanceConnect.com and StockLogos.com.

Clearly they are placing all their bets on the online world.  Those bets seem to be paying off. Here is a bullet-point summary of some of the highlights for the compan:

  • The company has yet to post an operating profit, although proceeds from the sale of one of its sites ($2 MM) did bring a net profit for the most recent quarter.
  • The company has a surprisingly high percentage of both insider and institutional ownership – 43.06% insider and 39.50% instituional.
  • The company (a/0 2-15) had short interest percentage of over 3%.  I am not too concerned because the selloff volume has been reasonable.
  • The company is “nesting” with the news they purchased a building in Peoria, Illinois (my birthplace, by the way)
  • Balance sheet is good….$11MM in cash with about $6MM in debt.  Decent ratios, too.

The Chart

WEBM has created a wide trading range between $1.80 and $1.30.  The stock has hit the $1.30 level and should be watched to see if it will bounce again.  The MACD, while below the zero line (a bearish signal), is essentially moving sideways.  In conjunction with the oversold stochastic signal, the stock could well bounce off of this level.  Their is resistance all along the path back to the recent highs ($1.52, $1.72 and $1.90).

webm

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

Last Close:              $1.36
Buy Opinion:          $1.30 to $1.40
Short Term Sell:    $1.70
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.

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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.

Category : General Commentary | Blog Bookmark and Share
7
Mar

Anadys Pharmaceuticals Inc. (ANDS)

A nice little chart is setting up for Anadys Pharmaceuticals Inc. (ANDS). The company has some very promising drugs ALL focused on Hepatitis C.  For those who don’t know (I didn’t), Hepatitis C is an infectious disease affecting the liver, caused by the hepatitis C virus (HCV).

The company has a clean balance sheet with no debt and several quarters worth of cash in the bank…..a nice place for a pharma to be.  No revenues as of yet and several drugs are in Phase II trials…..2011 is not going to be a revenue year for ANDS, but with good news and some solid results it could be a good year for the stock.  This link takes you to a recent PR with some good info about their drug pipeline.  The stock enjoys a great deal of institutional support and insiders, while owning collectively less than 10%, have been buyers over the past year.

GlobalData forecasts the global hepatitis C market to grow at 9.8% annually for the next seven years to reach $8.5 billion by 2016. This growth is primarily attributed to high unmet need in the market which is expected to be served by strong pipeline candidates. The growth will be further supported by the prevalence of the disease. GlobalData has concluded that the global hepatitis C market is underserved by the current product options and so there is significant scope for new entrants to capture value from underserved segments. Designing products with curative properties, high safety profiles and better patient compliance is one of key challenges for this market and could provide a significant market share for any company.  That is exactly what ANDS is working on!

A Look at the Chart

With the ascending triangle pattern firmly in place, it looks like ANDS could jump again.  It has put in a short base at current levels and absent any bad FDA news, I would expect this stock  to try and touch resistance again.  With any good news, perhaps the stock can break resistance at $1.55.  With a 52-week high of $3.24, I would love to see this stock make a run for that level.

sc-10

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

Last Close:              $1.22
Buy Opinion:          $1.20 – $1.30
Short Term Sell:   $1.55
Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: Neither Jeffrey Dean nor BlueWave Advisors, LLC hold positions in any securities mentioned in this article.

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.


Category : General Commentary | Blog Bookmark and Share
14
Feb

….I just can’t get rid of GNBTGenerex Biotechnolology Corp. (GNBT.OB) has been on my radar for several years and I have recommended it (or warned traders away) several times.  I got another email from a reader asking me to take another look at the stock.   I resisted at first, but decided to investigate.  What I found surprised me.

GNBT might actually be in a good place to take a look at again.

GNBT – The Company

The company is engaged in the research, development, and commercialization of drug delivery systems and technologies.  The drug that supposedly holds the greatest promise is Oral-lyn™ which is in Phase III clinical trials at several sites around the world.  Several other larger pharma companies have tried and failed to develop insulin sprays….GNBT appears to be succeeding.    The company is best known for developing a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs).  The Company’s proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company’s proprietary RapidMist™ device.

GNBT also has a suite of drugs centered around immunotherapeutic vaccines for the treatment of malignant, infectious, allergic, and autoimmune diseases.   More information can be found on the Generex website at www.generex.com.

GNBT – The Stock

You can see just how beat down GNBT is from the chart below.  GNBT has really harmed its shareholders by more than doubling its share count over the past few years by entering some toxic financings.  The market is better for GNBT and its past few financings haven’t been too onerous.  Still the share count has exploded from around 110MM in 2008 to a bloated 270MM today.  The rumbles about a reverse split seem to have quieted with the strengthening of the economy.

The chart looks good for GNBT.  The stock appears to have put in a base at current levels and the MACD and Stochastics are looking promising.  the MACD appears to be about to cross and the oversold stochastics could add some strength to any rally.  The stock is pretty liquid and any good news will help this stock to jump.

sc-131

Do I trust GNBT?

GNBT has disappointed many traders over the past few years.  For a stock that has significantly underperformed over the past few years, I am somewhat surprised by the staunch support it receives on the boards and on other stock websites.  Clearly, they have some exciting drug potential.  The Amgen agreement could work out very nice for the company.  I still don’t trust it though.  IF you trade GNBT, be sure and put in a tight stop.  Any bad news could further weaken this stock.  However, I am looking for some recovery in the stock going forward.

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

Last Close:              $0.238
Buy Opinion:          $0.22 – $0.25
Short Term Sell:   $0.35
Long Term Sell:     $0.75+

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.

Category : General Commentary | Blog Bookmark and Share
7
Feb

Bionovo, Inc. (BNVI)

I love PHARMA stocks and have had good success with them over the past years.  I like their volatility and their upside gain potential.  They are highly speculative, but the payouts can be awesome!

Take a look at Bionovo, Inc. (BNVI). The stock took a hit from an intraday high of $1.40 in mid-January and is now trading around $0.85. This woman’s pharma company (products in pipeline for menopause and breast cancer) just raised over $30 Million on decent terms. No debt and now a strong cash position going forward. The buzz about their drugs is mostly positive with several drugs in Phase I/II.

This selloff could be a great opportunity for traders…like yourself. The chart is showing a stock that is severely oversold and is bearish. Is this the bottom or is there more downward pressure?   It looks to me that this might be a good base for a bounce play. If you play, set a tight stop in case of weakness. However, this is one that should be on your radar.

On another note:  I am getting lots of requests for more stock ideas…it seems people like them alot! I am going to start sending out alerts through Investor Soup again.  These will be short term, highly speculative and highly volatile picks, but they are very fun to trade.  I expect to put them out once a week on average.  If you want to trade higher priced stocks, then I suggest you sign up for my Small Cap Superstars newsletter on my other site, TopStockPicks.com.

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.

Category : General Commentary | Blog Bookmark and Share
3
Jan

I am constantly working in the small and micro cap stock space looking for my next big winner. I keep a long list of companies that I may “graduate” to one of my newsletter picks. These are companies that from either a technical or fundamental analysis standpoint interest me.

All of these stocks are under $5 in price….AKA penny stocks. I remain committed to the proposition that “Stocks under $5” offer the greatest gain potential for my readers and subscribers. History has shown that I am correct.

I would surprised if any of these stocks are being “followed” by any analysts, but in a few cases they are. However, I usually discount any analyst’s opinion in either the small, mid or large cap markets. I find it laughable when 10 analysts are following a company: 5 say “buy”, 2 say “hold” and the rest say “sell”. Who do you believe?

So let’s see what companies I am tracking that I believe have a REAL potential to significantly outperform the market.

Jade Art Group (JADA) – this was a stock that I profiled twice at Investor Soup (both times for good gains). JADA experienced a huge selloff in 2010, but I am picking it to rebound strongly in 2011. Strongly profitable with a good balance sheet….JADA could bounce strong.

New World Gold Corporation (NWGC) – This is a producing junior gold miner selling for around 20 cents. The company is poised to have a big 2011 and could really run. I own shares in this one (and may buy more) and am counting on a good year in 2011 for NWGC.

Adamis Pharmaceuticals (ADMP) – This is another stock that I am smitten with. The company is sitting on a number of pharma initiatives that, if any ONE is successful, could catapult this company into NASDAQ in short order. Trading for under a quarter, ADMP is a bargain by any measure I know. I own a ton of shares and expect good things from Adamis.

Autobytel (ABTL) – The financials are showing improvement, several new acquisitions could bring more growth (and profits) in 2011 and with a strong balance sheet, ABTL is worth waiting around for.

BioStar Pharmaceuticals (BSPM) – This is another of my winners for Investor Soup. I still am very bullish on it and the company can still be bought at what I consider to be a bargain. Profitable, great balance sheet and great management….the China Stock Market meltdown is a great buying opportunity for traders on BSPM.

Adeona Pharmaceuticals (AEN) – With a varied portfolio of drug candidates and a low price, AEN is one of my pharma picks for 2011. I first profiled it on Investor Soup at 79 cents, it jumped to $1.40 recently before falling back somewhat. The stock still looks like a bargain to me.

Longwei Petroleum (LPH) – A China gas play, LPH is a highly volatile stock. This is one that savvy traders could trade in and out of several times during 2011. Today, the chart is telling me that it is going to go on a run. However the China stock sector is not known for holding on to gains. Long-term this could be a great stock, but I see continued volatility in it.

Southwall Technologies (SWTX) – An apparent victim of the 2010 year-end tax selloff, SWTX looks to rebound strongly in 2011. Great company: growing revenues and profits, strong balance sheet and its core markets are growing once again.

Lotus Pharmaceuticals (LTUS) – Another China pharma play, LTUS has a very strong long-term outlook. The stock is recovering from a recent selloff and could be a strong stock for 2011.

Microvision (MVIS) – Is 2011 MVIS’ year? Could very well be! Strong balance sheet, great buzz, products hitting the market….could be the year MVIS turns the corner.

SuperGen (SUPG) – Bad FDA news in November didn’t cause a wobble in the stock price. A pharma company that is profitable with a strong balance sheet and a great drug pipeline…where do I sign up?

These are my Top 11 for 2011. Frankly, I could come up with another 11 for tomorrow’s list….there are that many great stocks to play.  But, I won’t.  My job is not to inundate my readers and subscribers with pick after pick.  There is only so much time (and capital) that a trader can commit to researching a stock.  I want to pick only the best for my subscribers.

I also reserve the right to take any one of these stocks and turn them into a full pick….they have that much potential. I own several of them and will probably invest in several others over the next few weeks and months.

The cynic might agree with Frank Hubbard who was quoted as saying:

“The safe way to double your money is to fold it over once and put it in your pocket.”

I don’t agree with Frank….ANY ONE of the stocks we profile on my sites have the potential to MORE than double. We don’t take flyers on stocks….we do our research and use our experience and knowledge to pick the stock that have the greatest potential to deliver the greatest gains.  So our subscribers can benefit.

So, let’s get to work...and, have some fun at the same time.

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.

Category : General Commentary | Blog Bookmark and Share
28
Dec

Adeona Pharmaceuticals, Inc. (AEN)

I have followed Adeona Pharmaceuticals, Inc. (AEN) since I first picked it on September 29th.  It is one of those pharma companies that had some great potential but seemed to have fallen out of favor with traders.  Well…it is not out of favor anymore.

My blog on Adeona came out when the stock was around $0.79 (read it here) and it just hit $1.40 intraday today.

Is the run over for Adeona? The chart is strongly bullish and it appears that it could run for several days and longer if the company comes out with some good news.  Based upon my entry price, readers of Investor Soup are looking at at gain of over 65% (based upon a est. closing price of $1.33).

I bring this up not just to brag, but to offer a validation of my method….my very successful method.

I do my research…I read financials, talk to company personnel, view the stock boards (with a huge grain of salt) and do extensive research.  AEN was a company that had a solid foundation financially, an interesting drug portfolio and I was very impressed with the CEO, Dr. James Kuo from our conversations.  The chart indicated to me the stock had found a bottom and, barring any catastrophic news, would likely climb from these levels.

I was right!

Here is what patience and a plan will do:

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Stay tuned for the launch of my new site next week!

I can hardly wait.

I don’t have any buy/sell recommendations for AEN at present.  I want to see just how long this surge will last.

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.

Category : General Commentary | Blog Bookmark and Share
22
Dec

All American Pet Company (AAPT)

While I am working on my other site, I continue to track stocks.  Today’s stock is one a subscriber sent me to look at.  I am a new dog owner in 2010 and the product line piqued my interest.  I did my research and now the company does, too.

I am putting All American Pet Company (AAPT) on my trading radar. I suggest you do the same.  It has enormous potential and an equal amount of risk.  The company is attempting to penetrate a multi-billion dollar pet food market in the U.S. with their line of super premium natural dry dog food and an assortment of dog treats and, suprisingly enough, breakfast foods for dogs.

History of AAPT

I have done my research reading PR’s, financials and talking to company personnel.  AAPT is a pink sheet company with a very checkered past.  It has been ready to make its big breakout once before only to have its planned 2007 product rollout scuttled by a lack of financing.  Founded in 2003, AAPT went public in 2007 supposedly in anticipation of their product rollout.  According to the company, they had lined up over 7,800 retail outlets to take their line of dog food but couldn’t meet demand because of a problem with financing.  Then the financial meltdown occurred and everything was pushed back.

The company stock has been headed in only one direction (down) over the past few years and deservedly so.  The company has made big announcements and not performed in the past…why should we believe them now?

The Future of AAPT

For AAPT, the future is NOW.  They recently announced a significant purchase order from Food Lion (a grocery chain in the Southeast and Mid-Atlantic States) to supply all 1300 locations.  According to the company, they are still approved vendors with such retailers as WalMart, CVS, Kroger, Circle K, McClains Distributing and other retail and wholesale outlets.  I expect to see more P.O’s signed with some of the retailers in the very near future.

They have also had a number of successful capital raises, the most recent being about 6 months ago for approx. $750,000.  It appears they will not make the same mistake they made back in 2007…being undercapitalized, I mean.

I tried to find out from the company just how lucrative the Food Lion relationship could be.  They assured me that the existing P.O. was not a trial P.O., but rather a full purchase order for all of Food Lion stores.  While I could not get them to tell me exact amounts, I got the impression that they expected significant re-orders under this P.O.  My estimate for such a large chain and given the price point of their product, this relationship alone could mean several million dollars in revenues for the company.

The company has a unique angle that I have not seen from other pet food companies.  AAPT has devised its own “power bar” for dogs.  They have had very positive feedback from retailers about their line of bars which are priced and displayed as an “impulse” item on the checkout stand.  They say this product has strong margins and could be a huge winner for the company.  They also have another hook in the form of “breakfast food for dogs”.  I will be interested to see how each of these items sells.

The Chart looks promising

AAPT has taken a beating over the past few years.  Historical information indicates the investors who came onboard in 2007 when the company went public came in around $0.50.  Since then, the stock has done nothing for them except go down.

That could be changing.  I am looking at volume returning to the stock, the stock hitting a 52-week low just a few days ago, technicals that could be showing a near-term rally…and much more.

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Bottom Line

This is not a short-term technical play.  True, there might be some price movement over the next few weeks, but the real play is if this stock begins to issue some meaningful press releases:  new P.O.’s signed, new retailers and wholesale accounts added, revenues and profits booked, etc…

I believe that 2011 could be a VERY GOOD YEAR for AAPT.   At these price levels, the stock could easily double or triple on any good news.

This is also a penny stock with all of the uncertainties inherent in stocks of this type.  The company is fully-reporting and seems to have a good team in place (more on management in a future post).

Here is what I am looking at for entry/exit points
Last Close:              $0.023
Buy Opinion:          $0.02 – $0.03  (use your own good judgment here….if you miss it at these levels, watch it to see whether it holds the uptrend before getting in)
Short Term Sell:    $0.05 – $0.06
Long Term Sell:     $0.15 – $0.20+

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.

Category : General Commentary | Blog Bookmark and Share
15
Nov

Adamis Pharmaceuticals Corp. (ADMP.OB)

I continue to be sold on Adamis Pharmaceuticals Corp. (ADMP.OB).  It is a stock that I had called a “potential 10-Bagger” in a blog several months ago (read it here).  Unfortunately, the stock did little to make me look like a genius.  The stock has traded in a range between $0.25 (where I recommended it) and $0.30.  The stock continued to be beset by naked shorters.  In fact, Friday’s FINRA report was the first time since I began covering this stock that there was no shorting!

Finally!  The Financing News!

Last week, the company finally released the news that loyal ADMP holders have been waiting for:  A financing in the amount of $10,000,000!

Here is a summary of the financing:  Eses Holdings Limited, a company located in the United Arab Emirates has agreed to invest $10 million and acquire 40 million shares of Adamis common stock at a purchase price of $0.25 per share. $5 million of the investment was made at an initial closing. The remaining $5 million is to be invested in two tranches of $2.5 million each upon the achievement by the company of certain milestones. The company anticipates that the milestones will be achieved and the additional investments will occur within the next 60 to 120 days.

According to my contacts, the contingencies will be met in a timely manner, so ADMP will have what could be the last financing they will ever need….according to Dennis Carlo, CEO of Adamis.  The other notable thing about the financing was the their were NO warrants attached.  Dilution, yes, but no warrants which I see as a good sign.  The strike price of $0.25 was reasonable based upon recent trades although that did cause some downward pressure on the shares late in the week.

There is still time to get in!  A look at the chart!

The boards that I frequent are not shy of opinions on ADMP.  Most posters are highly skeptical of management due to the number of unfulfilled promises from management (Epi Pen Debacle, botched LaJolla Pharma merger, no financing news forever, etc…). The chart show the tug of war that is going on with the stock.  Pro-ADMP posters can’t wait for the short squeeze to start.  With all of the shorting activity, the % short could be very high.  Management still has a DNDN-type of success story in mind.  I have heard from others that the company will really begin to pick up steam in the near term. Let’s hope so.

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I’ll apologize in advance…

…for  a long, boring paragraph about the tech behind their main drugs.  The blockbuster drug potential is contained in the APC compounds which are targeting the most prevalent type of cancer in men:  Prostrate Cancer.  My IR contact for ADMP created an overview of this drug family and I am going to repeat it in its entirety.

Contrasting the science of Dendreon (DNDN) to the science of Adamis (ADMP) does a good job of explaining why Adamis Pharmaceuticals (ADMP) could present a remarkably opportunity for investors.
Dendreon & Adamis Pharmaceuticals have both developed a novel method of attacking Prostate Cancer. Cancer behaves similarly to the viruses (Colds & Flu) we are all familiar with, invading a human cell and turning the cell into a manufacturing plant for more viruses or Cancer cells. Thousands of years of Evolution have produced an Immune System that readily handles most of Nature’s viruses. The body uses T-Cells for this task of dealing with viruses. T-cells can peer inside a cell and find the chemical fingerprint which identifies the cells carrying the virus. Cancer cells however, are not recognized by the immune system. Both Adamis & Dendreon have developed science to allow the immune system to create T-Cells specific against Prostate Cancer.
Dendreon has already proven this T-Cell approach works and is potentially a game changing breakthrough for the treatment of Prostate Cancer. Investors have seen shares of Dendreon rise on this promise with a high of $57 earlier this year after receiving FDA approval and currently trading around $36. Dendreon uses Dendritic cells to mount a T-Cell immune response against Prostate Cancer cells. While partially effective, Dendritic cells offer only a short antigen presentation window to create T-Cells over a period of a few hours. The numbers of T-Cells created are time limited, explaining why Dendreon enjoyed limited trial success but still enough to garner FDA approval based on the increase in patient longevity of 4.1 months. Dendron’s approach is costly to implement, running approximately $90,000 per patient. The process is complicated, must be done on a case by case basis and requires highly skilled technicians.
Adamis on the other hand is a relatively unknown company by investors, whose shares are currently trading for around 25 cents and still needs to conduct both an FDA Phase II and a Phase III trial. Adamis  also produces T-Cells, differing from Dendreon by using a Tolomerase gene vaccine. This has the advantage of longer antigen presentation cycle to create active T-Cells against Prostate Cancer. This longer presentation window (4 – 5 days) means the Adamis vaccine creates more T-Cells, which are the active ingredient that kill Cancer cells.
More importantly, the Adamis vaccine creates T-Cells which can target Prostate Cancer stem cells. These stem cells are the key to enabling Cancer to spread throughout the body. The Adamis T-Cells directly target these key cells while the Dendreon doesn’t.
Adamis will be launching a phase II trial shortly, which will run a year. Dennis Carlo (CEO of Adamis) says he’ll have actionable data in 6 months (proof it works) allowing Adamis to partner with a large Pharmaceutical company like Merck. Once the Phase II trial is concluded Adamis will still need to run a phase III trial, before they can apply for FDA approval. Given the similarity in science to Dendreon’s, it might be reasonable to assume Adamis could also be granted FDA approval.
The point to stress here is simply that Adamis is causing T-Cells to be produced that are active against Cancer cells, just like Dendreon. The difference is that Adamis’s vaccine produce more of them and targets Cancer stem cells and offers a simpler less expensive therapy. Adamis’s CEO, Dennis Carlo told me nearly a year ago, that he believed this held the promise as a potential Cancer cure. While that bold assertion remains to be proven, when the Street finally understands how big of a breakthrough this might be, investors could be well rewarded.

Why is ADMP a Ten-bagger? -or- ADMP:  From the outhouse to the penthouse

When I stumbled across ADMP, I did my usual in-depth research and actually got to talk to the CEO, head IR guy and a number of other interested parties.  I don’t think that the company has done a good enough job getting the word out about the company, but it appears that the good news is there.  With the blockbuster drug potential of the APC compounds (see previous paragraph), that alone could drive the company forward.  But, ADMP has the Epi-Pen product that has great potential and the Contraceptive Gel product (nearing approval) that could winners for the company.  I would like to see Dr. Carlo be more proactive in getting news out to the investing community and then following up on that news with updates periodically.

The DNDN connection obviously draws attention to ADMP’s potential.  I am impatient to see just how ADMP executes on its plan…and, realizes its potential.  Right now, long-term investors feel a little like they are in the “outhouse”, but there is a great deal of confidence that this stock is headed for the “penthouse”

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

Last Close:              $0.26
Buy Opinion:          $0.25- $0.35
Short Term Sell:   $1.45  (I plan on selling enough to cover my investment, lock in a little profit and then sit back for the ride)
Long Term Sell:     $2.50+ (I plan on selling enough to cover my investment, lock in a little profit and then sit back for the ride)

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  Long ADMP

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.

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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.

Category : General Commentary | Blog Bookmark and Share
28
Oct

Gannett Co., Inc. (GCI) and Lee Enterprises Inc. (LEE)

A very successful blog for me in 2009 was one that I did on these two companies. (Click here for blog)  Back in June of 2009 (when the newspaper industry was teetering), I picked both Gannett Co., Inc. (GCI) and Lee Enterprises, Inc. (LEE) as potential long opportunities.  Boy, was I right.  Both returned HUGE gains for my members.

Both are looking like they might be at a good entry level again.  Here is a quick chart analysis for my two past winners.

Gannett Co., Inc. (GCI)

GCI (The USA Today people) are in reasonably good condition and have made significant inroads in changing their business model to conform to the new information paradigm that exists in today’s marketplace.

sc-5

Lee Enterprises, Inc. (LEE)

LEE has done a good job returning to profitability.  They are on a mission to reduce debt and have reiterated their desire to clean up their balance sheet.

sc-6

Be Warned! These companies are still in the newspaper business and with declining ad revenues and readership, both are facing many challenges ahead.  LEE is making a concerted effort to get caught up on the electronic/Internet front and be much more of an player in that space.  Their regional empire is a strength and LEE could see another run.  GCI has already come back strongly, but could have farther to go.  They are profitable and growing (once again) and have a strong balance sheet.  Debt is high, but coverage ratios are strong.

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

GCI

No recommendation….GCI is out of my specified investment range.  I focus on stock under $5.  It could be a very good trade, but I am not recommending it at this time.

LEE

Last Close:              $1.99
Buy Opinion:          $1.90 – $2.15 (Stop Loss trigger – $1.80)
Short Term Sell:   $2.50
Long Term Sell:     $4.00+

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.

Category : General Commentary | Blog Bookmark and Share
27
Oct

BSD Medical Corp. (BSDM)

I previewed BSD Medical Corp. (BSDM) for my readers back in July when the stock was at $0.90.  When the stock closed  at $4.21 on October 6th, I was feeling very good about my pick…for you and for me.

I came out very strong that BSDM was a stock that you needed to own…and, I was right.  Read my original blog here.  It took about a month for it to begin to move, but when it did it moved FAST.

For those keeping score at home, my readers could have booked a potential gain of over 340% at its height.

The question for me now is will the run continue?  Does this stock have any more legs?

BSDM the company

BSD Medical Corporation (NASDAQ:BSDM) develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radio frequency (RF) and microwave energy. BSD Medical is also making major progress in the application of its technology for other therapies. (from BSDM’s Site).

The company has pioneered using heat (in  the form of microwave energy) to kill entire clusters of cancer cells.  I won’t go deep into their technology, but you can read on their site just how impressive their technology is.

It appears the company is only beginning to penetrate the market with their devices and the potential is huge.  Certain of the Company’s products have received regulatory approvals and clearances in the United States, Europe and China.

I read something on Seeking Alpha, where a pundit quoted a blog in MedMarket Diligence saying the market for these types of devices could be worth up to $10 billion.  He went on to opine that “this gives BSD the potential to catapult its market cap by more than 11,000% from its current market cap of just over $90 million.”  I looked on that site to find the quote directly but couldn’t find it.  This gentleman was the only one I could find that was willing to go out on a limb and give specifics about market potential….so I included it.

The company is being closed-mouthed on it, but I get the feeling they are excited about what the future could hold.

Let’s check the chart

The chart is showing a strong uptrend and if you were to draw trend lines it would look like the run could continue.  With this morning’s gap and run, be careful with this stock.  It is scary to buy into such a big gap.  I would recommend watching it for the next day or two to see how the stock performs.

sc-41

I think that BSDM could be one of the big stories on 2010.  It might be scary to buy into this current run, but this is one stock to keep on your radar.

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.

Category : General Commentary | Blog Bookmark and Share
26
Oct

Adamis Pharmaceuticals Corp. (ADMP.OB)

I AM STILL HERE!  I have gotten several emails asking where my next post was.  I have taken about a two week break from posting.  No worries.  All is good.  I have been spending all of my time working on my new site:  www.topstockpicks.com.  It’s not live yet, but I will be making an ann0uncement soon.  I never know how much work a new site was!

But, let’s talk about ADMP.

I am still very bullish on Adamis Pharmaceuticals Corporation (ADMP).

As I laid out in my August blog (click here to read), ADMP is a potential ten-bagger and above.    I continue to be in touch with the CEO and the IR people and their confidence gives me a strong feeling that ADMP has a real future.

Shorters continue to plague the stock but yesterday’s rally could mean the buzz about ADMP’s long anticipated financing could be coming to fruition.  Somehow volume is known to precede news…could ADMP ready to give us dedicated followers some good news?

What’s new with ADMP

The only PR that the company has put out was about the closing on their prostrate cancer drug candidates.  It’s not huge news, but reading between the lines gives it greater importance than the way the market reacted.  The market reacted with a big, fat YAWN.  I, on the other hand, think it is great news.

Here is what happened:  On February 25, 2010, Adamis announced the signing of a definitive agreement to acquire exclusive licenses covering three small molecule compounds, named APC-100, APC-200 and APC-300. Adamis acquired APC-300 as part of the original transaction and has now completed the acquisition of APC-100 and APC-200.   The cool thing is the financing contingency was waived by the sellers and now ADMP now owns all three potential blockbuster compounds.

The company appears to hold out great hope for these compounds.  Dr. Carlo still appears to have Dendreon (DNDN) dreams about these compounds.

Ten-Bagger Status

I actually got a comment from a reader on my original blog saying that I shouldn’t put a sell target on this stock at a ten-bagger because it could blow through that status easily.  What I recommend is what I did with CLYW to such great effect.  With CLYW’s huge 750% move (that I called), I was able to sell some at a good profit and I am basically “playing with the house’s money”.  I like that and that is the technique I will use with ADMP.

A look at the chart

ADMP, until yesterday, was beset by naked shorters.  The boards are still mainly negative, but the stock never fell too far.  That tells me there is strength on the bid and that buyers are waiting.  If the stock continues to advance, the short squeeze could rocket the shares further. If any substantive, positive news comes out this stock could rocket.

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

Last Close:              $0.28
Buy Opinion:          $.25 – .35
Short Term Sell:   $0.75 (might be a good place to take profits and then let the remaining shares ride)
Long Term Sell:    $2.50 and above (watch the stock, news, boards…this stock could get hot and blow through the $2.50 level with strength)

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: Long ADMP

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.

Category : General Commentary | Blog Bookmark and Share
8
Oct

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Disclosure:  Long CLYW, VPER, ADMP

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

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

Disclaimer

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

Category : General Commentary | Blog Bookmark and Share
29
Sep

Adeona Pharmaceuticals, Inc. (AEN)

I am still waiting for my Adamis Pharmaceutical (ADMP) pick to take off.  I have great hopes for that stock and look for some great things ahead for it.  And, you know that I like pharma companies.

Adeona Pharmaceuticals (AEN) reminds me of ADMP in some ways.  Granted, they are totally different (drug types, financial position, drug pipeline, etc…), but they are alike in their tremendous potential and the depressed price of their stock.

The Company

Adeona Pharmaceuticals (AEN) has a very robust drug pipeline specializing in drugs for the Central Nervous System diseases (CNS).  Their primary strategy is to license clinical-stage drug candidates that have already demonstrated a certain level of clinical efficacy and develop them to a valuation inflection point resulting in a significant development and marketing collaboration (essentially they develop them until they can attract the big pocket pharma guys and then do a co-development deal). They have five product candidates, four are drug candidates and one is a medical food product candidate in clinical development.

Here is their drug pipeline chart (I left the hotlinks in, so you can get more info on anyone of of the drug candidates by clicking on the link)

Trimesta – Treatment of relapsing remitting MS in women

Effirma Treatment of Fibromyalgia (partnered with Meda)

Zinthionein ZCDietary mgt. of Alzheimer’s disease and mild cognitive impairment

dnaJP1Treatment of rheumatoid arthritis

ZincMonoCysteineTreatment of dry age-related macular degeneration

Here is a link to a Rodman and Renshaw presentation the company did earlier this month.  I found it very interesting.  Dr. James Kou (pronounced “Koo”) is a great ambassador for his company and brings out some very interesting facts about his company and its potential.

In addition to drug development, AEN purchased a CLIA-certified diagnostic laboratory in July of 2009…now called Adeona Clinical Laboratory.

Fundamentals

As of June 30, 2010, AEN emerged, for accounting purposes, from being a development stage enterprise with $979,782 in second quarter profit. Total net revenues for the three and six months ended June 30, 2010, consisting of license revenue and laboratory revenues, were $2,194,888 and $2,254,927, respectively. There were no revenues for the same periods in 2009. The revenues in 2010 are the result of the Meda AB sublicense agreement of flupirtine for fibromyalgia less the $375,000 payment to McLean Hospital and revenues for services provided by Adeona Clinical Laboratory.

As of the last quarterly (6-30-2010), AEN had $3.3MM in cash with no debt.  The balance sheet, while clean, is not especially strong.  However, AEN has a number of grants that it is funding operations from, as follows:

1.  Trimesta trial is being funded by a $5MM grant from the NIH, among others

2. Effirma is being funded under a partnership announced in May of 2010 with Meda (A Swedish specialty pharma company).  Meda has assumed all future development costs and will pay AEN up to $17.5MM in upfront and milestone payments along with royalties once the drug is on the market.

3. dnaJP1 is being funded by a $5MM grant from the NIH

The Chart

Here is where things get really interesting.  AEN is trading near its lows for reasons that I cannot readily detect.  The news has been all good, yet the stock has continued to drop.  The chart is indicating a bullish divergence has developed with the MACD strengthening while the stock price is falling.

sc13

The Bottom Line

I don’t believe that an investment in AEN is a high-risk venture.  If you listened to Dr. Kou’s webcast, you would have heard him expand on his low-risk strategy that I believe could be very effective for the company.  He stated that AEN’s strategy is to “partner with pharma companies and let them take the drugs all the way through development.  ”  He also made the point that several of the drugs in the pipeline have blockbuster potential (Effirma being one).  By partnering, AEN won’t be in line for the huge payday that being the sole owner of a blockbuster drug could bring, but with such a low float (14MM shares), any deals signed and revenue booked could make this stock fly.

The acquisition of Hart Labs in 2009, now called Adeona Clinical Laboratories, gives the company a strong “cash cow” with strong revenues and excellent profitability.  The company is also using the lab to produce their own compounds for the ongoing clinical tests.

I laugh when I read message boards usually, but those who are following AEN seem to be very bullish on the company’s prospects and the stock itself.

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

Last Close:              $0.79

Buy Opinion:          $0.75 – $0.85

Short Term Sell:   $1.25 (50%+ gain)

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.

Category : General Commentary | Blog Bookmark and Share
23
Sep

Calypso Wireless Inc. (CLYW)

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

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

To Review

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

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

The company is involved in several lawsuits: one with a former officer and the big money one with T-Mobile.  Read my prior blog for more info.

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

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

The amazing chart on CLYW

sc-23

Is the run over?

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

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

My biggest regret

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

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  Long CLYW

About InvestorSoup

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

Disclaimer

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

Category : General Commentary | Blog Bookmark and Share
21
Sep

WESTERN LITHIUM USA (WLCDF.PK)

I wrote a blog a few weeks ago (link here) about how the Lithium mining industry has been the favorite industry of “pump and dumpers”.  Today’s focus stock appears to have the marking of the next in a long line of Lithium pumps.

Wikipedia defines “pump and dump” as a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme “dump” their overvalued shares, the price falls and investors lose their money.

Say hello to WESTERN LITHIUM USA (WLCDF.PK).

Western Lithium has appeared on trader’s radars over the past few days with strong volume and several days of steady gains.  They are putting out a number of really positive PR’s which is the hallmark of lithium pumps.  I almost didn’t go searching past the frothy PR’s because I was so convinced that it was a scam….but, WLCDF might be a real play after all.

When I went to Yahoo Finance and pinksheets.com to look for info….there wasn’t any (other than PR’s).  That is usually a bad sign.  I did however go to Western Lithium’s website and found a wealth of information there.  They have the obligatory, slick website extolling the virtues of Lithium, how it is the metal of the future and how they are going to corner the market.  They drop all the right names and have lots of “facts” to convince traders that they are the right lithium vehicle.

But, I actually read their financials.  What I found surprised me.  WLCDF has over $17MM USD in cash with no debt.  The company has a quarterly burn rate that is very manageable and have plenty of cash on hand for operating purposes for several years (at this burn rate).  As of March 31st, the company had fully diluted shares of 110MM.  Not too bad for a penny stock.

The chart

The chart has all of the earmarks of a pump and dump.  It has had strong buying come into the stock lately, a bullish gap and a strong run to close at $1.00 yesterday.  See for yourself.  The stocks looks primed to fall, but it probably won’t be a collapse like so many of its lithium mining buddies (LIEG, AMEL, LTUM, BHWX and AMLM)

sc11

Where is the pump?

I looked for the newsletters plugging WLCDF as the latest pump and dump…and, couldn’t find any.  These guys may be legit!  I have several sources that tell me how many newsletters a particular stock is being flogged by and I couldn’t find any.  I was almost disappointed.

Bottom line

I still think that shorting WLCDF is the best course in the near term.  I look at this run (and the indicators) and think there will be a short-term correction.  It won’t correct for months like its brethren AMEL, LTUM and others did.  Once it drops, THEN that might be a good time to pick up some shares.  WLCDF appears to be the “real deal”.

I now have this one on my trading radar.  It will be fun to watch to see if it can be one of the winners in the lithium space.

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.

Category : General Commentary | Blog Bookmark and Share
14
Sep

SUSTAINABLE MARITIME INDUSTRIES, INC. (HQS)

Here is a stock that has tons of cash (actually selling for less than cash), has increasing revenues and solid prospects going forward.  However, if you read the boards (and I do for fun…sometimes), HQS are the biggest scam artists on the planet.  Management is inept and they have presided over the emasculation of the company and the steep decline in the stock price.  I think the boards are most angry about the decline in the stock price, though.

I figure the truth lies somewhere in between.

Sustainable Maritime Industries, Inc. (HQS) is a fish farmer and exporter.  Actually…the describe themselves as a “integrated aquaculture and aquatic product processing company”.  The company has its main operations on the “environmentally pristine”  (whatever that means) island province of Hainan, in China’s South Sea.  They specialize in the export of tilapia in different forms to the US, Japan, Korea, Mexico. The tilapia products sold by the company are mainly in the following forms: Whole Round Frozen, Gutted and Scaled (G&S), boneless-skinless tilapia fillet (CO treated) or (non-CO treated).

The company touts its operations as “functional, sustainable, biomass products focused on Tilapia aquaculture through vertically integrated operations”.   The company  claims to practice cooperative farming of sustainable aquaculture using all-natural enriched feeds. The Company produces and sells wholesale feed products as well as retail focused nutraceutical and health products, including its “Omojo” branded health products through direct and franchise sales in China. Additionally, the Company produces and sells Lillian’s Healthy Gourmet Meals and other fish products in the United States. The Company conducts fish processing, production and sales from its main office in China.

Investment Highlights:

Balance Sheet

Cash – $43.8 MM

A/R – $51.7MM

A/P – $6.5MM

Quick (acid test) Ratio – 14:1  Very strong

Clearly, the company has a strong balance sheet and it will get stronger with the news of a successful capital raise in the third Q of 2010.  The net to the company was in excess of $11MM and will make a strong balance sheet even stronger.  I am concerned about the size of the A/R balances (just as a percentage of total assets), but with audited financials hopefully those numbers represent future cash as they are collected.

Income Statement

This is where I have some concern.  The company is on a run rate for 2010 that is lower than 2009.  However. the 6-month results through June 30th are ahead of the previous years.  There has been some decline in margins, but nothing lethal.  I wonder if there isn’t some seasonality with their business that could account for the decreased run rate year over year.

Thru 2nd Q 2010        Thru 2ndQ 2009             FY 2009

Total Revenues                         $35.0MM                     $26.9MM                    $72.0MM

Gross Profit                               $10.9MM                       $11.1MM                    $30.2MM

Operating Income                     $4.0MM                       $3.8MM                      $11.1MM

Net Income                                 $2.8MM                       $2.2MM                      $8.1MM

The Chart

sc10

The bearish gap is a direct response to the recent equity raise which was priced at $3.61 per unit with a half warrant attached at a $4.52 exercise price.   If you were to take the $3.61 exercise price and divide by the units (1.5), you would actually arrive at a net share value of $2.40.  I can do this because even though the half warrant is priced at $4.52, there is no guarantee that will be the actual exercise price.  In fact, I have found that warrants are easy to re-price if the shares don’t reach the trigger points quick enough.

The chart itself is showing some bullish pressure with a strengthening MACD and an improving stochastics.  Other indicators are telling me the selloff could be ending.

Bottom Line: This could be a great time to get in to HQS.  I am a firm believer that firms with strong balance sheets give themselves the “breathing room” to overcome dips like the one HQS is currently in.  I like the stock…..I think that it could make a strong recovery over the next few months.  They are increasing capacity and expanding distribution…two very good signs.

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

Last Close:              $2.80

Buy Opinion:          $2.75 – $2.90

Short Term Sell:   $3.75

Long Term Sell:    $5.00

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.

Category : General Commentary | Blog Bookmark and Share
9
Sep

Celldex Therapeutics, Inc. (CLDX)

Celldex Therapeutics, Inc. (CLDX) has experienced a severe drop in its share price since its high of $9.49 on May 18th, 2010.  Perhaps the news that Pfizer Vaccines had cancelled its licensing agreement of CLDX’s therapeutic cancer vaccine candidate, now called rindopepimut, was the final “nail in the coffin”.   I am not trying to mitigate the damage to the company future prospects that this cancellation caused, but I think that CLDX is not “terminal”…and should be on your radar list.  The stock is in a downtrend currently and I would not suggest being careful with your entry point.  It might be best to see if the stock has put in a base at these levels.

About CLDX

Celldex Therapeutics is the first antibody-based combination immunotherapy company. Celldex has a pipeline of drug candidates in development for the treatment of cancer and other difficult-to-treat diseases based on its antibody focused Precision Targeted Immunotherapy Platform. The PTI Platform is a complementary portfolio of monoclonal antibodies, antibody-targeted vaccines and immunomodulators used in optimal combinations to create novel disease-specific drug candidates.                                                                                                                                                                  source: company website

CLDX also offers a “fact sheet” on their company and its drug candidates which is good reading to help you gain a better understanding of the company.  Click here to access.  It is dated April 8, 2010 and still contains mention of Pfizer, but the information is still relevant.

The chart is not CLDX’s friend…for now

sc9

Is this a  good time to get back in?

All that I have read (company info, third-party journalists and even message boards) lead me to believe that CLDX has a great recovery potential.

The company believes firmly that their main drug candidate, rindopepimut, still has great potential.   In a recent press release commenting on the Pfizer withdrawal, the company makes the point that “across three clinical studies, rindopepimut has met or exceeded all pre-determined safety and efficacy objectives.”

The PR goes on to say (and I thought this was important so that is why I am including it), ”There is a significant need for new therapies for GBM and we are fully committed to developing rindopepimut for the patients who suffer from this fatal disease,” said Anthony Marucci, President and Chief Executive Officer of Celldex Therapeutics. “Importantly, the program has advanced significantly, including the completion of a multi-center Phase 2 study, the development of a diagnostic companion product, the manufacture of drug supply for clinical studies, and the execution of discussions with regulatory agencies on the design of a global controlled study. We believe the program is very well-positioned to advance into pivotal clinical studies and that the GBM market remains extremely attractive.”  Read the full release by clicking here.

One of the hallmarks that I look for (as a recovering CPA) is a company’s financials.  CLDX has a strong balance sheet that will give it time to work out its problems.  As of the June 30th Q, the company had over $65 million in cash with manageable debt and good coverage ratios…over $2.00/share in cash.  Pfizer has funded much of the development over the past year and I will be curious to see what the burn rate of the company will look like in future quarters.  It’s ability to raise funds in the future is heavily dependent upon how they can recover from the Pfizer debacle and re-establish in the minds of investors (and the financial community) that they have a viable drug pipeline.

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

Last Close:              $3.55

Buy Opinion:          $3.40 – $3.70

Short Term Sell:   $4.50

Long Term Sell:     $6.00+

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, 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.

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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.

Category : General Commentary | Blog Bookmark and Share
26
Aug

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.

stock-chart-straspx

Volume is tailing off and a stock can only be pumped so much.  I expect to see TGMP fall…the question is when.  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” that could drive the price even higher.

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.

Category : General Commentary | Blog Bookmark and Share

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