This pink sheet stock may still be on shaky ground, but the recent upturn in the chart has us wondering about Healthnostics Inc. (HNSO) After reaching a low of $0.003 in February, we’re starting to see higher highs and higher lows. Moreover, the volume behind the gains is picking up…finally.

The recent willingness from the buyers may have something to do with a significant elimination of debt, the formation of an affiliate program (which can yield surprisingly strong results when done right), or most recently, a partial acquisition of diabetic equipment provider GMD Inc.

The company states they’re going to move from the pink sheets to the bulletin board later in the year. That’s a chicken we won’t count until it’s hatched, though based on what we see here it certainly seems plausible.

What do they do? Two things…manage medical Internet portals, and offer web-based hospital/patient monitoring systems. The market for what they do is there; what’s not clear yet is whether or not Healthnostics is set to be a contender in the arena. Lately, somebody seems to think they are…or at least will be.

If you have thoughts or more facts about Healthnostics, please chime in below.

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Though the company really hasn’t done anything significant in the way of collecting any revenue, somebody clearly thinks they’re on the way. After a surge from 15 cents to $1.00 in early 2007, pink sheet stock Advanced Medical Isotope (ADMD) had a hard time making any further progress. Since then, the trading range may have turned into a double bottom, with the stock on the verge of a break above resistance.

An investment? Not yet - at least as far as we can see…we can’t get a bead on how close to commercialization they are. A trade? Possibly…we’re seeing higher lows, and a key ceiling is under attack.

The double bottom is also the low edge of the range, at 40 cents. The ceiling thus far has been 90 cents. That’s just a hair under this week’s high of 89 cents.

Based on the shape of the chart, we have to wonder if the stock is foretelling us about something the company is doing.

By the way, the company’s business is the production of medical isotopes. They’re developing a broad portfolio of choices, but to our knowledge have not actually sold anything yet. HOWEVER, several deals have been signed since January that would imply revenues are near; we suspect that’s what’s driving the stock now.

We don’t intend to look again, barring something significant. However, it may be worth a little due diligence if you’re willing to study an interesting opportunity.

If you have anything to add about ADMD, just use the link below.

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Back on March 10th when we saw the market respond to Immunosyn’s (IMYN) submission of photographed speciman samples to the SEC, we assumed the stock would be volatile. Since then, we’ve not been dissappointed. This micro cap name has been much higher - and much lower - than it was following the news release. One thing that’s been defined in the wake of all the gyration is an intermediate-term support line, which just became a factor again within the last few days. 

You might recall the mention - Immunosyn submitted ‘proof of concept’ photos to the SEC. It’s actually not a bad idea…it makes an official statement to the investment community, as opposed to the medical community. However, it would have been priceless to see the confused stares made by the SEC officials when they opened the envelope…the pictures were ‘before and after’ pictures of diabetic patients’ open wounds.

Nothing has really changed since then; this micro cap company is pre-revenue, and could be years away from getting the drug to the market. However, biotech stocks can make gains well in advance of any revenue. Based on the fact that there have been more buyers than sellers over the last month, we have to wonder if IMYN is one of those stocks.

In the short run, the chart speaks for itself. Immunosyn may not be ‘investment worthy’ yet, but IMYN may well be ‘trade worthy’.

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It was back in late January we first highlighted small cap company Technical Communications Corp. (TCCO). We liked the underlying fundamentals, but acknowledged we came across the stock because of its technicals (the chart). 

Our primary concern with the stock’s chart was a potential ceiling at $7.25 (shares were trading at $6.49 around the time). By February 11th, the $7.25 resistance was broken…for a whole three days. TCCO spent the next month and a half winding its way back to a low of $4.40. That was the concern we voiced back on February 12th - could the stock actually hold onto the big gain made in a short period of time. The answer was obviously no.

Instead, we suggested waiting for a dip. Well, we got that - and more. More importantly, we’ve seen a strong recovery effort over the last three weeks. TCCO is back above some key moving averages, and still pointed higher.

The big surge and subsequent pullback may have been just what the doctor ordered, cleaning out the nervous long holders and taking out any significant short owners. Now that all the volatility has (hopefully) been burned off, the stock can get closer to trading at its actual value.

It’s still not an official trade, though we seem to keep gravitating to a nice underlying story behind this active stock. If you didn’t see our initial look, click here. 

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We knew this was in the works, but Universal Delivery Solutions (UDSG) started the weekend with some good news about delivering for Manhattan Subway sandwich shops.

The last we heard about the partnership was October of last year. If you missed the news, just click here for our entire coverage. Or, if you want the Q&D version, here goes…

All the Manhattan Subways can deliver subs, but handling it at the store level could be a logistical nightmare. To centralize and streamline the process, UDS Group has established one nationwide toll-free number to call in a delivery order. UDS handles all the logistics; all the local store has to do is make the sandwiches and tell the driver where to take them. For doing this, Universal Delivery Solutions takes percentage of the dollar amount of the order.

The ‘bigger picture’ plan is to reproduce the same one-phone-number setup, for other restaurants. Eventually, they could do the same for grocery stores, pharmacies, dry-cleaners…you name it.

Though the deal with the Manhattan Subways was deemed a pilot, that’s one high-profile trial program. It involves dozens of restaurants. Plus, it’s New York. If they can make it there, (and sorry for the cheesy cliché) they can make it anywhere.

If this Manhattan Subway arrangement works as well as we think it can, we anticipate the degree of interest in UDS Group’s offer to rapidly. To that end, just know there are nearly 1 million restaurants in North America. That’s a lot of potential partners.

Believe it or not, there are actually some consistently-rising stocks in the middle of the mildly bearish environment. Our very own small cap name Clearly Canadian (CCBEF) is one of them; it’s up 114% year-to-date, and up 64.8% since we got back on the bandwagon on February 15th.

It was only a few days ago they unveiled fourth quarter and full-year results. The overall numbers were higher, but some acquisitions in the middle of 2007 made it an apples-to-oranges comparison. Still, when each of the major divisions was broken down, all of them saw top line improvements.

The combined brands did $11.1 million in sales during 2007, which was remarkably better than the total of $7.5 million from the year before. However, new CEO Bobby Genovese mentioned he felt the company was capable of doing $30 million per year. For comparison, the current market cap is about $25 million. That leaves some room for a little more upside, but…

We’re still thinking profits should be locked in somewhere between $1.48 and $1.70. Or if it’s easier, let’s just say ‘around $1.60′. The market cap would be near $33 million then, and the stock would start to hit significant prior ceilings. It’s still not a bad little move for those who got in though…close to a double.

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Though they scored no points in the ‘company name that makes any sense’ category, the market seems to love XsunX’s (XNSX) recent news. The company recently signed a lease on a new manufacturing facility, which apparently will give them some much-needed capacity.

The company has spent the last three years in focused research with a photovoltaic material called Amorphous Silicon. During this time they’ve developed the technical capabilities to take the technology to market. The products they ultimately intend to mass produce are amorphous silicon solar modules on glass panels.

The new facility will establish the first 25 mega-watts worth of production capability for their thin-film solar module manufacturing needs, but XsunX plans to grow their manufacturing capacities to over 100 megawatts by 2010.

The interesting part about why they chose this location? Aside from providing strategic access to shipping and transportation corridors, it also offers sufficient amounts of clean hydro electric power to operate the company’s systems. Talk about green-friendly! Using clean energy to make clean energy….

Anyway, the stock looks great right now. Take a long-term look though…not quite as compelling. XNSX has been range-bound for over a year, roughly between 28 cents and 75 cents. Most of that time was spent in the development phase though, so maybe the facility will move them to profitability. And, maybe that’s why the stock is finally moving.