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Hot Stocks
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May 20, 2009
The following penny stocks (sub $5.00) have exhibited an unusually high amount of trading volume today, and may be strong breakout or breakdown candidates. In some cases the reason for the surge in volume is known; for others it may not be. In all cases though, the penny stocks are worth closer inspection, and should be added to your potential-trade watchlist.
TheStreet.com, Inc. (TSCM)
The Jim Cramer platform is up 8.0% today, to $2.06, on volume that’s 200% stronger than average. There’s no real reason, though you could trace some euphoria back to last week’s earnings numbers. As of right now, even today’s big gain still hasn’t really undone any of the penny stock’s recent or not-so-recent damage. Nevertheless, it’s the highest volume day we’ve seen the end of last year, so there’s something going on here.
CHINA MASS MEDIA (CMM)
Today’s likely to be the highest volume day for CPP since early September. There’s no particular reason for it though, nor for the 22% gain so far. On that note, however, we have to mention that the stock has retreated well off its high for the day, meaning if was buying volume, those buyers are now in the hole. This chart’s got a lot of upside as well as downside potential - it just needs a catalyst to get it going.
PUDA COAL NEW (PUDC.OB)
This Chinese coal company has been on a tear since mid March, but the big volume hasn’t started to flow until just this past week. Late to the party? In the short run, maybe. In the long run though, there’s a ton of ground to make up for the micro cap, and the high-volume shove may be what gets the ball rolling. Definitely one worth keeping tabs on.
SINO GAS INTL HLDGS (SGAS.OB)
Today’s 95,000 shares trades so far already makes this the strongest volume day since December, though the net buying has been in place since late March. The stock is up 26% for the session, though that’s not unusual for this thinly-traded volatile issue. Volume is 600% greater than normal. There’s no denying the reason for the surge…. earnings. However, the surge may be enough to rock this penny stock out of its rut. SGAS is another micro cap to keep on your radar.
That’s it for now, though we’re starting to see penny stocks and micro caps rally longer and further than we have in months. And, most of those trends are starting with a big volume day. Check back often, as we’ll be able to offer an updated list like this one almost daily.
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May 14, 2009
One of our readers mentioned an interesting cellulose ethanol idea to us today, which we’ll describe below. However, given the nature of how we found out about it, it gives us a good reason to remind you that we’re open to your ideas - just send them in.
If you’re simply spamming us to pump a stock you already own, don’t bother…. we won’t post your note, and we’ll probably ban you from the site. If you’ve got a good idea or an interesting argument though, we’d like to hear it.
Anyway, rather than reinvent the wheel, here’s the take on penny stock Bluefire Ethanol Fuels, Inc. (BFRE.OB) straight from our reader….
I suggest looking at Bluefire Ethanol Fuels, Inc.(BFRE), a start-up cellulosic ethanol producer. This company has a patented and proven process for using all kinds of organic waste products and say they can make ethanol for around $1.00/gal. They have an agreement with Waste Management to build plants on or near landfills and sort out the organic waste products for their feedstock (no dependence on the price of corn or other grains).
After declining to $0.51 earlier in the year while two big corn ethanol producers were going bankrupt, BFRE is now establishing a recovery uptrend at $1.17 (1 pm, 5/13). The selling price of ethanol is again moving up in concert with gasoline prices, and there is renewed interest in clean energy funding by the Obama administration. Bluefire already has significant financing from the Bush admin., and is now only waiting for full funding for its first plant to place orders to commence construction. A second, larger plant, is also close to the construction phase, pending funding. Bluefire has huge plans for producing over a billion gallons of cellulosic ethanol in future years as fast as it can obtain funding and/or fund from its own growth once it becomes profitable.
This appears to be a good long-term speculative play on the energy independence plan for our nation.
[name withheld be editor]
ps- I am a chemical engineer and have studied BFRE’s website process details ( use of concentrated acid vs. the less-effecient use of enzymes to extract sugars from cellulosic materials) and believe theirs is probably the most efficient and lowest-cost cellulosic process that has been reported to date.
There you go… the kind of information that could get any of us started down the due diligence path. Our thanks go out to the reader who put these thoughts and info together.
Rather than us picking up the ball and running with it, we’re going to turn this one over to our readers. Does anybody else out there see a particular pro or con with Bluefire? Is there another company that’s doing the same thing, but better? Here’s your chance to speak up.
If you’re not making any real money in the stock market, you need to sign up for the free Micro Cap Press newsletter. We’ll give you the trading ideas nobody else has even thought about yet.
May 13, 2009
 We’re not saying it to gloat, but rather to prove a point…. what we said in last Friday’s edition (Healthcare Heating Up, Materials Cooling Off) could have made or saved you a significant amount of money had you just taken the clues at face value. Here’s the condensed version of the story…
We mentioned how financials, basic materials, industrials, and technology stocks were the biggest gainers from the March 9th low. However, all of those groups looked as if they’d peaked, or were starting to hit a headwind. The laggards during that time were energy, utilities, consumer goods, and healthcare. However, it looked like those four sectors were starting to accelerate… bullishly.
In other words, we suggested selling the former leaders, and buying into the former laggards, as the market was rotating that direction. The nearby chart (right) shows you what we saw at the time.
Care to know how things shaped up in the meantime?
Though it’s only been three trading days since then, following that lead would have kept you out of some pretty big trouble - this week’s biggest losers (so far) are financials (-12.2%), materials (-7.9%), and industrials (-7.8%). Tech stocks have lost 3.0% since then, but that’s about average.
 As far as making any money, that was a little tougher to do given the bearish environment. However, healthcare is flat, utilities are down 3.2%, energy is down 5.4%, and consumer goods are down 2.0%. Those are still losses, but much more tolerable than the results of the other groups we recommended you bail out of.
The chart to your left shows the relative results since our original May 8th report. (The solid vertical line marks last Friday, when we first published the commentary, and the color coding is still the same.)
But as we also said in the May 8th commentary, paying attention to details is how you make the big bucks. So, we immersed ourselves into the data on an industry-by-industry level, and on a day-by-day basis. Overkill? Not if you like money.
We won’t go through the exercise again for energy, but we will update our message for the healthcare sector…. one of the groups we liked.
 Per our prior message, we favored healthcare equipment and pharmaceuticals, not because they had done exceedingly well, but because they were starting to perk up. Healthcare facilities had actually performed the best during the time frame in question, while biotech lagged… and looked content to keep lagging. The image to the right shows you what we specifically saw at the time.
Sure enough, one of the few winners this week (so far) is pharmaceuticals. It’s only a 1.5% gain, but then again, it’s only been three days…. three bearish days. Biotech’s flat, healthcare facilities are down 4.2%, and healthcare equipment is down 1.7%. The first two are in line with what we saw then, while the equipment stocks have been a bit of a disappointment….though only a small (i.e. tolerable) one.
 The chart to the left shows you how things have panned out since then. (The solid vertical line marks last Friday’s data… the day we first made the recommendations.)
As for our outlook, nothing has changed with our sector and industry expectations. Then again, there’s not been enough time to justify a bias rotation. When the right time does come though, you can bet we’ll let you know.
The question is, will you act? Just keep the above success story in mind when we do let you know about any sector bias changes.
There are only two take-away’s here….
- Charts and momentum still mean everything in this environment
- Nothing lasts forever, and assuming they will can be bad for your portfolio
If you’re not getting the MicroCapPress.com e-newsletter, then you’re missing opportunities to make or save money. Not only do we look at sector rotation information, but also market dynamics, the economy (and what it really means), and individual stock picks. Best of all, it’s all free! Sign up today.
May 7, 2009
We continue to see some of the best action from the micro cap and penny stock world that we’ve seen in years. Here are some of the latest emerging stocks worth a closer look…. largely undiscovered, mostly undervalued, and some of them starting to rally very well (despite the headwind the market started making on Thursday).
Click in the company name/ticker to view a chart that isn’t displayed.
** Already on the Move **
 Veneco Inc. (VQ)
Considering VQ was almost at $25 last July, the recent rise and the current price of $6.50 is more than a little interesting. The only thing we don’t like is the hyper-strength of the last four days… and we’re not even sure we don’t like it. Maybe it’s just intimidating knowing if we got in now, there’s a good chance we’d be getting in at a short-term high.
With that as the backdrop, the ‘right’ thing to do here is wait for Veneco to slide back to its 20 day average line and verify that it will find support there, as it has a few times since the beginning of the year. Bigger picture (so far) though, the heavy accumulation is a good sign that there are willing buyers.
Stone Energy Corp. (SGY)
Though not quite as apparent due to the pricing levels and scale of the chart, the problem we have with Stone Energy is the same one we had with Veneco…. a little too much rally over the last two days. Of course, that’s not really a ‘problem’ per se - just something we need to respect and be patient with.
The recovery potential here is bordering on ridiculous.
** Penny Stocks to Watch **
CVB Financial Corp. (CVBF)
OK, technically it’s not a penny stock, but it’s close enough for use to take a look. (Money is money no matter how it’s made.)
Though CVBF hasn’t gone ‘up’ since March, it hasn’t gone down either… and that’s a nice change in itself. While in this consolidation phase, we’ve seen some - some - accumulation, with the best of it coming just this week.
 The safe and smart thing to do is to wait for the ceiling at $7.63 to break before calling it a breakout. Even then though, we feel the odds are very good that CVB Financial will remain volatile enough to make the market question whether or not the stock has truly started a breakout rally. We won’t know for sure until we see higher lows.
U.S. Gold Corp. (UXG)
The chart has made a loose wedge shape since February, and technically speaking, UXG broke through the upper side of that triangle on Thursday. Vollume was solid too.
So we’re bullish? Ehhhhh, not quite. We generally prefer tighter, better defined wedges, and some supporting evidence for the breakout. We’ve got hints of that, but this chart doesn’t quite give a trader that “warm fuzzy feeling” yet. It’s worth watching though.
If U.S. Gold shares could migrate above a couple of other resistance levels ($2.25 and $2.43), we’d feel a little warmer and a little fuzzier. We’d just have to learn to live with the regret of being late to the party.
** And a bearish chart as well… **
Delta Petroleum Corp. (DPTR)
 Delta Petroleum’s sellers are no stranger to crosses under the 20 day line (blue). Far more often than not, moves under it are indeed the beginning of a pretty good bearish swing. Given the degree of selling volume with this last bout with the 20 day average, this one could be a doozy too.
By the way, a word of warning…. the reason shares are selling off on heavy volume is the announcement of another 150 million shares of DPTR coming into the market as part of a fund-raising effort. It may be tough to adequately trade this trend into a profit - it may hit bottom right out of the gate based on the issue, and leave you nowhere to go. The issue price for the new shares is at $1.50. Just be smart.
There’s still a bit of hope for the bears even with the fund-rasing though…. DPTR shares may not even be worth $1.50!
If you’ve got any additional comments or insights regarding any of these stocks, chime in below.
Penny stock and micro cap trading ideas are great, but specific trade recommendations and close inspection of companies and their stocks is even better. If you want the really good stuff, sign up for the Micro Cap Press e-newsletter today.
We saw a small handful of suspicious volume on Thursday….. a huge increase from the average daily volume, but little to no change in price. That kind of churning generally means someone’s getting in or out - quietly. The other shoe may drop in the near future for the following stocks.
Rewards Network Inc. (DINE)
Thursday was the third (and biggest of the three) high-volume days in the last month. On a high-low basis the day was actually pretty volatile, but next to no net change.
What gives? The company filed their Q1 numbers after the market closed, and all the back-and-forth prior to the close was likely jockeying to get in or out of a trade before the news came out.
The bears/sellers are the likely winners, as Rewards Network fell short of last year’s comparables, and turned in a loss. Thus, the high-volume doji bar may also be a pivot point to lower lows.
Command Security Corp. (MOC)
On the weird scale from 1 to 10, this is about a 10. There’s not even a rumor, let alone any suggestive news. Just wait though…the V-shaped reversal from late April could be the bigger clue here.
Access Pharmaceuticals Inc. (ACCP)
The only buzz behind today’s jump in volume for Access Pharma was a big one… the company was featured in a Biomed Reports article. Though it changes nothing in the way of the stock’s value, that kind of publicity can actually rock a stock out of a rut. Translation? The bump may have actually started a move higher.
It’s not the kind of thing you want to put your blind faith in, but it is worth watching in the near future for more of the same.
Sterling Bancshares (SBIB)
The stock closed slightly higher for the day, but also closed lower than the open. If anything, we’d have to view this as a failed breakout attempt (which is ultimately bearish).
The shape of the bars since March also looks a little head-and-shoulderish, with the key neckline also the support line at 6.00 (marked in blue).
The jury’s out, but we’re slightly pessimistic on this chart as of today. A move under $6.00 could really be a problem.
Vital Images Inc. (VTAL)
This one’s a little tricky. The bar was bearish, and the fact that we saw so much volume behind the bar is bearish. One could also make the case that the downtrend since early April is also bearish. However, it wouldn’t be crazy to see today’s volume spike as the pivot point for the downtrend…. a pivot into a bullish phase.
We’re not in agreement - we’re just saying that’s not a completely unfounded argument.
No, we’re generally bearish, interpreting today’s big (well, kinda’ big) distribution as a sign that a major institution or a whole lot of retail investors were able to get out without causing themselves too much damage. Why? Vital released earnings last night. They weren’t great, but weren’t a surprise either. Maybe that’s why we saw so much volume and so little change… the market wasn’t sure if they should buy or sell, so they did both. They’ll make a firm decision soon enough.
Of course, we also have the luxury of seeing the bigger-picture bearish channel (blue). VTAL recently kissed the upper edge of the zone, and still has lots o’ room to go before visiting the lower edge.
This information is pretty good, but only a small taste of what we have to offer. If you want specific penny stocks and micro cap stock picks that are already in motion, be sure to check the blog and the site frequently. If you want the best of the best, sign up for the free Micro Cap Press e-newsletter.
May 6, 2009
We continue to see big volume surges from the micro cap stock world. Simultaneously, we’re seeing long, drawn-out moves from these names…. a possible sign of better (or at least more predictable) times. As such, the volume spikes that occur without any news behind them may be the beginning of a major trend, both bearish and bullish. The most meaningful volume surges are the ones that take place with little to no change in the stock’s price; this generally means a lot of players - or one big player - was quietly getting into or out of a position.
In any case, here are some penny stocks with noteworthy volume seen on Wednesday. These are all worth watching over the next few days, as the underlying “why” could start to move these shares. If the chart is not displayed, click on the bold company name/ticker.
 Hallmark Financial Services Inc. (HALL)
Volume was up 3600% Wednesday (above the average), yet the stock didn’t budge. No news either.
Keystone Consolidated Industries Inc. (KYCN)
Wednesday’s 35,000 shares isn’t a huge number, except for KYCN… the average is 11,000. We may have overlooked it this time, but we’ve seen a few major accumulation days at the same time the stock stopped sinking. Something may be up.
Arrhythmia Research Technology Inc. (HRT)
Wednesday wasn’t the first day we’ve seen unusual volume from HRT; 4 of the last 6 days have been strong accumulation days. No news behind any of it, though the stock has climbed modestly during the accumulation phase.
Side note: Arrhythmia Research Technology has been rumored to be a buyout candidate. The last attempt failed, but the cat’s out of the bag now.
Premier Financial Bancorp Inc. (PFBI)
60,000 shares versus the norm of 8000? Neither is a lot by most standards, but it’s unusual for PFBI. The bleeding seems to have stopped too; perhaps bigger buyers are fishing again.
 Stoneridge Inc. (SRI)
Could the plight of the auto parts manufacturers be over now (or at least overblown)? Somebody seems to think so, as more the 3/4 of a million shares were bought today. The average is 91,000. The industry is still troubled, but at about 1/8 its peak price, this stock is an interesting gamble… at least it is for some people. What do they know that we don’t?
Medicines Co. (MDCO)
1.3 million shares traded hands….three times the norm, yet the stock fell only 0.8%? Yeah, something’s up.
That’s it for now, though check back often - we’re starting to see more and more of this kind of anomaly. Better yet, these odd volume are actually starting to mean something again. If any of today’s stocks start to reveal why volume was ramped up, or if they start to move, we’ll try and let you know.
This is only a small part of the MicroCapPress.com experience. If you’re not getting our free e-newsletter, you’re missing our best ideas. Look, the micro cap and penny stock market is just too deep and complex to stay on top of by yourself. Let us help you by giving you select data like what you just read, along with specific trading ideas in the newsletter. Don’t miss any more money-making opportunities. Sign up today.
In yesterday’s newsletter we mentioned the need for China Energy Recovery (CGYV) shares to break above $2.00 to have any hope of being released by the sellers’ grip. Well, today’s high (so far) is $2.03. Will this do the trick? Maybe. Volume has been light, and the overall market tide hasn’t been helping, but this is definitely a good start. If we can just add a little more ‘umph’ today, this thing could break clear once and for all.
That’s not what I came here to talk about though. Take a look at the chart, but keep reading.
Behind the stock’s success, of course, will be the company’s success. China Energy Recovery has been doing fine on its own, as we’ve been logging. However, the big enchilada is yet to come.
We know China, like the U.S., is stimulating their economy with a big spending injection. More recently though, the 4-trillion yuan package has started to be allocated - in specific dollar amounts - to specific projects and goals. Care to guess how much is being spent on “energy saving and ecological projects”? A whopping $3.4 billion. If China Energy Recovery can win just 1% of that, it would still mean $3.4 million in business for the company.
That’s a big chunk of change.
Here’s the story: http://news.xinhuanet.com/english/2009-04/30/content_11284048.htm
The best way to stay on top of China Energy Recovery’s story - and any other investment-worthy trends - is to sign up for the free MicroCapPress.com newsletter. Start making more money today.
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