News

Running With The Bulls; 10 Stocks Under $3 Going Against The Grain

Justin Green — Tue, 27 Dec 2011 21:07:51 GMT

Swing trading, for those of you who are unaware, is a speculative activity where stocks are repeatedly bought or sold at or near the end of up or down price swings caused by price volatility. A swing trading position is typically held longer than a day, but shorter than trend following trades or buy and hold investment strategies that can be held for months or years. Many of the charts below will be short lived opportunities, however, back-testing on this filter shows some push forward considerably despite being overbought. My filter for the stocks on this list is between $.25 and $3 with 300 trades or more the previous day. The following stocks could deliver some decent profits moving forward if they continue so here’s what I’ll be watching for.

eOn Communications Corp. (NASDAQ:EONC) provides communication solutions in the North America, Puerto Rico, and the Virgin Islands. The balance sheet shows $1.85 million in cash, $3.7 million in debt and a book value of $2.17 on 2.86 million shares outstanding. EONC has a tiny market cap of $5.7 million and is well below what I look to trade between $100 – $300 million. The Beta is what I would consider normal around 1.33 but that market cap is the primary reason EONC has these big bursts followed by gradual fades. If you pull up a 52-week chart you’ll see this isn’t the first time this year EONC has made a big move. Back in May it went from $1.44 to $2.10 on day 1 and continued to run from $2.16 to a high of $3.25 on day 2. Just about a month later it went nova again from $1.66 to $2.33 and continued on day 2 from $2.35 to $3.35. In both situations the stock managed to run for 1 days which is why it made the list. Certainly hard to say if it will follow that trend but one thing is for certain, if some sizable bids show up Thursday this thin stock could certainly squeeze aggressive shorts before fading. EONC is overbought and does not have a history of holding that level for long, so be sure you note the Relative Strength here.

Accelr8 Technology Corp. (AMEX:AXK) focuses on the research and development, and commercialization of proprietary surface chemistry formulation and quantitative bio-analytical measurement instruments. Another small market cap at $21.10 million with a Beta of 1.38. The balance sheet shows $775.86 thousand in cash, $0 debt and a book value of $.43 on 11.10 million shares outstanding. This is a stock I happen to like and have written about before. If it looks like it can hold this run I’ll certainly swing it because the 52-week chart clearly shows the ability to run for days on end.

Advanced Battery Technologies Inc. (PINK:ABAT) engages in the design, manufacture, and marketing of rechargeable polymer lithium-ion batteries. ABAT has a small market cap at $50.25 million and a Beta of 1.23. The balance sheet shows $74.04 million in cash, $0 debt and a book value of $3.11 on 76.14 million shares outstanding. I’ve traded ABAT twice in the last year and written about this company quite a bit, I’m 1-1 on the stock. Shares were recently halted after the company failed to report earnings on time. Consequently ABAT was delisted from the NASDAQ and fell quite a bit once trading opened back up. Wednesday ABAT announced opening a new battery production facility which I’m certain long term shorts didn’t like. This move has been on fairly small volume so far but it is building so if big bidders show up it certainly could go nova Thursday. I’m sure the short interest must be fairly large still so keep this one on watch.

Crosshair Energy Corp. (AMEX:CXZ) engages in the acquisition, exploration, and development of uranium, vanadium, and gold properties in the United States and Canada. Little light on the volume side but it made the filter so let’s take a closer look. Another small market cap at $19.58 million with a Beta in my wheelhouse at 2.81. The balance sheet shows $9.4 million in cash, $0 debt and a book value of $.37 on 47.48 million shares outstanding. The move up came just after lunch Wednesday on a light surge in volume that faded into the afternoon. My guess is a little short cover here but I’ll keep it on watch Thursday should some large bids show up.

Albany Molecular Research (NASDAQ:AMRI) provides contract services to various pharmaceutical and biotechnology companies primarily in the United States, Europe, and Asia. Big move for AMRI Wednesday and it was a steady climber against the grain on strong volume. The market cap here is very close to my liking just below $100 million but the Beta isn’t as volatile as I like to see with a reading of 1.28. The company shows $20.02 million in cash, $9.24 million in debt with a book value of $7.85 on 30.03 million outstanding. This was a great consolidation play off the $2.30 range this week but that’s the past, moving forward I like it between $2.60 and $3.20.

Trans1 Inc. (NASDAQ:TSON) a medical device company, focuses on the design, development, and marketing of products that implement its proprietary surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine. TSON gaped on news Wednesday, ran hard at the opening bell but faded across the session rejecting $2.20 for most the day as it drifted lower. Small market cap at $55.21 million certainly allows it to move quickly but the Beta of .51 is about as far as you can get from my preferred 2 or higher. Having said all that, this is a momentum news play so I really don’t care about the historically volatility on the stock to consider it swing here. TSON’s balance sheet shows $47.99 million in cash, $0 debt and a book value of $1.99 with 27.20 million shares outstanding. Back in August TSON made a 3 day run rejecting higher levels on day 2 and 3 so it’s definitely possible TSON could run still, especially if some bulls come out on Thursday. Keep an eye on the distribution line to make sure there aren’t other big sellers unloading into a move up.

Trans1 Inc. (NASDAQ:TSON) a medical device company, focuses on the design, development, and marketing of products that implement its proprietary surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine. TSON gaped on news Wednesday, ran hard at the opening bell but faded across the session rejecting $2.20 for most the day as it drifted lower. Small market cap at $55.21 million certainly allows it to move quickly but the Beta of .51 is about as far as you can get from my preferred 2 or higher. Having said all that, this is a momentum news play so I really don’t care about the historically volatility on the stock to consider it swing here. TSON’s balance sheet shows $47.99 million in cash, $0 debt and a book value of $1.99 with 27.20 million shares outstanding. Back in August TSON made a 3 day run rejecting higher levels on day 2 and 3 so it’s definitely possible TSON could run still, especially if some bulls come out on Thursday. Keep an eye on the distribution line to make sure there aren’t other big sellers unloading into a move up.

Gleacher & Company (NASDAQ:GLCH) is an independent investment bank, provides corporate and institutional clients with advice and execution in the areas of advisory services, capital raising and research, sales, and trading. I like the market cap on GLCH at $183.51 million and the Beta of 1.4 works for me too. The balance sheet shows $2.25 billion in cash, $496.79 million in debt and a book value of $2.14 per share with 123.99 million shares outstanding. Most of the move Wednesday came just before the close and I suspect some short cover was responsible since the last reported interest was 10.73 days to cover on 11/30/2011. If GLCH holds the $1.45 range Thursday I’ll definitely be watching to see if it can breakout of this short term trend.

Amr Corp. (NYSE:AMR) operates in the airline industry. AMR recently filed for Chapter 11 i.e. bankruptcy and you’d have to have been living under a rock not to have heard about AMR’s price action recently. Market cap is $229.63 million and the Beta is 2.03. As you can imagine the short interest on AMR is probably climbing of late and no doubt squeezing anyone who tried to short the $.60 ledge recently. Almost picked it up as a day trade on Wednesday at $.64 right out of the gate but missed my entry. At this point if AMR holds $.67 I’ll be very interested to see if it catches hold again and jumps back up into the $1 range before pulling back.

Pinnacle Airlines (NASDAQ:PNCL) operates as an independent regional airline company in the United States. Another tiny market cap here at $22.57 million, PNCL has a Beta of 1.4. The balance sheet shows $81.84 million in cash with a whopping $800.38 million in debt. A recent dive saw shares cut more than 50% from just above $2 all the way down to $.90 before bouncing. Given that PNCL rejected $1.30 on the bounce it’s a pretty good sign that there are still sellers unloading still, however, a drop like that could see a 3 day run no different than the AMR last week so keep this one on watch.

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Quantum Fuel Systems Technologies (QTWW) and SBE Inc. Partner Up to Launch Next Generation Hybrid Electric Drive Systems

Justin Green — Tue, 27 Dec 2011 21:02:57 GMT

“Quantum continues to optimize and improve the efficiencies of our advanced electric drive-train products. We expect the SBE integrated capacitor/bus structure to enable substantial packaging and performance advantages in our next generation electric and hybrid-electric drive systems,” stated Alan Niedzwiecki, CEO Quantum Technologies.

“SBE is pleased that Quantum Technologies is one of the first implementers of our advanced integrated capacitor/bus designs. We are proud to be partnering with a leading technology drivetrain provider like Quantum,” commented Ed Sawyer, President and CEO for SBE, Inc.

Jon Bereisa, Senior Technical Advisor for SBE, added, “The electrification of the automobile has successfully reached the technical feasibility stage today. Cost improvements are needed to reach the commercial viability stage for mass market acceptance. Cost must be attacked everywhere. The SBE power ring capacitor technology is a major enabler for power electronics design simplification, up-integration, and higher temperature operation to significantly drive down the cost while improving performance.”

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Strategic American Oil Corp. (SGCA) Announces 1,400% Increase in Revenues and Provides Operational Update

Justin Green — Tue, 27 Dec 2011 20:59:00 GMT

Highlights Include:

• Revenue for the quarter totaled $1.56mm, a gain of 1,400% year-over-year.
• Assets increased by $7.86mm without the addition of any debt.
• Cash Used in Operations was $83,710 as compared to $250,000 in the previous quarter.
• Average reported production in the quarter of approximately 290 gross (230 net) Boe/d.
• As of Nov 30, 2011, production was estimated to be 445 gross (350 net) Boe/d.
• Current leasehold position of approximately 20,099 net acres in Texas and Illinois.

Budget and Liquidity Update

In its consolidated financial statements for the first quarter ended October 31, 2011, Strategic American Oil reported a total cash balance of $4.74mm. Coupled with the company’s available bank line, Strategic American Oil believes it has more than enough to meet the budgeted capital requirements for the next year, including the company’s planned drilling, recompletion, and infrastructure improvement programs.

Recent Developments

• Initiated preparations for drilling program in Galveston Bay; first well expected First Quarter 2012.
• Acquired SPE Navigation I, LLC, a private company with over $4mm in liquid assets, 25% working interest and $18.8mm in net discounted proved reserves in Galveston Bay.
• Independent auditors removed “going concern” qualification from SEC filings due to strong and stable financial and operational performance, as well as significantly improved balance sheet.
• Proved Reserves as calculated by independent engineering firm estimated at $77.7mm.
• Through its partner, Core Energy, Strategic recently began the multi-well drilling program in its Illinois project with secondary recovery (waterflood) operations to commence soon.
• Began multi-well recompletion program, with first well already adding approximately $22,000 in net monthly cash flow.

Growth Initiatives

• Continue capital infrastructure improvements and updates in Galveston Bay to increase production, decrease down-time, and improve safety and efficiency.
• Complete initial secondary recovery (waterflood) pilot project in Illinois.
• Drill first of Galveston Bay targets in first calendar quarter of 2012.
• Drill several wells in South Texas to increase production and reserves.
• Continue recompletion program to increase daily production from existing wells.

“Our aim is to continue the rapid growth we have experienced over the last 12 months. We plan to accomplish this through proficient management and development of our existing assets, as well as making prudent acquisitions. We currently have years of projects that can multiply our production and revenues,” stated Jeremy G. Driver, President and Chief Executive Officer of Strategic American Oil Corporation.

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Gunpowder Gold Corp. (GUNP) Provides Updated Results for One of Their Claim Blocks | Beacon Equity: Penny Stocks, Stock Alerts

Justin Green — Wed, 21 Dec 2011 17:57:04 GMT

Positive results include assays of 17ppb Au, 3.5ppm Ag, 1,000ppm Cu, and strong pathfinder indications for Ba. In addition, several samples exhibited copper and hematite staining. This is sometimes associated with economic mineralization historically found in the Plomosa District of Arizona, including the Copperstone Mine area, approximately nine miles to the north of Quartzite.

Gunpowder Gold President, Mr. Michael Nott, commenting on the results, stated, “It is encouraging, at this early stage of exploration to find prospective gold and silver indicators on the surface of our claim block. We are also pleased with the geochemical ratios reported, which further give us an indication that our project bears similar attributes to valuable mineral resources in the district. These results will provide useful quantitative data to carry out the next phase of exploration on the Dome Rock gold project.”
Headquartered in Las Vegas, Nevada, Gunpowder Gold is a gold exploration company. They are pursuing high impact gold projects in the Walker Lane Trend, as it extends into Arizona. They have developed a strategically located set of mineral claims in the Dome Rock mountains region of Arizona. The Dome Rock project is nine miles from the Copperstone mine, one of the largest gold discoveries in Arizona’s history. The Copperstone open pit and underground workings are at the northern tip of the Dome Rock mountains.
Gunpowder Gold’s Dome Rock project in western Arizona is located on-trend of the world famous Walker Lane. The Walker Lane Gold Trend has historically produced more than 50 million oz of gold and 400 million oz of silver.

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Rainbow BioSciences (RBCC) Reaches New Heights with n3D Nanoparticle Technology | Beacon Equity: Penny Stocks, Stock Alerts

Justin Green — Wed, 21 Dec 2011 17:55:15 GMT

Leading the way at Rainbow BioSciences is Patrick Brown whom serves as the company’s CEO. In reference to this article, Brown stated, “This technology could completely revolutionize cell research. It’s a great leap forward for researchers in fields such as oncology, stem cells, neurological disorders and more. The ability to more closely recreate cells as they appear in the human body will allow cell researchers to better observe and understand cell relationships in a lab setting and potentially achieve more meaningful results.”

With this advancement, Rainbow BioSciences will develop new medical and research technology innovations to compete with such companies as Celgene Corp. (NASDAQ: CELG), Amgen, Inc. (NASDAQ: AMGN), Affymax, Inc. (NASDAQ: AFFY), and Gilead Sciences, Inc. (NASDAQ: GILD).
Currently, Rainbow BioSciences is trading in the $1.10 range. To learn more about the company as a whole, visit their corporate website at www.RainbowBioSciences.com or follow them on Twitter at www.twitter.com/RBCCinfo.

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“Holy Jeepers,” Sprott to Buy $1.5B of Silver Bullion! | Beacon Equity: Penny Stocks, Stock Alerts

Justin Green — Wed, 21 Dec 2011 17:51:00 GMT

Combined with the recent decline in the PSLV premium to spot silver to 14 percent from the typical 20 percent, along with Sprott’s reported sale of some of its holdings of PSLV at the rich premium, it appears a familiar hallmark of a gigantic $580 million silver bullion purchase in December of last year emerges once again. Since demand for silver products at Sprott remain brisk, it should come as no surprise to the silver world that Sprott needs more silver.
Yet, only two Web sites mention the breaking news, The Globe and Mail and bullion market reporter Harvey Organ, HarveyOrgan.blogspot.com. Don’t expect Eric Sprott to herald the milestone purchase; he’s trying to avoid investors front running the purchase.
“Since Sprott filed its prospectus last Friday, PSLV units have come down 12 percent, while the price of silver has dropped only 6 percent,” stated Canada’s daily newspaper, The Globe and Mail, on Nov. 18. “Whether or not the new filing is the root cause of the difference doesn’t affect Mr. Sprott much. He has been selling his PSLV units for most of the year (as documented by kid dynamite.)”
Because Sprott today represents ½ the size of the Hunt brothers wallet and their attempt to corner the silver market in 1979-80, nimble investors have taken advantage of the bulky Sprott in the past by front running his purchases, as his size and legal entity requires him to file with Canadian regulators—an issue he laments of during his interviews.
But for silver investors, the regulation could be a boon to the silver price, as the last time Sprott needed substantial inventory, the silver price soared 177 percent, though Sprott’s purchase cannot directly be proven to be responsible for all of that monstrous move.
However . . . more than four years earlier, in April 2006, prior to the launch of the NYSE version of PSLV, the Barclay’s iShares Silver Trust SLV, spot silver at the COMEX more than doubled at its price peak leading up to the launch of the SLV to $15 from $7.50, as late as September 2005—a double within six months, or a 200 percent ARR.
Moreover, further evidence of a coming silver price mega pop may be gleaned from the exciting silver rally of July 2010 to April 2011. That monstrous rally could easily be rivaled soon, as Sprott apparently gears up for a whale of a purchase, $1.5 billion of silver bullion—a nearly three times last year’s $580 million purchase and coincidental 177 percent explosion of the silver price.
“Today the Globe and Mail announced Eric has filed a short form follow up Prospectus for a billion five physical silver,” respected bullion market blogger Harvey Organ wrote in a Nov. 21 post. “holy jeepers, it could be approved in as little as two weeks people tell me, and he can trigger it OVERNIGHT without warning. Just bang, if he has got the orders. WE all know what happened with his last Physical Silver Issue, it was 580 million and blasted Silver 18 to 50 bucks in 5 months.”
Considering the fundamentals underlying the raging bull market in silver and the confident predictions of, in some cases, another double in the silver price, at least, by spring from industry peer James Turk of Goldmoney, as well as other hard money heavyweights, Ben Davies of Hinde Capital, Jim Rickards of Tangent Capital Markets, Euro Pacific Capital CEO Peter Schiff and QB Asset Management Co-founder Paul Brodsky, it appears the industry insiders to the tiny world of silver anticipated Sprott’s need to replenish—and when Sprott needs silver look out.

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BPAX Goes Limp, Needs Viagra!

Justin Green — Mon, 19 Dec 2011 04:20:44 GMT

Speaking of going "limp" it looks like BPAX lost its woodie this morning as the stock crashed nearly 80% on "Female Viagra" drug failure. That just sounds bad, doesn't it?

Anyway, since BPAX has opened, the stocks share price has actually risen from $.47 to $.51 and could be looked at as a "quickie" today with a "in and out" trade off todays low. Now since the stock is very very volatile right now I would not stay in very long. Keeping a stop loss of $.45 which is just a tick down from the days low is highly recommended.

If BPAX does start to get it on once again then look for this stock to test mid $.50s or high $.50s by days end. The goal here is clearly just a 10 - 15% trade and then send it on its way.
Continue Reading »»

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ABOT 1.6 million dollar pump is on!

Justin Green — Sat, 17 Dec 2011 01:05:41 GMT

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