MicroStockProfit

I’m not sure why AMKR has dropped so far, so fast.  It appears, on its face, that the company is doing the right things and the news has been mostly good.  Doesn’t matter…persistent selling has knocked off 50% of the company stock price since its most recent high.

Here is the chart, so you can see what I am talking about:

It is a large company (definitely not a penny stock) that is involved in the semiconductor business and has had some “choppy” financial results lately.  What I mean by that is that it has posted both losses and profits on different quarters in 2009.  The balance sheet is reasonably strong….good cash and liquidity ratios although debt is high (over $1.5 Billion).  Nothing to worry about there.

Why the drop?  I took a quick peek and couldn’t find anything.  I will do further research later, but for now I wanted to bring this company to my readers attention.  I think that it has a very attractive chart, is sitting on or near strong support, it is in an industry (semiconductors) that seems to be getting “off the mat” and has the financial strength to weather this financial storm we are in.

It did bounce off support yesterday….I would suggest watching to see if it re-touches support or continues its bounce.

Enjoy your day in the market!

I took Spanish in high school (Yo quiero muchas cervezas, por favor) so my French is pretty weak.  All I can figure out from the name of today’s Blog subject is that is means “Big bottle of Gold”.  Strange name for a tire recycling company…..unless it means big profits for the shareholders.

Magnum D’Or Resources, Inc. (MDOR) is quite simply a tire recycling company.  Until late last year, they were a development-stage company.   They recently made that all-important transition to a revenue-producing company (albeit small revenues).  I had a long talk with some people associated with the company and they had some big hopes for the company.  The company has, through a joint venture, patented technology that they believe will be a game changer.

Here is a short description from the company’s website:

“The Company is able to produce rubber nuggets, buffings, crumb rubber and ultra fine powders which are all used for various industrial applications. Magnum caters to two main markets, Rubber and Home & Garden. Magnum’s technology and processes optimize the grinding and purification and produces on a large scale the finest rubber powders in less than 0.250mm size. The process also is approximately 40% less expensive than available technologies. These features provide the Company with a competitive advantage.” (emphasis added)

I am recommending to my members and readers that they put MDOR on their radars.  There are a number of things happening with this company that might make for a higher price stock in the near term:  Buzz, news and chart.

Let’s talk buzz first - MDOR is supposedly putting the finishing touches on a promotional video/puff piece that is supposedly going to get national exposure.  Read even more buzz for yourself at this link.

News - MDOR has issued a steady stream of positive news.  What I like when I read it is that it seems to be factual rather than hype.  They still aren’t saying the magic words like “high revenues”, “multi-million dollar financing”, but the news gives the impression that they are moving forward.  Also, any positive news along the lines of what I just mentioned will send this stock FLYING.

Chart - My annotated chart below points out some of the positive indicators as I see it.

I had done a research report on MDOR back in September when it was a 50 cent stock.  You are welcome to read it….it goes into considerably more detail than this blog and most of the information is still relevant:  Click here for MDOR trade overview

One of the challenges for the company is to secure the financing so they can fulfill the enormous contracts they have landed.  MDOR is not out of the woods yet, but they can see the edge of the forest (IMO).

One of my readers (Chris B.) emailed me about MDOR when it was at $1.34.  I didn’t think it was a buy at that point (I thought it was extended and i was right), but it could be now.  If you or Chris trade it, make sure you bracket your trade properly.  I really like trailing stops…I always believe my picks are going up BIG.

Definitely a good radar stock.

Good luck and good trading

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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.

I wonder what is keeping ADPT from realizing its true value?  Here is a company that has ROCK SOLID financials, a preeminent position in its marketplace and is sitting on a treasure trove of cash.  In fact, ADPT has over $3.00 in cash for every share in the float.   They currently operate at a manageable loss (what company in this sector doesn’t), but I will be interested to see what happens if the data storage market comes back.

If your company has a data center, chances are you own ADPT’s equipment and software.  According to their website (www.adaptec.com), ADPT…

“has been a worldwide supplier of technologies and applications supported by major storage and system OEMs, system integrators, system builders, and value-added resellers that deliver enabling technology and products to address many of the most critical applications in data storage”

It is clear what they do as a company….they spend millions a Q on R&D to stay ahead of its competitors.  But, ADPT the stock remains a mystery.  In fact, they are factions in their institutional ownership that are trying to mount a coup based upon their belief that they have the proper leadership to make this company an attractive stock again.  Here is the latest PR that will give you a clearer understanding of what is going on at ADPT.  It appears that the action from an activist shareholder (largest single owner, by the way) will fail.  Where will that leave ADPT?

Clearly the pressure is on the current Board and management to create some kind of lift in the stock.  How quickly that can be accomplished is anyone’s guess.  What I do know is that ADPT is going NOWHERE right now.  I mean from a finanical strength standpoint.  They will have time to create the plan that can make ADPT a stock that matters…the question remains, “Can they?”

Here is the chart:  (it has been climbing incrementally, but nothing to get too excited about)

If I was to put on my rose-colored glasses and look at this chart, I could say the following:

• The stock is in accumulation
• The MACD is above the zero line and appears to be turning bullish
• The most recent run up hasn’t been volume or hype driven.  It has been a slow and steady accumulation.

What I don’t see are “hockey sticks”.  I will be interested to see what ADPT can do over the next weeks and months to get traders to pay attention again.

Dryships (DRYS) has gobbled all of the headlines in the bulk shipping category….It has been both adored and reviled by traders for all of 2009.  It’s volatility has made (and lost) lots of money for traders this year alone.  One of the companies that is in DRYS’s niche has flown below the radar all year, but I think is worth taking a look at:   OCEAN FREIGHT, INC. (OCNF).

I cannot claim to be an expert in this arena….I do not understand capacity, loads, fleet issues, etc….  I do believe that through a massive financing undertaken last year, OCNF has the financial capital to work its way through this market downturn.  The company showed only a small operating loss last Q.  Most of the large loss was due to non-recurring items (arbitrage gains, loss of sale of ships, etc…)

The chart is what caught my eye initially…. A trader buddy of mine had mentioned the company to me and when I checked it out I liked what I saw.  Here is the chart and you might see what I am seeing.

The first thing that stands out to me is the volatility of the stock….”if it goes up, look for it to come down.  If it goes down, look for it to go up”.  The latest slide has been precipitous, but there are signs that it could be reversing.  First, the stochastics indicate that it is oversold (a big upward pressure there).  The stock has reached a key support level at $1.25 and I wouldn’t be surprised if it bounced off that level.

I say this often, but as a recovering CPA, I really like fundamentals.  I mean the old-fashioned cash-in-bank, receiveables stuff.  OCNF has high debt which is usually the “kiss of death” in economic downturns, but it appears that the company has the liquidity to service its debt and, perhaps, come out stronger on the other side.  Their press releases paint a picture of a company whose fleet will be highly utilized into 2010…which is the key for a bulk shipping carrier.

With a management team that sounds like the traveling cast of Zorba the Greek (why are all shipping companies Greek-registered?), the company sounds like it might be around long enough to get noticed.  Keep it on your radar.  I don’t know how much farther it will fall, but be ready when this one turns.

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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.

Time might be right to take a look at NVAX again.  The stock was a 30 cent penny stock in March of this year and hit a high of $7.79 on September 1st.  Right now it is trading at almost half that number ($3.96).  THE QUESTION IS, “DOES IT HAVE ANY MORE LEGS”.  I don’t believe that it will have a 2,500% gain like it did from 30 cents to almost $8, but I think it might have a nice gain or two in it.

Several factors could make NVAX a winner again, as follows:

News - What caused NVAX to jump in the first place?  News about Swine Flu and NVAX was lumped in with all of the swine flu stocks and took off! Now that we are approaching flu season….what is to say that we won’t get a fresh set of news about the epidemic that could set NVAX off again.

The Chart - People have been so busy selling shares that they haven’t realized that they might have set NVAX for a bounce.  Be careful, here, though - the unhappy people that bought into NVAX in its rise will be selling shares into any spike in price.  That may shorten or reduce the length and severity of any spike.

Let’s look at the chart:

Volume is still strong (daily average of over 8MM shares traded).  the MACD is still bearish, but the angle of the bearishness is slackening.  The stochastics indicate that the stock is in an oversold position.  The Accum/Dist is still showing distribution.

I suggest watching the key indicators to see if NVAX declares its intentions.  It may go down for a day or two more, but watch for the bounce.  Definitely put this one on your trading radar.

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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.