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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.

BEHL was going to be the next SPNG….to hear traders talk.  it was going to be so huge that it would dwarf SPNG…etc…etc…  My chat room, Stock Hideout, even opened a chat room specifically devoted to BEHL back in August.  It was at around that time when BEHL stalled.  Nothing seems to be able to kick start it.

BEHL is a company that is best known for the manufacture of a closed loop algae bioreactor systems for the commercialization and production of algae.  Here is their website for your own DD:  BEHL Website

It just might be time to look at BEHL again.  The chart is looking promising and the stock has taken a long breather.  Might be time for a little action!?

Stochastics indicate that the stock is approaching oversold status and volume is slackening.  Add some volume (maybe on good news or the stock just gets hot again) and I think this stock could zoom.  I have no proof of that beyond a hunch.   It is trading at the lower of the Bollinger Bands and the last time that happened it got a bump of about 40%.  One thing that worries me is the it is sitting above the next support level (3 cents).  Will it drop to the next support level?  I don’t think so.

BEHL is, IMO, a huge risk, but one that might be worth taking.  They have a manageable cash burn rate, a few dollars in the bank and are in a “Green” industry that is hot.  They are master of PR and could come out with something truly meaningful that would send the stock flying.  Their “interim financial reports” on pinksheets.com are chock full of information (not all of it relevant).  it is like they are trying to convince you of how great they are by a sheer volume of words.

This is one of those penny plays that will fly or die (I’m really going out on a limb on that statement).  I am seriously considering investing in BEHL for my own account.  I have a feeling that BEHL is just resting here before the next step up.  We shall see.

The list of industries in freefall during this recession must include the semiconductor business.  Emcore Corporation (EMKR) provides compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and terrestrial solar power markets.  Most of their customers rolled up their tent and went home during this recession.  However, it appears that the news is getting better for the industry as a whole and EMKR in particular…prices are stabilizing and demand has begun to pick up slightly.

EMKR has been posting some horrific quarterly numbers and I don’t see a huge turnaround coming next quarter.  However, the balance sheet is strong enough to keep the company afloat for now.  No long-term debt helps, but EMKR needs to keep cutting costs and hoping that the market comes back for their long term viability.

This is strictly a small cap, penny stock chart play.  EMKR is coming off the mat and may have a run in it.

All of the indicators are turning positive for EMKR.  The stock is under accumulation once again, the MACD is crossing the signal line (albeit still below the zero line), and the stock is bouncing off of the support level of $1.00.

Put it on your radar list and watch how it trades today.  It might be a good short term play.  Put a tight stop on it in case it tanks.

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.

Natural resource plays are very popular in the small cap stock universe.  I have made good money on betting short-term on several of these resource plays.  What typifies them is that they have no revenues, no income, a very weak balance sheet, but GREAT PROSPECTS.  In one of my dumber trades of 2009, I chased the bid on BRZM and now I hold 10,000 shares of “crap”.

Today’s blog is about a resource play with a difference.  It actually has revenues, income and assets on the balance sheet.  It is a producing gold company, a so-called “junior miner”.  AGT is one of a group of “junior miners” that include Claude Resources (CGR) and U.S. Gold (UXG).  None of them are on par with the Newmont Mining’s (NEM) and Barrick Gold (ABX) of this world, but that is their ultimate goal.  And with NEM and ABX trading at $40 and $35 respectively, they offer a gold play for small cap traders. With a spot price of $957 and persistent predictions of gold prices above $1,000, gold producers might be a good bet going forward.

I looked at the chart of all three “junior miners” and thought that AGT looked the best.  It has been beaten down, but has some positives going forward.  They have recently raised capital, they have had some profitable quarters in the past year (very volatile though) and they have some interesting gold properties in their portfolio.  The chart indicates to me that the stock is approaching oversold status and may be in line for a bounce.  It is also a stock that once you put it on your watch list, check it every day for the next two weeks.  It may fall more (the 52-week low is 10 cents), but it is at a support level here at 38 cents.

Volume is off today and the stock is trading at the bottom of the Bollinger Bands.  It is trading above its 200-day MA and below the 50-day.  The MACD is bearish, but the histogram indicates that it is slowing.  Lots of indicators are telling me that this stock that should be watched.  Since it is off from its last three months highs, I would put a trailing stop on this to protect your profits.

Good luck and Good profit

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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 enjoy getting emails from my subscribers.  They are interesting.  Sometimes they are positive (thanking me for a trade alert or one of my blog’s), some negative (There might be children reading this so I can’t share details - it is amazing how mean people can be in anonymity of email) and others want me to comment on a certain stock.  Since I am not an investment advisor, I DO NOT make recommendations, but I do comment on occasion.

One stock that a reader wanted me to take a look at was Aquagold International, Inc. (AQUI). I am a skeptic by nature and try to do my due diligence before I share any information on a company.  Unfortunately, there isn’t much info beyond their website and a plethora of press releases (Their IR guy has been very busy).  Even though there isn’t alot of info on the company, I still want to share it with you.

The company is a  Canadian Corporation distributing and exporting its proprietary brand of premium natural spring water solely to the Mainland Chinese market. The company actually shipped its first order to China in late June under an open purchase order/contract with a leading trading company in China.  I was unable to determine the size of this initial order, but the contract amount is specified as $197.5 million (it is not clear from the press release if that is $U.S or $CN - that does make a big difference) and runs until 2016.  Since the shipment was under an irrevocable letters of credit, then I guess you could say that the company has revenues.

What the company does have are lots of press releases and a new updated website.  You are welcome to check them out.  I did talk with their Investor Relations person and he confirmed what was written in the releases and he did give me some more details about their big marketing push into China.  That push revolves around a television show done in Mandarin for the Chinese market.  He said it is akin to “America’s Top Model” and the name of it is “Aquagold Superface Model Contest”.  Aquagold’s product is prominently displayed during the show and is the title sponsor.  The company expects to get a great deal of notoriety and attention by sponsoring this show.  According to my contact, over 35MM viewers tune in to the show weekly.

My contact also stated that they are working diligently to become a fully-reporting SEC company, but completion date of that task is unknown…..Not that historical financial statements will tell you a lot about the future prospects of the company.  Since they made their first sale in June of 2009, I am more interested in future statements.

The stock is trading for only 1 1/2 cents and the chart isn’t compelling at all, in fact it is bearish.  But with a stock at this price range, any news or PR could send it “to the moon”.  Try as I might, I was unable to get any intelligence out of my contact about what is coming up for the company.  The company line is that they are executing on the plan and expect to be profitable and successful.

I must admit that I am intrigued by the company and its prospects.  Everyone knows that China has massive problems with its water supply and intuitively one would think that shipping water to China would be a profitable idea.  AQUI’s water is not water for the masses.  It is a premium water (oxymoron, anyone) that they are trying to build a cachet around.  I wouldn’t count them out and I am going to watch them closely.

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.