MicroStockProfit

Is ChinaTel (CHTL) ready for its closeup?

Editor — Fri, 12 Mar 2010 21:16:39 +0000

Stock screens are only indicators of trend. They don’t speak about a company’s potential, its challenges and its future. But, for those of us who are technical analysts, they do tell a story. A story that, if you read it right 70% of the time, will make you very rich.

On my daily stock screens today, I came across a chart I liked. Once I did my research, I found that I liked the company very much, too.

ChinaTel Group, Inc. (CHTL)

Like a lot of China penny stocks, it is incredibly volatile. Lately, they have been on a pronounced downtrend. Talking with their IR people, they surmised that investors were unhappy with the about their March 5th PR concerning amendments to stock purchase agreements for some major holders and a disappointing capital raise. Investors/traders were expecting a great deal more money…and, ChinaTel needs it.

They are setting up wireless broadband telecommunications networks throughout certain regions of The People’s Republic of China. Their first installations are in China with grand plans later of expanding to other countries such as Argentina and Peru. Their plan is to leverage WIMAX technology to emerging markets.

Revenues are miniscule compared to expenses (hence the need to constantly raise capital). But, I am not looking at CHTL as a fundamentals trade (because they stink anyway). This play is about riding the ups and downs of a stock that is sure to have many in the next several months.

Right now looks like a good time to get in with the expectation that the trend will reverse soon.

Here is the chart with my annotations:

Investors are entitled to be unhappy in the short term….CHTL needs more money and every capital raise dilutes us poor retail investors. However, it appears that the company is the “real deal” and will be around for the long term.

I would not be a long-term investor in CHTL just yet, but playing the volatility is fine. I never call bottoms and I won’t in this case. If the current support proves to be durable, I think that CHTL could return some nice gains for the nimble investor.

Trade with your eyes open,

Jeffrey Dean, Editor

I am betting the luster comes back to Yamana Gold (AUY)

Editor — Wed, 10 Mar 2010 15:53:01 +0000

Yamana Gold, Inc. (AUY) is still reeling from the beating it took from the Street and the financial press for its last Quarter/last year’s performance. AUY missed every meaningful benchmark (revenues, cost per ton, production volumes, etc…) and those misses are compounded by the stagnant gold prices recently. To say that AUY “missed” those benchmarks is not to say that the company is in any trouble. It is still profitable and has a strong balance sheet, but the market is looking for AUY to continue to be a low-cost producer and for growth.

BUT (and, that is a BIG but), AUY might be a great chart play. It is showing that it could bounce off of near-term support and deliver a short-term gain to savvy traders.

Here is the chart with my annotations:

“Is the bad news burned into the stock price” is the simple question that traders should ask themselves. I think that it might be. Historically, AUY has had great elasticity and bounced off of oversold levels and returned some nice gains. If you were to do a year chart on AUY, you would see what I am talking about.

AUY could be a nice short-term trade. Any breaks below support and the stock should be avoided until it can build a new base…or it can issue some better news.

Stock Scan for Thursday - IsoRay, Inc. (ISR)

Editor — Thu, 04 Mar 2010 14:37:56 +0000

Here is a little info on IsoRay, Inc. (ISR) from their site:

IsoRay, Inc. engages in the development, manufacture, and sale of isotope-based medical products and devices for the treatment of cancer and other malignant diseases in the United States and internationally.

I like the chart setup….It looks like it may have a short term bounce in it.

** Consolidating at current levels

** Support at $1.00

** Stochastics are entering oversold status

** MACD is still bullish with no trend

A quick glance

A quick glance at the financials and I was impressed. The company has revenues (but still posting losses). It has a clean balance sheet with cash and no debt. I think the downside is low with this one.

Good luck and good trading,

Jeffrey Dean

Stock Scan for the Day: GLUU

Editor — Tue, 02 Mar 2010 16:34:55 +0000

I was doing my scans this morning and came across GLU Mobile, Inc. (GLUU).

Simple company to understand: Glu Mobile Inc. designs, markets, and sells games for mobile phones worldwide.

Here is a few places for your DD: Yahoo! Finance and company site

The Chart

** Indicators are turning positive finally
** MACD bearish momentum is finally slowing and could reverse
** Volume has slowed and selling pressure appears to be easing
** Stochastics are oversold. If MACD continues to strengthen, a bounce could be possible

Do your own DD, but I like this chart for future gains. Co. outlook has gotten it hammered, but the company is still bullish on its prospects.

Jeffrey Dean

Editor

ADPT is a stock that you can own for free!

Editor — Wed, 17 Feb 2010 15:30:33 +0000

I have known about Adaptec, Inc. for many years…even traded it once or twice. It has mostly fallen off of my radar screen lately because it really hasn’t been that attractive. I was doing screens on Stock Fetcher this morning and I was amazed to see that ADPT was on my screen for stocks that are down 8 days or more. That speaks opportunity to me, but not in the way I normally speak about stocks.

Adaptec, Inc. provides hardware and software data center solutions globally. Founded in 1981, it may not be around very much longer.

If you were going to put a company in your “back pocket” for awhile, this might be the one. I am typically a short-term holder and after the most recent market meltdown, I am going to stick to that philosophy. A long term trade to me is a month. But, it might be a good strategy to put some Adaptec shares away in an account that is long-term.

Why? Because of several simple reasons:

ADPT

2. The company is currently trading at less than its net cash position;

3. The company is trading for less than tangible book value

At $3.16 in cash at the latest Q, ADPT is clearly a “free stock”. It is unclear what premium its operations and assets will command, but I don’t think I am going out on a limb by saying that ADPT will sell for more than cash.

Here is a chart that tells the tale of the once-mighty ADPT:

1. Sellers are dominating clearly…very few up days over the past two months

2. The MACD is strongly bearish, but the histogram indicates that the strength of the signal might be waning

3. The stochastics are oversold (no surprise there)

Here is ADPT’s website so you can do your own due diligence.

ADPT may have some bounce in the near term, especially if the stochastics continue to show an oversold signal. However, the pay day for traders in ADPT will be the sale. I am very curious about how the company is valuing itself.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

P.S. - I am working out of the home today and I got one of those special stories that every work-at-home parent dreams of. My absolutely adorable 4-yr. old Daughter, Teagan, needed to be in my lap while I wrote this blog. Needless to say, I wasn’t very efficient. Who cares? I am reminded how blessed I am…by her and her three siblings.

Here is a picture so you can see just how blessed I am.

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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 Microstocprofit.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.

Does Winning Brands have the winning spirit?

Editor — Mon, 08 Feb 2010 15:32:38 +0000

Winning Brands is currently a penny stock that has flirted with sub-penny stock status very recently and then seemed like it was going to be dollar stock…all in the space of a few weeks.

As you will see in the accompanying chart, Winning Brands, Inc. (WNDB) has been on a roller coaster ride of late.

I would look for some more confirmation that the stock is basing here at these levels. It is highly volatile and appears to be under accumulation.

Winning Brands is one of those “take it on faith” stocks….because, there is not a great deal of information available about them other than some PR, a website and a few filings. They have made claims that they are going to be fully reporting. I have talked to the company and they say that they are working aggressively towards that goal.

The company itself has a complete line of eco-friendly cleaning products that they are selling through retail outlets worldwide. I have some experience in retail and while it is important for WNBD to get broad distribution, it is also important that they back up sales with ads, buzz, point-of-sale promotions….all stuff that costs money that WMBD doesn’t have yet.

They are on a fund raising campaign and will need every penny to make a splash in the market. I did a very unscientific study and called my local paint store that carried WNBD’s products. The counter person, at first, didn’t even know they carried it. I insisted because I saw it on the site and she then located it. I was hoping for a “gee whiz” testimonial about how this was the greatest product ever. But, I didn’t get that.

That is, however, what WNBD needs to achieve….. A buzz that will carry the name of the company and its products to the four corners of the globe, literally. Their “Extreme Home Makeover” tie-in is great, but where are the Billy Mays-type infomercials? According to a December PR, they are working on a Direct Response ad program. If that gets seen, it could be HUGE for the company.

WNBD might be a good little trader. It is building a following from what I read on the boards and it has a “story to tell”. Any break below $.01 and the stock should be avoided. But, if it can hold this level, then it might be a good entry point. News and rumor are going to drive this company’s stock.

Be fast, be nimble with WNBD.

Good luck and good trading,

Jeffrey Dean

Note: Yahoo! Finance lists the name of WNBD as Global eTutor, Inc. Google Finance and Pinksheets.com list it as Winning Brands, Inc. This must be one of those corporate shells issues.

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I am as mad as hell, and I am not going to trade KNDR anymore!

Editor — Tue, 02 Feb 2010 15:39:55 +0000

My apologies to the movie Network, but I am really ticked at Kender Energy, Inc. (KNDR). Here is a company that seemingly had “the world on a string” and I believe has really let traders down. Right now, the company is at the mercy of the discussion boards and chat rooms.

What do I mean ” at the mercy of discussion boards and chat rooms”? It means that the company has, for all intents and purposes, disappeared. The last PR was December of ‘09. The PR before that was for the signing up of a distributor in one of the largest markets in the world…..Hawaii? Two problems with that is that Hawaii is tiny AND KNDR doesn’t even have a working prototype. The only “news” I get is on the boards and you know how reliable that is!

KNDR has a very exciting solar technology that they are touting. (Web link here) I have talked to a number of people about KNDR and they all agree that IF they can commercialize it, the technology could be huge. According to my sources, KNDR MIGHT have an Alpha system by mid-2010. What is an investor to do until then?

Since I like KNDR’s technology so much, I have gone over and above the “call of duty” to do research on them. I called their IR firm (who is out of business and not returning calls), I have emailed the company on numerous occasions and I have talked with others about KNDR. The company never got back to me and no one had any inside info on the company.

Here is their chart….You can see a steady decline and a lack of interest on the part of traders.

Will KNDR become a sub-penny stock? It could, but I doubt it. The company needs to put out some meaningful PR and let traders know that they have a pulse. If they get some news, this stock could rocket! There are a lot of people in the stock and they are rooting for it, too.

Be careful of the boards. Many of the posts that I am seeing are highly suspect.

I am rooting for KNDR and their “solar engine”. I am just not rooting that hard.

Good luck and good trading,

Jeffrey Dean

Editor’s note on 2-4-10 - I got an email from Robert F about KNDR that I thought made great sense. Here is what he wrote: “Read your blog, I agree with you that the company has been too silent. You would think that at a time when the company is in need of investor support, that they would give shareholders more transparency.” I couldn’t agree more

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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.

Sometimes, it’s all about the chart: AMKR

Editor — Tue, 03 Nov 2009 13:50:47 +0000

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!

Hifalutin Name and a Messy Product - Magnum d’Or Resources (MDOR)

admin — Fri, 23 Oct 2009 04:25:54 +0000

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.

What is wrong with Adaptec? - ADPT

Editor — Tue, 13 Oct 2009 21:36:40 +0000

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.

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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.