MicroStockProfit » small cap research

When will Generex Biotechnology (GNBT) stop falling?

Editor — Wed, 14 Apr 2010 13:32:25 +0000

GNBT has been around forever in the pennystock world. It has been touted as the next Nasdaq stock (or a piece of crap that is going to zero) in the time that I have been watching it.

It definitely isn’t going to zero, but right now traders and investors are down on GNBT…..for good reason.

Generex Biotechnology Corporation (GNBT) is a biotechnology company that is working on variations of its drug delivery systems for diabetes (and other illnesses). Here is a link to their site if you want to do more DD.

GNBT has been trading in a range between $0.40 and $0.70 for the last 6 months. Right now, it is trading at the bottom of that range.

I am not recommending that anyone “catch the falling knife” on this one, but I am thinking that GNBT is prime for a reversal. For all of the negative press that GNBT has been receiving, the news that they have received a financing commitment is a positive indicator. True, the financing is at a discount to GNBT’s current trading price. But, the commitment is real and they have already drawn the first tranche. It is composed of 24 tranches. The financing guys are not stupid. They want to be able to limit their exposure if things get worse for the company.

The negative press stems from the ever-irascible Adam Feuerstein of TheStreet.com, who called out GNBT and labeled them frauds. The company responded with a $250 Million defamation suit. I like MIchael Fizhugh’s article on SeekingAlpha.com about the whole mess. Read it here.

The Chart

Clearly, GNBT is in a downtrend. But, there is hope for a recovery. In the last 5 trading days, there has been 3 high volume selling days BUT there have been two up days. All the news is not bad. It looks like buyers are trying to bid up the stock. The oversold stochastics will exert some pressure for a bounce, but with the MACD still bearish, the stock could continue to fall for a while yet.

Watch for the MACD histogram to indicate that the bearish trend intensity is lessening. Another indicator that I am using lately is On Balance Volume (OBV). That indicator is telling me that the stock is still in distribution.

I am not qualified to pass judgment of GNBT’s drug portfolio. I look at anecdotal information to give me some idea of whether this stock has a chance. The financing is a huge indicator to me that GNBT will be around a bit longer. The company has plenty of cash, low debt, great ratios….that will help them see this “crisis” through. Any good FDA news and this stock will fly….Bad and the reverse will happen.

GNBT’s volatility is a great thing for short-term traders like us.

Trade with confidence,

Jeffrey Dean, Editor

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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 MicroStockProfit.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.

SAY Hey! for Satyam Computer Services (SAY)

Editor — Thu, 01 Apr 2010 20:01:01 +0000

Apologies to Willie Mays for using his nickname…..

Mahindra Satyam (formerly Satyam Computer Services Ltd.) (SAY) is still picking up the pieces from its humongous accounting scandals. Law suits are flying all over the place and SAY is dealing with a great deal of uncertainty: global downturn in IT spending, repercussions from their scandal and strong competition.

From a chart standpoint, they may be ready for a bounce. It will be interesting to see if they can hold this support level. They dipped below it on an intraday basis and rallied strongly. Any good news and they could run. The stock has been trading for the last 6 months in a wide band between $4.40 and $6.50.

SAY could be a great radar stock.

Trade like you mean it!

Jeffrey Dean, Editor

P.S. I personally like them because I am a HUGE soccer fan and they are the official IT Services provider for the 2010 FIFA World Cup! Maybe if I do a really positive blog on them they will give me tickets to the Cup. I saw the 1994 World Cup final between Italy and Brazil. I’d like to see another one.

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Time to take a look at Netlist (NLST)?

Editor — Tue, 30 Mar 2010 13:10:02 +0000

Netlist, Inc. (NLST) was one of the great stock success stories of 2009. The stock limped along at around 60 cents for much of 2009, but then caught fire and zoomed to $8.00 per share in the magical month of November. With the news of the impending release of their “game-changing” memory module, they took the market by storm. The product allows the server to believe it has more main memory than it is supposed to and is expected to put them in direct competition with Cisco (CSCO) and with a competitive advantage.

Since its almost 900% gain in November, things have been pretty quiet for NLST. In fact, the overall trend of the stock has been down. The company itself is still strong. NLST is still posting losses, but the gap is narrowing. Its balance sheet shows a great deal of cash, no debt and strong liquidity ratios.

The chart is where I want to focus your attention on.

Since I am a short-term trader, I don’t expect to be around in this stock very long. Short-term, it might be setting itself up for a bounce. There are a great number of people that are trapped in it at higher prices who will be selling into any strength. That is why (absent any news) any rally will be short-lived IMO.

Have fun and trade well,

Jeffrey Dean, Editor

LLBO – Buying the Promise?

Editor — Tue, 08 Sep 2009 13:12:53 +0000

Another of the penny stock chat room favorites is Lifeline Biotech (LLBO). It has been a hot topic off-and-on for many months.

LLBO’s buzz is that they have the next generation medical device that can identify and locate “breast abnormalities” i.e. Breast Cancer. I have known many women who are breast cancer survivors and their best tool in this fight is early detection. That gives LLBO some instant cachet with their device.

According to LLBO’s press releases (and there are many), conventional mammograms miss 20 to 30% of cancers. LLBO’s First Warning System has a 95 to 100% success rates in identifying tissue abnormalities.

LLBO’s story is compelling, press releases seem to indicate that the company is heading in the right direction…even the chart is looking favorable. There is so much that is not known, though….they are a non-reporting sub-penny stock that is touting a revolutionary product yet we know nothing beyond what is in their press releases. This is a typical sub-penny stock!

Here is the chart:

LLBO soared to 2.5 cents in late July and has since sunk back sub-penny status ($.004). Stochastics are indicating an oversold condition. The MACD is sliding sideways in a midly-bearish direction. LLBO is trading at the lower of the Bollinger Bands and has slipped below the 50 and 200-day MA.

I can’t even begin to use my crystal ball on this one. It has the makings of a good penny stock and could be subject to some strong price swings. That is where the opportunity lies for traders.

Several factors make this a high-risk play: 1. They are trying to raise capital (I can’t understand why it is so difficult….if this product was everything it is being touted to be then investors would be lining up at the door). 2. The company has started the FDA process…it is a medical device not a drug which makes the process easier, quicker and less expensive…we hope. 3. You have to rely upon PR to know what is going on with the company…not always the best way, either.

Definitely a radar stock that I would recommend. Here is their site for your own due diligence: www.lbti.com/

Good luck and good trading.

Golden Small Cap: AGT

Admin — Tue, 01 Sep 2009 15:45:29 +0000

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.