MicroStockProfit

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.

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.

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.

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.