February’s Most Promising Small-Cap Charts: DFZ, CBST, JCOM, NTLS
New month, new chances to profit from penny stocks… With major indexes like the S&P 500 tumbling close to 4% year-to-date, the environment for investors is anything but auspicious right now. That said, it’s important to remember that the big, broad-based indexes only average the performance of the market’s biggest blue chips – leaving small-caps with the biggest gain potential up to us.
One again, investing in our small-cap watchlist would have left you well ahead of the S&P 500 last week, with the potential for 32.7% net gains. Not too shabby for five bear-market trading days…
In case you’re not familiar, each week, we take a look at a list of penny stocks that are exhibiting abnormal volume, strong technicals, upcoming news, or another catalyst that suggested they might be making a material move in the coming week.
As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed, we opened the comments up to readers again this week, giving you the chance to offer up more speculative penny stock plays.
Check out the comments after this article to get a glimpse at a slew of new user-submitter penny stock picks — and the chance to submit your own!
First, though, let’s take a look at this week’s breakout penny stocks worth watching…
R. G. Barry Corp. (NASDAQ:DFZ) – If you’ve been following our daily penny stock watchlists at the bottom of each day’s Penny Sleuth, the name R.G. Barry shouldn’t be new to you: we took a look at it in Thursday’s issue. But with its bullish ascending triangle continuing to form perfectly, I couldn’t help but bring this small footwear maker back to your attention. The buy signal is a breakout above the horizontal blue line.
Cubist Pharmaceuticals (NASDAQ:CBST) – While we’re big fans of speculative pharmaceutical plays here at the Penny Sleuth, the pattern forming in biopharma firm Cubist Pharmaceuticals is even more promising than most. Shares are forming a pennant pattern, which suggest they’ll start a second leg of their rally in the coming days.
j2 Global Communications (NASDAQ:JCOM) – The market hasn’t been kind lately to investors in this tiny company, which specializes in helping small businesses streamline their electronic communications. But a recent breakout in j2’s share price past a key resistance level signals a buy if the stock can manage to bounce off of the blue line.
NTELOS Holdings (NASDAQ:NTLS) – Our sole downside play this week is NTELOS Holdings, a communications provider that services customers in Virginia and West Virginia. The company got hit late last month by a downgrade, followed by a breakdown below its support levels. Expect to see shares continue to struggle into this week.
Share Your Penny Stock Picks…
Once again, we’re going interactive this week…
Just post your recommendation in the comments section of this article between now and the market’s close on Friday, February 5 to share your favorite penny stock play with the rest of the world.
Cheers,
Jonas Elmerraji
February 1, 2010
Jonas Elmerraji
A big-four public accounting alum, Jonas Elmerraji brings his readers extensive expertise in small-cap stocks and broad market moves. Elmerraji’s interest in the market started with an investing course in elementary school – today he holds a degree in financial economics from UMBC and specializes in blending fundamental and technical analysis. Elmerraji has contributed to Forbes, TheStreet.com, and Investors Business Daily among others. He is managing editor of the Penny Momentum Trader, and a co-editor of Penny Stock Fortunes.
The Penny Sleuth, presented by Agora Financial, features articles on penny stocks, options, small-cap stocks, pink sheet stocks and OTCBB coverage.
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I am going to advise OTC: KLGG. It was recommended to me Thursday after the market close and as soon as I was buying my shares that Friday morning it was already u 257%. I jumped in and it topped out at an astounding 1200 + %! This is incredible. It topped out at .0011 currently its trading at a very attractive .0065. I’m told that this KLGG is more than capable of going higher as more investors learn about the company. Do your research. I’ve done mine and I’m going to hang on to this for I believe it is poised to go much higher.
Is anyone looking at isco.ob?
I recommend NDM Toronto Exchange or NAK in the USA.
This is a major world class ore body in development stage.
Gold alone is over 167 million ounces.
http://www.northerndynastymine.....tID=382916
My stock recommendation is DRWI. It is poised to take advantage of the increased demands in backhaul needs with the growth of smart phones.
What’s your opinion of ABTG?
mad catz-mcz-taskeo mines tgb
MDGC this has been accumulating for awhile and the volume has been heavy, they are poised to be a leader in the Wimax industry with rumors circulating of them signing contracts with major companies of which hasn’t been named as of yet, Not only is this a sub-penny play of 0.0068 a share but their technology is patented and have already been tested in China, Do your research and check this one out, you will see there is a future for this company. My personal pick of 2010.
You may want to check out Miller Energy (MILL). They have increased their assets from about 5 million to over 600 million since the new CEO took over 15 months ago. Their gross will jump from about 1.5 million to about 30 million by year end and they are 8 months ahead of production schedule. They are still selling for only about 10% of net asset value in the $2 range. They now also have access to up to $100 million for other deals as they arise. They are also debt free !!!
Good hunting, Sonny
Very soon this stock will explode when it starts the silver recovery increase from the new facility increase, to give it 10- times production of the nevada silver bars, and make the company the largest green silver maker in the country. This American co. has been under the radar screen long enough and has been consistently getting better and better,The fuse is lit and i hope evereybody gets prepared for the shock waves.The company is Itronics–ITRO.————THE GOLD AND GROW fertilizer is now getting the recognized and sought after results that these fertilizers deserve,California and soon the nation will reap the outstanding yields they will produce.I am sure their deer repellent will be sold nationwide because of the effective safe use it gives the deer and in no way harms them.The saved crops and greenery will be well appreciated by those who will see the outatanding results.
Australian Stock Exchange ( ASX: FAR )
Speculative Oil and Gas Explorer with holdings in Australia, USA and Senegal.
Looking for another Joint Venture partner to drill in deep water Senegal after Shell opted out, they may or may not find one. Worth a punt?
anybody have any comment on NHAWF…a lithium drilling company ?
I strongly recomment isco which is up 100 from my initial alert last month.
COYN is looking to get ready for a move. 10 – 12 new contracts signed in last 30 days and quarterly reports scheduled to come out soon. Could be interesting after a long fall!
I would suggest MSQ.V . This company has the biggest proven Molybdenum deposit in the world. It is only trading at $1.14 as we speak. No one seems to know about this monster yet. Moly is going to start trading on the LME (London Metals Exchange) this month, which will bring in speculators to drive the price of this commodity up. Does not have a huge float, only 70 million shares. The Chinese are sniffy around this as a buy out or JV because they need Moly to strengthen their steel. One commodities newsletter has said “Think Voisey’s Bay and double it”, that stock eventually traded over $100. CEO is going to be on BNN (Canadian business news channel this week). Word will be getting out soon!
I HAVE THREE SUBPENNY STOCKS THAT I BELIEVE ARE WORTH TAKING A LOOK AT FOR THE LONG TERM. THEY ARE: GGMC-GLOBAL GATEWAY NTWK; IRBL-INROB TECH; AND WLSI-WELLSTAR INTL INC.
ENJOY YOUR EMAILS AND ALERTS VERY MUCH. THANK YOU FOR YOUR KIND AND CONSIDERATE HELP.
I’ve been keeping an eye on Sustainable power corp SSTP. They just received conformation from Texas A&M University their propriatary Vertroleum product is a go. They also have tested MSW as a feedstock and it looks like excellent results.
BLAP ????
Anyone know anything about this one?
does anyone have any good info on mad catz-mcz?
Hi treasure hunters! Take a look at WNBD.
i like PMDP BUT AS ALWAYS CHECK IT OUT, LONG TERM I TRY TO BUY 500 TO 1000 SHARES A WEEK
as soon as my acct. comes thru i will be picking up cbst, navi and lng
these look like they should go
thanks
GDHI – Golden Dragon Holdings Inc. is a company just starting to make another big move this week as it closed today .0028 and is breaking into the US market and has so much going for this comapany and the rumor that is floating around is that there could be a possible buy out in the works. Their chart looks fantastic, but you would need to take a position early tomrrow to take advantage of as much profits as possible. Check it out and do some DD and you will see what I am talking about. Great Opportunity – Enjoy!
I am a player of the commodities and energy fields Energy is the currency in the future and so will be energy credits from the Obama WHITEHOUSE == pure profits
GSRE small producer taping into major field of oil in Texas
HTOG methane gas fields in Kansas microcap leverage
GSPG Commstock USA gold in the Carson city area of Nevada — amassing considerable land position & claims
TIDE Natural gas pipeline coming ashore down in the Gulf of Mexico– Texas border
ITRO RECYCLE Silver and a play on the Green World—- unique player 10X production..–HOMERUN
all my plays are for the super leverage in gains “buy” when noneelse likes them —Buffet/ NELSON
HTOG Methane gas field and pipeline in the heartland of the USA– Kansas
TIDE Natural Gas into Port pipeline through the Gulf of Mexico into Texas
GSRE Small oil producer sitting on a major oil field in Texas
GSPG Comstock Gold producer lining up prodution and amassing largest land position ever in the area
ITRO Silver REcycler (green) mentioned above the Production is going to 10X current levels— Homerun
all my plays are for substantial leverage why else work so hard
XRA- Exeter Mines blew thru resistance today like a knife thru butter. World class orebody, no debt, It will be taken out shortly. Next stop $10.
AWSL has been in a selloff last week and today. I believe people are dumping their excess shares since the 1 for 3 stock dividend payment. Dividend shares can’t be sold for 1 year. (SEC rules). good company operating in a favorable govermental enviroment. They have a power inverter/converter that is 20 % more effiecient. That alone should make them a mint.
SKGO seems to hold promise. I got in at .008 and it is expected to do well. It has just mergered with another company and has 25 mill in assest
Sonomax Hearing Healthcare – SHH on the TSX-Venture. Will be having a conference call on Feb.4
to update shareholders on their licensing agreement(s). Their product is a off-the-shelf, self-inflating,
custom-fitting ear-piece. The current stock price is 8 – 8.5 cents.
i have NCEN, windmills locally and advertising over TV locally. about to hook into power lines, SPS doing the hookup.
What allows DFZ at $9 and CBST at $20 to be considered a “penny stock”? I was under the impression that a ‘penny stock’ meant it cost under $1.00 per share. I do believe that is the definition of “penny”.
Kurt,
Our investment universe is small-cap stocks (under $2bn market cap). This opens us up to substantially more investment opportunities, but they still behave like a traditional penny stock (under $5 per share).
Best,
Jonas
IMGG continues to look good – and is still a bargain. MTCH is still a bargain. SSTP is a steal at one cent. NMNZF is a bargain, if you like rare earth and palladium (among others). All these are real penny stocks that, with even cursory investigation, will reveal their great value. Check them out.
JEDI MIND INC COM “JEDM’ COMPANY IS GOING TO MAKE A PRESENTATION ON CNN AND CNBC ON FEB 7TH. CHECK OUT THEIR WEB SITE FOR MORE INFO. http://WWW.JEDIMINDINC.COM
$1,643.52 ! ….Is that all ! …Heh! I own stock in 273 companies heavily leveredged on the nasdaq exchange,
and the bears, followed by the panicking sheep can only push my bottom line down that much when the nasdaq drops 66 points in one day? ….Pitiful showing by the bears and sheep today. …Try again A##holes!
…I’ll stay at the stud poker table and take your pathetic sheep sell-off, and raise you $2,000.!!! Heh!
Many of the companies i talked about last week and weeks before are standing tall, or even rising today. ALL of them are in my portfolio, since i would never recommend a stock i don’t stand behind and already own. I won’t repeat myself but if you didn’t delete the last few weeks letters from Jonas, you can double
check. …I Love watching ‘the sheep’ follow the bears over the cliff, I really do! ….I suppose many of the
‘penny stock’ guys have more than my 15+ years experience playing this stud poker game, but these are
exciting times for stock picking, and many of the old playbooks I’ve thrown out the window.
‘NEW 52 week high” only means it is better today than before it bottomed in march 2009. …The technical
analysts are about as usefull as the harvard grads on the business channel who haven’t a clue what to do.
…P/E mulitples are as mixed up as chinese arithmatic and there is Absolutely NO guarantee on future profits under the fascist administration we are contending with at the present time! …Until the elections!
I will shut the F##k up now and offer the lessons i learned from Peter Lynch…….HOLD your stalwarts and fast gowers in bad times! …BUY MORE ‘IF’ the fundamentals are intact (OR) the business model improves.
DO NOT sell in panic because everyone is selling, and for gods sake keep sane until the ultimate market
correction, which will always happen to the upside no matter what.
I only have 2 picks for this week. And Yes i own them both….They are UP on a down day for the nasdaq. ..
DYNT …Dynatronics. – And a long play for this summer. …Vaughn foods (FOOD) …i just doubled my position today. Have fun and keep the faith!