February’s Technical Penny Stock Plays
Brace yourself for another exciting week of trading. With futures pointed higher early Monday morning, this week could bring higher numbers for stocks with it. Or – if some traders are to be believed – a key resistance level could smash share prices back down this week, leaving them in a flaming heap on Wall Street. So, which is it?
The traders are right to be less than bullish right now. The 50-day moving average is acting as a potentially tough resistance level right now for the S&P 500 index – one that stocks could have trouble surmounting given the mixed economic fundamentals of 2010. If we can breach the 50-day, however, the market could be ready for another rally leg.
Today is going to be the biggest tell given that the market is threatening to open right on the 50-day. Pay attention to where trading ends at 4:00 p.m. today; that’s the best indicator of how to play things. Whichever way stocks go this week, we’re setting up once again to make some loot with some potentially favorable penny stock plays.
In case you’re not familiar, each week, The Penny Sleuth takes 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…
Fred’s Inc. (NASDAQ: FRED) – Memphis-based Fred’s operates close to 7,000 discount stores in the southeastern U.S. The chain, which focuses on serving mid-to-low income families in small towns, could make for a good play this week with a breakout above two key levels on Friday. Shares broke out above the 50-day moving average and downtrending resistance, two levels that threatened to quell Fred’s recent rally. Now, with shares unbridled above that level, the potential for a significant gain is real. Wait for a second consecutive close above the blue lines before considering taking the trade.
Solutia, Inc. (NYSE: SOA) – If you’ve been following our daily watchlists, chemical maker Solutia shouldn’t be an unfamiliar name to you. On Thursday, I told you about the bullish ascending triangle that was forming in shares of the stock, a pattern that continues to be compelling right now. A breakout above horizontal resistance marks the “buy” signal on this stock… it’s just not there yet.
Navigant Consulting (NYSE: NCI) – Our sole short-side play this week is Navigant Consulting, a specialty consulting firm that assists companies address risk uncertainties. One risk uncertainty that management hasn’t addressed is the bearish head and shoulders pattern that’s already formed in shares. The trigger to bet against this stock is a breach of the blue shoulder line above.
ESCO Technologies (NYSE: ESE) – ESCO Technologies is an engineered product producer that’s based in St. Louis, Missouri. The company’s shares are currently being bounded by a triple top on the upside and a double bottom on the downside – a set-up that gives us significant protection right now. With a breakout above downtrending resistance in play, this stock could be headed higher this week.
Share Your Penny Stock Picks…
Once again, we’re going interactive this week…
Just visit the Penny Sleuth website, and post your best penny stock pick in the comments section of this week’s Watchlist by Friday, February 26. The two readers with the best performing picks each score a Penny Sleuth Prize Package that includes a special edition DVD of I.O.U.S.A.
Submit your pick below…
Cheers,
Jonas Elmerraji
February 22, 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.
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CLDX is your next break out stock!
Delta Petroleum
Vastly undervalued company has been very volatile lately
MILL has quadrupled since December…look for at least another double if they make their 1,000 barrel-a-day goal in the next two months!
TPHM
Signed a letter of intent on Friday, should be up big this week
MTCH. Price at .18 and the RSI is below 30. Should drop a few more points before going back up.
My stock pick is owvi. Huge volume earnings above last year and projected to raise the value of this stock.
Joe Lillis
SPIR is a sunshine stock
There’s Gold in them there Hills. Check out TGB First before investing.
tradeshow marketing . tsho their infomercials are started on tv today and they will be receiving sales/income and they have a very small float. their revenue this year will continue to increase. as they add additional products onto tv,which they plan every quarter. this is a big winner for 2010
This week I like Joe’s Jeans JOEX. It’s just broken above resistance at $2.00 from long-term
accumulation. Unscientifically, I always check first with my teenage nieces and nephews to
get their take!
Yellow Pages Income Trust ( YLO.UN-T) Trading at just under 6.00 and pays a dividend of about 14% until end of year at which time will switch to a corp. and pay .65 per share/ per year,a little over 10% a year.Sales have recently increased and future looks good for this stock.
Sorry. the symbol is JOEZ
Since nuclear facility development is a hot topic now, consider Lightbridge (LTBR). Its CEO was recently on Fox News and discussed that LTBR is active worldwide on nuclear fuel consulting and licensing. Their fuel technologies, advised by the world’s experts, avoids nuclear use for weaponry and addresses waster and deployment issues. He serves on several US advisory commissions and anticipates that the new federal funding initiative will benefit the industry and his company.
I’ve been watching one and accumulating off & on since last Summer. Has been beaten down for a few years due to incompetent leadership, but is staging a comeback. Patent infringement litigation is in progress so – it is a risky play
Might be a longer play than just the next month or so but worth a check – and yes I am long on this one.
CLYW
CHMD
ISPI is at 0.07 right, now there has been alot of positive news with regards to this company, give a few days, although it dropped from 0.24, to .0.07 in just a matter of two days, it will most likely rebound soon and go straight north past 0.24 up to around 0.35 to .50. Get in now on the low side and possibly triple your investment or quadruple it.
Take a look ISPI
YRCW
ONCY is my pick
USOG has excellent growth prospects in the oil and gas service industry through it recent acquisitions. Recently trading around .02 with a target of .15.
I think a good investment, that I made on 2/11/2010 was buying 15 shares of HEK at 5.88 a share.
Then on 2/16/2010 bought 20 more shares at 6.05 a share.
It’s not much, but as I watch this stock continues to grow and still in profit zone.
(HEK)- Heckman Corporation listed with the NYSE
INO
This stock is going to explode. mnap.ob /// At .88 cents today let’s see where it is very shortly. Bill
Check out PSRU at .06 it’s a value.
xoma and lei are both great penny stocks
KYUS waiting on gas flow estimates from their wells to Seminole refinary
water is the new oil- PURE
BLVI- BLACK ART: the next breakout German import beer! You’ve got to taste it when it comes to your town!
GELV is one to watch….opened today at .0135. There’s lots of excitement surrounding this company… most likely will increase at minimum 100% in the coming weeks.. Remember this ticker, you’ll see
KNDR is going to skyrocket soon. Kender Solar has a solar panel that costs 80% less than conventional solar panels. After they get UL certified, this company will be unstoppable. It also has operational temperatures from minus 70°c (minus 100°F) to 100°C (210°F). It takes up less than 22 Sq.Ft. of space, and produces 39 Kw of power. A conventional solar panel system that produces 10 Kw would take up at least 600 Sq.Ft. of space and cost you at least 5 times as much. The Kender Solar panel produces power 24 hours a day. Since the average home uses less than 10 KW, the extra energy gets sold back to your electric company. Check out this amazing solar panel at:
http://www.kendersolar.com/ind.....ngine.html.
MMUH, this is accumulating now and is poised to run very soon.
THREE COMPANIES SHOWING GOOD GROWTH OVER THE LAST 8 MONTHS AND WORTH WATCHING:
IRBL- INROB TECH, Wireless remote controlled vech. for military
LSDR- CELL TECH, Oil and gas recovery units
WLSI- WELLSTAR INTL INC, Advanced medical imaging using thermal imaging tech.
PMDP should have a breakout and a nice move to the upside soon
crwg,irbl,gelv these will make alot of money this year
Taseko TGB will continue to move upward.
Taseko TGB will continue to move upward
actc..is my choice for the pick
My pick is AVXL. Best looking ROIC
On 12/24/09 bought SCEY @ .0183. Closed Friday @ .09
I am very excited about this stock and think it will go much
higher. CHECK IT OUT
My picks this week
CCTC
PWRM
TSHO
AMNE
CCTR is the next break out stock.
TSHO — it is about to takeoff !!!!
nnlx
my pick this year rmi.v
Gold is the key. Claude Resources, CGR, is exploring a big potential in it’s Madsen Project. Another potential big mover is Golden Queen Mining, GQMNF. I also agree with posters on TGB. This stock has outperformed many in my portfolio. Already a producer with large exploration potential.
Pete
These Three financials have never let me down. — Regions financial RF~ NYSE,
Fifth third Bancorp—FITB~ Nasdaq, Bank of America—BAC~ NYSE, (lots of short interest in this one, but still
chugging along quite nicely) They are charging ahead today making me a pantload of money.
I am watching one closely on the PK, Cityside Tickets, CIST I don’t buy off the pink sheets very often but this one started a marketing campaign today and at 0.40 could very well rocket launch in the weeks ahead
if they don’t blow all available cash before revenue increases.
NNLX will be a big mover. Game changing medical testing kit…EPA, Battelle, DOD, 3M and more all paying attention or working with these guys. Just got back from meeting with Ministers of Health for Mid-East and that seems to have gone very well. Has not had its next big moved yet, but it looks ripe.
BBYB (Baby Bee Bright Inc)! developer of a unique prenatal communication system, is expecting an exciting future in the year 2010 at 0.0079 its a good buy . months of consolidation and holding strong at this level, we are ready to see this stock Breakout
My pick is AKYI if not this week , then next . They have GREAT products and there marketing Opportunities are endless . Take a look and see !! and get-in on the ground Floor now . This Stock Going To 2 To 3 Cents Soon and could Break the 25 cent mark this YEAR I’m Long : AKYI
KOOL Thermogensis just keeps looking better and better at 0.59. Nice technical pattern. Turnaround company with new management starting last summer and still continuing to add talent. BV around 0.35 and Rev per share at 0.38. Looks like they cleaned house and ready to make some nice profits over the next few months. Certainly should attain $1 a share by year end and my objective is $1.50. Been accumulating since 0.45. In the mature side of the stem cell business, but still necessary products.
NVDL Novadel looks like it is trying to break out although it may take a bit more time. This is one that likes to run — both ways. If they ever perfect Viagra up the nose it will rise like a rocket — bad pun. (Old rumor from 2007).
If you really want to get in on some real money makers…..do a “DD” on these and see what you think…
ATNP, EYSM, IDOI, BGNN, BEDA, ALL ARE SET TO EXPLODE VERY SOON….! MY OPINION ONLY
Look at ALMY. It has been flat but i have heard that it is ready to move?
BCLI
I think XOMA is undervalued and will soon be heading skyward in a huge movement. GLTA
The one sector that has not YET made its move and remains at a low is probably one of the best areas to look for breakout stocks. It may not happen this week but at some point I believe natural gas will explode (pun intended) and major mover could well be Mesa energy holdings, MSEH / OTCBB
TLLA Tres Estrellas has gone from $.90 to 1.02 in one week & should steadily climb when they merge with InMedia when their name will change in about a week. Shares expected to be around $8 within a/yr.
The other one is URZ, uranium, doing gangbusters!
I am enthusiastic about INTK. It has highly needed products and expertise and patents to reduce energy costs for industry and homeowners, too. (Patented energy saving coatings.) Stops pipes from sweating and gives great insulation anywhere by thin coatings and lengthens infrastructure life. Read their news items on their stock page. They have doubled revenue yearly. They have been as high as .25 and are now down to .03 so you can buy a ton at small cost. They are global. I think they are totally under the radar and their stock probably won’t move until they get noticed. Somebody will probably attempt to buy them up eventually. They are nano-tech and have other irons in the fire, too. If they are a “dud” I surely wouldn’t mind hearing so. One thing I have found is that I can sure be wrong. Usually when I give up on a stock,
it heads for the moon–DROOY, CDE and many others, for example. It’s quite a casino.
I FOUND AN ARTICLE ABOUT THIS COMPANY AND THOUGHT THEY HAVE A LOT OF PROMISE.
WTWO IS A PROMISING CANADIAN COMPANY MAKING FUEL OUT OF WASTE
Americas Energy (AENY)- Check it out!
My pick JYHW Gas & Oil Exploration
I see BYRN and HSCO as the breakouts with just some small news. I’ve added them to my portfolio at these prices before they turn
I also agree with #5 comment MTCH is due for abig splash, just check out the news upcoming on them.
POPN symbol for pop n go is a small company with a lot of potential for growth in the smart food category. This stock ahs risen 300% over the last 6 months> Check it out I think you will like what you see!!!!!!!
cdoc.pk this stock looks really good. GREENHOUSE INVESTMENTS LTD just bought 20,000,000 milliion shares. They have contract with us coast guard. they working on navy and off shore rigs.
sewc.pk, looks good
pran this one is going to be hot bio teck. Wow this oneis going to be big..
My suggestion: Great Panther Silver Ltd OTC:GPRLF
Try NENG, and SUPR
insm could get bought by mrk it looks pretty good .80 – .90 could go to 3
JTX for short term, just in time for tax season. Below $2.60
CDOC.pk Soemthing going on.
Maxwell House just bought 10% Today they just put awsome new web site up. It look like are looking to really push there stock. This is one to watch.CDOC.pk CDOC.pk CDOC.pk CDOC.pk
SLGLF.OOB Do the research get in on the ground floor of this company.
JINFF — i purchased this China/Canadian gold mining stock as a penny stock 1 1/2 years ago at less than .36 cents per share. Today it is at $3.70. A true 10 bagger
Thursday or friday this stock is GONNA EXPLODE UPWARDS!!!!!!!!! XDSL MARK MY WORDS within a year maybe 2500% minimum I bought 550,000 shares, that’s how much I believe!!!
I am glad i bought into this outfit last year. — SOMX – Somaxon pharmaceuticals inc. ~ Nasdaq. …
…Stage 3 trials can take a while, can be a real bitch! but can absolutely rocket launch as a 20 bagger
or more in a matter of hours or days….Or tank the stock price if un-approved. I have over 27 bio-pharmaceuticals and drug companies in my portfolio, and can not say that this one will be a 20 bagger by the end of the year. …but i can sell tomorrow for a tidy profit if i wanted to…. I am holding long. ….Clarient Inc, CLRT ~Nasdaq could easily be a ‘Big mofo’ in the future also. I bought them so cheap late 2008 during the ‘great depression’ ,’ we are all going to die and the sky is falling’ sell-off i won’t even say it here. ~Study & Research~
SMED Should a winner .
SMED Should Be Winner.
AEMD
A great medical device still several months from breakout; but outstanding research and trial reports. Looking for 150 to 300% in this calendar year.
Here is a couple of low dollar stocks AMCS PMI CBG
What percentage of these people are Pump and Dump stooges? Can’t tell for sure. Yeah?
I’d go with SANM. I made good green with it and I’m still loving it.
Systems Evolution Inc OTC:SSEV
I have been watching this stock for the past few months, and it’s trading pattern which seems to be coming together. I am a strong buy on any price below .001 and this stock at the moment is trading at .0006 with a 52 week high of .36
I personally see a rise in price as the MACD and the EMA are now colliding together. I would also like to point out the Bollinger Bands and the Simple Moving Average is over the last month has been closing and I see a crossing in the next week.
This info is all based on my DD and is in no way a buy recommendation and should only be considered an observation of the stock mentioned.
TSHO would have to my pick for this upcoming week as they had just expeirenced a massive sell off on panic selling as so many ran to grab their profits. Friday it closed higher and ready to run big this week. The shorts are being forced to cover and we could see a huge short squeeze here with their very small float – get ready to see this explode this week!
Misterht,
If you want to find out whether a penny stock is being pumped, I recommend checking out http://stockpromoters.com/
They keep a database of which issues are being promoted, and what the terms are of the arrangement. While that won’t include the small-time operations, it keeps good track of professional promoters.
Best,
Jonas
where can i find the “buy up to list”?