Four Charts with Market-Beating Potential
Yesterday’s break from trading gave investors a chance to collect themselves after a few brutal weeks of stock market mayhem. Futures are pointing toward a strong open today – a welcome change for a market that’s down more than 5% in the last month. But regardless of which way the market moves, the Penny Sleuth team is sticking to what we know best: finding the tiny stocks with serious breakout potential this week…
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 on the Penny Sleuth website 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…
Ruby Tuesday (NYSE: RT) – Investors are hungry for gains right now… Those gains could come courtesy of a different kind of hunger: hungry consumers. Restaurant chain Ruby Tuesday is fast approaching a key resistance level right below $8.00 per share. If shares can push above that level, expect a rally past $9.00 in the immediate term. Wait for that “buy” signal before going long.
Ocwen Financial Corp (NYSE: OCN) – Asset manager Ocwen Financial has been rallying hard over the course of the last week or two. But significant resistance at $10.50 presents an interesting trade for us. If Ocwen can break the $10.50 level, expect a rally to the 200-day moving average – otherwise, count on shares to tumble back down to $9.59.
Seahawk Drilling (NASDAQ: HAWK) – Things are looking good for Seahawk Drilling. The Houston-based oil service company recently broke out above downtrending resistance, and confirmed support at that level on Friday. Expect shares to move higher this week assuming a second consecutive close above the blue line today.
Media General (NYSE: MEG) – Diversified media company Media General isn’t having as strong of a technical outlook as its investors hoped for. In fact, with a descending triangle forming in the stock right now, things look pretty bearish. That’s why this play is our downside play for the week. Wait for a breach of support before betting against this stock.
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 19 to share your favorite penny stock play with the rest of the world.
Cheers,
Jonas Elmerraji
February 16, 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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my pick for this week is “ltum”
INO is my pick of the week
My pick is TSHO as it ready’s it’s first wave of infomercials this weekend.
I have been following IGNT for a whlie now and it should be starting up any time
because it has the exclusive rights to a new oxigen monitor that takes the guesswork out of reading the full level of the tank
in medical terms thats a big improvement over what the industry has had for fifty years or within one month
they should have iso 9000approval for international sales they allready have orders from various foreign countries as well as orders from stateside hospitals
they have also submitted thier apps to the govt for sales in the va and other systems
the company could move into a larger arena upon approval of thier iso status which is almost sure to be approved shortly
the stock now sets at.0014 which makes it a cheap investment compared to where it could go from here
the company allreadyprojects 11 million in rev in 2010 I thunk it could go a lot higher because of the
pattented device
the company has 520 mil shares and a world wide market in the hundreds of millions of people with multiple times usage over extended periods of time
the next two or three years this stock could hit the hundred million mark in rev or better
my stock is PLM
my stock pick is HAWK
my stock pick is HPLF.
My stock pick is……beda
My stock pick is….PSUD. See web site news at
http://www.petrosuninc.com ( $0.05 per share) for full info.
Within one month to drill 2 exploratory wells, 838,000 acres mineral leases,
very active in algae, and steel tubular goods. Just rec’d.
substantial financial backing.
I have to go with TRGL a new oil field that is under Paris France,that will be tapped with horizantal drilling later this year. The estamated reserves are gigantic.
My SUPER pic is AMCG.OB. It is a software company specializing in the development of mobile phone games for the Chinese markets. It was just appraised in the Top Three for profitability amongst mobile phone game manufacturers.
The volume has gone bonkers the last couple of weeks. The volume recently has been approximately 450,000 compared to an average of 87,000. The price as of 02/16/10 was .74. Beacon Equity Research lists a price target of 1.44. WOW.
Agree wholeheartedly with PSUD
Another pick…….GSPI See web news at http://www.greenstarUSA.com
($0.01) for full info. Company has extensive experience in algae
for several years. Shorters have driven stock price into ground.
SEC Director is scheduled to issue a new ruling on the Uptick Rule
this month which requires an uptick in stock price before a trade
which will hopefully aleviate this shorting practice & increase share
price.
Another pick……FVR See web news at http://www.finavera.com ($0.05) for full info.
A Canadian company that has bid on 4 wind farms to be awarded this month.
Also now constructing wind farm in Ireland. Formerly in Ocean Wave Form Energy.
my pick GNVC up over 300% since I bought – more to come!
Fifth Third Bancorp -FITB- Nasdaq ~ Long story short…. I shorted FITB late 2008 when ‘the sky was falling’
small profit…Bought them back in early Jan 2009 @ $1.34 ….Sold out late feb in a brief flurry at almost $3.00
per share…March 11, 2009 was a bottom. Bought them back at $1.36 a share and sold just 400 shares in
june 2009 to send them running on pure profit. …FITB closed today at $12.05, and this one is not stopping!
Increased my position in Dynatronics today, DYNT~ Nasdaq which is a company that was kicked in the face by the 2008 stock sell-off, bought at 0.40 per share. They make and distribute medical and
rehabilitation devices, and recently got a large contract as well as regaining Nasdaq compliance rules.
Isoray –ISR~ AMEX- They are most defintitely one to watch! …Don’t take my word for it, just wait for 10′s of
1’000s of old men in the future cured of early stage prostate cancer. …A 20 bagger by 2012? …
Who called Sirius-Xm radio as a buy a few weeks ago when it was about 0.85 a share? …Hmmm, let me think….. Hey it is now over $1.00 a share and that stock picker would be me! ….Have fun folks!
I bought Avis-budget group CAR ~NYSE for 0.42 per share in 2008. Sold in increments when they were a 10 bagger, then a 20 bagger sending the remaining 250 running on pure profit in 2009. ….Held and sold off today @ $11.36 per share. …Will buy them again when their profit margin improves, and the market is again
in their favor. …If they hit the $9.00 mark they are a huge buy in my book!
Sold off my entire position in AIG also, which was running on profit when i bought in late 2008 for 0.42 per share and sold off 1000 before the reverse split during the run-up at about 2.90 per share. I sold my entire
position today @ $26.76 a few minutes before closing bell……Why should anyone give a damn about what i sold today? ….I’ll give you a clue. …It is all about ‘Market Strategy’…. I buy and hold! …to a point. I do NOT love
a company, it is just a piece of paper as a share, and i will not hesitate to sell for profit,…OR buy again when
the story improves!
Here is a story! I bought Joes Jeans early last year cheap! …Sold out late last summer for a modest profit,
and watched them drop from what i thought was a top….sunofabitch! …JOEZ ~ nasdaq is staging a hefty
recovery and i am buying again tomorrow morning. ….Hopefully on a dip @ $2.05 a share. ..I’ll take 1,000
please! ….BBI is not going away. ..increasing position also. …~Tally HO~
my pick is IGNT. A lot of potentials for this company with outstanding products, management. The management just announced their shares buy-back plans and reiterated that there will not be any reverse split. I believe that this year will be big for this company.
My next pick is SGCP. The company may surprise investors when they carbon credit programs mature. This may give the company enough capital to continue their exploration activities in Sierra Leone.
Misterevil – I have a question – you are pretty consistent with your trading and I am just getting into it – I have been researching myself and I’ve been getting into trading – I picked up both JOEZ and BBI mid-day Friday given some of the same reasons that you are looking at.
Obviously you’re very busy with the rest of the things that you’re doing but if you ever do have time to talk and possibly give advice, I would love to talk to you and get your opinion on things.
ncsubowen@ g m a i l, if you get the time and want to.
Scott
Scott, i will only say this. ..I study, and take a break, then i study again….I have level 2 access directly to
the stock exchange from 09:30 opening bell, until 1600 hours est/ or 4 o-clock to those non military types.
It is exactly 23:45 as i type this. I have a few $1,000 waiting to send downrange monday morning IF!.. the market takes a small downturn. If Not! i will sit on my cash position and wait for a more favorable
entry position in many that i am interested in buying for maximum gain in the future. …Monday Feb. 22 will
be damned interesting….I will post exactly why by the evening! ….~Semper-Fi~
I also have real-time access to the stock exchange, what’s the draw to posting in the comments section of a penny-stock website? Do you run one of your own?
What is your general turn around on a trade? Obviously it varies from stock to stock but 2-3 months? How do you judge what the return on a stock is going to be given the information that you read about it (financial reports, etc) and how did you get started? Do you have any good resources for how you learned what to read within a financial report and how you go about finding out about companies?
I 2nd GNVC…also like VVUS..