Four More Stocks with Gain Potential in February: QLTY, DFZ, BFNB, EBIX

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Feb 8th, 2010 | By | Category: Featured, Penny stocks, Pink sheet stocks, Technical Analysis

Can markets stage a reversal to the upside this week? That seems to be the billion-dollar question as investors prepare for Monday’s trading session. To be sure, 2010 has been a tough year for stocks so far – major indexes like the S&P 500 are down more than 4% year-to-date – but that doesn’t mean that anything should be taken for granted for the rest of the year.

After all, 2009 started off on an even sourer note, only to be followed by one of the strongest rally years in history…

This week we’re going to try to capitalize on any hint of a reversal with our weekly Penny Stock Watchlist… we’re also going to take a look at a downside play just in case this week fails to live up to investors’ expectations.

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…

Beach First National Bancshares (NASDAQ: BFNB) – Shares of this tiny regional banking stock broke out last month, hitting resistance right around the $1.20 level. But consolidation right under resistance right now suggests that shares could stage another breakout in the short term. Still, stay away from shares until a close above the black line.

R.G. Barry Corp (NASDAQ: DFZ) – I know, this isn’t the first time DFZ has made our watchlist… But with shares continuing to form a picture-perfect ascending triangle pattern, the imminence of a breakout should make the wait well worth it. Don’t consider going long until the trigger set last week is breached.

Ebix, Inc. (NASDAQ: EBIX) – E-commerce software provider Ebix is this week’s downside play. Shares of the company have been set on a bearish head and shoulder pattern for several months now, and a breakdown below shoulder level last week could turn into some palpable gains this week. Wait for a confirmation bounce down off of the blue line before taking the trade.

Quality Distribution, Inc. (NASDAQ: QLTY) – This trucking company bounced off of its 50-day moving average during Friday’s trading. That move should set us up for some upside movement to start 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 12 to share your favorite penny stock play with the rest of the world.

Jonas Elmerraji

February 8, 2010

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Jonas Elmerraji

Jonas Elmerraji, CMT, is the co-editor of STORM Signals and Penny Stock Fortunes, and a contributor to Agora Financial’s Trend Playbook. Jonas got his start on the fundamental side of the market, poring over financial statements and valuations to find sound investments – today, he specializes in blending fundamental and technical analysis. Jonas is a senior contributor to, and has been featured as an investment expert in Forbes, Investors Business Daily, and among others. 

Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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  1. My favorites right now are GDLNF and IAALF.

  2. my Favorite stocks this week are PWRM and TSHO

  3. MY fevorite stocks are { TRGL-SOL-SOIGF-SVM }

  4. NWCI – Newcardio Inc.

    U.S. Patent and Trade Office (PTO) Approves Patent for Device and Methodology for Transtelephonic Transmission of ECG Data for Monitoring of Acute Cardiac Conditions

    Buy-Out Rumor

  5. Ilike LLBO

  6. My pick is Titan Resources,TNRI, a gold mining stock that is very undervalued. The company continues
    to expand and may become one of the most lucrative finds out there

  7. TSHO will be huge again this week – I was in at .24 and it is at $1.49 right now and climbing! My new pick will be BEDA which is about bounce hard on any news that comes out, which should be this week hopefully. Long Term – NPHC without a doubt and a little DD will tell you where this headed and they could explode any day on further roll of their Over The Counter pain med for moderate to severe pain.

  8. cbai.ob bought this morning doubled in 3 hrs==looks good to me

  9. kbx and gbg look good for diet chewing gum bought to get product

  10. I like GSAT and CTHR for a swing trade over the next 30 days or so. Thanks.

  11. whats the deal with CTIC? Dropped 40% today but rest of sector went up. Any comments?

  12. mosquito gold .com go to this site and be jolted. the main metal is molybdenum(moly) they have the largest open moly deposit in the world in idaho . Twenty percent of property has been drilled showing 16billion value and a 100 year mine life. stock at 1.14 2-8-10. the stock should be at least $5. A steal at this price.

  13. To Robbin Re” CTIC

    The news that came out yesterday about clinical data has already been addressed by CTIC. if you go to their web site you will find a press release.

  14. VSTFF is definitely one to watch. Iraq oil !!

  15. I have to say something about ‘penny stocks’ ….i believe Jonas said something about the equation.
    There are Large caps of many billions, which are the blue chips on the dow industrial average, and there are those with less than a billion or only a few million market capitolization with room to grow. Those large caps are very expensive and most of us can only buy a very few shares of a company that ….Let’s say i buy
    100 shares of coca cola, or 500 shares of proctor & gamble. …The chance that you will hit a double or a
    10 bagger in these stocks in your lifetime are slim to none! ….On the other hand if you pick the right ones
    which are up and comers and hard chargers who have the capacity to either knock the crap outa
    the big boys with new technology or inovation and send them down to the basement, or put a large dent in their market, you have found at least a 20 bagger! …..These are not easy to find, but they are out there.

    Research is the key! studying market sectors and trends, going to stores and watching what people buy.
    watching commercials of the small cap stocks you own while you see your price drop slightly and HOLD!
    while they lure folks in to buy their products or services to increase share value over the longterm.

    I made 1,000’s of dollars over the years buying & selling salton incorporated sfpi on the PK, and beat them
    like a drum! …They were the makers of the George Foreman grill… Unfortunately for stock pickers they were
    taken over by institutional investors and taken private early 2009.

    There are a few more out there. I have a few, but will withold at this time. I will however give a few that are
    larger than my buy price, but an absolute ‘steal’ at todays price.. Midwest grain products…MGPI ..nasdaq.
    Origen agritech …SEED..Nasdaq …i bought for $1.70 in early 2009. …Check todays price! …and zhongpin..
    HOGS…nasdaq…bought early 2009 under $4.00 per share and stomping up the ladder today at almost $12.

    “I have only begun to fight… the bears” …


  17. FORD motor company! ….(F) ….Do what you want! …But it is already a 4 bagger in my portfolio, and with
    the toyota debacle which is getting worse, (F) NYSE ….is an American company poised to explode to the
    upside under the brilliant guidance of CEO Alan Mullaly…. A brief …He was a CEO at Boing and wanted
    to streamline production, but butted heads with the other CEO’s in the other divisions, (military and civilian
    sectors) …and with the acquisition of macdonell douglas aircraft and the appointment of john macdonell
    as a co -ceo, Mr mullaly left and took on the position as ford CEO not long ago. ..He used his wisdom and
    guidance to miss the govt bailout money and streamlined production to the point that there is only one U.S.
    auto-maker that is not in chapter 11 bankruptcy. …This is Ford motor company.

    P.S. – The boing 787 dreamliner is way behind schedule due to outsourcing parts around the world that
    don’t fit properly and have to be fitted and fixed at their main plant in washington state. …mullaly
    warned them years ago. ….I’ll buy more (F) on the next broad market downturn.

  18. CRWG .OB & JYHW.OB; just check out the charts.

  19. Hi Misterevil,
    You’re post intrigues me, being new to penny stock investing. Where do you do you’re most effective research? There are so many people claiming to help us get rich and so much info. out there that I tend to get lost and spend hours (that I don’t really have) trying to find credible information. I am a small bus. owner so my time for research is quite limited but I would like some guidance on where, when, how etc. Can you help with some good, practical, unbiased counsel? Thanks a bunch.

  20. Im very positive on Enableance Tech ( ENA ). Solid growth over the past year and looking to become cash flow positive in April. Also inked a deal with Intel before Christmas for their new Light Peak. Governments around the world are investing in broadband infastructure.

  21. I think BLGW gonna be the next google. They haven*t manage to make break even but thier business idea is a great one. So far the stock has been rising.

    The commany into commercial blogging.
    Have a look at it

  22. first time. educational and interesting. will be back for sure. thank you

  23. Hi jer,
    To be sure i use the tried & proven method of ‘buy what you like, buy what you know’ …One of the ‘Lynch laws’ of investing. I study trends, market sectors, competition, and sometimes use pure gut instinct to
    buy when i am satisfied my research is complete. good luck!

  24. NPWZ not to well known but it’s proprietary technology in fuel cells is sure to be a great play. The stock had a high above $2.00 a share, took a slide to below 50 cents with resistence around that level but is positioned for a break out with new aquisions and proven technology. Chech out their website

  25. Little Rat,
    CBAI is a great stock with a lot of potential. Have owned it for 6 months, on 2-8-10 the stock had as much as a 30% float but at no time did it double in price…

  26. Is AVOE ready for another run?

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