Monday Penny Stock Watchlist: A Year-End Rally in Penny Stocks
With holiday consumer sentiment strong the Monday before Christmas, we could be on the verge of an end-of-2009 breakout in penny stocks. What better time then to look at four stocks getting set to move big time in the coming week. Here’s a look at this week’s Watchlist…
A while back, Greg Guenthner wrote to you in the Sleuth about the fact that small-cap stocks were breaking down. On average small-stocks had been sliding lower since October while major names on the S&P 500 and NASDAQ Composite helped hold broad based indexes up as we edged toward the New Year. But now, small-caps have broken out above the downtrend they’d been stuck on, and things are looking up.
Improving conditions have certainly helped us with our wins so far in December. In the last two weeks, the Monday Penny Stock Watchlist has delivered gains of 207.65% on La Jolla Pharmaceutical (NASDAQ: LJPC) and 54.43% on China Infrastructure Investment Corp (NASDAQ: CIIC), giving Sleuthers the chance to book serious gains.
In fact, investing in both plays back to back would have turned $1,000 into $3,206.73 in just 2 weeks. Merry Christmas indeed!
We’re going to aim for similar gains this Monday. 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.
Vacations are going to be one of the biggest catalysts for stock movements this week – a short trading day on Christmas Eve and closed markets on Christmas Day could make for lower overall volume, and more pronounced gains and losses in the stocks we’re following. Watch these issues closely.
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 penny stocks worth watching…
Encore Wire Corporation (NASDAQ: WIRE) – While wire manufacturing may sound like a boring business, this company’s stock has been anything but boring in the last month, rocketing from early-December lows, and pulling back now to the stock’s 200-day moving average. While the pullback seems bearish, with shares right above support, and a bullish moving average crossover forthcoming, this stock could be setting itself up for another big week.
Athersys Inc. (NASDAQ: ATHX) – Athersys, a biopharma therapy developer, is in the news big this morning following the announcement of a commercialization deal with drug giant Pfizer (NYSE: PFE). And while Athersys’s big move will likely scare less-experienced small-cap investors away, moves like these have found us some of our biggest gains. Watch this one closely for slowing momentum.
Cost Plus (NASDAQ: CPWM) – Home furnishing retailer Cost Plus is having a tough few months. Furnishing stocks tend to move in tandem with the housing market, and the real estate bubble’s burst in early 2008 hasn’t made things easy for the industry as a whole. After tumbling more than 26% in the last couple of quarters, Cost Plus is showing few signs of slowing down its slide. Right now, the stock has broken below a number of significant resistance levels, and is forming a pennant pattern – a continuation pattern that should lead to more down days this week.
Scan Source (NASDAQ: SCSC) – ScanSource is a wholesale distributor of specialty technology products that focus on data capture and point-of-sale services. And while the stock has been in an uptrend for the month of December, three key resistance levels lie within $1 of the stock’s current share price. If this stock bumps its head on those levels, a downward move should be tradable.
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 at 1:00 p.m. on Thursday, December 24 to share your favorite penny stock play with the rest of the world.
Cheers,
Jonas Elmerraji
December 21, 2009
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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Silver Dragon Resources Inc. (SDRG)
http://www.silverdragonresources.com
Great properties under development in China and Mexico. Holds exclusive exploration rights to 260km2 in China with outstanding prospects. Won prestigious Prospector/Explorer of the Year Award in 2009 and should be releasing updated drill results shortly. Share prices on a great run but much more to come in 2010 as the company goes into production.
JBII is a unique OTCBB stock that is NOT PUMPED, and this is why you will not find it on most of the penny stock tout sheets! John Bordyuik , the CEO has a 170 IQ and is a genius. He will pay off all debt by 12/29/09 and the company is gearing up to debut on the AMEX or Nasdaq early in 2010. Here is some info on JBII http://www.globenewswire.com/n.....l?d=180607 AS with any stock DO YOUR OWN RESEARCH , but I can tell you you will be pleased by what you discover about JBII and its CEO John Bordyuik!
Although it has done well in the last three weeks, this rare earth play in Greenland, Hudson Resources (HUD), has an exciting future.
I told ya about JBII two weeks ago, ($1.15 then, up to $3.55 now) now take a look at ECTE (Echotheraputics). Just as great an idea as JBII has and then some. It’s around $1.35 now.
WATCH FOR SIERRA GOLD TO MAKE A BIG MOVE!!!! NOW LESS THAN .005.
Miller Energy (MILL) just picked up over $300,000,000 worth of oil and gas assets plus other assets to bring the total assests up to over 600 mil. last week in bankrupcy court for less than 2 cents on the dollar so you can now buy a barrel of energy for about 50 cents at $1.30 per share when the next door neighbor was just picked up by Exxon for $7 a barrel. The market cap is only about 25 mil and you pick up about 600 mil. of assets. Read the 6 page article at stockwatch.com and see if you don’t think this is this is the safest investment you will ever buy with a chance for 500% plus appreciation in the next 2-3 years.
My research says OCNF will come out on top, especially since all their ships are back
in action which will bring the profits back up and thus the stock price also.
Well Folks, Ive been watching IGNT for over six years ( Even through ticker symbols changes ), they have patented, manufactured,got FDA approvals and regulatory approvals, they have global distributors and they are taking orders. This medical equipment has a corner on a big market. What do folks think ?
Sewc.pk question if it trades at .0002 does it mean its not in business. Why is itso low is this nuts to buy ?I hate taking risk but someone I think highly of loves it.
Thanks jd
Also He said to buy vtg a failed IPO. This one looks better because it is not trading at .0002.But at 1.64
Check out Tool-Tech as ,www.tool-tech.no
Have patents for producing electricity on oil platforms with zero emission of CO2 and NOx,utilizing the upward flow of oil/gas from the wells.
Any thoughts on Geely Mtrs. GELYF? They are buying Volvo and Goldman is lending them $300+mil. While the stock is down this week, my cost basis at $.23 has me still ahead.
The worlds largest old, blown out, used tire recovery & recycling company in the world by 2012?
Magnum D’or resources inc. (MDOR) OTC:BB … under $2.00 per share and under the wall street radar….
expanding it’s ‘green’ technology with low debt to equity ratio….under the wallstreet radar….My opinion is
this could be a $30 to $40 dollar stock when the so-called analysts find it in 2 or 3 years. Did i mention it
is under the wall street radar? ..I am as good an analyst as most of them and have a growing portfolio
of 265 companies. It may be 315 by march 2010 who knows.
Quote> “Athersys Inc. (NASDAQ: ATHX) — Athersys, a biopharma therapy developer, is in the news big this morning following the announcement of a commercialization deal with drug giant Pfizer (NYSE: PFE). And while Athersys’s big move will likely scare less-experienced small-cap investors away, moves like these have found us some of our biggest gains.<
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Damn i'm good! i bought 1,000 athersys on Jan 12 2009. I knew they were either a stand alone, takeover,
or a merger play and jumped into the fire @ $0.60 per share. ..Right now after hours trading they are now
over $5.50 per share. …Not bad stock picking for a buy & hold amateur with 15 years experience in this game.
Athersys Inc. (NASDAQ: ATHX)
Damn i’m good! i bought 1,000 athersys on Jan 12 2009. I knew they were either a stand alone, takeover,
or a merger play and jumped into the fire @ $0.60 per share. ..Right now after hours trading they are now
over $5.50 per share. …Not bad stock picking for a buy & hold amateur with 15 years experience in this game.
GSRE —AMERICAN OIL CO. Production up and coming … The future is energy AMERICAN ENERGY
CPRK — American Copper…Production up and coming…OUR COUNTRY OUR FUTURE–JOBS
HTOG– American Natural gas pipeline and fields–OUR COUNTRY OUR JOBS–ENERGY INDEPENDENCE
NEOM–Barcode technology phone scanner– TELEFONICA Latin Ameica– contract point of purchase sales
ALL of these are microcaps for huge leverage moves— THINK ENERGY GREDITS— OBAMA MONEY
CMGR and APDN What you think?
cdoc.pk. It looks like green house just bought 28,000,000 from company.They are testing a radar on usa nuke sub.They just got last year contract with us coast guard. They also have radar to look for oil. They have over 40 workers so it seem they are growing. Stock is trading at .04. But no one really has been trading it.Looks like it could be big if discovered.
Hey D.Nelson…I bought thousands of shares of both~ HTOG~ Heartland oil & gas and ~CPRK~ Copper king mining corp. in early 2008. they both have the potential to rocket launch in the future. …They were both
left out to dry by investors during the horrendous downturn of 2008. …I’m Holding long on both! U.S.A.!
Hey Ronald… I own a helluva lotta shares of ~APDN~ Applied DNA sciences bought dirt cheap last year and is a long hold in my book. ..They can actually be either a ‘stand alone’ company for future profits, or a serious
‘take over’ play by a major pharmaceutical company in a few years with their technology. Which is rather
extravagant but cutting edge! …I don’t know, but maybe you mistyped ‘cmgr’… Don’t know. …But ‘CMRG’
is one i bought Oct 2008 for pennies on the dollar. Casual Male Retail. A tall and fat store which is going
to be a fat stock to own soon. …As a matter of fact, i sold just enough shares to pay for my entry price and transaction fees and sent the rest running on pure profit. …’I don’t have a dog in the fight anymore’ …
Which is where you want to be….running on pure profit and watching them rise over time.
PCYG . Thjis Co. is headed up by Randy Fields of Mrs. Fields Cookie fame. PCYG has developed a system giving real time control over sales, inventory freshness perishables, timing needs for labor [overtime and peak servicing needs] and a host of benefits for business management. The main thrust is to the food business from manufacturing thru to Retailers. Sales are growing rapidly and I expect a change in exchange listing soon. The Co. is profitable and stock price is around $ 3+ per share. presently small in issued and float shares. I rate this stock as a strong buy.
benguet- high of $17.00 on big board 9 years ago & low of 11/64. great mining prospects. .43cents per share. bengf could start to trade first qtr 2010. just received 1 billion to open king-king gold mine. i own 8,000 sheres
Ecometals (EC, Canadian stock), will be closely followed from next week onwards, as it gets ready
to drill on its mining concession next to the Kinross mine in Ecuador. It is about 600 metres from the
Aurelian gold discovery at Fruta Del Norte, the biggest in the past decade, and bought over by Kinross.
Geological surveys carried out on EC’s site at Rio Zarza have indicated that geological features of the
area are very similar to those at Fruta Del Norte, and this makes the site very prospective. A report
which gives a detailed study of the site can be downloaded at:
http://www.pifinancialcorp.com.....r23-07.pdf The relevant pages relating to EC can be found
at Page 33-38.
The share price at $1.04 (last done) makes it a very attractive buy, in view of the great prospects it holds
with the keenly expected results from its drilling in early January.
Ecometals.
Sorry about the error in the url for the download page for the Report.
It should be: http://www.pifinancialcorp.com.....r23-07.pdf
This UK listed penny stock was an AIM darling once upon a time. Falling from the highs of £2.50
to 4.5 p. Huh! What a come down to earth. However, it seems the fortunes are going to turn around
and the run of bad luck to attend.
Read up a little do your own research.
Good Luck!
Don
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