Monday Penny Stock Watchlist: Earnings Season Kickoff Trades
Today, earnings season kicks off in earnest, giving investors a glimpse at how their companies performed financially for the second quarter of 2010. Earnings season is a big deal for fundamental investors and technical traders alike – after all, the increased volatility of earnings season provides some nice gain opportunities to trade off of, as well as a refreshed investor sentiment.
Since we look at both technical and fundamental investing here at the Penny Sleuth, it’s no surprise why we make such a big deal of earnings season…
As earnings numbers start coming out, we’ll be able to better assess which trade direction we want to focus on – and we’ll be able to hone in on specific trading opportunities. But right now, let’s take a look at some attractive small-cap trading patterns.
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’ve 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!
Werner Enterprises, Inc. (NASDAQ: WERN) – We talked about Werner Enterprises last week. This transportation and logistics company has been forming a bullish ascending triangle pattern for the past few months, and it’s continuing to build up this week. I think this stock has big time gain potential if you wait out for the right entry point. Don’t buy shares until they break above $24.
Cardiome Pharma Corp. (NASDAQ: CRME) – Shares of this life sciences company are forming a decidedly bullish pattern: an ascending triangle. As with Werner, there’s still a little while before this pattern stands to break out. Don’t buy it until it breaks above resistance.
Teekay LNG Partners (NYSE: TGP) – Teekay is a water transportation firm that focuses on moving liquefied natural gas, petroleum gas, and crude oil. While I’m not particularly bullish on water transportation as an industry, this stock has nice gain potential thanks to a new 52-week high breakout we’re seeing.
TICC Capital Corp. (NASDAQ: TICC) – TICC Capital is a closed-end investment company that provides capital to privately held technology companies. It’s an interesting – and potentially risky – business model, but more important is the technical outlook. Shares hit trendline support recently, and they look primed for a bounce higher. This could be an interesting upside trade… but make sure you put a stop right below support.
Share Your Penny Stock Picks…
Once again, we’re going interactive this week…
Just post your best penny stock pick in the comments section of this week’s Watchlist by Friday, July 23.
[Independence Note: Unlike scores of other penny stock resources, we’re 100% independent from the companies we talk about in the Sleuth – that means that we never accept compensation in exchange for profiling a company, and our editors never own a position in any stocks they talk about.]
Cheers,
Jonas Elmerraji
Managing Editor, Penny Sleuth
July 19, 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 like two stocks KNDR and HPLF
My #1 pick is AMCG Amico Games. AMCG is trading at 0.075 and just came out with great news today.
Amico Games Corp. Reports 775% Increase in Net Income for the Nine Months Ended May 31, 2010
http://finance.yahoo.com/news/.....&.v=1
SAN FRANCISCO, July 19, 2010 (GLOBE NEWSWIRE) — Amico Games Corp. (OTCBB:AMCG – News), an information technology company specializing in developing and operating cell phone multiplayer networked games, today announced its results for the third quarter and nine months ended May 31, 2010.
Key Financial Highlights
Revenues for the three months ending May 31, 2010 were $501,550, up 54.7%, from $324,249 for the same period last year. Revenue for the nine months ended May 31, 2010 were $1.4 million, up 64.3% from $0.9 million for the same period in 2009.
Net income was $220,029 for the quarter ended May 31, 2010, up $184,106 or 512.5% from $35,923 for the same period in 2009. Net income for the nine months ended May 31, 2010 increased by 775% to $215,665 from the same period in 2009.
“We are pleased with our nine month financial performance supported by our substantially increased subscriber base,” said Mr. Peter Liu, the President and CEO of AMCG. “During the third quarter of 2010, our value-added products anchored a larger user base, and we believe our financial resources will enable us to continue executing our growth plan. I have the confidence that we will have an even better performance after the launch of our self-operated game portal, E-Ge-Ge, in August 2010.”
Of the US$1,427,152 in revenue for the three months ended May 31, 2010, approximately US$829,809 (or 58%) was generated from the mobile game Miracle Journey to the West, and $508,846 (or 36%) from the game Journey to the West Online.
Full details of AMCG’s financial performance during the quarter and nine months ending May 31, 2010 can be found in the company’s Quarterly Report, on Form 10-Q, filed with the SEC on July 15, 2010.
Business Outlook
The company plans to expand its operations by developing additional game platforms under its independent control:
Self-Operation Game Platform. AMCG has established a development team to develop its own game operation platform in 2009. The self-operation platform is expected to allow AMCG to directly distribute and operate its mobile phone games, as well as provide payment channels to game users for payment. The game portal E-Ge-Ge is expected to launch in August 2010.
3G Game Platform. AMCG plans to develop a 3G game platform by cooperating with Chinese telecommunication operators. Since 2009, China Telecom and China Unicom, the largest two Chinese telecommunication operators, have been popularizing the 3G mobile network and promoting the popularity of 3G mobile phones in China. AMCG has developed applications for the 3G network and are now in negotiations with China Telecom and China Unicom to distribute our mobile games in their 3G mobiles.
About Amico Games Corp.
Amico Games Corp. is a software company specializing in developing mobile phone games for the Chinese market. On December 31, 2009, Amico acquired Galaxy Software Limited, a Chinese private-owned company incorporated in November 2001. Galaxy is one of the earliest mobile phone, multiplayer game developers in China, as well as one of the first Chinese companies to develop and operate Java(TM) MMRPOG (massive multiplayer role playing online games) mobile phone games. It is also the first company to provide multiplayer games over the WAP platform of China Mobile, the world’s largest mobile phone provider based upon subscribers. Further information on the Company can be found at http://www.sec.gov and at the company’s website at http://www.amicogames.com.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to Amico or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements including statements regarding anticipated business developments and revenue or income trends, as a result of certain factors such as the level of business and consumer spending, the amount of sales of Amico’s products, the competitive environment within the industry, the ability of Amico to continue to expand its operations, the level of costs incurred in connection with Amico’s expansion efforts, economic conditions in the industry and the financial strength of Amico’s customers and suppliers. Amico does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
AMCG is solid. Thats my pick
Mexus Gold (mxsg) – In just under two weeks this stock went from.035 cents to .10 cents…while gold was barely holding its own(temporarily).They just received funding from a company in Georgia to salvage a copper cable which is approximately 400,000,000 lbs…yes, 400 million lbs., along the California coast from San Diego to Alaska. Additionally, they also purchased 4 potential gold concessions (mines) with an extraordinary amount of gms/ton of silver and gold. A few grab samples stated in a news release: 5,000 gms/tn of silver,up to as high as 29.45 gms/tn of gold,and yet another mine was as high as 67.73 gms/tn.With funding available this one just might soar quickly.
Again I want to criticize your emphatic praising of your CXS system. I have nine penny stocks recommended in Penny Sleuth, but the stocks so far kept loosing money, so I cannot see the way of reaching the milions you advertise. It’s already three months I have the stocks. Probably the lucky ones advertised are just one among 3462 traders like me. Sincerely.
PURE.
THIS STOCK GOT HIT WHEN IT WAS INCLUDED IN THE RUSSELL 2000 BUT IT’S JUST STARTING TO SELL ITS AMAZING PATENTED NON TOXIC DISINFECTANT. IT MAY TAKE A WHILE BUT IT WILL SOON BREAK $3.00 AGAIN!
please i am a new bee in this stock trading business please recommend a good stock broker to me thanks and God Bless.
Joseph
FROI and ALIF. See what you think.
[...] Monday Penny Stock Watchlist: Earnings Season Kickoff Trades [...]
I’m taking a break from research right now to ‘pop-in’, and see what’s going on at ‘The penny sleuth’. ….
The past few weeks i’ve increased my position in a few great companies and placed low bid in a few more
which either missed and went up, or hit and went topside. …Most in my beloved NASDAQ. …I actually followed one down through intraday, then pushed the ‘buy’ trigger at one minute before market close, 15:39
E.S.T., – HIT! …only to watch it rise in after hours trading, and still rising after the shorts were squeezed out.
In this market chaos the only advice and skill required is my own. …When i am walking around talking to myself with a calculator in my hand, buy or sell screen up, nasdaq screen with real time quotes streaming,
the high frequency traders just hammering in nano-seconds, …..I remind myself of the advice of the retired master investor ‘Peter Lynch’ . …BUY solid companies and HOLD! By god i grit my teeth and study every day
with that advice in this market, when i’m down $5,000 in 4 weeks, …But REFUSE to sell in panic because
i’m still …’UP’ in my portfolio. …Fact is, …i couldn’t buy them again at my entry point.
I don’t comment here to win a frigging prize! the simple fact of the matter is the 311 companies i own ‘ARE’ the frigging prize in the future! … Study! …Research! …I’m a former U.S. Marine who also adheres to the basic
corps philosophy . ..”.Assess the situation, ….Devise a plan, …Adapt and overcome.” …Perfect for this market! ….I guess if you read this i should at least give a few ‘picks’ , which personally i don’t give a damn if
you buy , …or NOT! ….They are in my portfolio and have been for a while, and not going away anytime soon.
DVAX
CATM
HOGS
ACAS
NABI
NLST
BGP
DSCM
F
C
BAC
I am making money on all the above and holding.
I really like GII.UN on the TSE. paying monthly 28% dividend. selling for 1.56
I LIKE ‘YRCW’ WHICH WILL REPORT EARNINGS ON AUG 3RD. AS PER CEO THEY WILL HAVE PROFIT IN 2ND QUARTER. ALSO C H ROBINSON ANOTHER TRUCKING COMPANY “CHRW” WILL BE REPORTING ON JULY 27TH. I THINK ‘YRCW’ WILL MOVE HIGHER.