Monday Penny Stock Watchlist: Taking Advantage of January Gains
2009 is finally behind us, and the New Year’s in full force – as evidenced by the solid rally that stocks are starting today. Here at the Penny Sleuth, we closed the year out strong with another shot at double-digit gains in just three trading days last week.
All told, December was one of our best months yet for our Penny Stock Watchlists – playing our best stocks each week would have turned $1,000 into $11,993.59 in just four weeks. And on average, our watchlists (in total) have returned solid gains since our first one back in mid-October.
January is typically a big month for investors, and 2010 looks no different. Historically, stocks rally during the first month of the year, and this year’s starting off right with all major indexes up as of trading’s commencement this morning. As usual, with most stocks acting similarly right now, it’s tough to know which stocks to focus on for the week.
That’s where our weekly Penny Stock Watchlist comes in…
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 penny stocks worth watching…
Magal Security Systems Ltd (NASDAQ: MAGS) – This $41 million Israeli-based computer security stock could be on the verge of a strong week following a breakout above the 50-day moving average in New Year’s Eve’s trading session. That breakout sends a technical signal that the stock is headed higher… potentially up to the next resistance level around $4.25 per share. That’s a 15% upside potential that we’re going to bet on starting today.
BioForm Medical (NASDAQ: BFRM) – Medical aesthetics company BioForm Medical is up nearly 61% today following a buyout announcement from German-based Merz Pharma Group. While this stock popped onto quite a few investors’ radars this morning on its price jump, with shares currently hovering right around the offer price of $5.45, there’s not a trade to be made here. Stay away from this one unless it drops well below the offer.
Black Dragon Resource Companies (PINK: BDGR) – Black Dragon Resources is an oil and natural gas developer based in aptly-named Oil City, Louisiana. Black Dragon’s business is fairly typical of the industry, but its chart isn’t. Shares have rallied hard in the past few trading sessions, possibly the result of some ruthless penny stock promotion. If you want to ride the rally, place tight stops (10% or so): pink sheets companies are volatile, and heavily promoted ones are even more so.
General Steel Holdings (NYSE: GSI) – Strong performance today could keep this potential trade from triggering, but watch it close this week, a sustained breakdown below the 50 and 200 day moving averages tells traders to short this stock – particularly after shares failed to keep enough momentum to reach a triple-top at $6.00 per share.
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, January 8 to share your favorite penny stock play with the rest of the world.
Cheers,
Jonas Elmerraji
January 4, 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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Jonas,
VNTA (Ventana Biotech) wil be the stock for January 2010. The swing from .70 to .10 will revert.
See current news.
mdgc.pk
ALJJ is another play on the steel recovery, in addition to your recommended GSI. Based on good numbers just reported, a run up to a buck in 2010 would not shock. Fundamentals are very sound with ALJJ.PK
stock picks t.cll ,t.ag.un, and duluth metals ltd.t.dm
Your Special Report: How to turn $200 in $1.2 million cannot be accessed. The sign up page gives you a dead link. Thanks.
I like HITK Hi Tech Pharma. Has arun from 4.32 to 29.64 in 1 year. Is it now too overpriced ?
“ATNP” Surged 50% today. I think it has much room to go higher. The company is launching “GO TV” on Jan 11th. The emergingstockreport.com initiated the coverage of the “ATNP” today. Don’t Miss out.
USOG (United States Oil & Gas Corporation) Closes aquisition of North
Dakota company and earnings were up 22% in Dec. This stock is currently
going for just of 2 cents a share from what I’m seeing on the internet is this
could really take off.
Below is a current press release for today Jan 4th
United States Oil & Gas Corporation, a growing oil and gas products,
services and technology company, is pleased to announce that it has
now finalized terms of its acquisition of United Oil (“United”), a
North Dakota-based distributor of refined fuels
and other oil-based products.
The transaction is expected to close January 1, 2010, for immediate effect.
Under the terms of the agreement, which is subject to a number of
conditions including the receipt by both parties of certain consents and
releases, United will be a wholly owned operating subsidiary of USOG.
Revenue at United is expected to total $8 million for the year ending
December 31, 2009, with steady growth moving forward. Revenue for 2008
totaled $7 million, to-date the company’s best on record.
Year to date, United has signed 150 new propane customers, 70 of which were
added in the fourth quarter. As the price of propane has risen in recent
months, United has also benefited from the summer purchase of forward
hedges on propane. Now at around $1.35 per gallon in N. Dakota, propane
prices have risen over 60% since the start of the quarter. More details of
United’s solid financial position will be updated after the quarter ends.
As previously reported, USOG’s purchase of United includes all property,
equipment and six acres of developable land. Besides United Oil and Gas,
Inc., United Propane, United C-Store and an additional gas station and
C-store that will soon be operational are part of the acquisition.
Management, which has over 30 years experience in the industry, is
contracted to remain with the business for a minimum of three years. The
company was started in 2003, and includes a bulk storage plant, and a fleet
of tanker trucks.
Located in the northern central portion of North Dakota, United is a
profitable oil and gas distribution company which sells diesel, race
gasoline, propane, and lubricants to over 400 customers including regional
businesses, farms, and private residences. The company offers personal
customer service and premium pricing; comparative advantages that have
helped attract new customers and increase market share.
About United States Oil & Gas Corp.
United States Oil & Gas Corp. is focused on the domestic oil and gas
services sector, acquiring oil and gas services companies with historically
profitable results, strong balance sheets, high profit margins, and solid
management teams in place. USOG also develops innovative technologies to
increase oil and gas extraction with the smallest environmental footprint.
sobm—- will be one of the biggest winners in 2010 — could go over $ 5.00 watch and see
B.R.G.O. this company makes high end fashion jewelry for the movie stars also just got into Nimen Marcus Stores. closed today at 0.50 up 0.06 read current news release
vmii pink sheet. great 2010 winner!
MTCH check it out its ready for a breakout . It is a good co. with technology to find fatigue in our old bridges before they fall down, with the stimulis money the govt is putting into infrastructure this stock will be a huge winner
With only 8M shares outstanding, IEC Electronics on the Amex is my most favorite low priced issue because it’s grossly undervalued with expert management providing growing sales and profits with a PE of 8.
I have never, in over 15 years experience in stock trading seen the opportunities on the table since
late 2008. And 2010 stands to be the ‘stock pickers paradise’ . Barring a major catastrophe such as
the terrorist attack of 9-11-01. (when the market closed and opened 4 days later i lost $14,000 in a day)
but held and made it back from the panic sellers in ’02. This year ’2010′ can be extremely profitable.
I have a cheap natural gas play with a helluvalotta leased land. WRES-warren resources. (Nasdaq) ..
I got it for a dollar a share in march ’09 off the bottom and she aint stopped rising since! $2.38 now,
and rising. DVAX- dynavax tech. (Nasdaq) is a basement pick-up from dec ’08 @ 0.22 per share.
She aint stopping and about to break out and way above my buy price but still a steal at current price.
LAVA- Magma design. (Nasdaq) a damned cheap stock that was beaten down and ready to move.
MGPI- Midwest grain products inc. (Nasdaq) ..i bought in feb ’09 at 0.60, and will increase my position
‘if’ an across the board downturn sends it below $7.00 per share.
These are GREAT stock picking times we are living in bros.!
AENY coal producer;looking for a high of $20.00 selling for just under $5.00 Great potential
Essential Energy- (Toronto) Cheap Natural Gas Play
Pop n go symbol popn is strategically positioned to take advantage of the new health ideas in schools by selling popcorn in vending machines instead of soda and candy. POPN had traded as low as 00.0007 and as digh as 0.18 over the last few months . Take a look and expect to go along for the ride!!!!!!!
JIN —Jinshan Mines on the Toronto board .
watch it go!!
CVE: RUU This is a new Rare Earth Metals play that is (pardon the pun) dirt cheap.
It is located @ 42.5 lattitude in Russia. A new Canadain company that has just purchased a
former working open pit mine. It has a good supply of labour near by, proven reserves and transportation.
It even has electricity at the site. Its competitor in Canada is Avalon Rare metals which currently
trades at $ 3.10 —–10 times the .31 cents this stock trades at. IMO RUU will soon take off. Further
it is important to note that Avalon AVL is located a way up in the NWT at something like 68 degrees
latitiude making it all the more complicated if not nearly impossible to mine year round. RUU is
located around the same lattitude as Toronto Ontario. it is mine able year round. Rail is only 45
kilometers from site. Good roads exist to truck to rail.
China has most all of the RARE EARTH elements #51 to #70. This company used to supply all
of Russia with its RARE EARTH elements. RUU has a LEAD producing mine in its other adjacent
mines that come with the STANS ENERGY STOCK. Call me nuts; I’m in for 80,000 shares.
My money is where my mouth is on this one. The greening of the earth is dependent on these
RARE EARTH Elements. This stock is simply too cheap!
Americas Energy Co. out of Canada symbol AENY is a Coal mining company That is moving up fast I purchased on 12/11 at $2.23 and was as high at $5.59 This morning 01/04/10 before closing at $4.86 up 118% and still roaring it will reach $8 to $10 before the cold season is over.
I liked your list and analysis.
Capstone Turbine. Building a huge head of steam here in the 1.20′s. This year’s breakout will be a real moneymaker.
Check out TVI.TO. This company has been through hell and back. Is now mining and shipping copper in the Phillipines. Should be selling for much more than .12!
My penny stock for 2K10 is MSPD. Since Sept. 1st this stock has increased 100%.
CERP.OB: Makes biodegradable plastics with products already out on the market. I think it has big upside in the next few years
USOG really looks like it could take off and has a good story to tell. At .026 per share has some upward room!!
I noticd somebody recoed Black Dragon. It made me look at another dragon.
Silver Dragon (SDRG) The big push is on for silver these days expecially by the chinees. SDRG is mining in mexico and in China. For the Technicals – the chart is consolidating now on a very nice run. It is ready for another pop any day now. A position in this now could make a quick .15 cents a share. @ .41 now.
Draw your lines and see.
Heading for .75 in a couple of months just in time to coinside with the seasonal highs for the metals.
RHIE, this one has found support and is ready for a run, keep ya eye on it…
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Dussault Apparel Inc: Any comments from anyone?
RMDM.pk Get in early on this one real penny going big. Here is a look at website, also check latest pr’s on what the company has going for them.
http://www.rmdmgroup.com/
CYRS will it recover from the slide
NUBL just had good news 1/7 and made a nice move higher , then consolidated on low volume 1/8. Should see another push higher in the coming weeks as this stock has been heavily oversold lately, and is just starting it’s move off these lows.
CDBT is a Chinese stock with a great EPS, and looks to be well run. It’s WAY to cheap at .05 this week. I look for it to hit .70 or above this year.
CCTR is another great stock, and a well run company. Looking to go gross 100,000,000 this year, and is talking a great 09 4th quarter.
DLCR has great swings in movement. Very low share float of a little over 6 million shares. Look to geat clothing line in Wal Mart Stores. Price is at .09 as of 1/08/2010.
We have been watching this stock for a while now and thought a more in depth analysis was past due.
Trading opinion:
While trading volume varies greatly from highs of 675k to lows of around 16k on quiet days, the stock has traded in a relatively well defined range. There was a big down day on Sept 30th which saw the stock hit a low around 5c on a mere 30k shares traded, this low will serve as our stop loss level on this stock. Trading over the past four months has managed to stay above this level, reaffirming it as a support level for now. In recent trading sessions we saw some big days to the upside on above average volume. Both times EVSP tested 10c and was unable to get over that level. We are watching to see if this stock can make a move over 10c and break out of this downtrend it has been in since the 20c highs in July.
With a mere 61M shares outstanding, the last close puts this companies market cap just under $5M, which is peanuts if they can pull off some big deals and bring in some buye
EVSP OTC BB
Sorry i did leave the symbol off when posting. Here it is again. Look forward to a great week on this one.
Posted on 02 November 2009. Tags: environmental stocks, EVSP
We have been watching this stock for a while now and thought a more in depth analysis was past due.
Trading opinion:
While trading volume varies greatly from highs of 675k to lows of around 16k on quiet days, the stock has traded in a relatively well defined range. There was a big down day on Sept 30th which saw the stock hit a low around 5c on a mere 30k shares traded, this low will serve as our stop loss level on this stock. Trading over the past four months has managed to stay above this level, reaffirming it as a support level for now. In recent trading sessions we saw some big days to the upside on above average volume. Both times EVSP tested 10c and was unable to get over that level. We are watching to see if this stock can make a move over 10c and break out of this downtrend it has been in since the 20c highs in July.
With a mere 61M shares outstanding, the last close puts this companies market cap just under $5M, which is peanuts if they can pull off some big deals and bring in some buye
CPRK Copper King UTAH USA —- means growth- energy-gold- silver support bottom here, assays surprise
GSRE American Oil co production up and coming TEXAS location is it well
NEOM Latin America all signed up 2D barcode cell phone scanning –new commerce of exchange $$$$
HTOG–Heartland OIl&GAS Methane fields in Kansas pipeline money American Investors save our Energy Independence— SAVE THE USA Leverage abounds .0002 pick when noone else understands. Pipeline
I make money on leverage these are some of my micro picks
IMGG
This is a real time 3D imaging ie. ct scan that could change the industry. This is a portable machine and show x ray in three dimensional images. They are awaiting FDA approval, when they get it this could boost the stock tremendously. The machine is called the Dominion and they are near the approval from the FDA.
VTPI, positive news release this morning and a sub-penny play that is ready to climb, Check it out..