Penny Stock Watchlist: Your Last Shot at These Setups for August 2010

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Aug 30th, 2010 | By | Category: Featured, Penny stocks, Pink sheet stocks, Technical Analysis

Mergers and acquisitions are ruling the market this week as companies throw cash at smaller penny stock firms. As a result, volatility’s on the rise and traders are raking in the profits. Here’s a glimpse at four penny stock plays that could be tradable this week.

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!

Horizon Bancorp (NASDAQ: HBNC) – I’m continuing to keep my sights set on this regional banking play. That’s because the ascending triangle pattern being formed by this volatile $73 million company could result in a potentially lucrative short-term breakout. Sometimes, though, that kind of gain potential means that you’ve got to play a waiting game, as has been the case with HBNC this month. Don’t consider putting your capital on the line until shares break above $23.

ArcSight Inc. (NASDAQ: ARST) – I told you earlier that merger and acquisition activity was on the uptick; ArcSight could be one of the big beneficiaries of that trend. According to scuttlebutt on Wall Street, numerous bidders could be competing to acquire the company above $40 per share. If a bidding war does break out, it could mean nice upside, even after the run-up shareholders have enjoyed.

Digimarc Corporation (NASDAQ: DMRC) – Shares of software firm Digimarc have been in an uptrending channel for the last several months now. With shares finding support at the 50-day moving average and at the lower trendline, the downside risk is largely diminished for this firm. This stock has a potential a price target around $23.

Savient Pharmaceuticals (NASDAQ: SVNT) – This tiny development stage pharmaceutical firm could be headed higher thanks to a bullish moving average crossover and an approach toward resistance. Don’t pick up shares until the stock breaks higher.

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, September 3.

[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.]

Jonas Elmerraji
Managing Editor, Penny Sleuth

August 30, 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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  3. Who can say I want it and go out and get it?Well check out EFIR— and just think about how are they doing it.?

  4. the nasdaq closed down -33.66 today, and my battlegroup came through with an amazing degree of integrity, 308 companies virtually unscathed, a few casualties, but

    many of mine (below the wallstreet radar) are leading the charge and attacking. Most hedge fund managers are restricted to buy only the big dogs on the block and forced to ignore the smaller companies that are slowly rising to the top. I answer to no one with

    my hedge fund and buy or sell, or short a position as i please….I scare myself sometimes by my uncanny ability and patience…..Damn i’m good!

  5. 2 rare metals companies that are taking off right now
    Great Western Minerals group Pink sheets GWMGF or TSX GWG up 10% today and just starting it’s run
    Ucore Rare Metals OTC UURAF or on the TSX UCU Climbing fast .
    Big money to be made with both!!

  6. Penny stocks by their very nature are “pennies per share”. Typically they are stocks trading @ $5.00 or less per share. Hence the huge profit potential and their name “Penny stocks”! Where is the potentially huge profit in buying “penny stocks” recommended already trading @ $20.00 – $ 23.00+ per share? Sorry, I don’t see the potential here.

  7. I have to agree with RfK above, but despite the doom & gloom that permeates investors recently i had a few nice pops recently, many towards the $15 to 20 dollar range and still holding. I talked with the CFO of a small company today called TRX inc. based in atlanta ga not far from hartsfield airport which is actually the busiest airport in the U.S.. They lost 1/3 of their value in 2 months. …i am holding. Their travel technology software is below the radar, and subject for a major correction to the upside and close to a major hub of
    transportation. They were sold off like many others due to panic. Since most people who comment here
    don’t play the nasdaq stocks in the $5 to 20 dollar range like i do, …i also play the small stocks and TRX
    is under a dollar. I may be wrong but i think this stock will grow.

    Most of you only want the ‘pennies per share’ stocks for maximum growth in the future….So do I… I have a few who are on track to be future 1,000 baggers or more. Here is one. I bought in at 0.02… SKNY …
    do your own research and decide for yourself!

    Remember in the ’90s when ‘Snapple’ was discovered by Rush Limbaugh? what happened to that stock?
    Just suppose someone gets a few to Oprah Winfrey, or Rush? ….

  8. The ‘Penny Sleuth’ has deleted too many of ‘my’ comments to waste key-strokes here anymore. At least one of my picks was actually deleted only to be one of ‘their’ picks a few weeks later. My subscription will
    run out soon, and i will not re-new. …I only bought one recommendation you guys recommended anyway,
    and it is just sitting around, while many of my own picks have been ‘blowing a hole through the roof’ !

    I know this is a tough environment for stocks, but i also know that patience will be rewarded for those who
    own solid companies and hold ! this strategy always works. unless Jonas contacts me and explains ‘why’ my stock picks were deleted after ‘under moderation’ i am done here trying to help your profit margin.

    Also, i do not like the french! … and a report from france means as much to me as a brainfart from an army that got their country devoured by the germans twice in the last century. …A report about wine and how the french are doing is about as conducive to the American economy as a ‘sack of hammers’ is to a ‘Frog’…

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