Wednesday, July 01, 2009
The shrinking buying power devastated the retail sectors and created many well known penny stock retailers. One of these companies are Pier 1 Import (PIR) , a Texas based high end home furnishing, kitchen accessories and bedding accessories seller.
The stock used to be in the $20 plus range around 2004. This year the stock dropped to multi year low of only 10 cents per share as many popular retailers like Linen N Things, Mervyn's and Circuit City file for Chapter 11 bankrupty and even went into Chapter 7 liquidation.
However multiple buying from insiders starting in May show sign that the company maybe turning around. In addition, the technical chart also show the stock is now on an uptrend as the stock has gone up 2000% since the low this year to $2.19 per share. Today's positive news from CEO confirms the positive trend.
This is definitely still early in the run and I would definitely recommend having some position in the stock
Thursday, June 25, 2009
Penny Stock Pick - VVTV
The name ValuVision(VVTV) media may be a unfamiliar name but to home maker or female audiences, the home shopping channel ShopNBC or now the retail website ShopNBC.com is the place for them to get items like jewelry.
During the dot com boom the company did see its price surging to $50 plus and even after the bust the price was still hanging in the plus $10 range. However it couldn't wistand the financial tsunami and the price dropped to all time low of 18 cents per share in February.
Time to flee the stock? Not to the smart insider who knew it was the best time to buy. So starting March waves of insider buying began to pour in from 28 cents per share. And even this month the insider is still buying at $1.6 per share.
The technical chart also looks pretty good as the golden cross has formed early June, KD is around 80 and MACD is above 0. Another good news is that the company just swung to net income in the most recent quarter.
So have you missed the golden oppportunity? The stock is now trading near $2 but with insider still buying at $1.6 you are still not that late.
Wednesday, April 15, 2009
Penny Stock Pick - SPF
Is the real estate market stablzing? After the bubble burst, the real estate market seem to be stablizing in some area such as California as record foreclosure attract buyers and actually bring the sales volumn back. With federal government and possiblly California state government providing subsidary for first time home buyer, it is very likely that the housing market could go up even more. So the California based house builder Standard Pacific(SPF) is now on our rader as a stock that could be a diamond in the rough.
Technical
The technical chart shows bullish signal as K line is on top of D line and MACD is on top of zero. There could be profit taking as the stock seems to rise too quickly in a short time. However now that the stock is above 50 day moving average, we should see the trend continue to be upward.
Insider
There are no insider share sale or purchase. The institutions have sold 71 million shares in the most recent quarter which showed the institutions have no confidence in stock.
Financial
The company is still losing money but the company does have enough cash to cover short term debt which is a huge positive crucial in today's economy situation.
Penny Stock Score (1~5) 5 is highest
1. Industry (real estate): 2
2. Technical: 4
3. Insider: 2
4. Financial: 3
Recommendation: Accumulate
Technical
The technical chart shows bullish signal as K line is on top of D line and MACD is on top of zero. There could be profit taking as the stock seems to rise too quickly in a short time. However now that the stock is above 50 day moving average, we should see the trend continue to be upward.
Insider
There are no insider share sale or purchase. The institutions have sold 71 million shares in the most recent quarter which showed the institutions have no confidence in stock.
Financial
The company is still losing money but the company does have enough cash to cover short term debt which is a huge positive crucial in today's economy situation.
Penny Stock Score (1~5) 5 is highest
1. Industry (real estate): 2
2. Technical: 4
3. Insider: 2
4. Financial: 3
Recommendation: Accumulate
Thursday, April 02, 2009
Penny Stock Pick - CT
Is the commercial real estate industry stabilizing? For New York based real estate debt investment firm Capital Trust (CT), the real estate bubble burst and the depression came after have been a painful time as the stock dropped from $50 in early 2007 all the way to as low as 80 cents per share last month.
The stock today trades at $1.39 per share, up 27% compared to yesterday. Although it is still low compared to this year's high of $4 per share in January, maybe we could see new high for this year as the situation seem improving with government's rescue plan keeps coming.
The financial is still a little bit shaky as the cash in hand is less than the short term debt therefore this is still quite a risky investment but with potential high return
The stock today trades at $1.39 per share, up 27% compared to yesterday. Although it is still low compared to this year's high of $4 per share in January, maybe we could see new high for this year as the situation seem improving with government's rescue plan keeps coming.
The financial is still a little bit shaky as the cash in hand is less than the short term debt therefore this is still quite a risky investment but with potential high return
Wednesday, March 18, 2009
Penny Stock Pick - PMI
The mortgage insurance company was nearly dead as it dropped below 30 cents a share this month, however on March 16, PMI group(PMI) reported reduced loss and gave hope to investors and should attract bargain hunters or short term traders. We are starting to see mortgage related stocks which are now mostly penny stocks in recovery mode so at the current price, 55 cents a share, this one should at least in the short term go back up.
According to the most recent balance sheet the company still has enough cash so this should be a relatively "save" risk.
According to the most recent balance sheet the company still has enough cash so this should be a relatively "save" risk.
Wednesday, March 11, 2009
Penny Stock Pick - ODP
It's hard to imagine that all these so called big company are in trouble and even went bankrupted. The most recent one include the total shut down of Circuit City. However it looks like we may have a survivor in Office Depot (ODP) . You hear me right, the place where you get your office desk or stationary.
The office product retailer was in trouble as well as the stock price dropped to multi year low of 59 cents per share on Monday, March 9, losing 95% in a year. However it seemed the turnaround is coming as the company issued a upbeat note for the first quarter.
Looking at the financial statement, you would see a disastrous fourth quarter result. The cash level is also at a dangerous level at this type of environment. At this point this stock does post great risk however just as people say, great risk yield great return.
The office product retailer was in trouble as well as the stock price dropped to multi year low of 59 cents per share on Monday, March 9, losing 95% in a year. However it seemed the turnaround is coming as the company issued a upbeat note for the first quarter.
Looking at the financial statement, you would see a disastrous fourth quarter result. The cash level is also at a dangerous level at this type of environment. At this point this stock does post great risk however just as people say, great risk yield great return.
Monday, March 02, 2009
Penny Stock Pick - JSDA
The beverage maker Jones Soda (JSDA) makes it to the spot light today with 32.51% gain while all major indices are down 4% on average. More amazingly the stock has gained 100% in just two days. So what happened?
The buzz seemed to come from the new drink Jones Soda is brining to the market - GABA, a tea-juice blend that could improve mental focus, balance and clarity, while reducing stress. So could GABA be the "killer drink" that could make Jones Soda the next Hansen Natural(HANS)?
The insiders seemed optimistic about the new product and purchased quite a bit of shares in December. The new drink itself not actually new but a proven product gaining popularity in Japan with sales of $122 million in 2006.
So if you feel people are getting stressout and need Jones GABA to relief the stress, maybe you should get some shares now while it's still cheap.
