Penny Stock Pick - ATA

The penny stock of the day is the Norwood, MA based digital amplification circuit maker Apogee Technology Inc. (ATA). The product is used in home theater systems, power speakers, car audio, caommercial audio and PC multimedia. The stock has been up like crazy for two consecutive days from $0.91 on Monday to $1.65 today with no news.

From the technical chart, both MACD and KD show bullish sign. The stock is now trading above 50 day and 200 day moving average, also a bullish sign. The only potential risk is that ROC has already reached overbought level.

As far as insider transactions goes there's no transactions from the company's top executives. However the institutions have been selling the stock, a negative sign.

The financial statements don't show bright sign either as the company has declining revenue and increasing net loss plus shrinking cash. The annual report for 2005 may not look pretty.

Penny Stock Score (1~5) 5 is highest
1.News Buzz: 0
2.Technical: 4
3.Financial: 2
4.Market Potential: 3
5.Insider: 2
Recommendation: Hold