Penny Stock Pick - BPUR

The penny stock on the spotlight today is the Cambridge, MA based Biopure Corp. (BPUR) which engages in development and manufacture of oxygen therapeutics. After reaching the 52 weeks low of $0.66 per share in late December, the company has bounced back to today's close of $0.96 per share. The recent rally began last Wednesday as the company are ready for market expansion into Sourth Africa.

Looking at the technical indicators, the moving average indicates neutral as the stock is now trading in between 50 day and 200 day moving average. Although MACD shows weakness, KD is helping the recently upward move. If the upward trend can continue and MACD can break above 0, bigger rally should be coming.

The Cheif Executive Officer Mr. Zafirelis bought 10,000 shares for $1.16 per share last August but that's about it. There are no other insider transaction recently except the institutions which have bought 2.8 million shares in the last quarter, about 77% more than prior quarter.

On the financial side, based on the first three quarters, the company probably will expect another declining year in revenue unless the earning announcement which is due in February 16 will pull a miracle. In addition, decling cash is probably also why the stock hasn't done well this year. One positive from the financial statement is the trimming net loss which probably would be a lot lower if there's no surprise in the quarter earning.

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