Penny Stock Pick - PACW

The penny stock of the day is PAC-WEST Telecom(PACW), a Stockton, CA based regional telephone service provider serving the western states such as California, Nevada, Washington and Arizona. Recently the company has partnered with VeriSign to deliver next generation communications services utilizing VeriSign's database. The deal puts PAC-WEST in the new red hot VOIP(Voice-Over-IP) market.

Technical
Based on the 52 week technical chart, the stock seems to be about to take a great leap as 50 day moving average is rising near the 200 day moving average. If the 50 day MA does cross 200 day MA, the stock will definitely fly. In addition the KD lines is also showing the stock is still on positive swing. MACD is barely above 0 yet when you switch to 3 month technical chart, MACD actually shows very positive sign.

Insider
Take a look at the insder transaction and you will see that top executives such as vice president, CIO and CEO had purchased shares recently. The 400 thousand shares that CEO acquire in December 27 should be an indication that the top executives are seeing something positive going on.

Financial
The financial is a weaker aspect of the penny stock as the company sees continue drop in revenue and profit. The quarter data still shows that the company probably will not have a strong annual report for 2005.

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