Penny Stock Pick - SPAB

Will NASA ever gets the spotlight again just like back in the old days when the world is watching Armstrong and fellows step on the moon? If space travel or exploration is back on the agenda for the president, then you better want to invest in this penny stock.

Spacehab Inc. (SPAB), a Webster, TX based company is developing lab modules and cargo carriers aboard NASA's space shuttles for space station re-supply. Two weeks ago the company was awarded a NASA contract worth 1 million to provide payload processing services to NASA/Kennedy Space Center. Today the company gets another contract to provide payload processing services to Lockheed Martin's International launch Services for satellite. Both news lifted the stock more than 10% from $0.7 to $0.8. Although the previous news cooled off shortly after, it would be interesting to see how the stock reacted to the second contract in a month.

The technical side of the stock isn't pretty as the stock still struggled to break over the 50 day moving average, not to mentioned 200 moving average around $1.3 per share. Although MACD is rising but it is still under 0, a bearish sign. KD has been fluctuating around the low 20 so unless the stock can break the 50 day moving average, we won't see any new year rally for the stock.

Top executive Mr. Harrington has been acquiring shares last month for $0.7 per share. Hopefully this shows top executives are now serious about bring the stock away from the danger of Nasdaq delisting.

From the financial side, although the company has more cash and assets in 2005 compare to the pevious two years, continuous slide in revenue isn't a good sign for the company. One thing postive is the increasing in net income.

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