Penny Stock Pick - NGRU

The penny stock of the day is netGuru Inc. (NGRU), a Yorba Linda, California based company providing software project consulting and staffing services. On Tuesday, February 21 the company reports fiscal 2006 third-quarter results with slightly less revenue and less profit yet with more revenue from sales of its collaborative software. The market did not react to the news the next day but today the stock surged 13 cents or 39.82% to 46 cents per share.

Technical
The technical chart is showing that the stock is on a bounce back rally after it lost more than 50% of it value at the end of January as it distributed dividend worth 85 cents per share. Although both 50 day and 200 day moving average are showing weakness, KD line is indicating upward swing. MACD is still under 0 indicating bearish trend yet would be rising as stock price rises.

Financial
The financial statements shows the yearly revenue is still decreasing yet the loss is getting smaller on reduced expenses such as research development and administration. The cash level improved in 2005 compare to 2004 and current reports how a lot more cash compre to 2005.

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