Penny Stock Pick - ANO

The penny stock company on the spotlight today is Anooraq Resources Corporation(ANO), a Vancouver, Canada based company operating meneral properties in South Africa. The stock today surged 13.21% or 14 cents to $1.2 per share at four times average volumn of 1.4 million shares despite having no news. Lets take look at the stock in more detail to see if this is the stock worth buying.

Technical
The technical chart shows possibillity of a rally as the stock is trading above 50 day and 200 day moving average while 50 day moving avearge has crossed on top over 200 day moving average in mid February to forme a very bullish buy signal - Golden Cross. In addition with MACD above 0 and K line crossing on top over D line, a major rally is probably coming.

Financial
The company has a very weak financial as it generated no revenue for 2003 and 2004 while getting increasing net losses. Looking at the balance sheet, since the total assets are very close to net loss, the company will be still in need to raise cash either by borrowing or selling more stocks.

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