Penny Stock Pick - IIP

Medical Miracle The penny stock company on the spotlight today is Internap Network Services Crop. (IIP), a Atlanta, Georgia based internet connectivity solutions provider. Today shares soar 19.44% or 14 cents to 86 cents per share on strong financial and new product announcement. The stock actually has been doing well recently as it went from 45 cents in February to 86 cents today, gaining more than 90% in just a month. Let's take a detail look at the stock and see why the stock has been doing well and why you should probably have the stock in your portfolio.

Technical
The technical chart shows the stock has turned from a bear market to a bull market as both 50 day and 200 moving average are now pointing up as 50 day moving average on top over 200 day moving average forming Golden Cross - typically a very bullish sign. Another technical indicator MACD has rose above 0 since mid February also showing a bull market. Two indicators to beware of are ROC and KD which are both at the high showing the stock is overbought at the moment. However the stock is still a great long term play at this point.

Insider
Although the insitutions were selling the stock, the top executives such as Chief Financial Officer, Chief Technology Officer and Vice President have been acquiring shares recently with 500 thousand shares for each transaction. This shows the management team is optimistic of the company at least for now.

Financial
The financial chart looks healthy as the company has sequencial revenue growth for the past few years. Another very healthy sign from the financial statment is the net loss which has been reduced from 18 millions in 2004 to only 4.9 millions for the fiscal year 2005, trimming more than 70%.

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