Penny Stock Pick - MEDC

Golden Opportunity One of the big winners of the penny stock company is Med-Design Corp. (MEDC), a Ventura, California based firm manufacturing safety medical devices to reduce the risk of accidental needle sticks. After going thru a long down term from $41 in August 2001 to 50 cents per share last month the stock is probably ready for a big break thru as it surged 26.89% or 16 cents to 78 cents per share. Let's take a detail look at the stock and see why you should be owning the stock.

Technical
The technical chart shows the stock is ready to fly high as the 50 day moving average has crossed the 200 day moving average to form the Golden Cross. Typically when a Golden Cross is formed the stock will be heading into a strong and long bull market. On the other hand both MACD above 0 and ROC around oversold level point to strong buy signal which is why the stock soars 26% with such heavy volumn.

Insider
In the past two months there were twelve insider purchases from the company's benefical owner Adage Capital ranging from 200 shares to 33 thousand shares. In addition the institutions had purchased additional 766 thousands shares in the lastest quarter, up 12% from prior quarter. The bullish insiders should indicate the stock is really worth buying.

Financial
Looking at financial statement, the company is getting consistant revenue growth year after year as well as reduction in net loss. For the fisical year 2005, the company should see record revenue as well as narrowing net loss. The only thing to watch is the cash level as the company may have to raise additional cash to maintain a healthy balance.

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