Penny Stock Pick - PRGX

The penny stock company on the spotlight today is PRG-Schultz International Inc. (PRGX), a Atlanta, Georgia based recovery audit services provider. Today the stock soars 13.79% or 7 cents to 60 cents per share as the company tries to turn around by restructing its dept to keep the company liquid. Let's take a detail look at the stock and see if the stock is worth buying.

Technical
From the technical chart the stock looks weak as the stock is still trading below both 50 day and 200 day moving average with MACD below 0 indicating bear market. However as K line has crossed on top over D line we probably could be expecting a rally. However there could be selling pressure at 50 day moving average and 2q00 day moving average.

Insider
There hasn't been any significant insider transaction recently yet the transactions around the end of the year were mostly sell of the stock from the beneficial owner Channel Capital LLC.

Financial
The revenue for the company has been sliding for the past few years as the revenue for 2005 dipped below $300 millions for the first time. And instead of operating income for 2004 the company ended up with operating loss of 196 millions for 2005 on impairment and restructuring expenses. From the balance sheet, the asset for 2005 has shrunk to less than half of the assets of the previous year. The financials of the company seems negative.

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