Penny Stock Pick - HEC

Rising Oil The penny stock company on the spotlight today is Harken Energy Corp.(HEC), the Southlake, Texas based oil exploration company focusing on oil fields in the Guld Coast regions of south Texas and Louisiana. The stock has been doing well recently, surging from around 60 cents per share in early March to 95 cents per share today on hiking oil price. Let's take a closer look at the company to see if this stock is worth buying.

Technical
The technical chart shows the stock is on a rally as MACD in early to mid April top out the signal line and K line is also rising on top of D line showing buy signal. in addition the long term trend indicate the stock is in a bull market as the stock is on top of 50 day and 200 day moving average and the 50 day moving average is on top of 200 day moving average.

Insider
The insider transactions show the top executives are bullish about the company with purchases from directory, Chief Executive Officer and Treasurer. In addition, the inistitutions are also optimistic about the stock by purchasing 883,816 shares in the latest quarter.

Financial
The income statement looks promising as the company has been getting revenue growth for the past few years especially for the fiscal year of 2005 where the revenue surged for 35% compared to previous year. Another positive of the company's financial is that the company was actually generating net income of 43 million for 2005 compared to net loss of 17 million in the previous year on income from other sources. In addition another good news is that from the cash flow the company has bought back 12 million shares for 2005 indicating the company is very optimistic of the future stock price.

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