Penny Stock Pick - QSC

The penny stock company on the spotlight today is Questcor Pharmaceuticals Inc.(QSC), the Union City, CA based pharmaceutical company fousing on central nervous sytem diseases treatment products. Since November of last year the stock has been on a big rally going from 50 cents in late October to $2.43 per share today, a rise of almost 400% in five months on improving financials. Let's take a closer look at the company to see if the stock is still worth buying.

Technical
The technical chart shows the stock is in a strong bull market as the stock is on top of 50 day and 200 day moving average with both moving averages going up showing the long term trend of the stock is going up. In addition technical indicators such as KD and MACD indicate buy as K line is rising on top over D line and MACD is on top over the signal line showing strength for the short term. However please wathc for ROC as it has reached overbought level.

Insider
The top executives such as CEO and vice president are bullish about the company on acquisition early this year and late last year. The institutions are slightly negative with selling of 305,129 shares in the most recent quarter.

Financial
Although the company has earned less revenue in 2005 comparing to the previous year, it got a lot of money from other sources which result in net income of $7 million comparing to net loss of $0.8 million in the previous year. As a result the company does not need to worry about cach level. The financials of the company in general is very healthy.

Penny Stock Score (1~5) 5 is highest
1. Market Potential(nerve sytem disease treatment): 4
2. Technical: 4
4. Insider: 4
5. Financial: 5
Recommendation: Strong Buy