Penny Stock Pick - SVVS

The penny stock company on the spotlight today is SAVVIS Inc.(SVVS), the Town & Country, MO based information technology company which offers services such as IP VPN(Virtual Private Network), hosting and digital content. Today the stock went up 8.55% or 13 cents to $1.65 as the company is going to announce first quarter investor webcast on April 24. The news is probably not the primary reason that the stock is going up. Let's take a detail look at the stock to see what other factors are pushing the stock up.

Technical
The technical chart shows this is a perfect time to buy the stock as the stock is on top of 50 day and 200 day moving average with 50 day moving average recently crossed on top over 200 day moving average and formed Golden Cross, a very bullish sign. Other technical indicators such as KD line and MACD indicate buy as K line is rising on top over D line and MACD is on top over the signal line.

Insider
For this year there were two insider sale - one 1,860 shares and the other 57,300 shares. The institutions, however have been bullish with purchase of additional 3.4 millin shares in the most recent quarter.

Financial
The income statement looks good as the annual revenue has increased while net loss has dropped quite a bit. Although the company is still generating positive cash flow the balance sheet looks very weak as the total liabilities is larger than total asset on increasing borrowing and payable. This is generally not a good sign if the total liabilities is more than total asset.

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