Penny Stock Pick - GV

Gold in the Electrical Wire The penny stock on the spotlight today is Goldfield Corp. (GV), a Melbourne, Florida based electrical construction and maintenance services provider for the energy infrastructure industry. The latest quarter report was strong as the company swung to fourth quarter profit due to high sales from the electrical construction and real estate development. Sicne the bullish quarterly report, the stock went skyrocketted from $1.02 before the announcement to $2.33 today, gaining almost 130% in just over a month. Let's take a detail look at the stock to see if this stock is actually worth getting.

Technical
The technical chart shows the stock has been in the bull market since last June as the stock has been on top of 50 day and 200 day MA since early June and 50 day MA has crossed on top over 200 day MA sicne late June. The stock recently has more aggresive upward movement with rising MACD and signal line as well as K line which is on top of D line. Although there's risk of correction as ROC has reached overbought level, but for the long run we should see the stock hitting new highs.

Insider
The insider transactions for the past year were mixed with about half of them purchases from CEO and half of them sales from director. The inistitutions have purchased few shares for the latest quarter.

Financial
The company has a very strong and healthy income statement with revenue growing to $39 million in 2005 and net income with 3.9 million compared to net loss of 461 thousand in the previous year. From the balance sheet the company has sharp increase in net receivables for 2005 compare to 2004 probably due to charges of orders and servies not yet collected. The company should be expecting more cash coming in for this year as the receivables are collected.

Penny Stock Score (1~5) 5 is highest
1. Market Potential(energy industry infrastructure): 4
2. News: 5
3. Technical: 4
4. Financial: 5
Recommendation: Strong Buy