Penny Stock Pick - QEE

Red Hot Gold in Nevada The penny stock on the spotlight today is Queenstake Resources Ltd. (QEE), the Denver, Colorado based gold mining company which owns gold mine in Nevada. As the gold price is still on the rise, this is probably a good time to take a look at the gold mining firm.

Technical
The technical chart shows this is time to buy the stock for the long term as the 50 day moving average has crossed on top over 200 day moving average around mid January to form Golden Cross - a very bullish sign. In addition since ROC is at oversold level now we could probably see new rally coming as MACD signal is still above 0 while K line seems to be crossing on top over D line.

Insider
The only insider transaction came in last September of sale of 9,211 shares so we couldn't tell how the insiders feel about the company.

Financial
In 2004 the company earned revenue of $97 million, significantly higher than the previous reported revenue of 581 thousands in 2002. Although the company also ended up with high net loss of $23 million, the cash flow statement shows the company will only have $3.4 million taking away after activities such as selling of stock. As the company still has about $6 million in cash, we should probably be expecting significant financing activites around end of 2006 based on current cash reduction rate.

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