Penny Stock Pick - INNO

The penny stock pick of the today is Innovo Group Inc. (INNO), the Commerce CA based apparels maker. The stock has been on the down side for about a year and half, falling from $6 in June of 2005 to as low as 37 cents around end of 2006. However the recent activity suggest the stock may be on the come back.

Technical
The technical chart is showing positive sign as 50 day moving average seems to be about to crossed on top over 200 day moving average. In addition with MACD on top over signal and KD at the high point we should see more upside coming for the stock.

Insider
Although the institutions are bearish about the comapny as they sell 4.28 million shares. However company officer was pretty bullish about the company and has bought quite a bit of shares last year.

Financial
The earning report shows weakness as the revenue keept shrinking. However net loss has also been down from 17 million in November of 2005 down to 0.2 million in August of 2006.

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