Penny Stock Pick - ZTM

The Mundelein, IL based Z-Trim (ZTM), a fat substitute products maker could be the next hot penny stock. The company is on the right track making health realated product in a very health conscious society. With increasing media coverage on the media we may see more buyers so before the major rally comes this could be a good time to buy.

Technical
The technical chart shows very bullish sign as the stock is back on top of 50 day moving average with 50 day MA also on top of 200 day MA recently. In addition K line is still above D line and MACD is back above 0 which show beginning of new bull market rally.

Insider
For the past year the directors acquired total of 300 thousands shares and many other transactions before that have been acquisitions. The institutions though sold 400 shares which is insignificant volumn-wise.

Financial
The annual report which came out this month shows promosing sign as the revenue has increased from $514,608 in 2005 to $601,544 on increasing products sales. However the company is still using lots of cash and continue to borrow money.

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