Penny Stock Pick - IVAN

The penny stock on the spotlight today is Ivanhoe Energy Inc.(IVAN), a heavy oil development and production company. The company recently has been promoting its heavy oil upgrading process(HTL). The HTL technical which been successfully tested earlier in late June would be a key in developing business activities. All these exciting move has brought the stock to above $2 per share and is now trading at $2.12.

Technical
The technical chart shows very positive sign as the stock is now trading above 50 day moving average and has formed golden cross earlier in June. Golden cross is when 50 day MA cross on top over 200 MA and is a very bullish buy signal. Another bullish sign includes MACD which has just rose above 0.

Financial
The revenue has been on the rise from 2004 to 2006. Although revenu has dropped for the recent two quarters, the increase in research and development is a good sign showing the company is on track for more serious business activities. The cash hungry company sold quite a bit of shares in 2006 but for the last three quarters there has been almost no selling of the stock.


The recent actitivies, the financials and the technical chart shows this is a great stock to buy.
Penny Stock Score (1~5) 5 is highest
1. Technical: 5
2. News: 4
3. Financial: 3.5
Recommendation: Buy