Penny Stock Pick - VG

This was not supposed to be a penny stock when it first came out in May of 2006. Vonage's leading voice over ip service was suppose to take over the telecom industry and make it another giant bell. However losing major patent lawsuits to telecom giants, the company looked like heading into extinction in September as the stock was at new low of 89 cents per share. All the sudden when the investors are losing hope, settlement on patent lawsuits brought the stock back alive again recently and is now trading above $2 per share.

Technical
The technical chart shows weak sign as the stock is still trading below 50 day and 200 day moving average with both moving average still falling. Another weak sign is MACD which is still below 0. On the other hand, ROC shows the stock is oversold and with volumn spiked as K line crossed on top of D line this is probalby the time that the stock would finally reverse the downtrend.

Insider
The institutions are still bearish on the stock and sold additional 1.8 million shares in the latest quarter.

Financial
The quarterly revenue has been on the rise with consecutive gain from $160 million in September of 2006 to June of 2007. However since net loss is still rising the company is still selling stock to maintain healthy cash level.

With the positive news of lawsuit settlement along we should see explosive growth in stock.

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

Penny Stock Pick - TMY

With oil price now above $90 per barrel this may be a time to find a penny stock in the related industry. And the one we found is Houston based Transmeridian Exploration Inc. (TMY) which owns oil and gas property in Republish of Kazakhstan with net proved reserves of 67 million barrels of oil. Recently the company began to export oil thru its own pipeline. This should significantly cut down the cost which it pays to the third party for oil exporting. Let's take a look at other areas to see how good this investment is.

Technical
The technical chart still shows weak sign as 50 day moving average is still below 200 day moving average. The falling MACD also shows the stock may remain weak for a while. However as KD is at low and K line looks like is about to break above D line the upward movement should be near.

Insider
The insiders have been very bullish on the company recently as recent transactions are all buys from the management such as director and officer. In addition the institutions have also been bullish, buying additional 7 million shares in the latest quarter.

Financial
The annual revenue has been growing rapidly for the past few years from $4 million in 2004 to $24 million last year in 2006. This year so far within two quarters the company has already earned revenue of $18 million so reaching $30 million this year shouldn't be the problem. The cost at the same time is also growing so the company has yet to become profitable and still rely on selling stock to keep a healthy cash level.

Penny Stock Score (1~5) 5 is highest
1. News: 5
2. Industry (Oil): 5
3. Technical: 2.5
4. Insider: 5
5. Financial: 4
Recommendation: Buy

Penny Stock Pick - SGN

The penny stock on the spotlight today is Signal Life Inc.(SGN), a medical device maker. Recently the company announced it has finished testing of a module for its holter and intra- cardiac monitor, an important part of the business plan. Looking also at the chart there are signs that the stock maybe ready for a rally.

Technical
The technical chart shows positive sign as the stock has been on the upside since late August and the stock has been above both 50 day and 200 day moving aveage since September. In addition with MACD still above 0 and ROC at low the stock could be going up at this point.

Insider
The most recent insider transactions were bullish with two purchases from the director. However the institutions are still bearish and sold 254,436 shares in the latest quarter.

Financial
The company is still in the development stage and has yet to generate any revenue. The net loss is still high while the cash level is very low. The company will need to raise cash either by selling shares or borrowing money in order to sustain the business.

One sign to look is the cash level. If the company can get additional funding it is still a good bet.
Penny Stock Score (1~5) 5 is highest
1. News: 4
3. Technical: 4
4. Insider: 3
5. Financial: 1
Recommendation: Hold