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