Penny Stock Pick - INSM

This is the penny stock poised for growth. For the past four years Insmed (INSM), the metabolic diseases drug maker have not been doing well going from $4 per share in beginning of 2004 all the way down to 56 cents in August. However with strong earnings for the most recent quarter, this stock now looks like a steal at this price.

Technical
The technical chart shows the stock is about to surge as the 50 day moving average is about to cross on top over 200 day moving average. In addition MACD is still above 0 showing bullish sign. Although K line is still below D line, once the trend is reversed we should see the true uptrend coming.

Insider
The management team shows confidence in the compmany with numerous purchases since June of this year. There is no activity for the institutions for the pas quarter.

Financial
Although the company dip into depper net loss in 2006, the company seems to be in a better shape for the first three quarters of 2007 with much reduced net loss and huge growth in revenue. From the balance sheet the company is in fine shape with cash exceeding total liabilities.

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

Penny Stock Pick - NXG

The penny stock we want to look at today is the Canada based Northgate Minerals(NXG) which operates gold and copper mining properties in North and Sourth America. With the rising price of gold and copper this could be a great time to buy the stock. The stock actually hasn't changed much for the past year.

Technical
The technical chart shows positive sign as the stock is now above both 50 day and 200 day moving aveage with MACD also back above 0 showing positive sign. In addition with ROC now showing the stock is oversold there may be more buyers back.

Financial
The revenue has been on the rise for the past couple of years and was at the largest increase in 2006. Another big plus is the net income which went trippled in 2006. The increasing assets and decreasing liabilities are also very positive sign.

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

Penny Stock Pick - REV

It is really sad to see a billion dollar company becoming a penny stock trading in the $1 range. Don't be mistaken, Revlon Inc. (REV) still an American icon selling women's makeup, skincare and fragrances is still generating $1 billion dollar in revenue every year. However that is probably the only positive from the financial statement as the company is still losing tons of money year after year and the company's total liabilities are more than twice of the total assets. In another word, at this point the company is worthless on paper.

Yet this morning's third quarter earning release provides glimpse of hope as the the net loss is reduced 90% from $100 million to $10 million while revenue rose 11% to $339.7 million compared with 309.5 million. Both figures top analyst estimates.

Technical
The technical chart shows this is still a weak stock as 50 day moving average is still below 200 day moving average. MACD which just dropped below 0 again recently indicating a bear signal as well. One positive signal is KD where K line just crossed on top over D line showing a rally is about to begin.

Insider
The management team is not as negative on the stock as one director bought a quarter million shares earlier this year. The institutions are also quite bullish about the stock and purchased 10 million shares in the latest quarter.

Financial
As mentioned earlier, the balance sheet is still a mess but hopefully the reduced net loss could bring the company back to the right track again.

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