Penny Stock Pick - HYGS

The penny stock of the day is Hydrogenics Corp. (HYGS), a Canadian company developing hydrogen and fuel cells. The hydrogen cells industry used to be hot as it was marked as the next wave of hot growth energy industries along with solar cells. So now with skyrocketting oil cost, solar cell does become the prime growing industry. Hydrogen cell companies on the other hand still struggles. However now that everybody probably has forgetten about this industry it may actually be time to pick up stock such as Hydrogenics which just won a new contract from Ford Motor.

Technical
The technical chart shows weak sign as the stock is below both 50 day and 200 day moving average with MACD well below 0. However KD shows possible rally as K line is on top over D line.

Financial
The company isn't in a good shape as revenue in 2006 declined compared with 2005 while net loss increased. Yet the most recent third quarter earning show revenue increase of 18% and 16% reduction in cash consumption shows improved for this year.

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

Penny Stock Watch - ESCC

Shares of Evans and Sutherland Computer Corp. (ESCC) surged 20.83% to $1.45 per share with no news announcement. However for the past two years, the digital planetarium maker has seem its stock price slide from $6 all the way to as low as $1 per share. With still little volumn traded, it is hard to say if this is finally the time that the big buyers are coming. Let's take a detail look at the stock to see if it is worth buying.

Technical
The technical chart shows the stock is very weak as both 50 day and 200 day moving averages are still sliding. MACD also shows weak sign as it is still below 0. The only positive sign is KD which shows the stock may be on a bounce back rally.

Financial
2006 has been a bad year for the company as revenue was only $15 million, compared to $73 million in 2005. This year so far has improved a bit as the total revenue for the first three quarter already reached $17 million. However the company is still in the red as all first three quarater results are net losses.

Penny Stock Score (1~5) 5 is highest
1. Industry (technology): 3
2. Technical: 2.5
3. Financial: 2.5
Recommendation: Hold

Penny Stock Watch - NFI

Are you one of those day traders that always want to get the stock that rise 10% in one day? Or you are the more greedy one that want to get those 20% one day swing? Would you be tempted to get the stock that gave some lucky one 100% in just two days? What!? 100% in two days? Who's the lucky one?

Those who bought the hard hit mortgage company Novastar Financial Inc. (NFI) around $1.31, the closing price on November 29, 2007 are now probably bragging about how smart they are buying the stock where everybody else is afraid of buying. Indeed this company's fundamental is pretty shaky as it reported $598 million of loss and could be de-listed from NYSE which is why the stock sank to historic low of $1.12 in November. When taking account of the reverse stock split of 1:4 in July, this was still a $100 stock in January.

However all the sudden the company is back alive again on announcement that Treasury Secretary Paulson is working with the regulators and bank executives to stop the foreclosure rate and to save more mortgage company from going bankruptcy. With also hope of further rate cut, bargain hunter began to come in and send this stock to the roof. The stock at this moment is trading at $2.79 per share, up 113% in just two days.

So is this a good time to buy NFI? Well, it's very hard to predict the diretion but do expect profit taking and do watch how the news progresses. Because if the news continue to go to the positive direction, this could be a steal for the long run.