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