Penny Stock Pick - BDCO

The stock market plunged for second straight day as oil price has touched record high of near $140 per barrel. So couldn't find a save heaven? How about be more aggresive and put money in the company which benefit the most by the high oil price - the oil drilling company. Blue Dolphin Energy(BDCO) is a small oil and gas company doing business at the Gulf of Mexico. On Wednesday the stock surged almost 30% as investors shift attention to tiny oil company which may have great potential due to global hunger for oil. Let's take a detail look at the stock.

Technical
The technical chart shows bullish sign as MACD is back above 0 and K line has crossed on top of D line. However there is possiblity of resistence now that the stock is back to 200 day moving average.

Insider
Insider transaction shows bullish sign as earlier this year the VP of Blue Dolphin bought 25,000 shares. The same person also bought 15,000 shares around December of last year. The institutions were also bullish and bought 71,464 shares in the latest quarter.

Financial
The financial result wasn't impressive as the latest quarter show decrease in revenue but increase in net loss. Despite the net loss, the company has a relatively healthy balance sheet with plenty of cash and little debt.

Conclusion
The stock is definitely worth looking at. However do pay attention to the next couple of days as the stock is now back at 200 day moving average and may encounter profit taking.

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

Penny Stock Pick - CPSL

Everybody knows China is an economy growing rapidly. However since November of 2007, people have been dumping Chinese stocks for profit taking and also overall weakness in the global equities. But don't forget China is still a growing economy it's probably a good choice to buy a material related stock such as China Precision Steel, Inc. (CPSL), a steel manufacturer. Especially now that the Olympic is approaching and the stock is a lot cheaper compared to last year.

Technical
The technical chart shows positive sign as the stock has just rose above the 50 day moving average. In addition with MACD now above 0 we should see more upside from this stock.

Insider
The company insiders were bullish about the stock and sold about 1.5 million shares recently. However the insitutions were bullish and add 24% of shares.

Financial
The revenue grew rapidly in fiscal 2007 as well as first two quarters of fiscal 2008. Net income jumped 8700% in 2007 and is still growing. The most recent balance sheet also shows very strong cash level.

Conclusion
No question, a Strong Buy stock.

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

Penny Stock Watch - VRML

A tiny medical diagnostic product maker called Vermillion(VRML) caught our attention as the stock has been going up like crazy for the past three trading sessions. How crazy? How about gaining as much as 400% in just four days. So what is going on with this stock? Recently the company held a teleconference on its peripheral artery disease (PAD) diagnostic program. The positive prospect triggers the heavy buying and pushed the stock up from $1 a share to as much as $5 per share yesterday. However when this stock first started trading back in 2000 it was a $30 stock. And factoring the 1:10 reverse split, you are talking about a stock that has lost 99.67% of it's value since it started trading. So is now finally the turn around time for VRML?