Resurrection from Junk

Here is a penny stock that has come back recently from junk state. Radian Group(RDN), a mortgage insurance company, was hurt badly by the subprime bubble burst and traded as low as 70 cents in July. If you spend $7,000 back then to buy 10,000 shares back then, today your portfolio would be worth $31,500, a 350% gain in less than two months.

Is RDN still worth buying? Recent downgrade from S&P cooled down the upward momentum. Moreover the lastest quaterly report was dissapointing. However looking at the insider trading it's a slightly different story as in August alone the insiders bought 34,000 shares in the $3 to $4 range. So which one to believe? Maybe the worst is over? At this point I would start accumulate a little bit but keep track of the news and the financial status of the company.

If You Dare To Play This Penny Stock

This penny stock is a pure bet. It is also a very volatile stock because of the 10% plus swing recently. But if you dare, Freddie Mac (FRE) which close at $3.97 today, could make you rich in a very short time... or can punish you severely.

Worries that this government-backed mortgage giant may be nationalized send shares of FRE to multi-year low of $2.26 recently, losing 97% during the past 52 weeks. However those who were brave enough and bought the disasterous stock on Friday, August 22 were now enjoying 50% plus return in just two days.

So is it good time to buy? Well no insiders are buying recently and the insitutions have been bearish as well. The company is for sure still losing lots of money and there is no end to the tunnel when the turnaround may happen.. if there will ever be one. However the capital at the moment should make the company last for a little while.

At this moment I would say this stock is a buy. However I wouldn't recommend holding this one for a long term. So don't be greedy and take profit once you make 50% or more.

RAMR Is Ready To Go Up

The Bermuda based insurance company RAM Holdings(RAMR) hasn't been doing well for the year going from $5 in January to as low as 75 cents. However from the technical chart it looks like the stock is about to turn around as MACD is now above 0 and the stock is trading above 50 day moving average.

Another encouraging data is the insider tradings which have been all buys this year. In addition on the recent earning announcement the company reported net income of $126.3 million compared to $9.1 million of the same period last year.

However the company is effected by the residential mortgage-backed securities so although this stock is a great buy at this point, do trade with caution.

Penny Stock Pick - OPWV

After swung to $8.2 million profit from $123.8 million loss, the Redwood City, California based Openwave Systems Inc. (OPWV), a communication software and service provider may be about to rise back. The past two years have been a disaster as the stock went from $20 to as low as $1.13 recently on deterioating revenue and mounting loss. However after the positive earning announcement, we could probably call a bottom on this stock.

Technical
Things to focus on technical chart is the huge spike in volumn in late June. It marked the end of the slide and beginning of bottoming. Although both 50 day and 200 day moving averages are falling, the rising KD shows the stock is probably now in recovery mode.

Insider
The insiders and instituion players are still bearish about the stock which explains the slump in the stock.

Financial
The past reports would make this a really bad stock to own. Yet we are buying for the future of this stockand the most recent quarterly report suggested it would be a brighter one considering rise in revenue and also profit as well.

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

Penny Stock Pick - UBET

In a recession, there will be company still flourishing. A good example is Youbet.com (UBET) which provides equipment and services for hourse racing. Although the stock had been down for 2 years, recent activity suggests the buyers are probably coming back to this stock.

Technical
The technical chart shows the stock has reversed the downward trend with MACD back above 0 and stock trading above 50 day moving average. In addition KD also indicate positive momentum.

Insider
The insiders have been very bullish and bought almost 3 million shares recently. However insitutions were still bearish and sold 2.5 million shares last quarter.

Financial
The lastest quarterly report shows positive sign. Although revenue lost 12% yet the company swung to net income of $2.3 million compared with net loss of $0.4 million.

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

SCA Resurrection

Back in January we began to talk about the hard hit penny stock SCA when it was trading at $1.5 per share. For times it appears if we got a bust as the stock traded as low as 21 cents per share. However recently the stock has been on the rise as the company had taken big steps to deal with troubled mortgage backed securities. So lets also look at the stock and see if it is still worth investing now.

Technical
The technical chart now actually shows positive sign as the stock is now trading above 50 day moving average with KD rising and MACD now above 0. Recent surge may spur profit taking but for the long term the technical is looking good.

Insider
There is no insider transaction recently and the insitutions were very negative about the stock in the latest quarter.

Financial
The financial is still a mess but with the current direction the company is heading we should see it improving.

Penny Stock Score (1~5) 5 is highest
1. News: 5
2. Industry (bond insurance): 2
3. Technical: 5
4. Insider: 1.5
5. Financial: 2
Recommendation: Accumulate