Penny Stock Pick - MPG

Maguire Properties (MPG), a REIT company for office space in California, has been hit hard by the real estate bubble burst.  The stock, now trading at $1.61 per share is only a fraction of the 52 week high of $30 earlier this year.

However the 52 week chart signals a recovery as the stock seemed to set a bottom at $1 around mid November and has since rallied more than 50%.  As the stock is approaching the 50 day moving average there could be some profit taking which we are seeing during the past two days.  

The most recent insider trading was still positive as the management bought 8,200 shares at $3 per share in November.  The financial side however is quite weak as the company is still losing money and is still borrowing lots of money to maintain a healthy cash position.

So buying this stock would be more of a pure technical play but do keep an eye on the still weak fundamental.

Penny Stock Pick - SFI

iStar Financial (SFI)  looks like a stock that is poised to make a come back after dissappointing performance this year.  

First of all the three month chart shows the stock has formed a bottom around $1.  Then the technical indicator KD shows the stock is still in a rally.  The insider transactions also show bullish sign with lots of buys from directors and officer in the month of November.  

Looking at the financial chart although the latest quarter report shows the company is still losing money, the cash level is still strong.  This is probably the company that may survive the storm.