Penny Stock Pick - RPRX

After staying in the 30 cents range for two months, shares of Repros Therapeutics(RPRX) finally break out in late August and rose to 60 cents per share following research firm upgrade on August 20. From the technical chart it shows the stock hit the resistance at the 200 day moving average and pulled back which could mean some downward pressure till the stock hit the 50 day MA of 40 cents per share. KD still indicate a bullish trend. The insider transaction also shows bullish trend as director and officer have been buying the stock in June and July between 30 to 45 cents per share. The income statement show some bullish sign as the company has reduced loss and make some revenue. However the loss is still huge so the company was still selling the stock according to the cash flow which show continuous weakness. At the point the stock is on the watch list but not a strong buy yet.

Penny Stock Pick - CPST

Shares of Capstone Turbine(CPST) rose as much as 7% today on order of 18 micro turbines from a oil and natural gas company. The stock however fall back to only a 1.43% on weak market. May this 7% surge be any indication that the stock may finally ends the down trend? The stock in the previous session just dropped to its 52 week low of 69 cents per share. The one cent gain today may seem insignificant. However from the chart the stock has form a bullish "W" shape and could begin a recovery rally.

The recent financial report actually looks fine as the company reported 18% increase in revenue and 43% in backlog. The additional sale today should further improve the bottom line. The net loss also improved from $15.3 million to $8.8 million. Although the final number was net income of $0.4 million, it was primarily the result of the adoption of Accounting Standards Codification so the number to compare should be the one with the old accounting standard which resulted to loss of $8.8 million.

The insider transactions show positive sign as there were four insider buys in August between 72 cents and 75 cents per share. The latest transaction was a sell of 75 cents per share but if there is no further sells, the trend remain bullish.

Penny Stock Pick - APPY

Shares of AspenBio Pharma Inc(APPY) surged 9.62% today on no news announcement. However looking at the performance of the stock for the past three months, today's activity is very likely bargain hunting as the stock has lost 90% of its value from its 52 week high about 4 month ago. Could this be the dead cat bouncing? Or could this be the beginning of a comeback?

From the financial side the company looks shaky as the revenue of the latest quarter is still miserable pair with huge net loss. The cash flow shows the company is still selling stocks to maintain health cash position. Lastly the balance sheet shows the company still has enough cash to last for probably 4 quarters.

The technical chart show weakness as the stock is trading way below 50 day moving average. However with relative strength so low and KD beginning to point up, there is a chance that the recovery could continue.

The insider transactions show positive sign as the officer finally began to purchase stock in July at 71 cents per share for 10500 shares. This reverse the selling trend for the year and if there is additional insider buying this could mean a perfect time to buy.

Penny Stock Pick - SNTA

Shares of Synta Pharmaceuticals(SNTA) jumped 6.18% today on bargain hunting following two days decline as the result of the company's disappointing second quarter loss announced on Monday. The stock is currently trading not very far from its 52 week low of $2.55 last month and less than half of the 52 week high last December.

From the financial side the mounting loss wasn't a good sign but the cash position of $48.7 million should be sufficient to carry the company over to next year. The dropping in revenue from $4.6 million to $3.3 million also did not sound like good news.

Although the technical chart still show weakness as the stock is still trading below 50 day MA, the stock shows support at $2.7 and as the stock is near the 52 week low, this could be a safe time to buy.

The insider transactions show positive sign as company directors and officers bought many shares in June between $2.8 and $3.91 per share. The August 5 sell of 4000 shares is something to watch because if that marks the beginning of insider sells, it could be bad sign for the company that just reported bad earning.

Penny Stock Pick - CASB

Insider buying is a good indication that the stock is going bullish. When the stock has been falling and is at multi-year low, there is a very good chance that the trend will soon reverse back up. And this may probably be the case for Cascade Financial(CASB), the Everett, Washington based regional bank that had seem its price fall from $17 back in 2007 to as low as 33 cents last month.

According to the insider transactions, it seems the insiders took the golden opportunity and bought shares at 38 cents per share. It was around the time investors were fleeing the stock after FDIC issued the warning that the company would need to raise capital within three months. It might very well be the bottom because according to the technical chart, KD value is now going up and the stock is now above 20 day moving average, both bullish indication. The next three months would be critical as it will decide the fate of the company. However, before the three month deadline, enjoy the ride.