| Back Issues Pages are sorted with the latest issue at the top. April 26-30, 2004 |
| Penny Stocks Daily Friday, April 30, 2004 Good Morning, The Russell 2000, as well as many other market measures, is dangerously close to it's support level around 560. We are looking for a bounce in this index to help forecast the rest of this year. This type of consolidation we have been in for the last few months is reminiscent of a long term bull market pull back and with the economy doing as good as it is there is no reason to think that a reversal is underway. Part of this could be due to investors taking profits whenever they get the opportunity after being burnt so many times before. The good news is that these investors have plenty of cash available to help fuel future rallies. Overall the market has been down and our portfolio is no exception. We are very cautious at the moment but feel selling anything just for the sake of selling is a bad idea and could come right at a market low. We will consider a reshuffle if a much larger correction becomes eminent. We currently have plenty of cash to buy the lowest of the low in the stocks we are in although a little bit more would be helpful. Only one stock we are in has the potential to fundamentally change for the worse and that is USXP. Taking a loss is something that we obviously hate doing, but not following the rules is something we hate even worse. SMTR is at 6% of our portfolio after buying it once at $.124. Our current profit target is at $.20 and we will buy more if it goes below a dime. USXP is at 16.4% of our portfolio after buying it four times to an average price of $.026. We are looking to sell our entire position once we get above break even and are looking for an aggressive buy and sell program to facilitate this. We will buy at $.015 if we can and then sell as soon as we break even. DNAP is at 20.5% of our portfolio after buying three times to an average of $.043. We are also trying to dump this entire position above break even and will only buy again below $.03. ATNG is at 6.9% of our portfolio after buying once this time around at $.009. We are looking for half profits at $.015 and will buy more below $.006. XKEM is at 15.1% of our portfolio after buying three times to an average of $.06. We are looking for half profits above a dime and will buy more if get into the $.02's. NNCO is now at 10% of our portfolio after buying twice to an average of $.0081. We are looking for half profits around $.015 and will buy more if we break below $.005. WGFL is at 6.6% of our portfolio after buying it once at $.031. We will take half profits above a nickle and are looking for our next buy at around $.019. Our cash position is at 18.5% of our portfolio which is a bit low so we cannot buy any new issues until we take some profits. Our total portfolio was down around 8% from last Thursday afternoon. Tip Of The Day Although we don't suggest watching for news story's from your companies every minute of every day, you do need to keep an eye out for very bad news. We never buy on good news and even more rarely buy on bad news. If you do happen to catch a fundamentally destructive news story in a stock you are in, do not be afraid to sell immediately. In the OTC BB, story's typically take from twenty minutes to two days to play out. If you miss the story be ready to take advantage of the dead cat bounce that is likely to follow. Most of the time you can get away with a small profit and then be out of the stock completely for the slow downdraft that will probably continue. We only buy on no news which hopefully gives us an advantage. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Thursday, April 29, 2004 Good Morning, Since it's inception in June, 1990, the OTC BB has grown in leaps and bounds. Average daily dollar volume peaked in 2000 at over 400 million, up from 13 million in 1991. The OTC BB had no eligibility requirements or listing standards until 1999 when they began requiring timely fillings with the SEC to remain listed. At that point there were over 6000 issues on the bulletin board and 3000 of them were removed to comply with the new standards. Since then the number of issues has continued to grow just as dollar volume and the number of transactions per day has grown. Dollar volume has more than doubled since 2001. Average daily share volume is now above a billion and there are over 3500 issues that meet listing standards. What is interesting to note is that as this market has become more concentrated, volume has increased. Over 90% of this volume comes from the top 300 issues. We see an emerging market right here in the U.S. as well as improved and more reliable quotation instruments. The tiny effort made by the SEC in 1999 to improve quality had a huge impact and we look for continued interest from regulatory authorities and new investors. ATNG recently announced the settlement of it's ongoing dispute with petitioners of an involuntary bankruptcy. Paper work has been signed and final approval from the court is set for May 12, 2004. This will decrease their long term debt by 90% and they plan on resuming acquisition activity's on that date possibly starting with the several strategic alliances they are currently involved with. All of these business sound interesting and acquiring them seems to point to profitability in the near future. Our current profit target is at $.015 and we will buy more shares if we can get them for less than $.0065. DNAP has had increasing revenues lately but no significant source of income to sustain ongoing operations. The company plans to use no more than the minimum amount of new shares to finance their continued growth. R&D expenses are very high and they will seek non equity financing if need be for any additional capital that is needed. With this said the product itself is very promising, resulting in the best lead yet for the Scotland yard and London police in a 12 year old serial rape case. We are currently looking to get out of this position entirely for a small profit but are not opposed to coming back if the price is right. We will sell our entire position if we break above $.047 today and will buy more if we break below $.03. NNCO has ten consultancy projects under way and is interested in acquiring Red Alert group, a homeland security company that has a contract with the Frankfurt Stock Exchange. This acquisition has not been confirmed in any way and we are waiting to here an update. The stock bounced off of all time lows yesterday and we are looking for $.015 to take half profits and will buy more if we break below $.005. XKEM, although a development stage company has 3 cents a share in revenue and a 5% insider holding. The market cap is around 7.5 million and there are approximately 150 million shares of float. Dilution may continue, but results of their sickle cell disease treatment have been good so far. This is a substantial market in the U.S. and an enormous one abroad. We will buy more shares if we break below $.025 and currently have a target for half profits at a dime. WGFL continues their infomercial marketing strategy to gain interest from golfers and spectators to their PGA style semi-pro venue. We will buy more if it breaks $.02 and are looking for half profits in the nickle range. SMTR has a new investment banking relationship resulting in a small short term loan with the potential for more to come. We are interested in buying more below a dime and will take half profits at $.20. USXP has a battle ahead of it with the SEC which has mounted quite a case against them. Although this won't affect their business very much, we are very interested in getting out before any huge verdicts come down. Most of this is already factored in to the price so we are waiting for a small profit to get out in the high $.02's. We are even ready to buy more at $.011 and sell as soon as we get above break even. Situation is not critical, but is fast approaching and we would like to be out very soon. Tip Of The Day When looking at and trying to understand candlestick charts, use time frame divergence. This involves looking at increasingly smaller time frames to confirm candlestick patterns. This will help you determine which patterns are more reliable and which ones are completely false. Looking at as many time frames as possible will also help you learn what happens when a candlestick pattern is formed and what it's key elements are. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Wednesday, April 28, 2004 Good Morning, Consumer confidence is up, earnings continue to beat estimates, oil prices are down and existing home sales are up. Meanwhile the dollar is worth less and interest rates remain low. A continuing strong economy should push interest rates up long before the fed moves. We're not sure what there waiting on but the fact remains that the markets haven't budged in three months. We are still waiting for conformation from all of the small cap inidices to warrant a continued bull market strategy. We are light on cash and cannot establish any new positions at the moment but are waiting to sell several positions that could approach target levels at any moment. ATNG got close to our sell point of $.014 yesterday but the bid never quit got there for us. We will continue to hold the same target. NNCO broke below it's all time low of $.006 but needs to close there before we make any moves. We will probably attempt to buy more if we break below $.005. Our profit target remains at $.014. USXP is down and we are looking to buy more around$.01. If we don't get there we will liquidate our entire position in the high $.02's. SMTR continues to test support at a dime and we are waiting for it to break below to buy more. Our target for half profits is at $.20. DNAP had very strong support at $.039 until we broke below yesterday. Right now we plan to buy more at around $.025. If not our profit target is in the mid $.04's. XKEM seems to be rallying into strong selling every-time there is good news. This is typically a sign of excessive dilution, but we feel there may be a few other things at work. We will continue to hold and are looking for a dime to take profits. WGFL remains lightly traded and we will wait patiently for the next buy or sell signal. Tip Of The Day When evaluating penny stocks, other than fundamental and technical analysis, crowd psychology can play just as important of a roll. Think of a penny stock as a product that is being marketed to the public and how they are likely to react. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Tuesday, April 27, 2004 Good Morning, Earnings so far this quarter have not just been good, they have been great all around. The fact that most of the S&P 500 companies beat Wall Streets expectations is pretty good considering how optimistic the consensus has supposedly become. They have also amassed a large amount of cash. Terrorism fears, oil prices and interest rates appear to be on everyones mind. The markets were down yesterday and appear to be set for more losses. Mondays volume was quite low despite astonishing gains in a few health-care stocks and continued good earnings. Volume on the OTC BB, however was a little above average and a large percentage of the most heavily traded issues were up. If the major indices continue to pull back, we could see this rally in penny stocks continue. Our portfolio was unaffected yesterday and remained quite flat. We should see some money trickle down to our stocks over the net few days. Investors will come to the OTC BB where terrorism fears are not much of an issue, when they are waiting on the side lines for blue chips. XKEM has some good news this morning regarding there sickle cell disease treatment which has completed phase two of it's trials. Positive results including the safety of much higher doses and their expectation of FDA submission by year end should help this stock out a little bit. Timing could be key as yesterdays excitement from OSIP and IMCL could carry over. We are still looking for half profits above a dime and will buy more if we get into the $.02's. ATNG should rise again soon possibly from a press release. It is poised to move after Fridays rally and yesterdays action that showed plenty of buyers every time we broke below $.009. We are still looking for half profits at $.014 or so and will buy more at $.0069. NNCO continues to consolidate right around it's all time low of $.006. There is no reason for this other than the Market Maker's need for low priced shares. We will wait and see what happens but we plan to buy more if we break below $.005. Our current target for half profits is any where above $.012. SMTR has pulled back considerable and we will continue to watch for news and a possible pull back below a dime for more buys. Our profit target remains at $.20. USXP will react immediately to news as it is an old favorite among OTC BB traders. Just be ready to cut losses as soon as possible if bad news about their fight with the SEC comes out and be ready to buy back the next day depending on the news. On the other side of the coin, news of a victory or settlement will send us up fast. If this happens we will look for higher profits but for now we still expect to sell our entire position in the mid to high $.02's. We will buy more now if we go below a penny without any news. DNAP has established the strongest floor we have seen in a while at $.039. We are still waiting for a pop to the high $.04's to sell all of it. We will buy more if we get below $.025. WGFL has typically consolidated in the $.02's before slow climbs to $.04 or $.05. We will sit tight and buy more only if we go below $.02. Our target for half profits is set at a nickle. Tip Of The Day Remember that trading on the OTC BB is far from regulated and not to expect immediate fills when placing an order. Of course trading volume in a particular security will affect how fast your order is filled but overall there is no way to guarantee that an order will be filled. It is still worthwhile to feel out the market in between the ask and the bid. Even if you don't get filled you will at least get a glimpse into who is bullish and who is not. In lightly traded issues it is sometimes hard to get a fill, even at an ask or bid price. Just sit tight and wait, but don't leave the screen with an order in. The slow execution can be an advantage for us giving just enough time to pull an order out if things turn the other way. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Monday, April 26, 2004 Good Morning, The overall market remains in the same trading range that we have been in for the past several months. We have, however, made higher lows in most of the indices throughout this consolidation phase. If we do break out to new highs and continue this bull market, it needs to happen soon. We will be watching as many market measures as possible to try and forecast this by looking for small caps to go first along with technology. Small caps have led the way so far and there is no reason why they won't continue to lead. If investors continue to think that small caps are over valued, we may see the markets go other way, to new lows and a subsequent bear market. We are looking for the Russell 2000 to break above 610 and stay there. The AMEX should break above 1100 and we are looking for the S&P 600 to get above 295. Other indices to watch are Wilshire 5000 "total" market index, the Wilshire 4500, which is all the stocks in the 5000 minus the S&P 500, and the Wilshire Micro Cap index, which is the bottom half of the 5000 as identified my market cap. Unfortunately, none of these measures include OTC BB stocks. They claim that price data is not readily available on the OTC BB. We know better and think it's about time they consider real Micro Caps and how much they effect the overall market. If we do break out to new highs in the overall markets we should see our stocks follow. Once investors take new profits in blue chips, money will filter down to the OTC BB. SMTR continues to hold up well after buying at $.124. Part of its strength comes from the fact that it is not very diluted yet. Dilution has a direct effect on price and we will watch for any new shares to be issued. They are currently authorized for a few million shares, but their appears to be no reason to use them. We are still looking at $.20 to take half profits and will buy more below a dime. USXP has found new lows again and again and we are currently interested in dumping our entire position. As of now we are waiting for the high $.02's to do it. We will buy more if we break below a penny. Their current court battle with the SEC is just to risky to wait for and hopefully we can get out before anything else comes up. We still like the company and will consider coming back as soon it looks like the government is backing down. ATNG rallied on Friday afternoon and we look for it to continue today. This will probably pull back below a penny before it pushes up to our profit target around $.015. We will buy more if we get down to $.005. XKEM continues it's consolidation and we are looking for half profits if we break above $.09. We will buy more below $.025. NNCO is hovering around profitability for us and we will take half profits when we get above $.015. We will only buy more if we break below $.005. We are still looking to sell our entire position in DNAP any where above $.045 for a small profit. We will buy more if we break below $.03. WGFL remains lightly traded despite the news of enhanced marketing strategies including a reality style T.V. show. I guess we will have to wait for some revenues. We are currently interested in buying more around $.015 and will take half profits anywhere above a nickle. Tip Of The Day The best and only reliable way to determine an unlisted stocks number of shares outstanding is to call the company directly. All of their numbers are registered with the SEC and you can find them on their website. By simply making a phone call you can get the inside scoop on liquidity and float. Most traders in the penny stock world do not bother to do this and usually rely on outdated information. Knowing the float will help you determine how the stock will trade when heavy volume comes it's way. Enjoy Your Trading Day, Penny Stocks Daily |