| Back Issues Pages are sorted with the latest issue at the top. March 15-19, 2004 |
| Penny Stocks Daily Friday, March 19, 2004 Good Morning, It's been almost five years since the late ninety's stock and Internet boom. Most of the major indices lost some 50% of there value since the bust and have now gained 50% of those losses back. Meanwhile bond yields have been moving lower for the past couple decades since their ridiculously high levels in the early eighties. So how could the stock market move up while bond prices are moving up too. The typical investor has a certain amount of money in bonds and stocks and should adjust those levels as the market becomes historically overbought or oversold. The market has defied logic over the past decade because of retail investors and day traders. These are mom and pop investors who buy stocks and have no idea what bonds are. We theorize that with the new savvy day trader coupled with the prudent investor that is over weighted in bonds will lead the markets to new highs within the next year or so. In other words if you don't have any money in bonds at the moment, your probably better off waiting for the S&P to find a new high before pulling money out of stocks. And now our weekly review. DNAP is our largest holding at the moment besides our position in QQQ. We have 15.2% of our money invested and are currently averaged to a nickle. We are looking for $.029 to buy more and $.075 to take half profits. USXP is our next biggest holding at 11.7% of our portfolio. We have a cost basis of $.06 and are looking to buy more in the low $.04's. Our profit target is around $.08. We are averaged to a penny in ATNG and have 11.4% of our capital invested. We will still buy more if we can get it for $.006 and are looking for a nice profit around $.03. XKEM currently represents 7.3% of our money and we bought it once at $.097. We are looking to double our money and would like more at around a nickle. We bought NNCO once right at a penny and expect high returns. We have a profit target of around $.03 and will buy more if it approaches half a cent. NNCO currently represents 6.5% of our portfolio. SMTR is at 5.8% of our portfolio and we bought it once at $.124. We are looking for high teens as a profit taking are and will consider buying more once we break through a dime. We sold all of our stake in ADVR this week at $.165 after being averaged to $.141. We also took the rest of our profits in PLKC at a dime after purchasing it at $.059. Our current cash position is quite robust including 27.1% of our money in QQQ which is available anytime for withdrawal so to speak. We also have 15% of our money in strait cash. This leaves the door open to beef up some of our current positions. We are just waiting for the right price and will probably buy some new issues next week. Our portfolio was down by one half of one percent since last Thursday afternoon. Our quarterly update will come out in a couple of Fridays and is a much better gage of our investments. Tip Of The Day Step back every now and then to look at very long term charts and data of the stock market. Look at historical valuation levels incorporating earnings and dividends. This will give you an advantage over the average day trader and give you a road map for your long term goals. Although there is no useful or unbiased index for the OTC BB, one can formulate a historical bird eye view of tiny stocks using other indices. Look at the AMEX to start and then mentally blend it into the NASDAQ of the seventies. Then blend into the Russell 2000. Try and find historical micro cap valuations and compare them to the stocks you are watching. Look at stocks that have grown from penny stocks to large caps and vi-ca versa. This will help you gain perspective into the current bull market. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Thursday, March 18, 2004 Good Morning, The markets rallied yesterday and look to open on the mixed side today. As long as we finish up today or tomorrow we see no reason to think the market isn't on it's way back up. An up week would look good for the charts and will bring more buyers for next week. Most professional traders wait for conformation before trading and miss the first 5% or so. They do this because there is to much risk involved in picking bottoms with huge amounts of capital and it's harder to explain to their customers. Retail day traders have the advantage of being a relatively small fish in a large pond. Hopefully they are playing with money they can afford to lose and should be doing nothing but trying to pick bottoms. All of the stocks we are in have had light volume and are recent sells have left us over weighted with boring stocks. We don't look to get rid of anything at the moment but we are keeping it in mind for the next few stocks we zero in on. The problem with OTC BB stocks is that heavy trading usually brings heavy price movement and we must buy when the storms have settled and price action is boring and drawn out. DNAP perked up a little yesterday and we still to get more at $.049. Our profit target is around $.075 for the moment. USXP is pinned right around a nickle and we are waiting for $.044 to buy more and are looking for $.08 to sell. XKEM will be bought again at $.05 and we look to the $.20's to take profits. ATNG continues to sell off as MM's are loading back up. We expect a pop before to long. We will buy more at $.0055 and are waiting for the high $.02's to take half profits. SMTR is holding in the $.12's where we bought it and are looking for more at $.09. We would like to say that we got the bottom of NNCO at a penny and will continue up from there but we don't know. We will buy more at $.006 and have profit targets in the $.03's. Tip Of The Day Don't be afraid to get away from the screen once in a while if lightly traded issues bore you. Anything else you can do will be more productive like reading a paper or researching. Coming home to a stock that is down 20% or more is simply another buying opportunity. With a diverse portfolio such as ours devastating news in one security will not be devastating to our bottom line at all. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Wednesday, March 17, 2004 Good Morning, The market turned sideways again yesterday and volume continued to decline in the OTC BB. We will continue to hold our position in the QQQ unless the NASDAQ approaches 1900. The Russel 2000 broke below 565 but closed above it. This recent decline fortunately has not met heavy trading so it still appears to be a bull market pullback. Everything has been affected by the recent profit taking including our portfolio. Traders have been waiting patiently for a sign and nobody wants to go out on a limb. Consolidation is good here, what we don't want to see is heavy volume coming back on the down side. This would be over two billion shares traded on the NASDAQ and a 1-2% decline. If this occurs today we will dump our stock in QQQ and be prepared to lower our cost average for some of our OTC BB holdings. We were able to buy some NNCO yesterday at $.01 with 6% of our total capital. This is trading so lightly at the moment that any big investor that comes in will have a profound effect. Our next buy point is at $.006 and we are looking for it to climb above $.03. We also bought some SMTR at$.124 with 6% of our capital. The reason we are not making any huge bets is with most of the cash portion of our portfolio invested in the QQQ, we don't want to over extend ourselves in case the market goes sideways for a week or two. We will buy SMTR again if it breaks a dime and are looking at $.20 cent to begin profit taking. We got rid of all of our position in ADVR yesterday at $.165 early like we said and earned a 17% profit on that portion of our money. We usually look for larger profits but when we hold a stock for that long and it appears to have found such a solid ceiling as ADVR did at $.17, we feel it's best to take profits and wait for a pullback. We won't go broke by taking profits and we always consider selling stocks that are up slightly for us and have been there for a while. We must find a happy medium between shifting our money constantly and patiently holding on for more gains. We are always more apt to hold a stock that is down, contrary to convectional wisdom. Where we sell a stock is much more important than where we buy it. ATNG and XKEM continue to consolidate in the low 8's. These two issues are very lightly traded as well and we normally don't like having such boring stocks in our portfolio. The exception made for these stocks including NNCO involved the consistancy of their trading. They may not be gangbusters but they trade everyday and all three of them have seen huge volume in the recent past but appear to be overlooked at the moment. DNAP continues slowly down but appears to be following the overall market. We would love to get more DNAP at $.029 considering it is our largest holding right now. In the past our biggest positions have yielded the biggest profits, as long as they have been solid companies. We think that DNAP fits the bill. USXP had some O.K. news but not what we were looking for. We will continue to hold and look to get more in the low $.04's. Our profit target on this is quite conservative at $.075. Tip Of The Day No matter how hard it seems try to act inversely to your emotions. Right now should be an enjoyable time to pick bottoms as most investor turn their tails and run. Everyone that ever made a dime in the markets has bought when everyone else was selling. This can't be done blindly, however, use this time to be more selective. If you can't seem to turn your frown upside down then step back and do nothing. This will almost certainly be better than dumping all of your stocks and watching them rise back up as most investor do. This is one of Wall Streets only good sayings, buy when there's blood on the streets. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Tuesday, March 16, 2004 Good Morning, Light trading returned to the OTC BB yesterday as investors were left undecided about the current bull market. Traders are sitting on the side lines with cash waiting to jump into which ever market decides to make up it's mind first. The Russell 2000 small cap index has held up well and remains close to it's highs. This could be a sign that higher risk stocks may be the first to rebound. We have been watching 600 on the upside and 565 on the down side for it to break into new territory and lead the markets. We got very close to this level today and are ready to sell our stake in QQQ on Wednesday if the Russell 2000 closes below 560. We are also watching the Ishares Russel 2000 Growth ETF to break and close below $60. If both of these occur we fell that the overall markets will follow, especially the NASDAQ. If this is the case we will need the cash to get in on some great deals in the OTC BB towards the end of the week. We are, however, extremely bullish on the NASDAQ at this moment. Fears of al Qaeda mat be reversed by IBM's good news yesterday. Today we will find out once and for all if new lows are upon us, or if a bottom has been found. We did not buy any NNCO yesterday and in fact never put in an order because the bid didn't break down. This company is possibly engaged in a turn around we still plan to buy at a penny or below even if their president quit. We wouldn't mind getting in to see what the new director of the company has to say in the next week. They are establishing business relationships fast and have lots of promising deals in motion. We are particularly interested in their $150 million standby letter of credit to purchase raw materials, crude and petrochemicals. NNCO is currently involved in ten consulting and capitalization projects. We will fire our limit order at $.01 if we see Market Makers begin to back away from the inside bid. Normally we would only leave an order in for a few seconds but with lightly traded issues like this, don't be afraid to be more patient. Sometimes we will even put an order in below the bid and sit on it all day. Our profit target for this stock is quite robust at the moment reaching into the $.03's. We will be using 6% of our capital for this venture. We will be dumping the rest of our ADVR shares this morning and are only hoping to get more than $.161 for them. Our average stands at $.141 and we are happy to take the profit. We think that their AIDS and Cancer fighting drug patents in the U.S. and China are very promising for a huge market and future earnings. The only problem is that it appears to be a slow train to revenues and this thing needs to cool off a little bit before it goes back up again. The MM's appear to be stretched at the moment and will be looking to pick up some cheap shares. ADVR will have to retrace significantly before it can rebound and we will look to come back in at around a dime. We plan to sell early because we have possible multiple buys scheduled for today and will need the cash. The other issue we plan to buy today is Smartire Systems (SMTR). We have no particular time frame or price to help guide, but we will definitely buy before the close of trading today. They make tire monitoring systems for the transportation industry and appear to have a growing business model. This company was in the spotlight not to long ago and has fallen considerably while it's fundamentals have improved. They have increasing institutional interest, a solid balance sheet and improving earnings and profit margins. Our first target for this is in the high teens and we think anything below $.13 today would be a great place to start. Yesterdays heavy volume and final pullback was just the signal we were looking for to get on board. 6% of our portfolio will be used on this security as well. Keep in mind that this is a definite buy and NNCO is only a buy at a penny or below. XKEM is now our only biopharmaceutical company left with the exception of ATNG's Blue Kiwi division. Both of these stocks seem to have an adoration of the high single digits at the moment. XKEM does not want to break $.08 and ATNG has similar qualms with $.008. We will buy more after one of these breaks these levels and have a profit target of the high teens for XKEM and the high $.02's for ATNG. Both of these issues have been trading lightly and with tiny floats be prepared for a quick profit taking if we do get a pop. DNAP barely violated $.04 today and we are content to hold and see if we can't buy more at $.029 which was the previous low. Our profit target is around $.075 and we are not selling any now because we are not convinced that it will continue lower. As we saw with PLKC, using generic price targets that are rounded to nickels and dimes will cut into your profits. We have learned to use more realistic targets because level II action will sometimes pierce support areas just long enough for the quickest and wisest to get cheap shares. We have no problems with USXP and it continues to tickle our break even zone. We plan on buying more in the $.04's and have a profit target of $.08 for the moment. We will try and zero in on this throughout the week and are still waiting on some news. Some stocks that we have sold recently that we are watching for new buys are PLKC, ADVR, GLBT and IBZT. We will keep them on our focus list and see which one comes down the fastest and remains fundamentally sound. Some other issues that we are scoping include USGA, BICO, CIRT, IVOC and APBH. Tip Of The Day Partial fills can be a frustrating part of trying to manage your own stock portfolio. The worst part is to see only 5000 shares of a much larger order being filled and watch the stock run away on you. If this happens do not pull the rest of you order and chase it. That is exactly what they want you to do. Sit tight and wait for it to come back down. If it doesn't you've still made a profit and if it does you get that price again with no extra commission. Try not to be to concerned about the extra cost, however, if the stock appears to be weaker than when you bought it. Be prepared to pull your order if you see the price barreling down quicker than the last time. Then you'll be happy you only got 5000 shares on your first try. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Monday, March 15, 2004 Good Morning, The markets continued their rally on Friday that started before the terrorist attacks on Thursday. We seem to have found a nice bottom and are ready to take advantage of any steep gains in the NASDAQ over the next few days to a week or two. We put most of the cash portion of our portfolio into the QQQ at around 35.42. This was on Wednesday, one day before the low and would love to get 40 for it. We are not, however to concerned with where it goes as we are using it as a money market fund for our cash. We can take it out at any time, but right now we have a significant portion of pure cash as well. All of this money means its time to beef up some of our current positions and be ready to add some new ones. We could see some good buying opportunities as the Large caps rally and some volume comes out of the OTC BB. We expect tiny stocks to continue their current gains, just not over the next few days. We are positioned very well to take advantage of what we see coming with 12% of our money in straight cash and another 27% in the QQQ that is ready to use. We sold the rest of our position in Planetlink Communications (PLKC) at a dime on Friday as the bid broke down. This was our stop loss and emotionless trading allowed us to get out safely. We were in originally at $.059 and sold half at $.105 and the rest at $.10. This was a terrific profit and we will not be upset if it rallies further. We think the Echostar deal has been more than played out and their latest partnership venture reported this morning has absolutely no effect on PLKC. We are still very interested in buying again at around $.05 or $.06. This is only if we get to these levels before the commercial launch of their new GPS service that allows users to track whatever it is their tracking right over the Internet. This is slated for April so we will see what happens over the next few weeks. ADVR has been pinned at $.17 for over a week now and being in at $.141, would be a reasonable profit. Lets give it a few days but I think we are ready to sell and buy something else possibly later this week. It appears that it will take another patent or similar news to move this and we have already been invested for quite some time. For now we will sell if we ever get near $.20 and are not looking to buy any more. XKEM seems to be holding up well in the high single digits. We bought at $.097 and are looking for high teens. We are expecting some good news regarding CepTor's multiple sclerosis drug that they recently acquired. We would like profits in the high teens and are looking to buy more at a nickle. DNAP has had a very strong base at $.04 and we are sitting tight here, looking for it to break $.04 or $.05 to make our next move. We are in at a nickle and are very impressed with their ancestral DNA analysis that has already helped law enforcement catch violent criminals. Were still looking for profits at $.075 and will buy more at $.029. USXP remains break even for us at this point and we are happy to hold on for a while. We have a cost basis of $.06 after two relatively close buys and are now looking for more if we break $.05 again. We have not heard anything out of this mini conglomerate of shipping companies and expect something soon. Profit targets on this are conservative at around $.08. ATNG remains our biggest concern at the moment since it is is down and has not shown signs of life for a while. We continue to hold and are looking only for big profits. We are averaged to a penny and currently have no plans for further buys at these levels. We will keep a close eye on it and adjust our plans throughout the week. We have one buy scheduled for today, Nannaco Inc (NNCO) if and only if we can get a penny for it. This issue has a small float and even smaller volume. This is the kind of stock you buy and the forget about for a while. Our profit target will be around $.03 and we would buy more at a half a cent. This company is in the capitalization and consulting business just like ATNG and trades just like it. They are currently in a turn around phase that looks promising. We will use about 6% of our portfolio. Tip Of The Day Todays tip is to watch for ECN's in the OTC BB. There are a few after The SEC allowed them in a couple of years ago. They are still far from prevalent and are interesting to watch. You will notice them denoted buy the symbols GNET or TRAC to name a couple on the level II. They provide more liquidity at a time and only on one side of the board. They tend to stick out like a sore thumb and can be an obvious foreshadowing of prices to come. Watch for large ECN bids when the stock is rising and see them switch over to the other side right as the stock hits it's high. Right now they are not bothersome and in fact are fun to watch. We will have to see how big they get over the next few years. Enjoy Your Trading Day, Penny Stocks Daily |