| Back Issues Pages are sorted with the latest issue at the top. March 1-5, 2004 |
| Penny Stocks Daily Friday, March 5, 2004 Good Morning, This week we have become lightly invested in seven different stocks and still have a significant portion in cash. We will have to have a little Patience with this kind of portfolio and will probably do some reshuffling next week. We have had as much as 50% in one stock before and it panned out pretty well. We have also had as little as 5% cash and as much as 75%. Right now we are ready for any curve ball the market throws at us. Historically we have had the best gains when our portfolio was lopsided one way or another but incurred losses in this situation as well. When our portfolio has been spread out like it is now, we have had smaller gains, but it has been a much safer strategy. We will undoubtedly be lopsided again if and when the markets make that decision for us. Our job is to go with the flow and to have plenty of opportunities available at all times. We feel that by being invested in many issues during dull times, we have the best chance for a 10 bagger. If you find yourself running out of options, then get some more. We did not purchase any ATNG yesterday as it never got to our condition. We are ready to buy today at $.0075 with a little more (7%) of our portfolio than we originally thought. Right now ATNG represents 6% of our portfolio and we are in at $.013. DNAP is still our largest holding at 15%. We are in at a nickle and are ready to buy more at $.029. These two stocks (ATNG and DNAP) are currently our only real losers but are still fundamentally sound with great prospects. The lower they go the better right now. We bought XKEM on Wednesday at $.097 and are looking for more at a nickle. XKEM represents 8% of our capital right now and we are selling at around $.20. There have been no new updates from them since late last month. USXP now represents 13% of our portfolio after buying another 5% chunk on Wednesday. Our average price is now $.06 and we see $.058 as a bottom. We will, however buy more in the fours if we get there. We bought PLKC last week at $.059 and it now represents 8% of our money. We are looking at the fours for a possible buy and the teens for a sell. They updated this week on their GPS tracking device and plan to start commercial marketing in about a month. GLBT has been bought twice by us and our current average is $.057. It sits at 13% of capital and we would like more at $.035. We think $.09 on the upside is reasonable for half profits and will wait. ADVR represents 13% of our equity and we are expecting more good news soon about their Cancer and AIDS treatment drugs. Our current average is $.141 and we will buy more if it breaks $.12. Our cash position is at 24% and we have no new buys planned until we do a little reshuffling. We are keeping an eye on BICO to drop in the teens as well as USGA to break $.50. NNCO is a possible turn around play we are watching similar to ATNG. We also find BNKUZ interesting and are monitoring for a buy. This is a litigation tracker trading on the NASDAQ and has had an element of predictability to it. Over all our portfolio was down a good 5% from last Thursday afternoon primarily due to our loss in AFRR, and DNAP and ATNG being down. Tip Of The Day Try not to incorporate commissions when figuring your portfolio. This will allow you to be more open minded about trading. Think of trading cost's as an expense that must be taken out of earnings. Put away $100 or so a month for this and do not incorporate it into your account. Not selling or buying something because you couldn't get an extra penny to cover your commission is unacceptable. Think of it as a monthly bill that you are going to have to pay no matter what. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Thursday, March 4, 2004 Good Morning, Trading has been heavier every day this week in the penny stock world while volume in the major markets was down. Take a look at a one year chart of the S&P 500. Notice how the major pullbacks in early August, October and December all correspond with light trading in the NASDAQ and the NYSE. What is interesting is that the OTC BB had record breaking volume during these times as well as tons of issues rising 1000% or more in a day or two. Now look at the time period from June 16, 2003 to August 6, 2003 and compare it to the current time period starting January 23, 2004. Could the next bottom be in a week or two? We don't know, but we do know that penny's saw excessive action as the major indices approached their pullback lows in this bull market. The markets have unsuccessfully tested their highs three times which typically means they have to go below their last two dips. This combined with increased trading this week leads us to believe that the next few weeks will be chaotic ones. We feel that by having a broad portfolio we stand a better chance of getting some nice gains in at least one security. Traders that have just taken profits in blue chips are going elsewhere. Some are going into bonds and cash, others into dividend paying stocks and a few are going into micro caps. We bought some Xechem International Inc (XKEM) yesterday at $.097 which we were quite happy with. The ask dropped as low as $.056 and we entered as soon as it went up from there. We used 7% of our account equity and see $.09 as a bottom because of it's previous successful test there and the recent tendencies of other biopharmaceutical companies at this level. This is one of those stocks that will need very bad news to go into the low single digits. We look to take half profits at $.20 and will buy more if we reach a nickle. Yesterday we also bought a little more USXP with 4% of our money at $.058 which was our condition. The bid was at $.0575 and the ask at $.059, but the tape was showing nothing but $.0575 and $.058 which was the real market. Don't be afraid to offer $.0581 or $.0582 in this situation for a seemingly guaranteed execution. When we are talking about less than a few dollars in your overall portfolio, use a little common sense when it comes to conditions. In this example, any more than $.0582 would have been unacceptable. We did not have the opportunity to buy more PLKC at a nickle as it never broke $.055. This stock went on a little bit of a rollercoaster ride yesterday showing how small of a float it has. The news of moving into a beta testing phase for their cool GPS tracking device was nothing new or unexpected. The only change was the hint of an earlier than expected commercial launch of the product by saying the first half of April instead of just April. We like where this is and are not looking to buy anymore until we hit $.03. We will take some profits at a dime and currently plan to hold through the commercial release of this product unless something changes. We still have 25% of our portfolio in cash and are looking to beef up a couple of our components today. We have revised ATNG's next buy point down to $.0075 because we feel that if we do break a penny it will go to around there. we will use 5% of our equity at this price and are leaving the window open for 4% at $.008 or 3% at $.009 instead, giving us a lower risk option for strengthening our position in ATNG. We would like to hold this, or at least part of it, until the middle of the next quarter to see if there short term profitability projections pan out. DNAP and GLBT are slowly approaching more buy levels. For this reason we are moving our buy conditions lower as they go and will pounce on them when the time is right. These more conservative buy conditions are $.029 for DNAP and $.035 for GLBT. Both of these will have lower profit targets at well, around $.065 and $.09 respectively. We have been talking about BICO and had a buy condition in yesterday at $.22. Since we spent some cash on other things, we do not plan on buying this today and we will keep our eyes on it. Volume should continue to weaken as this trickles down and we are thinking about the teens for a possible buy next week. Our new issue to discuss today is our old friend US Global Nanospace Inc (USGA), which gave us a small profit last year. We feel that this has come down to more reasonable levels and are looking at around $.50 for a bottom. This is a development stage company that just recently earned some money, apparently enough for traders to make a 20 bagger out of it. Nanotechnology is a faintly understood technology for most people but recent advertising campaigns from big companies like HP have shed some light on investors. USGA was at the right place at the right time. Tip Of The Day The best way to judge liquidity in micro caps is to have a huge watch list with as many stocks under, say, $.25 as you can get. There are usually two to three thousand stocks on the OTC BB that trade at this level on any given day. Never get rid of symbols on your list even if they get into the dollars. Micro caps trade so infrequently that you can fit a ton of them on a watch list without using a lot of bandwidth and therefore have less interruption in quotations. Once you have a ton of stocks, or even all the stocks in the OTC BB, line them up according to dollar volume or trades per day. If you watch this volume for a couple of months and try to pay close attention to the top 25 or so, you will begin to be able to judge overall market activity easily. Watch where everyone goes throughout the day, including Market Makers, and you will begin to realize how small of a market this really is. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Wednesday, March 3, 2004 Good Morning, Every investment requires careful consideration. Never jump in to a stock simply for technical reasons. We look at charts first to determine good possible bottoms, then screen out the obvious losers with fundamental analysis. The remaining few are ready to buy as long as they don't go up in price. Remember that for a good technical buy it has to be at the price your imagining on the chart. If the spread is to big wait for the ask to work its way down. It will usually get closer on the second half of a U shaped bottom. Ignore charts of stocks that have been finding new bottoms consistently for the past six months or more. Look for charts that have made a clear bottom and are on their way up. Avoid fundamental disasters like the ceasing of operations, closure of many branches, inability to find financing and extreme dilution of common shares. Find companies that have plenty of cash or financing to continue as a going concern for at least a year. Always be critical of press releases and take them only on the facts. Although finding companies that are turning around and on their way up is relatively easy, using money management and having the patience to wait for a better price is not. Think of yourself as an arbitrage trader that finds the best prospects with the furthest fall from their high and exploits the most extreme examples. The bad news on AMAF was the ceasing of operations and closure of most of their lending offices. They also said they may have to shut it's doors permanently. It appears that after the low interest rate mortgage boom in June, they couldn't keep anything going and their refinancing activities fizzled out. That leaves us out and time to speculate on some other issues. We now have almost 36% of our capital in cash from our sale of AFRR yesterday. This is high and it's useless to sit on that much cash. We have a new issue to buy tomorrow with 7% leaving us with plenty to average down if any of our other issues drop far enough. Xechem International Inc (XKEM) is a biopharmaceutical company that is involved with R&D and some production of a wide variety of drugs. The also do laboratory testing of household products and pharmaceuticals. Like ADVR, XKEM is engaged in anticancer and antiAIDS initiatives, the difference is that they derive all of their compounds naturally. Their balance sheet can be overlooked a little because they are a development stage company. This has a float of twenty six and a half million, only 2% insider's and no institutional ownership so it has plenty of room to grow. The previous low of $.09 has held up well so we are looking to buy any where under $.10. We're looking for this to break back into the twenties and would buy more around $.06. Right now there's a few MM's grouping up around $.09 so we will be patient and try to get closer to that price. XKEM hit $.092 yesterday so it may not be done with the nines. We will buy tomorrow as long as we don't have to pay more than $.10. ATNG is tempting to break a penny again and we are ready to pounce. If we can get $.009 easily we will take it with 5% more of our equity. We think that $.01 is the magic number for this thing right now and are looking to take half profits above $.02. USXP and PLKC are both forming W style bottoms and we will use a small 4% chunk of our portfolio for both if we can get PLKC for $.05 or USXP for $.058. DNAP is another possible buy today in the $.03's but not likely. Bio-one Corp (BICO) agreed to acquire a 51% stake in another Chinese herbal medicine company yesterday. This further expands their Chinese presence and they expect more to come. We would now like to buy at $.22 with about 5% of our capital. As you can see we expect to spend some cash today one way or another. ADVR looks good to take half profits over $.20 soon and we will buy more under $.14. GLBT is still in the break even area, we look to buy more in the $.03's and are looking to sell above a dime. Both of these remain sources of cash if need be. We are looking to exit some positions in the next week or two and will wait for the best opportunity. Tip Of The Day When looking at charts of OTC BB stocks be sure to use an appropriate time frame. Stocks that were very lightly traded for a long time and suddenly came to life only need to be view from the time volume came in. Always look at at least a few months worth of data and look at your own needs and expectations. Although it is important to know the entire history of a stock, if you have short time horizons, look at shorter charts for important trade decisions. Trying to pick a low on a monthly chart can take a long time to pan out. Daily charts are the best way to go. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Tuesday, March 2, 2004 Good Morning, Volume finally came back to the penny world today and its about time. Several issues traded over a thousand times and we saw a couple of new faces in the 500 trades per day area. The overall market was strong yesterday and the current bull market has become predictable. This is usually a sign that the predictability will go away. We are watching for a possible triple top if the major induces do not break above their recent highs. A slight correction could be in the works. We will wait for the Russell 2000 to reach 615 to bring our confidence back. Most of the stocks in our portfolio trickled down a little yesterday while the broader market climbed. This could bring traders to us tomorrow so be ready to take half profits from anything that doubles. We have gone a long time without a nice pop in anything, but like where we're at. We are, however, looking at some other companies. Amstar Financial Services Inc (AMAF) tanked today and we have yet to find a good reason. They are in the mortgage lending business and they originate and process loans through financial institutions or individual investors. They are also in the reverse mortgage business for Senior citizens which has been growing. A lot of babyboomers are retiring and they generate a significant portion of these loans in Florida. They have had increasing revenues and decreasing net loss's. Their balance sheet shows a penny a share in cash and a book value of $.14. We are not going to buy tomorrow because their's bound to be some news that we haven't seen yet. $.04 seems to good to be true and we will get to the bottom of this even if we have to call the company directly. If it's not anything to bad we will be ready to buy on Wednesday. AFRR is gone today no matter what. The bid really broke down yesterday and the earlier we get out the better. Go ahead and try for $.0011 but if its not happening just make a clean break at $.001. We have learned a few things from AFRR. The lower the price, the higher the risk and therefore the less money that should be invested. This stock was way to diluted and we are happy to have the extra cash to work with. Bio-one Corp (BICO) came down a little bit yesterday and we are ready to buy some if it breaks below twenty cents. This has been a fast mover and it may require quick decision making. Lets start by buying if and only if it breaks $.20 and we will hone in a little more tomorrow. Sometimes the best price can be found shortly after the rally as it may never come back to that low. ATNG is still a buy under a penny if we ever get there. The news yesterday was simply a reiteration of old news and we think they could have done without it. DNAP is still our largest holding and we will sell half of it over $.05. GLBT, PLKC, and USXP are drifting lower but are no where close to new buys. ADVR is looking strong so we have a buy at $.12 that may change upward this week. A few other issues that we will discuss more this week include XKEM, BNKUZ, NNCO, and USGA. Tip Of The Day When stocks sell off on heavy volume for no apparent reason, never assume that it's a good time to buy. Wait for news because sometimes events can happen that are public, but are not reported for a day or two. This happens a lot on the OTC BB. One example would be if a judgment was reached in court instantly becoming public knowledge but not instantly released on the news wire. Most news from these companies are internal press releases any way and are rarely from an outside source. Remember that any huge fundamental change will be reported to the SEC and available to you. Big sell offs can also be the result of related news such as mortgage rates or new laws. It could also simply be a technical sell off. Never act right away in these situations because when the news does come out, the first sell off was just the tip of the iceberg. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Monday, March 1, 2004 Good Morning, The Russell 2000 almost hit our 565 support area last week but bounced at 566. It has now climbed back to its 25 day moving average at around 585. We are still looking to break 600 to start the next rally to about 615. We will keep it in mind for possible decision support in some of our more heavily traded issues this week. The ultimate decision maker however is the price of our stocks and how they stack up in our portfolio. Each stock's current percentage of your portfolio is important to track day to day. If one gets to high for any reason we readjust into something that represents a lower percentage of our capital or into cash. This ensures that we buy on the way down and sell on the way up. Last week we talked about buying Bio-one Corp (BICO) if it broke twenty cents. This company has been acquiring nutritional supplement companies left and right lately and we wanted to wait for it to cool off a little. Their balance sheet looks solid and they are buying these companies mostly with cash. The big news is that they are now able to broaden to an international level, including China's enormous population. The profitability of these products is somewhere in the 200% range. BICO touched $.23 on Thursday and didn't get out of control when the China news came out, showing that it's already been played out. We are again following this closely because it could be getting cheap. We plan on buying if we break $.20 with about 7% of our capital. We would like to dispose of American Fire Retardant Corp (AFRR) shortly. Lets give it one more day to try to sell at $.0013 and of course at $.001 if we get down to two MM's on the bid. Remember to not hesitate and fire as soon as the third to last Market maker leaves. If you know that your system tends to be slow then make it the fourth to last. We will probably sell on Tuesday no matter what so anything better than $.001 would be helpful. We have pretty much written this thing off at that price so anything extra would be a small bonus. No news has come out lately and the rest of our positions have been solid so we haven't been able to buy more. We are still looking to buy more ATNG below a penny, GLBT below 4 cents, PLKC around $.03, ADVR at $.12, USXP in the $.04's and DNAP at $.03. DNAP is currently our largest holding and will look to lower our position as soon as we get back up above a nickel. Other than that just keep an eye out for any horrible news and watch BICO for a possible buy in the teens. We will be exploring some other issues this week and will be constantly readjusting our buy and sell points. Tip Of The Day Most speculators read up to the minute news and trade immediately. We prefer to wait and watch the predictable pattern take its course. When it comes to news, less is better. We love companies that tell you everything you need to know in SEC reports rather than tons of press releases. The longer a stock goes without news the more likely it will respond when important developments become available. Keep in mind that the news itself is not making the stock move, it's the possibility of more good news that really makes them jump. Enjoy Your Trading Day, Penny Stocks Daily |