| Back Issues Pages are sorted with the latest issue at the top. March 8-12, 2004 |
| Penny Stocks Daily Friday, March 12, 2004 Good Morning, The NASDAQ had a nice rally going yesterday until it came out that Al-Queda might be responsible for the bombing in Spain. For this reason we do not believe the market technicians that expect further declines based on yesterdays chart. They are calling for 1850 on the NASDAQ because it corresponds with it's 200 day moving average and another support level. We feel that we have found a bottom and are not pretending the terrorist bombing didn't take place. This just shows the importance of technical analysis coupled with fundamentals. In fact, yesterdays activity prior to the attack showed great promise for a turnaround. We think that the QQQ has found a bottom and the spike up will be even bigger and faster now because of yesterdays irrational decline. The S&P and Russell 2000 remain in a near term consolidation range and have not violated there recent lows. The futures are up this morning and today could be a good day for our cash. We have 26.5% of our portfolio invested in the QQQ at 35.42 and are treating it like a savings account. We also have 8% of our money in pure cash. Planetlink Communications (PLKC) broke into our profit area yesterday and we sold half of our position at $.105. We are holding the rest for half profits at $.15 and the rest above $.20. We are initiating a trailing stop loss at $.10 and will keep it two and a half cents below the high once we break $.15. Echostar basically caved into Viacoms demands, however their subscriber increases were very promising. They may have to restate some 2001 and 2002 financial statements to actually reflect more earnings, only a few million. This was because of bad smart cards that were meant to stop hackers but didn't work. We bought this at $.059, sold half at $.105 and the remaining shares currently encompass 8% of our portfolio. ATNG Inc (ATNG) remains at the lower end of our spectrum. We have bought twice to an average of a penny. It currently represents12.4% of our portfolio and we will buy more if we break $.005. Profit targets for this extend into the upper $.02's. Still waiting for revenues. Advanced Viral Research (ADVR) is looking great and we are in at $14.1. It now represents 12.8% of our capital. We will take half profits above $.20 and are not looking to buy more currently, in fact would like to put a stop loss in at $.15. We bought XKEM last week at $.097 and it now represents 6.8% of our portfolio. Profit targets remain at $.20 and we are prepared to buy more at $.05. We are waiting for some more research results. USXP has broken down a little more than we thought but are still looking to buy below $.04 and sell above $.08. We are in at $.06 with 11.3 % of our equity currently. DNAP is also within range. We are averaged to a nickle and will hold for $.075 on the upside and will buy more below $.03. DNAP currently represents 14.2% of our portfolio. We dumped GLBT this week at a stop loss level of a nickle after having averaged to $.057. We plan on using our current 85 cash level to buy NNCO if we can get it under a penny. We will also buy BICO if it goes below $.18. Thats it for the Friday review, our portfolio is up 2% overall since last Thursday afternoon. Tip Of The Day Todays tip is simply to not trust technical analysis without looking at the facts. Try looking at past charts and see what the news did to the stock price. This will help you clear up your crystal ball a little bit. Look for price drops due to unrelated bad news for great buying opportunities. Enjoy Your Trading Day Penny Stocks Daily |
| Penny Stocks Daily Thursday, March 11, 2004 Good Morning, Ever wonder how an OTC BB stock can trade 500 times one day and 50 the next. In this tiny universe stories are played out very quickly and everyone involved demands instant gratification. Here stocks can go from a 52 week low to a 52 week high and back again in a day. Look for issues that are slowly moving up the ladder of trades per day but have not quite hit 500. These are the ones that will continue to add buyers and slowly move up. Stocks that suddenly hit a 1000 trades per day and are up 100% are typically a flash in the pan. Look for companies with an interesting story to tell that will cause scrutiny and interest in the stock price. Securities that are on your daily gainer list are there because one interesting story came out. These securities will live a short life without anything of longterm value that will keep Market Makers paying higher prices. This is why we see the same stocks on the daily loser list the next day. Slowly gaining momentum stocks are few and far between in the penny stock world so when you find one don't expect it to last. ATNG Inc (ATNG) may be turning around and should be reporting some long awaited earnings sometime soon. This stock has settled down a lot from it's recent highs, however, it never got to out of hand volume wise. This is acting exactly like it has the last few pullback bottoms and we think we are there again. We are averaged to a penny and are looking for the high $.02's to start taking profits. We will buy more if this thing breaks $.005. We dumped Globalnet Corp (GLBT) yesterday after we broke down to less than two MM's on the bid at $.05. This was our mental stop loss that we had talked about and it was executed perfectly. Then we put most of our cash into the QQQ as a bank account for the time being. The cash level of our portfolio was as low as 17% after buying more ATNG, but the sale of GLBT brought us back to around 30%. GLBT remains very interesting, we just had to get rid of something and we are not opposed to coming back, even at a higher price. We put 25% into QQQ at $35.42, leaving 5% in cash and expect a near term bottom today followed by a steep rally. Planetlink Communications (PLKC) is being closely tied with Echostar's Dish Network lately because a third of PLKC's business is directly related to the sale ad service of their satellite products. Echostar and Viacom reached a deal today that will bring CBS and other cable stations back which have been suspended for three days. The beauty of PLKC is that they represent such a small number of their total subscribers and any publicity will help them. At this point with Dish Network adding tons of new subscribers, even bad news will be good for PLKC. We are now waiting for Echostar to come out with earnings which are being delayed due to an SEC accounting issue. We would like to take half profits at a dime and again at every nickle increment. We will talk later about a possible trailing stop loss to protect some of our profits. For now we will see how this plays out. DNAPrint Genomics (DNAP) has remained in a trading range that we feel very comfortable with. We are looking for it to break out of the $.04's in either direction to make our next move. Universal Express (USXP) is in the same boat. We are looking to get out of the $.04, $.05, $.06 range to make another trade. Both of these are only down slightly and news has been scarce of late. Patience will be the key to success here. ADVR and XKEM will certainly rise again. We are positioning ourselves in these two stocks that we fell offer the best chance of success for ground breaking terminal disease discovery's. There are a lot of great people involved with these companies as well as plenty of private investors. We are waiting for Profits will above 20 cents in both of these issues. ADVR is our favorite and currently represents 13% of our portfolio. We now have plenty of cash that is tied up in the NASDAQ and are watching a bunch of issues for possible buys and expect to add to some of our current positions. We are watching and researching the following stocks that we find interesting, NNCO, BICO, USGA, BNKUZ, IBZT, GLBT, ADOT, CIRT. Tip Of The Day Level two action before the bell can be misleading. Market makers will test out the waters and find out what reactions will occur for certain actions. Watch for a stock to seemingly be bid up all morning to fall as soon as the bell rings. Don't think that MM's are putting tons of cash on the line and are overly concerned with risk. 5000 shares is nothing in there world and they can pull out in a heartbeat. Market Maker firms set aside a tiny percentage of there capital for these stocks and usually get the best returns from them. Enjoy Your Trading Day, Penny Stocks Daily |
Good Morning, The major indices's have lost some ground and we expect a bottom today or tomorrow. In fact we have done this before and we would like to throw our cash into the NASDAQ. The OTC BB has remained strong and we fell we can sit tight through this market ripple and not be affected. We will take all of our cash except for 5% and buy the QQQ. This will be a great place for our cash to earn a little bit and the price we pay is not as important as our other stocks. We will do this sometime today no matter what and are looking for anything below $36. There is limited risk in this investment as we can use a stop loss at any level, the only problem relates to cash accounts. They will not have there money available for three days after they sell the QQQ or anything. This is not a big deal, we think, considering the opportunity in the QQQ. We probably won't stay here very long. Don't consider this a trade, consider it as a deposit of our cash into an interest bearing savings account of sorts. We bought some more ATNG yesterday with 7% of our portfolio at $.0088. We are happy to have brought our average to a penny and will allow this to settle and wait for volume to come back. We do not expect this to go much lower and will buy more at around $.005. This is a very boring stock and any news at this point we think will perk it back up. Yesterdays news from Echostar regarding the removal of Viacoms programing from their satellite service Dish Network over all is excellent for PLKC. Although Dish network only reflects a third of what PLKC sells, the possible improvement of their bottom line and termination of future rate hikes will far outweigh any lost subscribers in the next few days. They are reportedly close to a new deal and expect service to be restored very shortly. We will take half profits today at a dime if posible and will look later in the week for a possible trailing stop loss initiation to protect our profits. We are not doing this today because we would like to see if negotiations come to a close. We again missed BICO after waiting for it to break $.20 and they announced a 30 million dollar equity commitment. We will still keep an eye on it but don't expect it to come back anytime soon. NNCO continues to pull back nicely and we still plan to buy some if we get to a penny. With our cash going into the QQQ, we are forcing ourselves to wait and our next move will have to be a sale of something. BNKUZ and USGA remain on our focus list. DNAP seems to have found a base and we are holding steady. USXP is down but not out. ADVR has pulled back slightly and we are interested in how low it goes from here. GLBT and XKEM have remained, for the most part, unchanged. Tip Of The Day When purchasing high priced Large Caps or Depository Receipts such as the QQQ, we are buying a very small amount of shares. Because of this, it is o.k. to look at ECN's. This is the only time they may be of some benefit. There fees are very small when ordering 100 shares or less and depending on the price they offer may save you a few bucks. Never enter an order on the market open, but don't be to concerned with price here. The market may mull around these same levels for a couple of days. This will give you a chance to trade a big stock and see how little impact you have on it. This is a level 2 screen that is dominated by ECN's thanks to the AMEX's archaic practices. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Tuesday, March 9, 2004 Good Morning, Large caps continued their decline yesterday and we see a possible near term pullback low later in the week. Small caps have remained very close to their highs and are threatening to buck the trend. Trading lightened up on Friday in the OTC BB as to be expected, but came back strong yesterday. With any luck volume and prices will increase throughout the week in penny stocks and we can take some profits. The S&P 600 small cap index has been making new highs all year while the major markets have had no new gains since early February. The AMEX Composite Index, in fact, was up yesterday and appears to have found it's bottom at the previous high of two and a half weeks ago. Wall Street is talking about high valuations as usual and a few are fleeing to a world where high evaluations are the norm. We don't know if the DOW will make new highs or turn to a consolidation period, but we foresee a rally in micro caps this week and next. Profits could be taken back to the blue chips quickly so watch for these short term inverse relationships to unfold. We are becoming increasingly concerned with GLBT because of doubts about their short term prospects in the phone card market. One thing that is keeping this alive is it's new VoIP service in Latin America. They have teamed up with a major cable operator and are providing advanced telecommunications services to subscribers as we speak. Their first month saw almost 1500 new subscribers and profit margins above 100%. The particular service provider reaches 1.7 million people and over 100 thousand broadband users. This coupled with the fact that they are a presence in over 200 countries makes the future prospects of this product look promising. Our problem is a short term technical issue, and we feel that if it breaks a nickle, it will most certainly fall further. Our stop loss of $.05 yesterday came very close to one MM left but didn't quite make it. This is one of those cases where we may as well dump it all here and wait for something lower, like in the $.03's. We are still looking to sell if we approach $.07 or if our manual stop loss triggers at $.05. XKEM is holding up well around a dime and their highly specialized neuromuscular drugs are making steady progress. The recent acquisition of Ceptor Inc, a privately held company, gives them a lot more drugs to work with. These drugs prevent skeletal muscle from degrading and have shown positive results for muscular dystrophy, multiple sclerosis, epilepsy and many other nerve and muscle wasting diseases. We are watching XKEM closely to see if it breaks below $.09 and are not looking to buy more until $.05. Half profits at $.20 is our first target at this point. USXP is a larger company than most at these prices and is a strong hold right now. Although we broke below our floor of $.058 we are keeping it because we do not think that it has much further to fall. With a 470 million share float, and a beta over four this stock does not stay in one place for too long. Percentage increments are small so we are looking for profits at $.075. They currently have more cash than debt so we will buy more at $.044. ATNG is still approaching our buy level at $.0089 or below. Volume has slowed to it's lowest levels in a while and is in a prime state to take advantage of some real news of revenues. This stock is currently our worst performer being in at $.013. We would buy a third time at $.006, but think that those levels are long gone. ATNG is in the process of forming a nice bottom and we are looking for profits in the high $.02 range. Be ready to move fast as this will almost certainly spike quickly if it is bid up. ADVR and PLKC remain strong and we look to take profits at $.20 and $.10 respectively. DNAP remains above four cents and is our largest holding. We are waiting on some more news and will buy more at $.029. We will take half profits at $.08 and will hold for a possible sale in the teens. We are still watching NNCO, USGA, BNKUZ, and BICO. We have no buys planed today but are looking at certain price points to help in the decision making process. We will continue to scope other companies that meet our criteria. $.011 for NNCO, $.50 for USGA, $.11 for BNKUZ, and $.19 for BICO are all possible entry points. The longer we wait the more likely we are to shake out the extra dollars into our pocket. Tip Of The Day One important tool that is often overlooked is the company website. Where else can you obtain a clear and informed understanding of what they actually do. This is the chance for the company to sell themselves to the public. You can also find descriptions of management with credentials and sometimes their latest conference call. Whether the site is robust or a work in progress, it will give you a clue as to how seriously they take their business. Most of the issues we follow have websites. Enjoy Your Trading Day, Penny Stocks Daily |
| Penny Stocks Daily Monday, March 8, 2004 Good Morning, Never assume that everyone knows everything. In fact the opposite is almost always true. A small amount of due diligence will certainly put you ahead of the curve. Anyone following Health South could have seen the problems and imminent crash coming. When the news of accounting fraud came, investors dumped as if they had no idea that Richard Scrushy was crooked. After a few months traders discovered that the company was still fundamentally sound and began bidding it up. Now it trades around the same levels as it did before the crash. A little savvy investing could have yielded a 10,000% profit in less than a year from 3 cents to 3 bucks. This has happened to many companies like UAL and shows what Wall Street thinks of the OTC BB and Pink Sheet markets. Most investors will sell in this market and never come back. We typically steer clear of giant bankruptcies and delisted Mega Caps for this reason. ATNG finally fell below a penny but bounced back quickly. We are still being patient and will buy today if we break $.009 again. Anything below that is a buy including $.0089 and we plan to use another 7% of our portfolio. Although we question their second quarter profitability targets, we do feel that a turnaround is underway thanks to five strategic partnerships and decreased legal exposure. PLKC has looked good so far after buying at $.057. We are looking for half profits above a dime and expect a quick move when it happens. With a tiny float and a recognizable name in Dish Network, this stock has a unique stability factor. Their new product to be marketed in about a month seems like a winner. It is a GPS tracking device that allows users to monitor movement on a map right over the Internet. Dish network is cheaper than Directv and is giving three room setups for free. People that are unable to get broadband in their area only have two options for high speed Internet, Directway, and Dish networks satellite web service. Both are expensive but Dish network is cheaper and people are starting to come around. DNAP has not had any updates on their DNA testing services that help law enforcement catch criminals based on ancestral profiles in a few weeks. We are waiting for something before making a move. We are in at a nickle and will only buy more under $.03. Our profit target for this is $.075 because of the large float and dull history. ADVR and ZKEM are two development stage pharmaceutical companies that develop treatments for AIDS and Cancer as well as other life threatening illnesses. ADVR is more traditional and ZKEM uses all natural derivatives. Recent patents for ADVR's AIDS therapy in China and the U.S. make ZKEM the more speculative buy. We will sell ADVR over $.20 and buy more in the low teens. ZKEM has a more liberal profit target because we are setting up for a possible bombshell story like a patent or promising clinical results. We will buy more at a nickle. USXP trades more like a big boat giving us a conservative target of $.08 having bought at $.062 and $.058. They have become a small conglomerate of shipping companies and are well positioned to continue acquiring more. We see $.058 as a base and are waiting for a significant break below this to buy more, maybe in the $.04's. GLBT has not had any updates from their new president and we are in at $.057 after a couple of buys. We are looking to dump all of this soon and will sell today if we approach seven. We are losing hope in the calling card industry and think this was bid up simply as some kind of Iraq play. We currently have no plans to buy more and have a virtual stop loss in at a nickle and will sell if there is only one Market Maker left on the $.05 bid. BICO has not broken $.20 yet and we look to put 5-6 % of our portfolio in if it does to start. They may be fast emerging as an international conglomerate of the biopharmaceutical niche market. NNCO is attempting a turnaround and is focusing on its consulting business in the energy markets. We have been watching this for a while and have seen a lot of million dollar deals in the works lately. The price has come down nicely and is in the low range of its recent activity. Volume has come in over the past few months but still remains light. We are looking to use a 6% chunk of our capital to buy no higher than $.01 or $.011. USGA and BNKUZ remain on our back burners for now. Tip Of The Day Wall street says stocks that are moving down will continue to move down and stocks that are moving up will continue to move up. Fortunately we know that stocks that are moving up are overpriced and stocks that are moving down are cheap. Stocks with improving fundamentals and decreasing price are the best buys. When a stock falls into new low territory, expect it to continue down as investors continue to dump expecting lower prices to come. This explains why good news doesn't move these stocks and our open mindedness gives us a distinct advantage. Only after a stock has broken into new highs will investors come back, our goal is to be several steps ahead and with a broad portfolio we stand a better chance. Enjoy Your Trading Day Penny Stocks Daily |