I can’t believe it’s been 2 months I haven’t written a single post. I’ve been so busy doing other projects and completely abandoned this blog. Good thing I now have a little bit of time to do some research and come up with an investment recommendation for you guys.

Ever heard of Puda Coal (Symbol: PUDC)? Let me pull what I found on Google Finance:

Puda Coul is a supplier of metallurgical coking coal to the industrial sector in the People’s Republic of China. The Company’s processed coking coal is primarily purchased by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. Puda cleans raw coking coal sourced from third-party coal mines primarily located in Liulin County, Shanxi Province, and markets the cleaned coking coal to coke and steel makers in Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing and Tianjin.

China is currently in needs of basic materials since they need to accommodate their fast population speed by building more housings, buildings, real estates, etc. China’s Puda Coal was rumored to be getting bought by China Shenhua Energy Co. of Beijing - the biggest Chinese coal company which produces approximately 170 million tons of coal a year from 21 mines and builds power plants. Not sure if that will ever happen (Frankly, I was hoping they would buy Puda Coal since it’s going to drive Puda Coal stock up through the roof).

Above it’s their stock performance in the past 3 months. I was trying to figure out why the stock was tanking; I had visited a lot forums, blogs, etc but nobody seems to know why it is going down. However, some people are still recommending to buy them because the price is now much cheaper (It is now traded at $0.95/share - went up by $0.12 today). I’ve looked at the demands and it seems like the demands started to pick up a few days ago. So I’m convinced they will most likely get back at $2 range sometime next month.

I might recommend you to get some while it’s cheap. But make sure you keep yourself aware of anything that’s going on with the company.

Quote of the Day:
In a market like this, every story is a positive one. Any news is good news. It’s pretty much taken for granted now that the market is going to go up. - Wall Street Journal article, 8/26/87

I found this article when I was doing my daily penny stock research. Thought I would post it since it’ll be usefull for those who are new in penny stock world.

Penny Stock Investing and Trading
If you ask anyone in the finance world what they think about investing or trading penny stocks, the answer that you will probably get will be: “Don’t do it. You will lose your money since 90% of penny stock companies are scams. penny stock companies just want to sell shares and are not interested in developing their businesses.” The truth is that investing or trading penny stocks is a very risky business. So here is the most important tip about penny stocks: Invest only money that you can afford to lose.

If penny stocks are so risky then, why do people invest in or trade them?
The answer is because you can make a lot of money in a short time if you know what you are doing.

If you are still reading and have decided that you want to trade penny stocks, you need the right tools and good advice to help you survive and even win some money.

Step # 1 - Finding the Right Penny Stock to Buy

To discover the right one stock, you will have to do some investigation, or Due Diligence. There are a lot of websites that will help you with your DD and you can find a list of useful ones at www.stocks-reporter.com.

The following points will guide you in learning important information about a company in which you are interested in investing:

1. Share structure: AS (Shares Authorized) and OS (Outstanding Stock and Float)
2. Transfer agent transparency
3. SEC filing
4. Financial track record
5. Competitive position in its industry
6. Business model
7. Earnings power
8. Valuation or the potential value of the company

For example, when looking into share structure what you want to see is that there is no dilution. A good sign is when the company has maximized the OS and is close to AS. Watching Level 2 will also give you good indication if there is any dilution from the company. A good strategy is to follow insiders who know the company better than anyone else.

Step # 2 - Deciding When to Buy

After finding the penny stock that you plan to buy, you have to find your entry point and how to execute it the right way. Following the trading in that particular stock for a few days together with chart analyzing will give you a lot of valuable information. At this point it is highly recommended for anyone to learn some basic chart reading or at least let others analyze the chart for you. You can ask for help on many of the popular message boards that discuss stock trading and chart analyzing. An important tip about how to execute the trade in a penny stock is: Be very patient and always try to buy at the BID price.

Step # 3 - When to Sell or The Exit Strategy

The exit strategy is something very personal to different traders or investors.
It is very important to implement your strategy immediately after executing the buy order. In most cases, a good idea would be to set a sell order of 50% of your position at around 20%-30% PPS spike. Another 10%-20% rise of PPS and then sell another 50% of your current position and let the rest ride for a while. In general, your exit strategy should be very flexible and change with news, momentum, and volume. 90% of the time, though, you should sell at the ASK so it won’t affect the run.

TIP: Remember always to take profits.

Source: http://www.bestsyndication.com

Quote of the Day:
The IPO market is never in equilibrium. It’s either too hot or too cold. Buy in the cold periods. - Jay Ritter

I finally had time to sit down and write my first posting since my last one (July 19th). I was busy launching my new online business, and it really took a lot of my time since I had to deal with designers and customers.

Anyways, sorry to digress, let’s go back to the subject at hand. For the past 6 months, I’ve been adding a lot of stocks to my watch list and watching how they performed. Some have performed well than I had expected, others weren’t doing so well. One of them that has been doing so well is Actuate Corporation (Symbol: ACTU).

Actuate Corporation is a company that provides software and services for business intelligence, performance management, and reporting applications. Their products enable their clients to develop applications that optimize corporate performance. All of their applications are built on their open source-based platform, providing all stakeholders inside and outside the firewall, including employees, customers, partners, and citizens with information that they can access and understand to make decisions.

Above is their stock performance in the past 6 months. As you can see, they started somewhere around $5/share and finally made its way up to $6.94/share. Their net income also went up from $11.59 million (2005) to $13.80 million (2006). It’s a great little stock, inexpensive, and judging from their income statement, the company has been doing pretty well.

Quote of the Day:
The entire financial industry exists to sell product. If you don’t understand this basic maxim, you’ll be misled time after time. - Timothy Vick

After thinking about it for some time, I’ve finally decided to close my E-trade account and switch to Scottrade. Why? Cheaper commission trade, of course. E-trade charges $13/trade, whereas Scottrade only charges $7/trade. YES, it’s only $7/trade. Gosh, why didn’t I switch to them sooner?!

I’m currently in the middle of looking into this one particular stock that I can wait to share with you guys. It’s traded less than $10/share and yesterday, they went up by $3.30. Pretty good, right?

Anyways, I should be done with my research in a couple of days; and as soon as I’m done, I’m going to write here as much as I know about this stock.

Quote of the Day:
Don’t learn the tricks of the trade. Learn the trade. - Anonymous

Chemokine Therapeutics (Symbol: CHKT) is a product-focused biotechnology company that develops drugs that harness the therapeutic potential of stem cells through chemokine pathways.

Chemokines are a new class of cytokines, proteins which signal biological responses from stem cells that play a critical role in the growth, differentiation, and also maturation of cells necessary for fighting infection, as well as tissue repair and regeneration.

Stem cells are the master primitive cells that give rise to all of the cells and organs in the body. Chemokines are one of the major mediators of stem cell activity including stem cell growth, differentiation and maturation.

Being the leader in research in this field, the company currently has five products with two lead product candidates in clinical trials; CTCE-0214, for enhancing the immune system, and CTCE-9908, to prevent the spread of cancer and its continued growth.

Their main goal is to identify and develop multiple drug candidates for the treatment of cancer, blood disorders, cardiovascular and infectious disease.

Their recent press release states they had successfully reduced primary tumor growth in preclinical models of breast cancer with the treatment of the company’s CHCR4 antagonist and CTCE-9908.

In one study the investigators showed that mice treated with CTCE-9908 had statistically significant reduction of the primary tumor size compared to the control mice over time. At the 5-week and 6-week time points the mice treated with CTCE-9908 had an 86% decrease and 80% decrease in primary tumor growth compared to the control mice, respectively. In a second study, treatment with CTCE-9908 also demonstrated a statistically significant reduction in the rate of metastasis compared to the control group. At the 5-week and 6-week time points, the mice treated with CTCE-9908 had an 89% reduction and 95% reduction in metastatic tumor burden compared to the control mice, respectively.

Isn’t it exciting? Of course, at this moment they’re still far from their goal of creating a super drug that cures cancer. But it’s still pretty encouraging to see their recent experiment has turned out to be a tremendous success. For only 7 cents/share, this stock is definitely a bargain!

Quote of the Day:
My favorite time frame for holding a stock is forever. - Warren Buffett