Nov

12

Making Cents in Penny Stocks

Filed Under Other | 1 Comment 

I found this article below on fool.com which I thought it was worth to read if you’d like to know more about penny stocks in Clean Energy industry.

Making Cents in Penny Stocks

The occasional shower of pennies from heaven might do our bank accounts some good, but we Fools can’t say the same for penny stocks. The world of penny stocks is often full of manipulation and deceit, making it harder for investors to separate its few good offerings from the multitude best ignored.

Still, many investors dabble at the low end of the stock-price spectrum. At Motley Fool CAPS, we award the “Pennies” title to investors who rate stocks trading in the single digits more than half the time. Believe it or not, you’ll find some of the best CAPS All-Stars among those members.

Pinching pennies
This week, we’ll look at some of the low-priced investments these All-Stars have praised. If some of the best investors regularly scanning this end of the market have singled out these companies, we might want to turn our umbrellas upside-down — or run for cover!

Here’s the latest list of low-priced stocks with All-Star support:

Company

Price*

CAPS Rating (out of 5 max)

CAPS Member

Member Rating

Clean Energy Fuels (Nasdaq: CLNE)

$6.24

****

goldminingXpert

99.99
Harmonic (Nasdaq: HLIT)

$6.68

****

vanamonde

99.94
US Airways (NYSE: LCC)

$9.94

*

Tankota

99.83
StealthGas (Nasdaq: GASS)

$7.41

****

Toprope101

99.64
Discovery Labs (Nasdaq: DSCO)

$1.77

**

zzlangerhans

99.26

*Price when the outperform call was made.

Your two cents’ worth
It certainly helps that one of the factors pressuring the airline industry — namely, oil prices — has been in full retreat recently. That’s given carriers like US Airways some breathing room. With capacity cuts eliminating excess seats in a down economy and Delta (NYSE: DAL) getting the go-ahead to buy Northwest Airlines, there’s a superficial notion that the industry may turn itself around.

CAPS All-Star rexlove thinks it’s a temporary situation as the recession continues to eat away at spending.

Airline stocks doing unusually good recently. Sure-oil prices are down-but now we have a recession going on. All business and personal travel has to be down big time.

Politics plays a large role in where investors stand on Clean Energy Fuels, the T. Boone Pickens company pushing natural-gas cars — half of the billionaire’s plan to wean this country off its foreign fuel dependence. Yet natural gas prices are declining and producers like Devon Energy (NYSE: DVN) have been feeling the effects. Nor did it help anyone that Californians defeated a proposition, almost fully paid for by Clean Energy Fuels, that would have offered rebates for the purchase of natural gas-burning vehicles.

CAPS member fmahnke sees Clean Energy Fuels as a good long-term investment.

Great long-term investment has finally dropped to reasonable level after the failure of CA [proposition] 10. Natural Gas Power vehicles could be a bargaining chip for current administration to pump cash into the BIG 3. Strong balance sheet. This would be a good idea even if [House Speaker Nancy] Pelosi wasn’t a …  large shareholder as the Natural Gas play on alternative energy is [the] lost logical path to reducing [foreign oil dependence].

Riding the bear is All-Star member georgialax, who says the company is solely relying on greater government involvement.

If you are betting on this company you are making a bet on “big government”. [Clean Energy Fuels] can’t turn a profit without massive government handouts, land grabs, and regulations. Look at the contracts that the company has gotten so far. By and large they are all government contracts. What does this mean? Well it means that if you are a business with a big heart and limitless funds you can invest in Natural Gas vehicles. Only government (which doesn’t have to worry about [profits]) can buy into something that has no economic return value. There has been no value for private companies to buy into the technology because it doesn’t increase financial returns. The public is in no mood for any new company government subsidies at a time that oil is plummeting and the new technologies are unproven.

You can read the full pitch against Clean Energy Fuels on its CAPS page.

Make some change
What do you think? Should we fill up the change jar with these penny stocks, or ignore ‘em like a discarded coin on the street? It pays to start your own research on these stocks on Motley Fool CAPS. Read a company’s financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made — all from a stock’s CAPS page.

Quote of the Day:
I look for businesses in which I think I can predict what they’re going to look like in ten to fifteen years time. Take Wrigley’s chewing gum. I don’t think the internet is going to change how people chew gum. – Warren Buffett

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Dec

4

Puda Coal

Filed Under Energy | 4 Comments 

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

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Oct

24

Penny Stock Investing and Trading

Filed Under Other | Leave a Comment 

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

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Aug

29

Actuate Corporation

Filed Under Software & Programming | Leave a Comment 

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

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Jul

19

Scottrade

Filed Under Other | 8 Comments 

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

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