Tuesday, July 28, 2009

LCRD - Huge Potential Ahead

First congrats to those who are still holding or who booked profits on UTA, HGRD, and IFON...It looks like there is still more room for those 3 picks...

Coming to our new pick LCRD, LaserCard Corporation, through its subsidiaries, provides secure ID solutions to government and commercial clients worldwide. Here is the remaining description. They just had a nice 1st quarter with earnings of 0.16/share. If you do the math, the fair value of the stock should be $9.60 (0.16 EPS * 4 Qs * throw a P/E of 15 = $9.60) but it closed at $7.10 on 07/28 with a 39% gain from its pre-earnings day, 07/27. It has a tiny float with decent amount of cash. LaserCard recently got some large scale contracts from Italy and Angola and countries like India and her neighbors are also in the planning phase to implement Biometrics to solve the national ID issues, read the article. There is no guarantee that LCRD will get those contracts but it will surely create interest in the investment community to start speculating with such low float stocks, which will run the stock price to much higher levels than what it is at right now.

Positives:
  1. LCRD traded with heavy volume today (more than 26 times of its 3 month average volume)
  2. Shorts might have already entered it, which is good. The more they try to pound the stock down the better the buying opportunity. Short squeeze will obviously happen at some point of time.
  3. Improved cash position (LaserCard Corporation’s cash, cash equivalents, and investments were $39.6 million at June 30, 2009 compared with $29.3 million at March 31, 2009. Debt at June 30, 2009 totaled $9.1 million compared with $8.9 million at March 31, 2009.)
  4. Technical indicators like MACD (10 and 50), RSI, 3 day price break and CVAD and other key indicators are also Bullish.
  5. IBD Composite rating of 99. Number 10 on the IBD value picks under $10
Bottomline - I would wait for a pull back and add some at around $6 and take some profits when it hits $11 or above.

Other picks - It is worth adding HSTM, which looks like another breakout Bull. It closed at $3.25 and my target is $6.

Disclosure - I do not own shares of either LCRD or HSTM as of yesterday's close, 07/28.

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Friday, July 17, 2009

CNU - Steady Growth

I just found a primary care physician services company, Continucare (CNU) based in Florida. I first looked at it as a breakout play but after looking at its past earnings and other market conditions, CNU looks like a growth story. I did not have enough time to drill into the details but just had a glance at its IBD numbers, which look great (93 Composite rating) and other techinicals like MACDs and RSI look bullish for CNU, which closed at $2.90 yesterday, 07/16. It is worth adding to your watch list and buying on dips (between$2.50 and $3.00). The stock price might not have crazy fluctuations but will reflect its company's growth which is really steady...My short term target is $5.00

Here are CNU's Key Stats and recent earnings

Disclosure - I do not own CNU shares as of yesterday's close, 07/16.

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Sunday, July 12, 2009

DPW is getting noticed!

The credit goes to one of the DPW Yahoo message board member for finding it! Click on the link below.

DPW on 21st Century Business Program. It is starting to get noticed by all types of players and IMHO, it will grow substantially if the management keep up their good work. My short term target is $5 but will re-evaluate it when it hits the target. For those who are not aware of 21st Century Business TV, here is the link.

Disclosure - I am neither long nor short DPW as of last Friday close, 07/10.

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Monday, July 6, 2009

Chinese Auto Sales Up!

This is the only good news I see in the pre-market, read it.

"Analysts expect China's auto sales to top 10 million vehicles this year, and an industry group, the China Passenger Car Association, is forecasting sales in excess of 11 million units."

That is definitely good for CALI. "The Company also is the originator and operator of the most widely accessed subscription-based website in China's luxury imported auto trade www.at188.com and recently created and launched the industry transforming website www.1365car.com . The latter site provides real-time, accurate trading information on all domestically manufactured autos matching buyers with dealers in a subscription based format. The Company's e-commerce business is fueled by a strong first mover advantage in the domestic auto space, and continued growth of its market leading luxury import vehicle site. It plans to quickly expand its web business to six new cities in the near future, and its vision is to continue to build China's only national website for domestic and import car buyers"

Disclosure - I am long CALI and took a small position at $4 last Thursday, 07-02 right at the closing!

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Thursday, July 2, 2009

HGRD - Value Pick and CALI - Speculative Pick

Health Grades Inc (HGRD) Health Grades, Inc. provides proprietary objective healthcare provider ratings and advisory services in the United States. Its ratings address hospitals, nursing homes, and home health agencies. The company offers healthcare information, including information relating to quality of service, as well as profile information on physicians that enables clients to measure, assess, enhance, and market healthcare quality. Remaining Info.

Why Buy? - Basically two reasons.

1. Recent Earnings and decent numbers

2. Technical Breakout - HGRD formed a base above its 50 DMA of $3.65 for a little while and is showed some signs of new breakouts recently. It hit $4.49 with heavy volume (3.9 million shares), 52 Week high on 06/26 when it joined Russell 3000 Index and I think this is when stocks usually get noticed by many market participants. It then pulled back to high $3s but it is still continued its upward trend. Worth reading

3. Number 5 on IBD Value Stocks under $10 with Smart Select Composite Rating of 99
HGRD has been in the motion for the past few weeks (ranging between $3.25 and $4.00) and I think it will tend to stay in motion. If the trend continues, we will see it hitting $5.50 - $6 soon!
Action to be taken – Add to your watchlist and Buy under $4

Disclosure – As of 07/01/09 I do not have positions in HGRD.

CALI – China Auto Logistics Inc. One of China's leading importers of luxury automobiles, a top provider of one stop automobile logistics services and dealer financing and operator of three of China's leading automobile-related websites, announced today that the Company's common stock has been approved for listing on The NASDAQ Capital Market ("NASDAQ"). The stock will commence trading at the open tomorrow, Tuesday, June 30, 2009, with a new trading symbol: CALI.Just moved from OTCBB, read more.

Here are their 1st Quarter earnings. Everything looks good except CEO’s comment (depends on how you take it) “we anticipate a steady decrease in the growth rate of our auto sales, as we concentrate on profitability as opposed to unit sales. Our greatest strides will occur as we further expand our websites, which not only will generate revenues and profits from subscriptions and online ads, but increasingly from new web-based services for auto dealers and consumers. Each new website we open, if sufficiently attractive in terms of up to date information and ease of use, creates multiple channels for new sources of revenue growth which in total could become quite explosive."

Bottomline – I think CALI’s business will be okay as long as Chinese economy does really well and people spend on expensive cars. As per CALI’s website it has a tiny float of 6.4 million shares and it closed at $4.00 on 07/01. Not many people knew about this new comer!

Buy or Don’t Buy? – This will be speculative stock, which could give high returns to the risk takers provided it gets noticed by MMs and other big guys!

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Wednesday, July 1, 2009

TPI is showing signs of reversal - Buy

TPI was already alerted on 06/22 when it was trading at $2.65, read it. It was recently added to Russell Microcap(R) index and the stock price just crossed $3 and looks like it is going to have another breakout here. Here are TPI's key stats. I think it is worth adding to your buy list.

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Who is Mr.Incredible?

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New Jersey, United States
Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!