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!!!

1 comment:

  1. I have been following CALI from its FIDM reverse. It has proven to have great numbers and growth even in the worst of times. They did their reverse November 2008!! I am looking forward to their numbers Aug 15th or so!!


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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!!!