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.

  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!!!

No comments:

Post a Comment

Who is Mr.Incredible?

My photo
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!!!