Here are a few hot stocks that popped on my scanner this morning. They all have few things in common..1. Excellent numbers 2. Low float 3. Bullish Chart and other criteria that I normally look for XRSC, LOAN, KTEC, AFOP, VRTA, VRTB, EAC, CRV
XRSC - We have been recommending this stock since $1.50 for couple months now and it hit $2.49 a 52 week high this week on heavy volume and closed at $2.05 today. It could take couple days rest around this area as the previous resistance will be its new support. But eventually this is going to TRIPLE in 2013. Short term PT is $3.50
Watch this short video clip for technical analysis on XRSC.
Other news about XRSC - XRS Named Finalist in 2013 CTIA E-Tech - Click here
LOAN - Manhattan Bridge Capital, Inc offers short-term, secured, and nonbanking loans to real estate investors to fund their acquisition and construction of properties in the New York Metropolitan area. Its loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the businesses. The company offers its loans primarily through the companys officers and independent loan brokers.
Why Buy Now? - LOAN had a revenue of $534,000 compared to $392,000 in the previous year, a 36.2% growth in in the recent quarter. It had Positive net income, positive operating cash flow and an operating margin of 43.29% which is 87.16% higher than that of the Financial Sector and 712.2% higher than that of the industry.
Net income for the three month period ended March 31, 2013 was $0.04 per basic and diluted share (based on 4.283 million shares and 4.296 million shares, respectively), so on an yearly basis the EPS would be .16 and if you throw a PE of 20 then the stock should be trading at $3.20
Takeover Bid. LOAN received a takeover offer from Capstone Equities LLC and G Asset Management of $1.30 a share, or $5.62 million, but the offer was considered to be "ridiculously low" by the company. The bid is about 50% of Manhattan Bridge Capital's book value. So considering current market conditions, I do not think the management will sell their business under $5/share.
Here is the best part: LOAN has 4.2 million outstanding shares and just 1.6 million shares in float !!! Also notice that the short interest has dropped from 3.6K shares last month to 690 shares as of this month. It tells that those who shorted covered their short position predicting a sharp raise in the stock price. http://finance.yahoo.com/q/ks?s=LOAN+Key+Statistics
Also from a Tech standpoint LOAN chart is in super Bull mode: It is above its 50, 200 DMA and 4 EMA with RSI above 79. It has strong trend line support with 1.60 (downside) and hit 52 week high of 1.74 before closing at 1.67 today. Once it breaks the previous highs I think stock will go parabolic...$3 is my short term price target.
KTEC - The Company reported net earnings for the quarter of $2.1 million, or $0.38 per diluted share, compared to a net loss of $726,000, or $0.13 per diluted share, in the same period a year ago. Based on these number the stock should be trading at $22.80 but closed at 14.40. Downside is $13, Upside is $25 if and when it gets market attention.
AFOP - We alerted this stock at $13.50 on Twitter and through emails. The company raised its guidance this morning and the stock jumped to $20.40 before closing at 19.90. PT $25
VRTA and VRTB - REIT mortgage finance..low float..very speculative...hit 52 week high. I scalped them for few cents...holding some more..
EAC - Old pick. giving another opportunity to enter. Steal anywhere between 22 and 25. Upside $40-50
LONG: XRSC, LOAN, VRTA, VRTB, EAC
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!!!