Hump Day's Top Prospects: COIN, PEIX, and AMD Poked and Prodded

Feb 20, 2013 6:01:01 AM PST | 346 View(s) | No Comment(s) - Post a Comment Rating

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StockHQ:

AMD
$4.01 $0.00 0.00%
PEIX
$4.66 -$0.29 -5.86%
COIN
$0.00 $0.00 0.00%

If you're looking for some new trading ideas, then put Converted Organics Inc. (PINK:COIN), Advanced Micro Devices, Inc. (NYSE:AMD), and Pacific Ethanol Inc. (NASDAQ:PEIX) on your radar. All three have dropped subtlety bullish hints of late that they could become the market's next big winners.

If my name and Advanced Micro Devices, Inc. ring a bell together, it may be because I was patting the company on the back a week and a half ago. In simplest terms, the company is finally realizing that PCs are the past and mobile (phones and tablets) are the future, and is making the adjustment. That's not why I want to rekindle the bullish stance on AMD today though. No, today's reiteration has been preempted by some technical development of an uptrend.

Simply put, AMD has continued to make higher lows, and is close to making a higher high, extending a rally that began back in November. It's only been this week, however, that the 50-day average's cross above the 100-day average line has sealed the deal, and underscored it with a new uptick in bullish volume. Advanced Micro Devices shares were trading in the $8's early last year, so there's a ton of room to rebound.

You can slice it however you want, but no matter how you do, you can't get around the fact that Converted Organics Inc. shares are priced well below a penny, and the float is microscope; even the slightest breeze can push shares around, for better and worse. Yet, no one can deny that something else is going on with COIN right now... it's rallying on huge volume, with no end in sight. This is a case where "follow the crowd" may be good advice.

If you're looking for a clear reason (from the company) that COIN has woken up out of a long slumber and is rolling again, you won't find it. You will get a glimpse of the prod if you scour the message boards though. Converted Organics is presumed to be a beneficiary of hemp's/medical marijuana's gaining popularity now that it's becoming more legal (sort of). It's a loose link, though not a completely off-base one. It's not one you want to be the farm - organic or otherwise - on, however. And more immediately, though it's off and running, you may want to wait for a dip before stepping in.

Last but not least, Pacific Ethanol Inc. is finally over the hump... almost.

The big surge from PEIX in late January was suspicious. We'd seen those pops unfurl before to no avail, and with the stock still trading under its 200-day moving average line, the chart just didn't have enough evidence in its favor to suggest it was a safe buy again. As of Friday, however, we finally have just enough convincing proof that this rebound is for real.

How's that? Primarily, Pacific Ethanol has made some trades above that key 200-day moving average line (green). No, we've not seen a close above that mark yet, but we're seeing higher highs and higher lows; the PEIX bulls aren't backing down. You could wait until that first close above the 200-day moving average before stepping in, but that doesn't really offer any added security - it just gets you further behind the rally.

Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.