Generex Biotechnology Corp. (GNBT)For the first time in years, this NASDAQ listed stock is starting to make higher highs and higher lows. That's good.
The downside to that (albeit a temporary one) is that the higher highs made today is the result of a 30% gain.... something we don't want to chase. So, if you're interested in getting into the longer-term uptrend, we suggest you wait for a short-term dip now that the buyers' cats have been let out of the bag.
Anyway....
Today's surge is mostly attributable to the announcement that Generex will be presenting at the upcoming American Diabetes Association's annual meeting. The company's Oral-lyn(tm) diabetes treatment - an oral medicine in Phase II trials - is expected to be the focal point of the presentation, as efficacy has been proven thus far.
A reason to buy the stock? Not really, but whatever.
If the resistance between $0.67 and $0.70 can be broken though, that might be a reason to step into this severely beaten-down penny stock. That's a big if though.
By the way, you don't have to worry about dilutive found-raising.... Generex just wrapped up a pretty big round of it a few days ago, and should be ok for cash for a while.
What to watch for: potential acquisition (though we think that's a long shot)
Syndication, Inc. (SYNJ)It's a pink sheet, and a non-filing one at that. So, our faith and trust doesn't go very far. The chart over the last few days, however, has peaked our short-term trading interest.
The volume was big on the way up last week, volume was light on the way down early this week, and it's pretty strong again behind today's move higher. More importantly, this sub-penny stock (and we do mean sub..... it's at $0.0006 right now) has started to test the waters above $0.0004 for the first time since February, when volume started to improve.
What's going on? We suspect the pumpers are doing most of the work here. That's ok though... maybe we can catch a free ride on their efforts. And who knows, maybe the pumpers will actually cause Syndication, Inc. to get the attention it actually deserves? We're not counting on it, but it's possible.
Anyway, the chart suggests a move higher is building. Extreme caution is advised though - it could be temporary strength.
By the way, just to make it clear, when you own SYNJ, what you're actually owning - mostly - is Pinnacle Energy.... an Alternative Energy company. The underground buzz is that news is coming on that front, but it can't be leaked in the least (famous last words, eh?).
There's also a chiropractic and spinal compression division, which is a strange bedfellow with an alternative energy company. The spine stuff seems quite secondary though.
What to possibly look for in the near future: government grant money for the bio-diesel business, a reverse merger.
Far East Energy Corp. (FEEC)Bulletin board-listed Far East Energy came out of nowhere and quickly made its presence known within the micro cap world. Well, actually the penny stock's current owners did that - the company hasn't done much in the way of PR.
No profits yet at the corporate level, though they're rumored to be around the corner.
The chart doesn't look like much today (or this week) either. Take a look at a long-term chart though. Clearly things are different now than they were toward the end of last year, or for the prior three years.
Will this penny stock actually follow through on its progress so far? A break above the ceiling of 40 cents would be a start, if not a requirement. And, the company absolutely must start, you know, MAKING MONEY, or at least provide plausible hope for revenue in the foreseeable future. They've been lacking in terms of relations so far, as we mentioned.
By the way, there's no real news behind the recent move higher, nor is there any even rumored to be on the way. That makes it tough for future potential buyers to take the plunge, hence our third and final mention that the company is doing next to nothing on the PR front.... which doesn't help the stock any.
Golden Dragon Holdings, Inc. (GDHI)Golden Dragon's volume has exploded over the last two days, and the stock has moved - in percentage terms - quite a bit as well. You just can't tell it, as GDHI is one of those sub-penny stocks with a chart that just looks odd, at best. Nevertheless, volume is what got our attention.
The move was prompted by a successful visit to the Fenavin Wine Fair, where apparently they hand out revenue to the attendees (just kidding). Actually, a few potential clients of GDHI's were at the fair, and steps were taken to win some more business for this Hing-Kong based importer/exporter.
Is that a reason to buy a penny stock? Not really, but a long string of encouraging press releases and a renewed interest from investors may be.
Our only issue is that this pink sheet company isn't filing quarterly statements with the SEC (not required to) - all we're seeing are press releases. Granted, we're seeing more activity (and liquidity) in 2009 than we've ever seen before, but there's no verification yet - the chart's all we've got. It has perked up though... just don't get married to this one yet. It's just a potential trade until the company proves results.
That's all for now, though check back tomorrow - we'll have more penny stock and small cap ideas then, and probably some updates on the penny stocks we've recently looked at.
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