As the 'trading' environment continues to improve (both bearishly and bullishly), the penny stock realm is offering more and more ideas. Here are four tickers you may want to keep an eye on this week... two possibly-bullish names, and two possibly-bearish ones.
Gamma Pharmaceuticals Inc. (GMPM)There's not been any news since March for Gamma Pharmaceuticals, but we saw unusually high volume (accumulation) on Friday. Why? That's the question.... why? Somebody may know something. It's worth mentioning the company scored two very big orders in March. Perhaps there's another one around the corner.
An independent analyst team feels nutriceutical-maker Gamma Pharmaceuticals
management believes the company could generate
revenue of $31 million and net income of $1.5 million for
2009, revenue of $91 million with $17 million in net income
for 2010, and revenue over $160 million with more than $55
million in net income. Lofty goals. Reaching half of those figures would be impressive though.
This penny stock is trading at about 1/8 its value from early 2008.
Superlattice Power Inc. (SLAT)This stock jumped a tad in front of a couple of key recent announcements, one of which partnered the lithium-ion battery maker with a massive Federal Government project. However, this penny stock doesn't seem to have jumped enough.... both projects are huge for the little company. The problem is, the company has no current revenue... a legitimate worry fopr would-be investors. Given the future of batteries though, and the recently-forged partnerships, this is an interesting speculation.
Technically speaking, 70 cents seems to the the make-or-break level.
Norsat Intl, Inc. (NSATF)Note this chart is here because of its potential bearishness.
In short, we've seen huge distribution over the last six weeks. Four major days of selling accent what so far has only been a modest pullback, but the moving average lines that used to be supportive of an uptrend are now acting as resistance. If the recent low of 57 cents breaks down as support, this penny stock could be in real trouble.
The unfortunate part for the company, and the risky part part for anybody who opts to short NSATF, is that
last quarter's numbers (reported Thursday) were actually very good. The chart's just got the 'rollover' look though.
PolyMedix Inc. (PYMX)Another bearis possibility, primarily marked by a major wave of distribution on Friday. However, lots of resistance and a slow drift lower over the last three weeks are hardly encouraging.
It looks like there's some support around 68/69 cents, so we'll draw our line in the sane there. If they break down though, this looks like a great shorting candidate.
A potential catalyst for that event, ironically, is the company's recent adoption of a 'shareholder's right plan'. Though the intent of such a plan is billed as protection against a hostile takeover, all too often a takeover is what can create the best return. So far it looks like the market views the current rights plan as more of a burden than a blessing.
Ideas are great, but of you want to know when or if you should actually 'do' anything with these four penny stocks, sign up for the free Small Cap Network newsletter.
