If it seems you're seeing a little too much strength from shares of Baywood International Inc. (BAYW), NavStar Technologies Inc. (NVSR), and Superlattice Power, Inc. (SLAT) today, you're
not crazy - each of these stocks has been heavily promoted within the last 24 hours. There's nothing inherently wrong with publicizing a stock's merits.... as long as it has some. Sometimes though, the stock's luster fades as soon as the pumping stops.
Here's a closer look at what investors can really expect from Baywood International, NavStar Technologies, and Superlattice Power.
A stock that trades as thinly as
Baywood International Inc. (
BAYW.OB) did (until today) is always a concern. Why? A little selling or buying can go a long way.... in the wrong direction.
Today's a great example. Shares are up 21% on news that Baywood's subsidiary, New Leaf Brands, will now have their tea sold in Canada's Costco stores. The news is fairly inconsequential; the stock's jump is the result of a major promotional effort.
That said, now that the ball is rolling and the pumpers are hard at work, one has to wonder how long the hype will last. BAYW could keep rallying - deserved or not - as long as the promoting persists. Point being, a thinly-traded stock is only a problem if you're not aligned with the pros.
Our long-term view? Baywood will slump again after the stock's promotion is over.
Don't worry about the chart; there's not enough meaningful history to use as a guidepost.
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If you were lucky enough to own shares of
NavStar Technologies Inc. (
NVSR.PK) before last week, or even before today, we strongly suggest you take your profits while you can.
The recent move from $0.005 to today high of $0.06 is almost entirely attributable to a well-oiled pumping effort. Once the hypesters are done though, the stock is likely to fall back to its sub $0.01 levels.
See, though NavStar Technologies is a real company with a real product, the company's expectations of what the future holds is excessively optimistic. Moreover, as a non-reporting pink sheet company, everything the company says should be taken with a grain of salt. From $2 million in sales this year to $25 to $47 million in sales by 2013? A little too good to be true.
(Of course, all that's needed it $1 to $2 million in capital now to reach those sales levels.... quite the bargain, eh?)Owning NavStar just includes a lot of red flags, questions, and lack of verifiable information. Seeing the way NVSR shares have retreated from their high today hints that other speculators are already getting off the train, cognizant of the concerns we just mentioned.
Of the three most-promoted stocks we're reviewing today,
Superlattice Power, Inc. (
SLAT.OB) may be the one that actually deserves some attention. While shares have only modestly responded to the table-pounding efforts, the fact that SLAT shares are taking their own sweet time -
we believe - is a healthy sign.... it suggests shares trade on their own merit, for better or worse.
The shape of the Superlattice chart is also on the verge of getting real interesting too. Since early June we've seen horizontal resistance as well as a falling resistance line take shape. Yet, SLAT has persistently attacked both. If the $0.80/$0.84 level is broken past, Superlattice could really get traction.
In support of any breakout is the fact that Superlattice Power actually runs a legitimate, tangible, revenue-bearing business. The company makes Lithium Ion batteries, which are the kind used by all the successful EV's so far. It's going to be a major growth arena in the foreseeable future. This one could actually be worth watching.
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