High Velocity Alternative Energy Corp (PINK:HVAE 0.0065 +14.0%) drove revenue of 6.6K for the quarter ending on March 31st, 2009. Gross profits came in at $763. Selling and administrative expenses of more than $28K led to a loss of more than $27K for the quarter enduing on March 31st.

It should be noted that High Velocity Alternative Energy Corp. acquires Reflectkote, Inc. in June, and will be changing its name and business interest as a result. Reflectkote manufactures reflective coating that can be applied anywhere, and it permanent.

Steadfast Holdings Group, Inc. (PINK:STDF 0.032 +39.1%), a manufacturer of aftermarket parts for light trucks and pickup trucks, filed its quarterly results this past weekend. Through the first six months of the fiscal year, Steadfast has generated $191K in revenue, $14K in gross profits, and incurred a net operating loss of $64K. A one-time write-off of $240K has pushed the year-to-date net loss to $324K.

STDF shares are up nearly 40 percent on the encouraging improvement.

Loans4less Com Inc. (PINK:LFLS 1.10 +0.0%), an online mortgage loan brokerage, filed its Q2 numbers today. For the first six months of the fiscal and colander year, Loans4Less generated revenue of $265K. Total operating expenses were $269K, leading to a year-to-date loss of just under $4000.

Though the near-breakeven is encouraging, with a market cap of more than $30 million, LFLS shares are hardly cheap.

If you’re looking for some biotech penny stock action today, you’ll want to check out AVANIR Pharmaceuticals (AVNR). The rumor is - and it’s strictly a rumor - that Teva is mulling an acquisition. AVANIR shares are up firmly, though not yet wildly, on the buzz.

A Teva acquisition of AVANIR actually makes a little sense. Teva has been looking for a foothold into the arena. And. Zenvia is targetng unpredictable emotional episodes of pseudobulbar affect (or PBA), which is also known as involuntary emotional expression disorder (IEED). However, Zenvia can also treat diabetic peripheral neuropathic pain.

The assumption was that Endo Pharmaceuticals would get the honor. But, AVANIR’s Zenvia could fit the bill too.

If Teva can actually buy AVNR at $2.00 per share, most owners would be - and should be - greatly disappointed. Some analysts suggest the price should be closer to something between $6.00 and $8.00, especially considering the chances of Zenvia’s approval are high.

At a 5% market penetration, Zenvia could produce annual revenue in the neighborhood of $200 million. That’s largely where the $6.00 to $8.00 per-share valuation is coming from.

As for the stock itself, I like this chart as much as I like the story/rumor. I see a clear break in a falling resistance line. You could also make a good argument that the last couple of weeks formed a technical wedge, and today’s modest move here is a breakout of that triangle shape.

You can also see that last week’s bottom and the resumption of the uptrend was fueled by a much longer-term support line being met.

Bottom line - this is just a good looking technical chart, especially for a true penny stock. The accompanying story ain’t too shabby either.

The one thing that’s missing with today’s move from this penny stock is volume. You’d think with these kinds of rumors floating around - unconfirmed though they may be - that the market would be all over this potential three to four bagger. Maybe the market collectively sees a problem…let me know below if that’s what’s holding shares back.

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The Great Bear Market of 2008 (and now 2009) has turned some once great stocks into complete train-wrecks, pulling their prices down under $5.00…. penny stocks, technically. In some cases, share prices have even fallen under a true ‘penny stock’ threshold by tumbling under $1.00. Yet, a handful of these companies continue to present future value. Those are the stocks we’re interested in today, while they’re priced at stunningly-low levels.

In no particular order, among the thousands of stocks under $5.00 (which is our technical definition of a penny stock) right now, we like Manitowoc Co. Inc. (MTW), Dynegy Inc. (DYN), Buckeye Technologies Inc. (BKI), USEC Inc. (USU), and Continucare Corp. (CNU) the best of all.

Those five were selected based on several factors… fundamental outlook, technical opportunity, opinion, and a dose of common sense, just to name a few. A little more detail of what we liked is added below.

Are these penny stocks a little off the beaten path? Sure, we’d be the first to say those tickers aren’t exactly making headlines every day. That’s why we like them though - the best opportunities lie in stocks very few people have really gotten to know yet.

As for what you do with them… well, that’s up to you. Feel free to add any or all of them to your current portfolio, just as long as you also understand and can handle the risks involved.

Manitowoc Co. Inc. (MTW)

This heavy crane (mostly) manufacturer started to turn in some really nasty numbers in the third quarter of last year; the nail in the coffin was Q1’s $705 million write-down that led to a quarterly loss of $656 million. The market sequentially punished the stock the whole time bade news was being printed.

Manitowac’s future looks better than the past though. Had it not been for the non-recurring charge last quarter, the company would have actually been back in the black; the op line really hasn’t waffled much over the last four quarters.

Yes, this is a bit of an economic recovery play (not our only one, as you’ll see). The stock was priced for the absolute worst though, which doesn’t look like it’s going to pan out. The recent refocus of the company - via shedding some weaker business - is just the clean up the penny stock needed.

Dynegy Inc. (DYN)

It’s technically classified as a utility company, but Dynegy actually creates and sells energy on a wholesale basis. Nevertheless, the utility industry’ future and Dynegy’s future walk hand in hand.

Anyway, the per-share earnings have been hit and miss. And, the hits have been minimal, though the misses have been minimal as well). That may be why UBS recently downgraded Dynegy to a ’sell’ (from ‘neutral’).

So why are we interested? You buy a stock not for where it is, but where it’s going. And, we think Dynegy’s worst is over. See, DYN has suffered three downgrades since April. Since analysts are typically late to the party, our contrarian side tells us this is a penny stock the market has priced like it’s been written off completely …but shouldn’t have.

Buckeye Technologies Inc. (BKI)

Yes, technically it’s a penny stock thanks to Friday’s closing price of $4.95. Regardless of the price though, this wood and cotton company may be underestimated on a forward-looking basis.

The past twelve months isn’t much to look at from afar. If you look past the one-time write down of $138 million from the last calendar quarter of late year, however, you’d actually see continued operating profit throughout the brunt of the recession. Just think what the company could do in a decent economy.

USEC Inc. (USU)

The metal miners are something of a two-edged sword. If the economy recovers (and we think it will), then the demand for industrial metals is apt to increase. Thus, USEC’s revenue goes up. Simultaneously, a strengthening economy - not to mention lots of stimulus dollars in a low-interest rate environment - means commodity prices are poised to shoot upward. Thus, USEC’s net margins are likely to go up as well. In other words, this penny stock is a growth and in inflation play.

The company came up short last quarter, losing 2 cents rather than gaining 9 cents per share, like analysts expected. The market may have reacted (albeit preemptively) a little too harshly though.

Continucare Corp. (CNU)

You may not have heard much about this healthcare service company yet, but we think its recent addition to the Russell 3000 is the beginning of a string of notoriety for this penny stock.

Only a few other companies managed to remain profitable over their last four fiscal quarters; Continucare was one of them. Third quarter’s revenue was up 14%.

In simplest terms, it’s a well-run company in a reliable industry. The trailing-twelve-month P/E of 11.9 is solid, while the forward-looking one of 9.7 is compelling. And, the company’s historical performance makes that forward-looking P/E plenty plausible.

That’s it for today, but be sure to check back early and often - we almost always have a new, undiscovered penny stock idea to kick around. Also, be sure to sign up for our free e-newsletter if you haven’t already. It’s the best way to ensure you get our comments and penny stock picks in a timely manner.

Yep, I figured something like this was in store for penny stock Purespectrum Inc. (PSPM). I just expected there to be a clear reason for it. Purespectrum made good on a bearish wedge shape I pointed out on June 9th by breaking under support at 55 cents a few days later. On Friday, the stock tumbled 14% to close at 36 cents. That’s a 33% downside move. Hope you caught some of the gain.

What’s weird about the whole thing is that there was no clear reason for the recent leg of the drop. Maybe the other shoe will drop later.

Or, maybe this is a case of ‘buy the rumor, sell the news’ - the company has certainly had enough of it lately (all of it good). Purespectrum’s dimmable compact fluorescent lamps (CFL) have generated a ton of interest from utility companies. Eighty utility companies have already requested samples. There’s no word yet on what kind of revenue to expect, but any at all would be miles ahead.

The question is, how much revenue does Purespectrum need, and how soon do they need it?

Just for perspective, the company’s current market cap is about $62 million. I’m not even going to bother talking about earnings yet, as I don’t expect there to be any in the foreseeable future. Sales wise though, the company needs to drive $20 to $30 million in annual revenue to justify the stock’s price.

The company seems well-polished, and their fluorescent lamps are probably everything they’re cracked up to be. And, I have to respect a company that stays in touch with its investors about what it’s doing to succeed. That’s a bit of a two-edged sword though.

What I’m talking about specifically is the recent retention of the Musser Group to act as growth consultants.

There’s not a thing wrong with consultants, but it makes me wonder… considering Purespectrum’s fluorescent lamp business just got off the ground, why do they need consultants this early in the game? Maybe they should learn the biz and get it up and running first before worrying about how to tweak it. Or, does the company need a consultant just to get going at all? Maybe I’m paranoid, but it’s a fair question.

Anyway, after PSPM’s plunge on Friday, it wouldn’t be crazy to take some profits if you were short. I wouldn’t add any new short trades though. If support at 31 cents breaks down though, I wouldn’t be surprised to see another round of selling.

Conversely, there’s a falling resistance line that could signal a rebound if crossed. If it’s not crossed, any retest of it may be a good short entry point.

Don’t worry about any valuation models or projection… this isn’t that kind of stock yet. Just trade it.

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Shares of penny stock BioNeutral Group Inc. (BONU) were up big today…. until they weren’t. Good news of the company’s ‘hospital grade’ Ygiene being able to eliminate black mold spores (commonly referred to by nerds and geeks as ‘Aspergillus Niger’). The Ygiene antimicrobial agent killed all the black spores in record time, according to a test performed by AST Labs.

What does this mean for investors? Hold that thought a second - I have another question to ask first.

Did anybody else just get a really weird vision of a bunch of people with white lab coats and magnifying glasses crouching down, looking at a big pile of spores they had just sprayed with a big bottle of Ygiene? Something tells me I can’t run to my local A&P and grab some off the shelf.  Or, maybe I can. Anyway….

All joking aside, it’s actually a pretty impressive and important feat. Black spores are a legitimate problem that’s tough to tackle, but Ygiene is also expected to equally handle Staph (MRSA), and some forms of pneumonia bugs. And perhaps most important right now, Ygiene should be effective against the swine flu virus.

So why did all the BioNeutral Group buyers from this morning turn into sellers a couple of hours ago? Two words…. profit taking. It wasn’t just today’s move from Tuesday’s close at 54 cents to the peak of 64 cents that prompted the profit-taking (as that wasn’t much profit). I think it was the move from the April low of 12 cents to today’s peak of 64 cents that’s inspired several exits.

The question remains though… what does this mean for investors?

Even if Ygiene sales go hog wild, this isn’t going to make BioNeutral Group profitable. The company seems to be burning about $600,000 per month in expenses, which isn’t likely to change. (It may actually get bigger if BioNeutral goes into full-scale production of Ygiene.)

However, BONU is a penny stock, and a bulletin board stock, so the bottom line is pretty irrelevant in this speculation-filled world. The chief concern here is whether or not enough other investors are going to like it in the foreseeable future; we ‘trade’ those movements caused by investor actions.

My guess? Given that this is possibly going to create BioNeutral’s first ever-revenue, I don’t see how the market won’t like it, and buy some BONU based on the euphoria. The company could be off the “where are the profits?” hook for months.

I also like the overall uptrend of the chart.

Were it me and my money, I think I’d wait for a full dip back to that long-term support line before diving into a trade. Scratch that - I think I’d wait for a pullback and then an uptick before getting in. This penny stock doesn’t have enough of a history to be trusted yet.

Do you want more (and better) penny stock trading ideas and commentary? Do you want to be told if the Small Cap network makes BioNeutral Group Inc. (BONU) and official SCN pick? Then sign up for the free newsletter today. Here’s the most recent edition, to see what you missed.

Though the second half of 2009 certainly didn’t get started on the right foot, I’ve found a handful of groups I think have emerged as leaders that are strong enough to resist a nasty downtrend. And, if for some reason the market recovers, these groups are sexy enough (i.e. not ’staples’) that they’ll actually benefit from a rising tide.

I detailed my top three industry picks back in the June 30th newsletter. However, one of the areas I didn’t get to highlight then was semiconductor stocks - today’s focal point.

I’ll get to the underlying fundamental reasons why I like the group as a whole. First though, I just want to take a look at a chart of the S&P 1500 Semiconductor Index to show you what I’m so stoked about.

Two things immediately stick out for me.

The first one is minor… the semiconductor industry’s stocks were one of the very few to make gains last week. That kind of relative strength is important.

The second factoid that got my attention is how these stocks still have so much room to recover from last year’s tumble. Unlike so many other groups, there’s some meat left on this bone.

Now frankly, I’m not wild about the shape of the recent chart. It seems like we’re making lower highs, and sorta’ lower lows. If you zoom into a daily chart though, it looks a little more like range-trading. I could also use a little more volume… personal preference.

Translation? I’m basically ok with the chart as long as 155 holds up as support. If not, I’ll have to rethink my timing. Conversely, if 183 breaks as resistance, I’m going all in. In the meantime, I’ll tip-toe in based on the relative strength and the fundamentals for some of my favorite names in the group.

And speaking of….

There are just too many semiconductor names to review them all in one shot, so I’ve done my best to look at as many of the popular ones as I can (all market caps). Hopefully I’ve looked at enough to give you a chance to compare and rank a few against the whole industry.

I’ve highlighted (in yellow) some of the data I found interesting, or some of the value hot-spots. I found Intersil (ISIL) and Texas Instruments (TXN) to be solid values, and it seems as if Cypress (CY) and Cavium (CAVM) are looking at the most earnings growth.

Granted, these are analyst estimates, so take them with a grain of salt. I don’t think they’re off base though.

Just because data is missing doesn’t mean there’s a problem. The blank spots on the grid just mean the data doesn’t exist. Frankly, those holes have me the most curious, as they may be the best opportunities… and we’d never know.

The other upside to this kind of review is recognizing the likely weakness Atmel and AMD seem to be headed into. Both are major industry players, but both look like they’re going to be radioactive for a while.

So once again, it looks like Intersil (ISIL), Texas Instruments (TXN), Cypress (CY) and Cavium (CAVM) are your best places to start digging into your due diligence process. And remember, the charts are just as important as the fundamentals.

One thing about this list… my grouping is for semiconductor manufacturers, which specifically excludes semiconductor equipment stocks. That’s an important distinction, though the two groups tend to move in tandem (I’ll review the semi equipment stocks at another time.)

By the way, if you liked this kind of industry analysis and information, you’ll love our free newsletter (delivered 2 to 3 times per week). Here’s our most recent edition, with more of the same PLUS specific stock picks and trade updates. Don’t miss out again - sign up today.