I don’t mind gloating a little here regarding yesterday’s comments about our bulletin board stock pick Bio-Matrix Scientific Group (BMSN). I said the stock was on the verge of a breakout above 63 cents. As it turns out, this small cap stock decided today was the day. It’s up 18%, and more importantly, well past its resistance at 63 cents. I think that qualifies it as a ‘hot stock’.

The best part - even better than the big gain - is volume. I was blown away by yesterday’s volume, which was the most volume we’d ever seen in one day from BMSN. Being a news-based surge, I kinda’ figured it would have tapered off today. Nope. Today’s volume is even better…one day removed from the news. That’s what I really like to see - follow through.

The most impressive part of all? Though the news was good, it wasn’t a game-changer. The tissue bank license is the key. My point is, if this is what happens when they submit paperwork, I can’t even fathom what’s going to happen if they get the approval from the California Health Department. 

I don’t know if BMSN is forever going to remain above 63 cents. It might, but even if it doesn’t, this is still a bullish day. Once the wall is knocked down, it’s easier to re-cross.

Longer-term, this bulletin board equity has a milestone at $1.20, which was where we saw 2007’s double-top. We may be revisiting this chart if we get to that point. Heck, we may even decide to take some profits there. Our ultimate price target is still $1.45 for this small cap name though. So, we may jump back in after a healthy dip. That’s still quite a ways down the road.

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This little Brazilian Telecom stock we picked in late February has ended up being a pretty nice trade. Telemig Celular Participacoes (TMB) is now up more than 15% from our pick price, and still itching to go higher.

We were concerned a couple of weeks ago when we saw shares surge to new highs, stall, then make a sharp dip. The pullback was a one-day event though. The stock came rallying back even stronger the next day, and hit new highs again today. Translation: we’re still on the right side of this trend.

Our target remains at $79.20…about $10 away. We saw Telemig easily rally about $20 in the middle of last year before taking a break. So, adding another $10 to what we’ve already achieved isn’t implausible for this trade.

On the other hand, one key item has come back around on the chart - a significant resistance line right around the $70 mark. This isn’t a reason to sell, but it may be the cause for any stall, and possibly a rollover. Of course, it may break past that line and turn into a rocket. It’s just too soon to make that call. For now we’ll wait and see how things proceed.

Are you a subscriber to the Small Cap Network newsletter? If not, you’re missing out on some great trading ideas and exclusive market commentary. To sign up, just go to the top right corner of any page of our website. You’ll be joining thousands of other subscribers who have already benefited from our news and views.