While my last perfect stock pick A.H. Belo (AHC) continues to do pretty well (up about 40% since I posted about 3 weeks ago), I've decided to add a new feature to the blog called "The Perfect Chart". Finding the perfect stock is an extremely difficult task, due to the strict criteria I place on my selections. So, I figured in the meantime I'd periodically spotlight a company that might not necessarily be a "perfect stock", but had a "perfect chart". A perfect chart in my opinion is one where there is visually a distinct trend upwards. I'll leave it to you and your own due diligence to determine whether or not it is still a buy, but I felt that it would be neat to point out stocks that the market has obviously fallen in love with. Also, we all know that a trend can be "your friend", so at a minimum these should be stocks that you may want to track.
The Perfect Chart: American Lithium Minerals, Inc. (AMLM.OB)
American Lithium Minerals, Inc. is a U.S. resource exploration company with specific interests in acquiring properties containing lithium. Basically, this stock is a play on the probable boom in lithium usage due to the government's push for electric cars. AMLM.OB is said to own 100% of the mineral rights to one of the largest lithium rich properties in the US.
This stock has one of the steadiest up trends I've ever seen. It is particularly impressive due to the fact that it is a penny stock that trades on the OTCBB. The sudden spike and drop that occurred about two weeks ago acted as nothing more than "noise" in what has been one of the best and most consistent stocks in the entire market the last 3 months. Will it continue?
I find a lot of these hidden gem stocks using a lot of the tools conveyed in my latest on post at my other blog http://yourtradingtips.blogspot.com . Check it out when you get a chance.
Keep an eye on DFSH.OB Friday. There was massive buying the last hour of trading Thursday and its chart now shows a technical breakout after consolidating for a couple of weeks. It looks like a no brainer trade if it doesn't gap up too much.
ReplyDeleteCard, look at CMZ, they beat earning expectations even with depressed nat. gas prices. Big volume, may go up in the following days.
ReplyDeleteIs anybody going to play SSHS for a possible run into the close and gap up on Monday?
ReplyDeleteCard, I don't know anything about SSHS (has there been any dillution?), but the news and the chart look very tempting. Have you bought in and are you holding?
ReplyDeleteBTW, do you know anything about SNV? It may be an easy double judging from the chart and the huge insider buying since September (today included). I could not resist and bought some shares today.
Bighoper, I did not buy SSHS. I didn't like late afternoon fade. SNV does look great from a technical standpoint. I may watch it a little while longer. It's certainly been hammered the last 3 weeks.
ReplyDeleteWhat do you think about BLVT.. they recently got a 39M contract w/ the Military for booby trap simulators.. and the chart looks like it might have a reversal from its downtrend..
ReplyDeleteisnt this grossly undervalued at its current pps?
Gin Vite, BLVT does look like it could be due for a reversal from a technical standpoint. I'd monitor the volume to see if Friday was a fluke. If it starts to get more and more, it might be the time to pull the trigger.
ReplyDeleteOne of the big news stories today is hurricane Ida. If anyone's interested, the most notable hurricane play is NSMG. It's a stock you might want to monitor.
I've considered buying IMGG for almost 2 months now, but I never did because I thought the valuation was too rich. Boy was I wrong!
ReplyDeleteCard, still a believer in TA? I've monitored it since you mentioned it, but the company just had a terrible earnings report and dropped another 10%.
ReplyDeleteDo you see this as a better buying opportunity or a reflection of a poorly run, non-profitable company?
Tim, I've been monitoring it too. This company still has a lot of value despite earnings, but it is a technical mess right now. If it gets to $3, it'll be buy, but right now this is "STEC-like". It can't be too bad of a company if the genius duo from Leucadia National hold the stock.
ReplyDeleteCard, Travel America does look like a nice stock to own for the economic rebound.
ReplyDeleteTheir revenue has picked up incrementally since a the Q1 low and that trend should continue is the uptick of economic activity continues.
That seemed to be the motivation for Buffett's Burlington Northern acquisition.
Wow, TTNP.PK has been on fire the past week or so. It could taper off soon, but it looks like a lot of hot money is going into it right now. There are so few sellers that any above average volume should move it. I'm still holding my original shares hoping for a big pay off.
ReplyDeleteI just got into MDGC. It's got a lot more shares outstanding than I'd like, but I think it is setting up for a big move.
ReplyDeletewhat do you guys think of AHC now?
ReplyDeleteCard,
ReplyDeleteMDGC looks very promising, what's your target price?
You should also surely check out Miami-based fashion designer IDGI. It's up about 200-300% from end of October and on Monday they are finally launching their online store, possibly accompanied with some PR campaign. I expect another 50-100% anticipation move by Friday and next week may bring a real explosion.
Im liking GOVX
ReplyDeletesrebne, AHC is following the market. If you look at a chart of the DOW, the market is starting to become pretty predictable. If things continue the way it's been the past 3 or 4 months, look for the DOW to work it's way to around 10000 in the next week or so before it moves back up. I think the low $5's is the short term ceiling for AHC.
ReplyDeleteBighoper, I originally had a 4 cent target on MDGC, but the action on Thursday was disappointing so i dumped it. I'll check out IDGI.
Guys, check SNV, great news today and insiders added half a million $ recently. Perfect bounce play.
ReplyDeleteI'm an idiot for not loading the boat on IMGG and VKNG.
ReplyDeleteBighoper did you ever buy VKNG? It is rocking!
omg.. i have been watching those two and thought i missed it and i would just end up losing if i chased...would you buy it right now card?
ReplyDeleteGin Vite, I can't justify buying IMGG now, but I can VKNG. The market cap is only about $20-$25 million and a lot of people are comparing it with IMGG. $1.50 is not out of the question, which is almost a triple from here. I rolled the dice a nibbled at 50 cents, but I'll probably be out at a buck.
ReplyDeleteI'm also considering CDOI as a bounce play.
what do you think about PRPL at this level?
ReplyDeleteI told you guys about IMGG awhile ago. got a ton of shares at .14
ReplyDeletePRPL is delisting. Those can be tricky plays, but it appears to be bouncing nicely today. If I bought it, I probably wouldn't hold it beyond today.
ReplyDeleteAroramax, will you be retiring soon with all those shares of IMGG :)?
ReplyDeleteIt looks like CDOI just blasted off too. I got a few at $0.012. I'm hoping for 4 or 5 cents.
ReplyDeleteCARD, i got stuck with CDOI at 0.023 should i hold it or take a loss and comeo out?
ReplyDeleteDave, CDOI's chart is setting up very well for a pop on Monday. All the high flying pinks and OTCBBs got shaken by the MMs at the same time. I would hold tight because there will probably be a gap up Monday once everyone does their checks over the weekend.
ReplyDeleteUnless CDOI hits my target, I'm holding it and VKNG overnight. I think both could gap up big Monday.
ReplyDeleteThanks card,
ReplyDeleteNLST is another one of those stocks I almost bought in my long term portfolio when it was about 50 cents. Once again, I never pulled the trigger.
ReplyDeleteIf anybody likes the prospects of VKNG, I'd be a buyer again at 60 cents. Whenever it hits that point again, they'll be lots of buyer. This looks like classic "gap filling".
ReplyDeleteI'm just curious if anybody had the guts to chase after NLST last week? That is one phenomenal run. There is no way I could see that as a $7 stock.
ReplyDeleteCard, I got into TTNP in the 1.30's and am still holding. What do you think it would do in the upcoming days? Is it sensible to continue holding?
ReplyDeleteCard, I didn't have the guts to buy TA and look what it's done the last few days, from $3.46 to well over $5.
ReplyDeleteI was waiting for it to dip even lower but it never got cheap enough for me to get in.
Trader, I've been holding TTNP a long time as well and I just don't see a reason to sell yet. I'm expecting it to level out a bit in the $2.50's, but I think the downside is so limited that it's not worth trying to trade it. Management's compensation is so heavily tied into the share price that I don't see them doing anything foolish to bring it down. A buyout could come at any moment at $5/share or more. Until something changes, I'm sitting tight. There still appears to be very few sellers. I personally believe that the float could be gone at this point.
ReplyDeleteTim, I missed TA too. I was waiting for $3.00, but it never got that low.
ReplyDeleteAt least there are some other nice plays out there. I'm a bit afraid to buy a major exchange stock right now because I think the market is due for a breather, but I have some pennies that I'm playing. I have TTNP, which I won't trade or sell. I also re-bought VKNG after selling it at a dollar. I think that will be a $2.00 stock very soon. My last penny play holding is BRYN. I think it could hit a dollar off of gold's spike and momo. Everything else, I've sold.
Watch out for ZOOM tomorrow. They just guided for a $2+ EPS in 2010. That kind of growth could yield a very high multiple and revenues are about 10 times the current market cap. I would not be surprised to see the stock touch $20 if the right volume comes in.
ReplyDeleteYea looks like it took off in AH.. will keep an eye on it tomorrow.. keep an eye on DYAX too
ReplyDeleteCard, what are your thoughts on RODM? Are you still holding? I still have a sizeable position that is no only pennies in the money and am debating whether or not to hold or move on (either way, lamenting the fact that I didn't sell back in the $6's!!!
ReplyDeleteJP, I sold RODM after I saw the shelf offering in the $5.50's. I do believe that at some point the stock will get back to the $6 level, but I don't think it will happen in the next 3 months. The stock has lost all it's momentum and it will take either sizable news or a big insider purchase to get it back on track. RODM has a strong business model, but right now the stock is not well liked. I think it will take some time for it to recover fully. This is all my opinion of course.
ReplyDeleteIs anybody going to play ISCR today? I think a lot of hot money will pour into it this morning.
ReplyDeleteI like ISCR. They've actually got real earnings. I think this easily hits at least 25 cents before the week is out.
ReplyDeleteCard, thanks for heads-up on ISCR, I am in as of today.
ReplyDeleteAnother good turnaround play is IDGI with tons of DD on I-hub. Their e-commerce site launch has been postponed until this Friday (www.theincacollection.com). This one-cent stock traded at nearly a dollar less than two years ago. Although their has been about 12-13fold dilution, this can still be a 5-10 bagger. Moreover, the CEO holds 50% of the OS.
Last, what do you think about CABL? Looks like another turnaround in the works - a China cable TV play with earnings in early December.
bighoper, I'll check out IDGI. At first glance it looks to be consolidating nicely after a nice pop.
ReplyDeleteI've actually been watching CABL. The stock was hated for a while, but seems to be showing some signs. I'm not sold on it being a buy right here, but it's on my radar.
The more I look at ISCR, the more I like it. It just looks entirely too cheap to me.
Card,What is your expectation about ISCR?
ReplyDeletewhat could be nice exit point, your expectataion based on what???
Dave, I keep digging into ISCR, but I can't seem to find anything wrong with it. Increasing revs and debt forgiveness is a pretty strong combination. It's got a trailing PE of 4, its yearly revs are twice the market cap, and revs seem to be increasing. The only thing that bugs me is a technical gap that could get filled between 5 cents and 7 cents. Back up the truck if this dips to 5 cents, but I doubt it will happen. From a technical standpoint it needs a breather, but fundamentally it's way too cheap. IMO, if you quick flip, 20 cents would be a solid exit point if we get a Thursday morning spike based on level2 and market psychology, but I think it could go higher than that after falling back and consolidating (maybe 30-40 cents by Christmas based on a fundamental valuation). If insiders decide to buy, this stock could explode.
ReplyDeleteCard,
ReplyDeleteThree quick points:
ISCR: Someone on I-hub speaks about possible dilution: "Looking thru the 10-Q you find that $1,450,867 of the $1,636,610 in "operating income" is due to "debt forgiveness" because the management of the funds which were financing them either went to jail or died so they just wrote it off as "other income"....lots of dilution going on here thru their present financing arrangement as well:
2) Good news for RODM: a new $20m deal and an insider buying at $3.50
3)I have a tip for the next perfect stock: an Australian-based OTCBB company with over $70m in cash, heavy institutional ownership, including billionaire G. Soros, and sitting on huge reserves of phosphate that will start shipping early next year to the world's two most populous countries to help deal with the food crisis. After yesterday's news this will not remain under a buck for long. Quick DD here: http://investorsoup.com/2009/11/lgdi-is-a-legend-in-its-own-time-you-really-need-to-look-at-this-one/
Bighoper, I went through the 10-Q of ISCR and I didn't see "lots of dilution". I think the I-hubber was just bashing. Notice they didn't give any specifics. I think this is just a solid stock. It doesn't look like there are many sellers right now either due to such a low valuation. In the intra-day trading the price only seems to dip on very low volume, which is generally a sign of strength. I've been wrong before, but it just looks like a winner. Only time will tell. I bought some at $0.075 and again at $0.11 and am still holding.
ReplyDeleteCard, any thoughts on the recent 7-bagger GTN? It's down again and as it's getting cheaper, insiders are loading up. Maybe a double or triple in the near future.
ReplyDeletebighoper1, Legend looks really enticing.
ReplyDeleteI've done some digging around and it looks legit.
I tried to look at yesterday's announcement, but the Legend site's link isn't working.
Tim, here's the link: http://finance.yahoo.com/news/Legend-International-Holdings-bw-3196683960.html?x=0&.v=1
ReplyDeleteThanks for the link.
ReplyDeleteEven more interesting, but with actual profitability seeming years away, not sure what is going to move this stock in the short term.
I'm looking for MMRF to be a gapper in the morning.
ReplyDeleteBighoper, I sort of lost track of GTN after the big run. I may have to put it back on my radar.
Card, MMRF is crazy. After you commented on it, I checked it out and it was up 60% for the day.
ReplyDeleteThe next time I looked it was 90%, then down to 50%, and now it has doubled for the day.
Tim, I liked the way MMRF was trading and thought it had a chance to gap in the morning. I got in just below 12 cents. I'll probably sell it within the first 15 minutes of trading Friday, but I thought I could make a few dollars on a gap up.
ReplyDeleteISCR was horrible today, but I still like the stock. I probably made a mistake by continuing to hold but I think it will bounce back. That 9 cent close makes filling the gap at about 5 cents a lot more realistic. Even though I've already bought it twice, I'll probably place a limit order at $0.055. If it dips below 5 cents, I'll guarantee ISCR will bounce hard and never look back. That gap is the only negative the stock has.
Card,
ReplyDeleteI've been actually holding MMRF since February as a long-term investment with my first buy at 0.045 so I'm very excited about the China news both short- and long-term.
Last alert for IDGI: up again on big volume and tomorrow we have the e-commerce site launch (very smart move before Christmas) and maybe the company's first PR in more than a year. One of the best pinks I know, real company with big potential.
Tim,
ReplyDelete- LGDI already traded over 4 dollars in 2008 (but I admit I don't know the number of outstanding shares back then)
- in March LGDI starts trading on the Australian Stock Exchange and they have already made application to list on AMEX so the stock will be much more liquid
- the stock is loved by instituions
- the company will become one of the world's largest phosphate producers
- and the chart starts looking good!
Bighoper, you'll do well holding MMRF. I'm actually considering doing so myself after reading a little more about the company. Even the insiders are loading up.
ReplyDeleteWow, ISCR is blazing out of the gate!
ReplyDeleteYes, ISCR flying! MMRF down as expected, but long-term should be fine.
ReplyDeleteLook at TIXC, a company very similar to RODM: huge growth, low float, no debt, big insider buys plus a patent pending. May turn around today after the recent unjustified drop.
I can't believe the bottom fell out of TIXC that much. The market is really bouncing higher and lower at fairly predictable levels. I'm waiting for around DOW 10000-10100 before I buy non-penny stocks again. I think that's where the market bounces back based on chart trends. TIXC is a nice one to keep tabs on because it should bounce back nicely with the market.
ReplyDeleteBighoper, are you still in ISCR or did you sell for the quick profit? If you're still in it, what's your exit price? Initially, mine was 25 cents, but I'm thinking about getting greedy and moving it up to 50 cents.
ReplyDeleteI was tied up all weekend so I couldn't post ISCR as a perfect stock like I wanted to. Regardless, I hope some of you bought it last week and are making some nice coin.
ReplyDeleteIf anybody's interested in another undervalued play, check out CHRI. They just released what I considered to be a great 10-Q. I think it might get some action late today and tomorrow. I got in at .008. We'll see how it moves from here.
ReplyDeleteCard,
ReplyDeleteToday I was in the country at a computer with terribly slow internet connection so my trading activity was very limited and after reading ISCR news and the trading volume I decided to hold, at least for today. Thanks again for this pick. I'll also check CHRI.
I may also add some IDGI, which was down over 30% today for absolutely no reason.
Card,
ReplyDeleteWhat happen to ISCR , hold or sell???
Dave, as long as the stock holds at least 16 cents today, I think ISCR is a hold. I think this is an MM move to shake people from there shares. The lack of volume is the giveaway. I'm expecting it to trade between 16 and 20 cents for a few days, before it moves higher. It looks like a repeat of what happen with the first run a few days ago.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteCard, congrats on CHRI, hope you scored at least a 3-bagger. Another great runner today was AVMD.
ReplyDeleteBighoper, I only got 1 bag out of CHRI because I sold near the open. I guess I should have been more patient. I missed AVMD being out and about most of the day.
ReplyDeleteIf anyone's interested, check out MTPR for a potential buy and hold. Only 2 cents now and has a trailing PE of 1. They just PR'd another profitable quarter. Once word get's out, I can easily see this stock getting to 20 cents quickly. Very low float.
ReplyDeleteMTPR looks interesting, but it's a pink and the financials are unaudited. Nevertheless, it could really take off.
ReplyDeleteAny thoughts on JNTX? Great news and may go much higher.
Card, look at IFON.
ReplyDeleteQuote from thelion.com:
"up 40% on volume. hit $17 three years ago when revenues were around 65m/q. last q, revenue was 65m, yet PPS was around $1 until the pop today"
bighoper, I'm trying to figure out what triggered IFON. Earnings were release over a week ago. Why the pop now?
ReplyDeleteJNTX popped because everyone saw how small the float is. Not sure if it'll have staying power.
Card, isn't your next pick coming soon?
ReplyDelete