Author: PennyStock Wizard

Hello Readers,

Since the last Newsletter, we closed three positions; all for gains.

ZAGG, INC (2/20/10). Closed position 8/24/10 at $3.79 for a 52% GAIN.

CARDICA (7/5/10). Closed position 8/18/10 at $2.50 for a 53% GAIN.

TTI TEAM TELECOM (3/5/07). Closed position 8/17/10 for a 18% GAIN.

ZAGG took a nice turn upward after posting some very good quarterly numbers, which is what stocks are suppose to react to. Cardica’s shares soared after the company reported a licensing deal worth $12 million upfront with Intuitive Surgical, along with an equity investment of about 1.25 million shares of stock. We closed TTI Team Telecom for a minor gain after it was officially bought out by TEOCO.

And so, we still keep playing ping pong within a very narrow trading range, which, given all of the bad economic news, is probably not a good sign for the market’s future direction. Our fear, for now, is that we may be facing the Japanese-style market of the last twenty years. That would mean less liquidity going into equities. The major underlining problem is that our national leadership stinks, on both sides of the aisle. They need to stop screaming at each other and start speaking with one another.

Here are the headlines since the last Newsletter about companies in the Current Portfolio; dates in parentheses are when we first recommended them. We are not giving updates about companies on the “Endangered List” unless we feel the news to be highly significant.

CombiMatrix (CBMX)(8/20/10). Names new chief executive.

U.S. Home Systems (USHS)(8/20/10). Reports sale of Woodbridge facility.

Banner Corp (BANR)(8/5/10). Names new CEO.

NAPCO Security (NSSC)(7/5/10). Gets Underwriters Laboratories okay for new Gemini GEM-C Series Systems.

Aastrom Biosciences (ASTM)(6/20/10). Balance sheet still looks good. News about various clinical stages on certain drug candidates.

Clearfield (CLFD)(6/5/10). Launches “the Fiber Color Pages”.

Willdan Group (WLDN)(5/20/10). To present at the Wedbush Clean Technology conference on September 15.

American Caresource (ANCI)(4/20/10). Adds three new clients to portfolio.

Cerus Corp (CERS)(3/20/10). Buys back Asian marketing rights for blood safety system.

Achillion Pharmaceuticals (ACHN)(3/5/10). Announces $50 million private placement.

Uranerz Energy (URZ)(11/20/09). Implements shareholder rights plan.

BioClinica (BIOC)(7/20/09). To present at seven various confabs over the next several months.

Oilsands Quest (BQI)(10/20/08). Announces review of strategic alternatives, which usually means a company needs more money so as to implement its plans.

Identive Group (INVE)(10/5/08). Releases upbeat quarterly numbers; balance sheet still seems to be okay.

U.S. Geothermal (HTM)(8/5/08). Construction permit approved for Phase 1 of San Emidio Project.

Applied Energetics (AERG)(7/5/08). Enters into teaming agreement with L-3 Interstate Electronics Corp.

Energy Focus (EFOI)(6/5/08). Gets additional $410,000 in DOD funding. Awarded $2.8 million in lighting retrofit contracts.

Bridgeline Digital (BLIN)(6/5/08). KMWorld Magazine names iAPPS product suite as a “Trend Setting Product of 2010”. Janey Montgomery Scott selects iAPPS Content Manager and iAPPS Analytics.

Microvision (MVIS)(5/20/08). Secures $60 million committed equity financing facility. Gets some good product mentions in several top publications.

GlobalScape (GSB)(5/20/08). To present at the Rodman & Renshaw global investment conference on September 13.

Biolase Technology (BLTI)(4/5/08). Company releases some uneasy news. We have placed this on the “Endangered List”.

Hollywood Media (HOLL)(1/5/08). Recent numbers show some revenue growth year-over-year but losses widen; balance sheet still okay.

Linktone (LTON)(11/5/07). To announce 2^ndQT results on September 7.

LRAD Corp (LRAD)(10/5/07). Sets record date for spin-off of HSS business in tax-free distribution to stockholders.

XATA Corp (XATA)(9/20/07). Company’s turnpike RouteTracker solution now available for Verizon wireless enterprise customers.

American Fiber Optic (AFOP)(7/20/07). We just closed this position at $9.00 for a 14% loss and will soon add it to the Track Record page; company just did a 1 for 5 reverse split.

Urologix (ULGX)(2/20/07). Releases okay FY numbers but recent QT showed some weakness; balance sheet still seems okay.

Endologix (ELGX)(1/20/07). Receives CE mark approval for expanded line of Powelink products and PowerFit aortic extensions. Enters development pact and exclusive license for balloon expandable stent technology.

8×8 (EGHT)(1/20/06). Virtual Office Pro receives PC Magazine Editors’ Choice Award. Increases share repurchase program to $3 million.

Our picks for this Newsletter are another small biotech and a communications provider; both NASDAQ-listed.

ACADIA PHARMACEUTICALS, INC. (NASDAQ: ACAD) – $1.08. Twelve-month hi-low has been $6.60 – $1.00. Based in San Diego, CA, with about 25 employees, this biotech has 38.3 million shares outstanding, $38.31 million in total current assets, $39.17 million in total assets, and $36 million in total liabilities, of which $22.84 million is long-term portion of deferred revenue. Institutional ownership is around 36%. One analyst rates the stock a “strong buy” and two have it as a “hold”. www.acadiapharm.com

Over the last year, its stock has taken a thumping, but Acadia Pharmaceuticals, Inc. has maintained a good cash position while seemingly progressing with its drug pipeline. Trading at nearly its twelve-month low, this looks like it may be worth a shot because its main drug candidate getting a second chance in another clinical trial.

Founded in 1993 as Receptor Technologies, and public for over six years, Acadia focuses on drug treatments for central nervous system disorders. It maintains two wholly-owned subsidiaries, one based in Sweden and the other in Denmark. The company is developing a portfolio of four product candidates, including pimavanserin, which is being developed for three separate neurological and psychiatric indications in collaboration with Biovail. These indications include Parkinson’s disease psychosis that is in Phase III development; adjunctive therapy for schizophrenia, which is in Phase III planning, and Alzheimer’s disease psychosis, for which Acadia is planning to initiate a Phase II feasibility study.

Acadia also has other products under development, including a product candidate in Phase II development for chronic pain; and a candidate in Phase I development for glaucoma, both in collaboration with Allergan, as well as a program in IND-track development in collaboration with Meiji Seika Kaisha.

At the end of July, Acadia announced initiation of a new Phase III trial with pimavanserin for Parkinson’s Disease Psychosis. In September, 2009, a Phase III came up sort on the drug’s efficacy, but the company is optimistic about this new trial the uses a refined study design. Pimavanserin is a small molecule that can be taken orally as a tablet once a day.

Acadia is typical of many small biotechs in that it has little revenue and major losses. For example, during the quarter ending 6/30/10, revenue was $2.29 million with $4.29 million in losses.

The bet here is that Acadia can make some breakthroughs on its new clinical trial for the lead drug candidate and/or on its other pipeline drugs.

Our 24-month target for the stock is $1.80 to $2.00.

For more information, contact ACAD’s Thomas Aasen at 858-558-2871.

ORBCOMM, INC. (NASDAQ: ORBC) – $1.86. Twelve-month hi-low has been $3.23 – $1.64. Headquartered in Ft. Lee, NJ, with about 100 employees, this communications provider has 42.6 million shares outstanding, $94.66 million in total current assets, $177.54 million in total assets, little debt, and $18.91 million in total liabilities. Institutional ownership is around 31%. One analyst rates the stock a “strong buy” and another as a “moderate buy”. www.orbcomm.com

Maybe it’s time to go into outer space and Orbcomm, Inc. can certainly qualify. Besides that, the company has been growing its subscriber base, has an impressive list of major customers, and a pretty nifty balance sheet.

Founded in 2001, and public for just under four years, Orbcomm, a satellite-based data communication company, operates a two-way wireless data messaging system optimized for narrowband data communications. Its system consists of a network of 29 low-Earth orbit satellites and accompanying ground infrastructure. The company’s system enables its customers and end-users, including business and government agencies, to track, monitor, control, and communicate with fixed and mobile assets located worldwide. It also offers terrestrial-based cellular communications services through reseller agreements with cellular wireless providers. It targets commercial transportation, heavy equipment, fixed asset monitoring, marine vessels, and the government and homeland security markets.

At the end of June, Orbcomm counted more than 539,000 billable subscriber communicators, an 11.6% increase over the second quarter of 2009. Some of its major customers include Caterpillar, Hitachi Construction Machinery, Hyundai Heavy Industries, Volvo Construction Equipment, the U.S. Coast Guard, U.S. Navy, U.S. DOT, U.S. Customs and Border Protection, and IHS Fairplay.

For FY2009, ending 12/31/09, revenue was $27.56 with $3.44 million in losses. During the first six months of the current FY, ending 6/30/10, revenue was $15.25 million with $3.77 million in losses. The company is on pace to beat both its top and bottom lines from 2009.

We like that Orbcomm seems to be growing nicely in subscribers and in revenue while paring its losses.

Our 24-month target for the stock is $3.25 to $3.50.

For more information, contact ORBC at 201-363-4900.

Look for the September 20, 2010 Newsletter to be posted on 9/16 or 9/17.

Have a safe holiday,
George

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Let’s get this straight. Over the last two years, Washington and the Fed have poured between $3 trillion and $4 trillion into the economy and, now, we could be slipping into another recession? Who, besides the feds, didn’t see that coming? Oh yeah, right, we are counting on the same gang who got us into this mess to get us out of it. All the money went to bail out the banks, government mortgage programs, and stimulus for all of those shovel-ready jobs. In short, very little of it was seen by average people, unless they were collecting jobless benefits. And so, the markets are poised to take another leg downward as does our Current Portfolio. Thank you Ben, Timmy, Barack, Nancy, and Harry. Or as Laurel always said to Hardy, “Another fine mess you’ve gotten us into Ollie.”

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed two more positions, for some gains.

INVESTORS CAPITAL (9/20/09). Closed position 7/19/10 at $3.15 for a 61% GAIN.

VOCALTECH (4/20/07). Closed position 7/16/10 at $3.30 for a 10% GAIN.

Ever since Investors Capital posted decent numbers at the end of June, the stock went on a mini tear. VocalTec surprised everyone by announcing that it was merging with YMAX/magicJack, which sent the stock up over 100% from its nearly an all-time low; while it’s not a 50%-plus gain for us, it’s not an ugly loss.

It is looking more and more as if the markets are hitting their high-water marks for the balance of the year, or almost. We are still stunned that they have had the run that they did over the last eighteen months. Looking ahead, there really is not much to propel the markets higher as economic clouds appear to darken, so, be very careful. And, yes, our Current Portfolio, still remains stagnant, as have the markets, since the end of May.

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

A recent front-page story in The Wall Street Journal declared that small investors are now AWOL from the markets, which, though the news is old to us, is a pretty fair assessment of the situation. Who can blame them? For seven straight days the markets tanked on modest volume, then, for nearly seven more days, shot up on dismal volume. Even the little guy is now sensing all is not right with the world. We’ve said it a zillion times, the government needs to stop trying to regulate the economy and let the markets be the markets. And yes, our Current Portfolio is still in the dumper and it has been well over a month since we have closed any positions.

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

If you want to know why the markets have been stagnant for the last few months, go back to Fall, 2008 and to Spring, 2009. During the earlier season, we had TARP, and during the latter we had the “economic stimulus” package, and, in the midst of all that, we had the Fed doing damage to the underlying financial structure. And now, we have more promises of a “financial reform” bill. This all adds up to a very twisted and contorted market that is unable to price the true value of anything, and small investors are beginning to sense danger. In sum, the psychology has started to shift from, “Gee, these guys sure know what they’re doing” to “Wait a sec, isn’t this the same gang who got us into the mess in the first place?”. Needless to say, the market’s recent lethargy has kept our Current Portfolio still a little beaten up.

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

And, once again, the markets are about at the same places they were at the beginning of the month, and so is our Current Portfolio, which has been banged up since early May. And, also, once again, most us know what has been causing the market jitters, with the biggest overhang being a sense that all of this government stuff isn’t really working. Yes, we will have periods of three and five-day upturns here and there, but the prospects of a summer rally are looking very very iffy.

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed one position, for a gain.

REAL GOODS SOLAR (12/5/09). Closed position 5/18/10 at $4.75 for a 58% GAIN.

A good-looking quarterly report helped push Real Goods Solar higher as it more than pierced our 50%-plus target; we also think that the BP oil spill gave it, and other solar stocks, a nice lift.

The last few weeks, like most of May, have been ugly for the markets. We have heard all of the reasons as to why, and many of those, we suspect, may be swept under the rug for the simple reason that market pros usually think short term. However, there is a growing sense, even among those optimists, that the government machinations are not working, and the question is not if there will be another major market sell-off, but when. So, will we have the typical summer rally? We may know more in a few weeks. And yes, our Current Portfolio continued to get slammed during the recent market nosedive.

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***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed six positions; four for gains and two for losses.

CORCEPT THERAPEUTICS (12/20/09). Closed position 5/5/10 at $3.90 for a 56% GAIN.

ORCHID CELLMARK (12/5/09). Closed position 5/3/10 at $2.17 for a 53% GAIN.

CHELSEA THERAPEUTICS (1/20/10). Closed position 5/3/10 at $4.23 for a 51% GAIN.

CLARIENT (3/5/10). Closed position 5/3/10 at $3.18 for a 50% GAIN.

ENCORIUM (5/20/07). Closed position 5/3/10 at $3.60 for a 87% LOSS.

ADVANSOURCE (12/20/06). Closed position 5/2/10 at 38 cents for a 81% LOSS.

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***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed three positions; two for gains and one for a loss.

AVANIR PHARMACEUTICALS (10/5/08). Closed position 4/12/10 at $3.38 for a 65% GAIN.

PLANAR SYSTEMS (9/20/08). Closed position 4/12/10 at $3.72 for a 52% GAIN.

HYTHIAM (7/20/08). Closed position 4/12/10 at 24 cents for a 87% LOSS.

Shares in Avanir Pharmaceuticals soared soon after the company presented Phase III data on a drug candidate and another brokerage firm flashed a “buy” on the stock. With Planar Systems, there did not appear to be any apparent news to give the stock an upward jolt. And, we closed Hythiam for a loss.

And so, the Zombie Market continues its upward slog, thanks mostly to the zero percent Fed Funds rate, adding further testament that much of this market is government starch. What constantly baffles us is that all of the government and media talking heads keep saying that things are improving, and, if that is so, why are rates still at zero? The investor public has turned full-throttled giddy, which should give any sane person pause. Why, heck, even the usually bearish crowd on Fox Business is turning bullish.

(more…)

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed four positions, three for gains and one for a loss.

ROSETTA GENOMICS (2/20/10). Closed position 3/30/10 at $2.47 for a 54% GAIN.

ZIOPHARM ONCOLOGY (5/5/08). Closed position 3/26/10 at $4.80 for a 60% GAIN,

SUPERGEN (2/5/08). Closed position 3/25/10 at $3.47 for a 54% GAIN.

HYDROGENICS (9/20/06). Closed position 3/25/10 at $6.18 for a 85% LOSS.

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