Penny Stock News Alert

Penny Stocks To Watch

The following is a list of penny stocks to keep an eye on.  You can never be too sure when the next upward move will take place:

Penny Stock Watchlist: 

MedClean Technologies Inc. (MCLN)

Mesa Air Group Inc. (MESA)

Encompass Group Affiliates Inc. (ECGA)

Spongetech Delivery Systems Inc. (SPNG)

Itronics, Inc. (ITRO)

NewMarket Technology Inc. (NWMT)

Bio-Key International Inc. (BKYI)

ADVENTRX Pharmaceuticals, Inc. (ANX)

Sirius XM Radio Inc. (SIRI)

Ambac Financial Group, Inc. (ABK)

La Jolla Pharmaceutical Company (LJPC)

NextMed Inc. (NEXM)

Tips: Investing in stocks wisely

How am I supposed to know which stocks to choose?

If you want to hold a stock for the short term, look for stocks in an uptrend showing increasing volume.  To find out if a stock is an uptrend, wait a while to see where it’s going.  If the price is going up with increasing volume, that’s a good indication.

For long-term investors, it’s good to look at the company’s fundamentals.  Here are some positive signs:

• Compare Year to Year Quarterly Earnings & look for the following:
• Increasing Revenue, Profit, Equity and/or Assets
• Decreasing Debt
• Low Debt to Assets Ratio
• Positive and/or Increasing EPS (Earnings Per Share) Value

Low #of Outstanding shares: Outstanding shares represents the number of shares held by public investors & insiders.  If the # of these shares are decreasing, that means the company is buying & holding because it believes the stock price will soon rise.  Always keep in mind, these are just positive signs that are likely to succeed and there’s never a guarantee.  Stocks are risky; some work in your favor while others don’t.

Ignoring Good Signs: Don't Get Left By The Train!

Some investors make the mistake of not getting into good stocks when they’re about to take off because they feel that the stock won’t move as high or they’re just plain skeptical.  Some have often kicked themselves when they missed good deals.

For example, on December 2008 to June 2009, CTIC rose progressively from $0.01 to $2.10 for a gain of 21,000%.  Yep, you missed it. 

Here’s another one: In just six days from July 31^st 2009 to August 5^th 2009, NWMT went from $0.01 to $0.61-A gain of 6,100%.  I’m guessing you missed that too.  

 

Ahhhh! My Stocks are falling!

As a stock trader, this will be bound to happen to you.  You have two options: stay & ride the whale or jump ship.

Option 1: Holding-Riding the roller coaster all the way down

Some investors hold on to the stock because they believe the stock will do a rebound.  If the company has good fundamentals, then there’s a good chance that the price will go back up one day but there’s a possibility it might not.

Option 2: Jump Ship!

Sometimes, the stock price keeps falling below ground zero with no hopes of any return.  Other times, it may take years or even decades for it to get back to where it was.  In these cases, it might be a good idea to leave the stock for now and put your money somewhere else.  Fortunately, stop loss orders are available to protect one from losing everything. 

Encompass Group Affiliates Inc: (OTC:ECGA)

Encompass Group Affiliates (OTC:ECGA) has been trading in the $0.0002 to $0.0004 range for quite some time now. However, about two months ago on October 1st of 2009, the penny stock peaked at $0.001 but slowly went back down with time. The real question is will this penny stock ever go back up and past the mark? Only time will tell.

Currently, the price is about $0.0003 which is pretty cheap; however, there are over 13 Biliion shares outstanding. The average daily trading volume usually varies anywhere between 10M and 50M.

The revenue posted for the third quarter earnings ending in September 2009 were about $22.97M, a slight decrease from last year's third quarter earnings of $27.49M; however, the total liabilities decreased from $60.12M to about $55.45M which shows that the company might be trying to pay off its debt.

On a good note, Gross Profit slightly increased from $5.91M to about $6.45M comparing 3rd quarter earnings ending in September 2008 & 2009 respectively. In addition, the company's equity increased from $11.59 million to about $13.85 million.

Encompass Group Affiliates is a business that specializes in reverse logistics providing services such as repairing consumer electronics and computer equipment, parts procurement, and distribution services.

Recently, Encompass Group Affiliates (ECGA) has expanded its operations into mexico with the opening of a distribution & reverse logistics facility and has also entered into Canada with a new distribution and service facility.

The company has recently acquired two new clients: ESI and Ardus Medical. Encompass Group Affiliates has announced that it will become a provider of parts for ESI in addition to providing call center support services. The company will be providing Ardus Medical with repair and engineering development services. A few months ago, Encompass Group Affiliates entered into a strategic partnership with Hyper Microsystems Inc.

Investing In Dividend Stocks

Stocks with dividends are the best securities to trade or invest in since they offer their owners income. Dividends are payments made by the company to shareholders. Usually, the company announces the dividend on the declaration date stating the amount to be paid per share (stock).

The ex-dividend date is the day on which all shares bought and sold no longer comes with the right to receive the upcoming dividend. For example, if you sell the dividend before the ex-dividend date, you won't receive the dividend. If you sell the dividend on or after the ex-dividend date, you receive the dividend.Shareholders may sometimes be offered the option to elect to receive the dividend payment in cash or as additional shares.

There are many sites out there that provides the upcoming ex-dividend dates for dividend stocks. Just do a search and you'll find quite a few. It's good to know that dividend stocks usually rise in price just before the ex-dividend date and then falls in price on and after that day. This doesn't always happen but more than often it does.

If a company begins to offer a dividend, then that's a good sign. That means that a company is doing well and can offer its shareholders a piece of the profits. This usually leads to a rise in the price of the stock.

Mesa Air Group, Inc. (NASDAQ: MESA)

Mesa Air Group (MESA) is a company that provides scheduled passenger and airfreight services. They operate as regional carriers servicing 184 cities in 45 states commanding a fleet of 182 aircrafts.

Recently, Mesa Air Group announced the creation of a joint venture between go! and Mokulele. The company has also recently announced its approval for its transfer to the NASDAQ capital market.

Currently, the stock is priced around $0.12. The company has about 146 million outstanding shares issued which is a fair value. The revenue reported on the 2nd quarter ending in June was about $228.39 Million with Gross Profit of about $26.81 Million.

Total assets reported were about $894.13M and equity was listed at $93.66M. The earnings per share was at a value of -0.78.

On Wednesday, December 23, 2009, the stock traded at higher than normal volume with an increase in stock price from about $0.11 to $0.13. However, it is currently back down to $0.12.Is this the start of a new uptrend or was that just a spike? The only way to find out is to keep an eye on the stock by adding it to your watchlist.