You can read the original version online:
http://ymlp342.net/zfvcBW ——————————————————————————– August 26, 2012 Week In Review…
Week In Review For August 20 to August 24, 2012 Canadian Companies mentioned include:
* Katanga Mining Ltd. (TSX:KAT) * Atna Resources Ltd. (TSX:ATN) * Orko Silver Corp. (TSX-Venture:OK) * Bellhaven Copper and Gold Inc. (TSX-Venture:BHV) U.S. Companies mentioned include:
* Arca Biopharma Inc. (NASDAQ:ABIO) * ENGlobal Corp. (NASDAQ:ENG) * DragonWave Inc. (NASDAQ:DRWI) * Quest Water Global Inc. (OTCQB:QWTR) * Medical Marijuana Inc. (Pink Sheets:MJNA) * Omega Commercial Finance Corp. (OTCQB:OCFN) This week on AllPennyStocks.com:
* Article Published, August 21, 2012: Sensio Technologies Lands a New Deal as Commercial Launch Approaches (http://www.allpennystocks.com/aps_ca/special-reports/290/sensio-technologies-lands-a-new-deal-as-commercial-launch-approaches.htm) (CDN Company) * Article Published, August 22, 2012: NeoMedia Lands Deal With Microsoft and Strengthens Sales Force (http://www.allpennystocks.com/aps_us/special-reports/289/neomedia-lands-deal-with-microsoft-and-strengthens-sales-force.htm) (U.S. Company) * Article Published, August 24, 2012: StorageVault Earnings Shows Strong Revenue and Operating Income Growth Again (http://www.allpennystocks.com/aps_ca/special-reports/291/storagevault-earnings-shows-strong-revenue-and-operating-income-growth-again.htm) (CDN Company) Video charts for the week:
* August 21st Technical Video Chart For ENG. The ENGlobal chart started a nice bounce late last week and closed green again on Monday.
Traders will be looking for a new support level after the bounce with no resistance for another 30 cents ahead. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/v0aHx9Ccyi0 ).
* August 22nd Technical Video Chart For KAT:CA. The Katanga Mining chart is rolling-off a solid support level at 45 cents after a sharp fall from over $1. The upside is substantial should the base continue to hold as the indicators are set for a shift in trend and momentum.
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/gniRU9KywgA ).
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WEEKLY UPDATE -NORTH AMERICAN STOCKS TAKE BREATHER FROM RECENT RALLY North American stocks staged a broad rally on Friday to pare losses from throughout the week, but mostly closed down on low trading volumes as investors continue their breaks heading into the Labor Day holiday. The week was light in economic data and earnings reports continued to trickle in, but the clear focus remained on the state of the international economy and the potential of central banks to provide cash infusions to stimulate stagnant growth.
Despite following a quiet summer rally that has not earned a great deal of respect, stocks this past week struggled to find direction as investors eyed a series of high-profile meetings in Europe and awaited the release of the minutes from the latest Federal Reserve policy meeting on Wednesday. Heading into last week, the Dow Jones Industrial Average and S&P 500 had climbed higher for six straight weeks, the Nasdaq had risen in five straight and all three teetered near four year highs to recover nearly all the losses from the market`s collapse. On Tuesday, the S&P 500 hit its highest level since May 19, 2008 as it rose to touch 1,426.
A steady flow of data came from China that pushed and pulled on sentiment as investors chewed on the condition of the world`s second biggest economy. Early week info showed that Chinese exports dropped 8.1 percent in July, representing the biggest drop in 6 months for the country. A separate report pointed to a more rapid than expected contraction in Chinese manufacturing in August. China`s Statistics Bureau released figures that showed new home prices rose in 49 of 70 Chinese cities, the broadest-based gains in 14 months. This is a double-edged sword as it shows growth, but also creates conflict as investors read that as decreasing the likelihood that Chinese policy makers will cut interest rates. In a step to try and kick-start its economy, China`s central bank provided a $43.9 billion cash infusion into the money market, aiding in the rise of metals as China is a key consumer.
Aside from China, news from Europe remains a driver on speculation of what policy makers and central banks are going to do to stabilize fluttering economies and keep Greece from exiting the euro. Greek Prime Minister Antonis Samaras met with German Chancellor Angela Merkel in Berlin on Friday and reportedly asked her to extend the implementation of new austerity measures to four years rather than the two years agreed on as part of the country’s second bailout. Merkel and Samaras both reportedly said that they want Greece to remain in the euro zone and Merkel added that she expects Greece “to stick to its commitments.” Further, Merkel said that she wants to see a report from Greece`s collection of international lenders in October before any decisions can be made about giving the country more time to implement reforms. After those meetings, Merkel headed off to meet with French President François Hollande on Saturday. At the time of this writing, no details of the visit had been released.
The Congressional Budget Office said that the U.S. government will run a budget deficit of $1.1 trillion in fiscal 2012, or 7.3% of gross domestic product. The new deficit estimate is slightly lower than the agency`s March estimate of $1.2 trillion. Creating headwinds for the market, the CBO said that the economy will grow by 2.1 percent in 2012, but because of the upcoming fiscal cliff, will fall into a recession and unemployment will pop to around 9 percent in 2013. The nonpartisan organization must assume that regulators in Washington are not going to do anything about the fiscal cliff – brought about by a hike in taxes and spending cuts – because no official announcements have been made for plans to address it.
Stocks looked past that CBO report and got a lift mid-week after the release of the Fed minutes which hinted at another round of bond buying, a monetary practice called Quantitative Easing (QE) involving printing money to buy government bonds to keep long-term interest rates low. No details were disclosed, but clearly QE3 was a topic at the latest FOMC meeting as members spoke of “substantial” amounts of bond buying being considered. Investors are expecting a cash infusion from the Federal Reserve as in the past unless the economy dramatically improves. Expectations are similar from European Central Bank to provide a stimulus.
However, optimism for QE3 got cold water thrown on it on Thursday after Federal Reserve Bank of St. Louis President James Bullard said that the FOMC release was “a bit stale” and voiced opposition to additional easing.
Equities were taking a pounding on Friday until a letter sent to a high-ranking congressman was released showing Fed Chairman Ben Bernanke saying that the Fed has the tools at hand to take additional steps to bolster the economy. The letter sent stocks on a late-week rally that provided triple-digit gains in the Dow and nearly turned all the markets back to green for the week. Investors will be intensely watching Bernanke when he is scheduled to speak at an annual meeting of the Federal Reserve on Aug. 31 in Jackson Hole, Wyoming with hopes of firm plans about more quantitative easing, as he did previously about QE2 at the symposium in 2010. Big Ben is slated to meet with European Central Bank President Mario Draghi the following day.
Also on Friday, the European Central Bank said that it is considering a plan to set band targets for yields in the euro zone under a new bond-buying program.
The bottom line is that all the discussions, speculation and flat-out guessing about banks providing stimulus is nothing more than just that: speculation. Many investors are wearing horse blinders with a complete focus on further easing and that will likely stay the course this week as well. No concrete announcements have been delivered and investors have seen the carrot of QE3 hung before them for months now.
The ECB will not be providing any firm information on bank initiatives before their next policy meeting on Sept. 6. Next week, US economic data will be frequent, so volatility could possibly be very strong as traders digest the data and then place bets on Fed actions leading into the critical Wyoming meeting and Bernanke`s speech.
After six straight weeks of gains, Canada’s dollar lost a little ground against the US Dollar this past week, inspired in part by an unexpected drop in Canadian retail sales which signaled that the country`s economic expansion could be slowing. Before the sales report, the loonie touched 98.43 cents per USD, its highest level since May 3. Although the greenback gained on its Canadian counterpart, it suffered its worst weekly decline against the euro in six months as the possibility of QE3 damaged the dollar against European currency. During the last five days, the USD gained 0.40% on the Canadian dollar, so next week will begin with one Canadian dollar buying US$1.0069.
* Gold futures took a breather on Friday after a strong week took the precious yellow metal to more than four-month highs and posted its best weekly gain since January. Commentary from the Federal Reserve that suggests more bond buying could be upcoming spurred gold along.
The last two rounds of quantitative easing has helped bullion double in value over the last four years. Gold for December delivery has risen for eight straight days. On the week, December contracts were the most actively traded; rising by 3.30%, or $53.50 per ounce, to close the week at $1,672.90 on the Comex division of the New York Mercantile Exchange.
* Silver prices also surged on the week; rising to highs from the first week of May by finally breaking back above $30 per ounce. Much like gold, silver rose quickly after the Fed minutes showed that a third round of quantitative easing may be coming to bolster the economy. Silver for September delivery remained the most actively traded; taxiing 9.35%, or $0.06, higher to $30.621 per ounce.
* Copper prices continued to build upon recent momentum on hopes that demand from China, the world`s largest consumer of the red metal, as well as the United States will be increasing as central banks take steps to give economies a shot in the arm. China`s central bank injected $43.9 billion into the money market this past week in an effort to rustle economic activity. Although copper slipped a bit on Friday, Thursday saw copper for September delivery rising above $3.50 a pound for the first time in more than a month. September contracts were the most actively traded on New York`s COMEX exchange during the week; gaining 6.4 cents, or 1.87%, to $3.4835 per pound.
* Oil prices felt conflicting forces this past week, keeping crude prices basically flat. Information that output from Saudi Arabia rose to its highest level in more than 30 years during June and Washington considering the release of some of its strategic oil reserves to combat the sharp rise in oil prices undermined by sanctions on Iran were held in check by possible collateral damages to supply as a result of Tropical Storm Isaac. October contracts for West Texas Intermediate crude were the most actively traded and closed the week ahead by $0.14, or 0.19%, at $96.15 per barrel.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners were solid plays with the spike in bullion prices. Agnico-Eagle Mines (TSX:AEM, +2.49%), Barrick Gold (TSX:ABX, +5.17%), Kinross Gold (TSX:K, +8.51%), Yamana Gold (TSX:YRI, +8.91%), Goldcorp (TSX:G, +5.23%) and Newmont Mining (TSX:NMC, +5.39%) all stroked forward.
* In some metal news, Lonmin PLC said on Monday that about 27 percent of its workforce showed up for work at its Marikana mine, following a strike that started on August 10 and fighting that has left 44 people dead. The violence began as 3,000 rockdrillers at Lonmin went on an illegal strike demanding higher wages that quickly escalated as fighting between workers left 10 dead, including two police officers on the first day. On August 16, a standoff between police and the protesting employees led to police firing live ammunition into a crowd, killing 34.
* Energy stocks primarily stepped-back as crude had a flat week.
Talisman Energy (NYSE:TLM, +1.11%) and Imperial Oil (NYSE:IMO, +0.28%) bumped slightly ahead as Canadian Natural Resources (NYSE:CNQ, -1.76%), Suncor Energy (NYSE:SU, -3.08%) and Cenovus Energy (NYSE:CVE, -2.68%) faded back.
* QEP Resources (NYSE:QEP, +6.31%) reported that it inked a total of $1.38 billion worth of all-cash deals with Black Hills Corp.
(NYSE:BKH, +6.06%) and Unit Corp. (NYSE:UNT, -2.90%) to acquire properties in North Dakota promising “significant crude-oil development.” The acquisitions give QEP a net daily production of about 10,500 barrels of oil equivalent as well as development opportunities near its existing core acreage in the Williston Basin.
* BP PLC (NYSE:BP, -1.24%) and Royal Dutch Shell (NYSE:RDS/A, -0.51%) said Friday they’re starting to evacuate staff from the Gulf of Mexico as Tropical Storm Isaac shifted course to head towards a prime area for U.S. oil and gas production. Both companies have suspended operations, including BP`s Thunder Horse platform which has a production capacity of 250,000 barrels per day.
* The financial sector continues to show its on the road to recovery.
Bank of America (NYSE:BAC, +2.00%), Citigroup (NYSE:C, +2.76%), JPMorgan Chase (NYSE:JPM, +0.51%), Goldman Sachs Group (NYSE:GS, +1.31%), UBS AG (NYSE:UBS, +1,45%) and Wells Fargo & Co. (NYSE:WFC, +0.03%) all closed the week green. XLF, the financials select sector SPDR that tracks the financial stocks in the S&P 500, slowed its roll after four straight weeks of gains to close the week even.
* The biggest banks in Canada didn`t fare as well as American counterparts, hampered in part by a weakening loonie and economic data. Canadian Imperial Bank of Commerce (TSX:CM, +0.50%) eked gains as Toronto-Dominion Bank (TSX:TD, -0.58%), The Bank of Nova Scotia (TSX:BNS, -1.54%), Royal Bank of Canada (TSX:RY, -0.48%), Bank of Montreal (TSX:BMO,-0.67%) and National Bank of Canada (TSX:NA, -2.07%) all docked points.
* Aetna Inc. (NYSE:AET, +1.79%) confirmed plans to buy Coventry Health Care Inc. (NYSE:CVH, +19.46%) in a cash-and-stock deal valued at $5.7 billion that will make Aetna one of the largest providers of government-financed health care.
* Shares of the world`s second largest home improvement retailer Lowe’s Cos. (NYSE:LOW, -0.50%) faded as the company said fiscal second-quarter earnings fell 10 percent, citing margins coming under pressure while same-store sales dropped modestly. Further, Lowes cut it projections for the year; calling for basically flat sales and earnings of $1.64 per share versus its previous downbeat estimate of $1.73 to $1.83 per share. Lowe`s also said it would like to acquire Rona Inc. (TSX:RON, -6.45%), Canada`s largest home-improvement retail chain, but its $1.76-billion offer has been rejected by Rona and also faces opposition from the province of Quebec.
* ATP Oil & Gas (NASDAQ:ATPG, -23.78%) filed for Chapter 11 bankruptcy protection late the prior Friday, struggling by the rising costs associated with its deep-water drilling projects in the Gulf of Mexico.
* Film-streaming service Netflix Inc.(NASDAQ:NFLX, -0.83%) said that it will attempt to outbid British Sky Broadcasting Group PLC (the current holder of the rights) in securing the premium rights to movies from Hollywood`s six biggest studios. Netflix founder and CEO Reed Hastings acknowledged the size and power of BSkyB, but conveyed that Netflix is ready to invest heavily to take the rights. Netflix launched in the U.K. and Ireland in January and has already signed up more than 1 million customers.
* Spice firm McCormick & Co. (NYSE:MKC, +1.63%) reported that, in an attempt to further boost its presence in Asia, it will pay $141 million to buy Wuhan Asia-Pacific Condiments Co., the maker of DaQiao and ChuShiLe bouillon products, in China.
* Pharmacyclics Inc. (NASDAQ:PCYC, +6.63%) reported that $50 million in additional payments are now due from partner Janssen Biotech, a unit of Johnson & Johnson (NYSE:JNJ, +0.61%)now that it has enrolled a fifth patient in a clinical trial for ibrutinib, a drug in development for non-Hodgkins lymphoma. Per the agreement that was entered in December, Pharmacyclics received $150 million upfront and can earn and additional $825 million in milestone payments.
* Eli Lilly and Co. (NYSE:LLY, +3.39%) said that two Phase III clinical trials for its Solanezumab drug for patients with Alzheimer`s disease did not meet their primary endpoints. The company is still encouraged and said that the pooled data from both trials “showed statistically significant slowing of cognitive decline in the overall study population of patients with mild-to-moderate Alzheimer`s disease.” The drug maker intends to discuss the findings with the FDA to discuss the next course of action in development.
* Discount retailer Big Lots (NYSE:BIG, -21.29%) saw its shares hit a 52-week low at $29.33 after reporting that fiscal second-quarter earnings declined 38 percent as U.S. comparable-store sales fell 1.9 percent and costs increased from a year ago. The Columbus, Ohio-based company also lowered its full-year per-share earnings forecast to $2.80 to $2.95 from $3.25 to $3.40. Also taking a lashing with disappointing earning was clothing retailer Guess (NYSE:GES, -18.52%) who said that fiscal second-quarter profit sank 29 percent; driven by sales decreases in North America and weakness in Europe that outpaced continued growth in Asia.
* Best Buy Co. (NYSE:BBY) shares extended losses to a nine-year low Tuesday, falling as low as $16.25. The Richfield, Minnesota-based electronics retailer reported a second-quarter profit plunge of 90% and not only suspended its current forecast, but said that it wouldn’t provide a new outlook.
* Design software maker Autodesk (NASDAQ:ADSK, -13.84%) reported a 9.3% decline in its fiscal second-quarter profit and said it will be cutting its staff to address a shift to cloud and mobile computing.
Revenue missed Autodesk`s expectations and the company lowered its full-year revenue guidance.
* Fifth Third Bankcorp (NASDAQ:FITB, +2.85%) got a lift after the Federal Reserve approved the bank’s plan to boost its dividend and expand a share buy-back program. The Ohio bank plans to raise its dividend by 25 percent to 10 cents per share.
* Shoe Carnival Inc. (NASDAQ:SCVL, -2.25%) reported a profit of 14 cents a share for the second quarter ended July 28, flat with the year-earlier period but topping its own earnings forecast. Sales increased 9 percent to $182.2 million and comparable-store sales increased 3 percent during the quarter.
* In one of the mostly closely-watched patent lawsuits on the books, a federal court jury delivered a big win late Friday to Apple Inc.
(NASDAQ:AAPL, +2.23%), finding that Samsung Electronics Co. infringed six Apple patents. The judge awarded $1.05 billion in damages to Apple as a result. Apple continues to make new highs as the most valuable public company ever; passing Microsoft’s old record set during the dot.com boom. Microsoft’s 1999 peak was $620.58 billion (accounting for inflation, though, Microsoft would have been worth $850 billion in December 1999). Apple is now worth $621.71 billion, 53 percent more than No. 2 Exxon Mobil Corp.
* Computer maker Dell (NASDAQ:DELL, -7.86%) reported its quarterly results that beat expectations, but shares slumped on disappointing guidance. Rival Hewlett-Packard (NYSE:HPQ, -9.94%) also tumbled after a disappointing earnings report which revealed flat revenue and an $8.9 billion loss for the third quarter ended July 31.
* Media and sports company Madison Square Garden Co. (NASDAQ:MSG, +5.99%) got a lift as it reported that fiscal fourth quarter earnings more than tripled as the company saw increased revenue across every segment and posted earnings and revenue well above expectations. Only public since early in 2010, shares have climbed from around $18 per share to hit a new all-time high this week at $44.75 before closing at $41.41.
* Celestial Seasonings Tea maker, Hain Celestial Group (NASDAQ:HAIN, +26.38%), said that it agreed to acquire U.K.-based Premier Foods for $316 million U.S. and also reported strong earnings and provided an upbeat forecast for the new fiscal year.
* Retirement home operator Sunrise Senior Living Inc. (NYSE:SRZ, +59.96%) bolted ahead after the company agreed to be acquired by Health Care REIT Inc. (NYSE:HCN, -3.02%), the world’s third largest real estate investment trust, for $14.50 per share in a deal valued at about $845 million. Spotlighting an aging population and demand potential, others in the industry got a boost too with Brookdale Senior Living (NYSE:BKD, +10.04%) and Five Star Quality Care (NYSE:FVE, +21.78%) making strong moves.
* Shares of Toll Brothers (NYSE:TOL, +0.68%) rose to multi-year highs after the luxury home builder reported surprisingly strong earnings, signaling further momentum in the U.S. housing market.
* NBC Universal, which is owned by Comcast Corp. (NASDAQ:CMCSA, -0.21%), will be laying off 20 to 25 staff members from “The Tonight Show” and other employees will be taking a pay cut, including star host Jay Leno. Leno volunteered to take a pay cut to save additional job losses, bringing his salary to $20 million a year from between $25 million and $30 million. The cutbacks are an attempt by NBC Universal to improve its financial position since Comcast bought a controlling interest last year for $6.2 billion in cash.
Weekly Indices Results:
The S&P TSX Composite Index snapped its two-week winning streak; slipping 7.66 points, or 0.06%, to 12,082.23. The TSX Venture Exchange was not to be denied another weekly advance; rising 18.46 points, or 1.50%, to 1,251.88 on the week.
In the States, the Dow Jones Industrial Average finally fell after six straight ascending weeks; giving back 117.23 points, or 0.88%, ending the week at 13,157.97. The much-broader S&P 500 followed along; dropping by 7.03 points, or 0.50%, to close at 1,411.13. The tech-rich NASDAQ Composite also ending its string of green weeks;dropped 6.80 points, or 0.22%, to 3,069.79 on the week.
Canadian Economic Data:
* Wholesale trade edged down 0.1% to $49.9 billion in June – its first decline in five months – led by fewer sales of agricultural supplies (down 20.5 percent). Excluding agricultural supplies, wholesale sales rose by 0.9 percent. Economists were expecting a 0.1 percent increase in wholesale sales. In volume terms, wholesale sales were down 0.5%.
* Retail sales surprisingly declined 0.4% in June, more than offsetting the gain in May and coming up well shy of expectations for a 0.1 percent expansion. Lower sales were reported in seven of 11 sub-sectors, representing 64% of retail trade and suggesting that consumers remain very cautious about spending money. Compared to June 2011, overall sales were 1.7 percent higher.
* In June, the number of people receiving regular Employment Insurance benefits continued its downward trend, edging down to 507,600 from 512,100 in May. The number of beneficiaries declined slightly in Nova Scotia and edged up in Ontario and Prince Edward Island. The number of initial and renewal claims rose 3.4 per cent to 231,600 in June. On a yearly basis, the number of people receiving EI benefits dropped by 62,900, or 13.1 percent, from June 2011 to June 2012.
Next week, economic data will include the Industrial Product Price Index and the Raw Materials Price Index on Wednesday; and June`s Gross Domestic Product updates on Friday.
U.S. Economic Data:
* The Commerce Department said that orders for big-ticket U.S. goods, called “durable goods,” jumped 4.2 percent in July on increased demand for airlines and autos. Economists were calling durable goods orders to climb 3.0 percent. Bookings for transportation equipment surged 14.1 percent in July, bolstered greatly by Boeing receiving its biggest batch of orders since December. Excluding the volatile transportation sector, orders fell 0.4 percent, the second straight month of contraction. Orders for core capital – which excluding defense and transportation and are regarded as a bellwether of U.S.
business spending – dropped 3.4 percent in July after diving 2.7 percent in June.
* The Commerce Department also reported that sales of new homes in the United States rose 3.6 percent in July following a 359,000 rate in June, providing the latest sign of a slow, but steady, recovery in the housing market. New home sales reached a seasonally adjusted annual rate of 372,000, the same figure as in May, which was the highest since April 2010. On a yearly basis, sales have risen 25 percent since last July, but are still far below the 700,000 benchmark that economists view as healthy. The median price for a new house decreased 2.5 percent in July from the same month last year, to $224,200.
* Also on the housing slab, sales of existing homes climbed in July from an eight-month low. Purchases increased 2.3 percent to a 4.47 million annual rate, according to figures from the National Association of Realtors. Economists were predicting a rise to a 4.51 million rate. While the rise is a positive sign, tight lending policy at banks, a dwindling inventory of pre-owned houses and a high unemployment rate is still handcuffing a rise to the 5 of 5.5 million sale pace that is considered normal.
* The Labor Department reported that applications for U.S. jobless benefits rose modestly in the week ended August 18, signaling that the jobs market is not getting any better. Initial claims increased by 4,000 to a seasonally adjusted 372,000 during the week, the highest level in five weeks, and topping economists` predictions of a rise to 369,000.
Next week, data in the States will include S&P Case-Shiller Index and Consumer Confidence on Tuesday; GDP updates and Pending Home Sales on Wednesday; Jobless Claims and Personal Income and Outlays on Thursday; and Chicago PMI, Consumer Sentiment and Factory Orders on Friday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, gold miner Atna Resources (TSX:ATN) rose steadily throughout the week; closing on Friday at $1.12 for a gain of 11 cents, or 10.89 percent, and just shy of its intraweek high of $1.13. The other Canadian stock on our radar, base metal miner Katanga Mining Ltd. (TSX:KAT) also advanced with a close on Friday at 49 cents for a gain of 1 cent, or 2.08 percent, and an intraweek high of $0.50.
In the States, healthcare company ARCA Biopharma (NASDAQ:ABIO) slid early in the week, but recovered to close the week flat at 36 cents with an intraweek high of $0.39. The other U.S. stock on our watchlist, services company ENGlobal Corp. (NASDAQ:ENG) started the week ahead and hit its intraweek high of $1.15 on Monday, but fell sharply upon a bad earnings report to close the week down by almost 33 cents, or 30.77%, at $0.74.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 4.45%, largely as a result of the disappointing outcome of ENG. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have realized gains of 7.99%.
Next week, we focus on Orko Silver Corp. (TSX-Venture:OK) and Bellhaven Copper and Gold Inc. (TSX-Venture:BHV). In the States, look for big things from DragonWave Inc. (NASDAQ:DRWI) and Quest Water Global Inc. (OTCQB:QWTR).
We hope that everyone took a close look at our latest U.S. spotlight, Omega Commercial Finance Corp. (OTCQB:OCFN) as shares soared by 323.08 percent on Friday after we initiated coverage. The stock hit an intraday high of $0.29 or a rise of 458% before settling at $0.22 for a still solid 323% one day return. On Thursday, the company reported their 10-Q unaudited “Statement of Cash Flow” ending June 30th 2012 with a year-over-year increase in cash flow was 230%. Omega management announced this illustration of growth when compared between the same period ending June 30th 2011 and its respective value of $50,010 and the current period ending June 30th 2012 with its respective value of $115,287. This is a fundamental measure and indicator for the success of a micro-cap growth company. This growth value measures their ability to manage cash flow necessary to sustain the day-to-day working capital needs for its operations.
From a technical perspective, the rise this past week took OCFN back to its highest level since September 2008. The chart has come roaring out of the multi-year, double bottom pattern that we discussed in our original corporate profile on Thursday. The chart is in full-blown bull mode at this point by breaking through resistance at 11 cents and holding well above the 50 and 200 day moving averages. On any deep pull-back, support should come in at the old resistance at $0.11.
Amazingly, there is only minimal resistance in front of the candles and that’s still far off in the distance with the first resistance at 60 cents and then not more until around the $1 mark.
The Relative Strength Index (RSI) has surged above 70, a barometer of momentum that technical traders call the “power zone”. The Moving Average Convergence/Divergence has broken above zero, showing the chart is now in a bullish trend. Technical traders reference the move above zero as “breaking the money line” because it is a strong sign of trend that is generally signaling a lot of upward pressure on the price per share. With the shift in trend and momentum in full swing and no resistance in sight, OCFN is a chart to definitely keep an eye on to pop-up on the radar of additional traders to continue to fuel the rally.
We are also keeping a close eye on a previous spotlight of ours, hemp industry innovator Medical Marijuana Inc. (Pink Sheets:MJNA). Shares have doubled in August from 2.5 cent lows to Friday`s closing price of $0.05 and are consolidating in this area and looking for a breakout.
Throughout the month the company has announced corporate expansions of its portfolio company Red Dice Holdings, a 1,200 percent quarter-over-quarter increase in revenue, increased product production, a new $2 million line of credit and interviews with leading small cap radio services. Both technically and fundamentally speaking, the company is growing quickly and looks positioned for continued upward pressure.
————————- Forward Looking Statements This report includes forward-looking statements that reflect the mentioned companies current expectations about its future results, performance, prospects and opportunities. the mentioned companies has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plan,” “should,” “typical,” “preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause the mentioned companies actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
Disclaimer AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable.
For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company`s expectations and estimates.
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Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views; opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in it`s disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has been compensated six thousand dollars and two thousand five hundred dollars worth of barter services by a third-party, SmallCapVoice.com Inc. for its efforts in presenting the OCFN profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com has been previously compensated six thousand dollars and two thousand five hundred dollars worth of services by a non-affiliated third-party, SmallCapVoice.com Inc. for its efforts in presenting the MJNA profile on its web site and distributing it to its database of subscribers as well as other services. Information presented on our web site and within our reports contain “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be “forward looking statements.” Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: http://www.sec.gov ( http://www.sec.gov ) and/or the National Association of Securities Dealers (NASD) at:
http://www.nasd.com ( http://www.nasd.com ). Readers can review all public filings by companies at the SEC`s EDGAR page. The NASD has published information on how to invest carefully at its web site.
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