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Posts with tag SmallCapStocks

How I'm going to make smallcap stocks less scary

Judging from previous articles like this, can you guess what I'm going to write about? By now I think you should know my core beliefs-while everyone and their mother is covering the wheeling and dealings of hugely important corporations hence efficient stocks like Google Inc (NASDAQ: GOOG), Yahoo Inc (NASDAQ: YHOO) and Microsoft Corp (NASDAQ: MSFT), my blog's readers and I are having much more fun profiting from trading mostly short selling...well actually all short selling-smaller infinitely more inefficiently priced companies like GRO, PTEK and STXX, all of which were "pumped up" by various temporary catalysts.

For Agria Corp (NYSE: GRO), it was message board hype, PokerTek Inc (NASDAQ: PTEK) had a combination of message board hype, rumors and press coverage and South Texas Oil Co (NASDAQ: STXX) got a stock promoter mention, and now that those temporary catalysts have come and gone, all three have reversed hard off their highs. And mind you, while many pumps are accomplished on the infinitely ore sketchy OTCBB and Pink Sheet exchanges, all three of these companies are trades on more reputable markets like the NYSE and NASDAQ. And yes, I profited solidly on all three, increasing my yearly gain to around 40%.

Now I'm looking at stocks like Source Interlink (NASDAQ: SORC) as a potential short, which is up on insider buying, a catalyst I don't respect, but since there's not enough space for me to cover all the details of exactly what I look for here--it's about chart patterns, price action and volume. Today, I am doing a special Friday the 13th marathon episode of my LiveStock show. To the untrained eye, I know these small stocks seem scary, but maybe after this journey, I can help you better understand them.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

Mannatech's (MTEX) pathetic press release

I can only think of two words to describe embattled multi-level marketing firm Mannatech's (NASDAQ: MTEX) latest press release: transparent and pathetic.

In case you haven't been following, the Texas Attorney General Greg Abbot filed a lawsuit against the company in July accusing the company of illegal sales and marketing practices, "falsely claiming its products cure, mitigate, treat or prevent diseases such as cancer, autism and Down's syndrome, in violation of state and federal laws." (source: WSJ).

Well now Mannatech has a whipping boy of sorts. With great fanfare, including a press release, the company announced it had terminated the distributorship or Raymond Gebauer, who has been convicted of tax evasion:

"Mr. Gebauer's conviction places him in violation of his Associate agreement with Mannatech," said Terry Persinger, President and COO of Mannatech. "We expect, and the Company's policies require, all Mannatech Associates to comply with applicable laws, including tax laws."

Is Mannatech just putting out this press release to brag that it does take compliance with the law very seriously? Of course. Is anyone likely to buy it? Of course not. The Attorney General's complaint contained ample evidence to show just how seriously Mannatech takes the law. Now that it's under scrutiny, it has some work to do. But for now, we'll have to settle for PR work.

Gebauer was one of the company's top distributors, with a down-line of 718,000 people. The stock is up 2% in early-morning trading.

Top Picks 2007: Coolcat goes online for China.com

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

CDC Corp. (NASDAQ: CHINA) is a favorite speculative idea for 2007 from momentum trading expert, Kevin Kennedy. The editor of The Coolcat Report notes, "CDC operates companies focused on enterprise software applications and services, mobile applications, online games, and the Chinese portal China.com.

"The company's software solutions are used by more than 5,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries.

"Its China.com unit is a leading Mobile Value Added Services (MVAS) provider and Internet services company operating principally in China. CDC Mobile is focused on providing MVAS products to subscribers in China. CDC Games Limited is one of the market leaders of online and mobile games in China with more than 37 million registered users.

"CDC reported blowout third-quarter results in November. Total revenue was $78.2 million, an increase of 26%. Earnings per share tripled to $0.09 per share. Future plans include an initial public offering of either CDC Software or CDC Games and a continued emphasis on acquisitions. The stock is on a five-month win streak, including a 41% surge in November."

Top Picks 2007: Rich Moroney gets insured in Philly

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Philadelphia Consolidated Hldg (NASDAQ: PHLY) is the top speculative idea from Rich Moroney, editor of the small-cap oriented service, Upside.

The advisor says, "PHLY markets and underwrites property-and-casualty insurance, focusing on underserved markets. Product launches and service enhancements should help sustain premium growth and decent pricing.

"The company boasts a long history of selective and highly disciplined underwriting. The company consistently has one of the lowest loss ratios in the industry -- along with exceptionally high renewal rates. At 26%, the company's return on equity is well above the 15% of the average property and casualty insurer.

"September-quarter earnings per share surged 172% to $1.28, exceeding the consensus estimate by $0.55. Sales increased 19%. Total net earned premiums climbed 21%. Results benefited from the release of reserves due to favorable prior years' claims experience.

Continue reading Top Picks 2007: Rich Moroney gets insured in Philly

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IndexesChangePrice
DJIA+152.2511,384.21
NASDAQ+51.122,294.44
S&P 500+21.391,273.70

Last updated: July 09, 2008: 12:35 AM

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