XSNX.OB Breakout in Play

The XSNX breakout i pre-warned yesterday occured today with a great looking run on increased volume conjoined with a 15.8% rally. Momentum here looking very strong and valuation on this stock is much higher.

I entered a long position at .495xsnx.ob

XSNX.OB – Small Cap Solar Stock Building Momentum

I’ve taken much notice to XSNX recently as the chart has become increasingly bullish and is currently consolidating in a very attractive pattern in which a breakout could possibly result in a very strong move. Beacon Equity Research has written quite an extensive report on this company and believe they could have revenue of $275m by the year 2010 with margins reaching 40%. With these estimates they have given XSNX a 12 month price target of $1.50/share.

For the Full report visit here : http://www.beaconequityresearch.com/reportsonline/XSNX

Technically this looks like XSNX is ready to bust to the upside in a possible very strong move in our favor. With the speculation and growth around solar energy a penny stock like this could become very volatile. This triangular consolidation pattern will turn into a buy signal if and when price breaks out from the previous peak created on 12/17 which kick started this latest move that is also a breakout from a year long descending channel.

I’m not ready to buy this yet but have it on very close watch for a breakout of .485

Keep an eye open on this sucker ;)

xsnx1.png

xsnx2.png

Bullish Stock Charts

OTCBB:bullish stock charts

SNEN
UGTH
TWRT
UTVG ** – Chart shaping up very nicely and valued around 16.80/share. Looks like a good buy.
XSNX*

Major Exchanges:

ASTI
GRC
CHINA
EFUT
KUN
solf

ADPI Settlement Provides Day Trading and Value Opportunity

ADPI made a huge 84% move today on news of there settlement in which got the uglyness out of the way and price action on the rebound from its huge recent sell off.

Let me quote Elizabeth Trotta from thestreet.com

“American Dental Partners (ADPICramer’s TakeStockpickrRating) shares soared Thursday after the company, which provides business services to dental group practices, settled with PDG, a doctor group affiliated with PDHC, one of the company’s Minnesota subsidiaries.On Dec. 12, a U.S. jury found American Dental Partners liable for compensatory damages of $88.29 million for breach of service agreement, and on Dec. 13, also awarded PDG punitive damages of $42.25 million for interference with contract and prospective advantage.

Under the settlement announced Thursday, American Dental Partners agreed to transfer leases and associated assets related to 25 of 31 Park Dental facilities to the doctor group and to forgive $3 million in outstanding accounts receivable. American Dental Partners will also provide interim management services to PDG for up to nine months, for which the doctor group will pay the company a management fee of $19 million.”

Fundamentally this stock is depressed in value with a low forward PE of just 8.5 entailing a fair future value around $24/share. Analysts median estimate is $21/share.

Here an illustration of the possible short term day trade setup as this stock should be quite volatile in either direction tomorrow.

adpi.png

Let Hop in HAUP post Earnings! ( Small Cap Stock Picks )

HAUP made an impressive move from a technical standpoint today up over 17% on heavily increased volume to breakout from a double bottom pattern in the face of the bear making it appear that this stock is back in favor of the bulls. HAUP reported an increase of 58% in net income over fy 06 with .39 eps excluding tax deference and fully diluted compared to .24eps in 06′. HAUP has been growing at a substantial rate as the previous year of 05′ they reported just .14eps fully diluted. HAUP also stated that they have purchased 142k shares on the open market in the third and fourth quarter as part of a stock repurchase plan.

At the current price of 4.96 HAUP is undervalued as its trading below the Computer Peripherals industry average P/E of 21x earnings while HAUP is at a low 13.4x earnings giving them a current fair value around $8/share. As HAUPS earnings grew 71% in 06′ and 58% in 07′, I think we could conservatively say that HAUP will be able to grow at least 40% into 2008 which would give them an estimated .51 eps for 2008 or a very attractive forward P/E ratio of 9.72x compared to the 21.7x average multiple. Given this information we could give HAUP a future fair value within its industry around $11.06/share which entail upside potential of 123% given todays closing price.

Overall HAUP looks like its in a position  to make a continuation on the long side with multiple aspects for speculation including a bullish breakout, positive growing fundamentals, low valuation, and a stock repurchase program. I want to be long HAUP.haup.png

Bullish Stock Charts

OTCBB:

AMNT – great looking technical double bottom
CAGC
UTVG
SNEN

MAJOR EXCHANGES:

CBAK
SOLF -
ADPI
TLCV
VWPT
HAUP ** – STRONG Q4 AND FY RESULTS TODAY COMBINED WITH A BEAUTIFUL CHART. LETS DIG INTO THIS
XING
CSUN – Could have capitalized on this double bottom i called out yesterday…….
GRRF* – UNDERVALUED HERE AT 10. FAIR VALUE UP NEAR 16