2 Small Cap Growth Stocks and some Bullish Stock Charts
Jan 4, 2009 Bullish Stock Charts, Small Cap Stock Picks
Its beginnning to look like the good ol days again where i can run my daily scans and actually see some interesting stock charts that are actually playable. It looks like 2009 is kicking off with a good start so far… Well at least for its first day 
2008 was actually an awesome year as our return was over 120% on the year. It just seemed like a shit year because we hit the last quarter with the market getting slammed. In which created a never seen before market environment that was pretty damn hard to predict and consistently profit in the market. Which was why i played it safe and stayed conservative. No need to throw away a great year to a few crazy months in the market and put our money at risk.
2 growth stocks with some good lookin stock charts: PRS, CTDC
PRS has been hammed over the past year obviously, everything has. But its a lot harder these days to find stocks that are actually forcasted to report higher earnings in 09′ . So these kinds of stocks combined with a bullish chart are probably the best bets out there in the small cap stock picking game to play off of momentum.
PRS in the less than sound credit services industry which has suffered greatly and will likey continue to suffer so future outcome of this company is sketchy but who really cares since were not investors. Just traders and a stock like this which moved 48% on friday is something we could capitalize on. According to yahoo finance earnings estimates are .73 compared to a huge loss of an expected 1.7eps in 2008. This is according to just one analyst but the less analyst coverage the better. The more analysts covering a company the more exposure it has… meaning everyone already knows about it. The key to the stock market is find the opportunties before everyone else does.
With an estimated .73 eps forward earnings and trading in an industry with an average P/E of 8x this gives PRS a future fair value within its industry around $6/share compared to its closing price of 1.69
CTDC is another small cap growth solar company looking to make some big moves in the future. According to this article at seekingalpha.com they are in the works of possibly building the worlds largest solar power plant which brings in a lot of room for speculation and momentum in this small stock.
Forward earnings are set around .22 eps compared to compared to -.05eps for the current year which sets a forward p/e at 11.5x compared to its industries 12.5x average. So while this company isn’t extrememly undervalued it has some strong growth potential. And did i mention its extremely bullish stock chart?
Technical Analysis:
Over the past two session CTDC has experience a huge increase in volume along with some strong price movement. Price halted near prior resistance around the 2.50 area so its very possible to see the momentum slow down some before a continuation.
Bullish Stock charts from Friday:
AMEX:
DNN
MEA
Nasdaq:
CTDC
FTBK
ARTC
ACTG
SNDK
GRMN
HIMX
CTCM
NYSE:
MEG
PRS
HMA
WYN
ABK
BGC
ACI
BR
