Coolcat's Small Caps
03/11/2005 12:00 am EST
With a focus on low priced micro- and small-cap stocks,Kevin Kennedy, editor of The Coolcat Report, isolates the "characteristics of past major market winners" to find his new portfolio candidates. For those aware of the inherent risks, we offer his latest trading selections.
"We look for a low price, because it’s easier for a stock to go from two to 20 than it is to go from 20 to 200. We look for a low float, where there is the potential for big demand, and small supply. We also look for high relative strength. Huge winners start as big winners. We look for new highs, which suggest that there are no disappointed buyers holding the stock. We look for breakouts from bases on big volume, and pullbacks on lighter volume. We also look for a low price-to-sales ratio, which often attracts bargain hunters. Here are the latest stocks to meet these criteria.
"724 Solutions (SVNX NASDAQ) delivers scalable technology and solutions that allow mobile network operators to rapidly deploy flexible and open next-generation IP-based network and data services. 724 provides alerting solutions to mobile operator partners to assist them in lowering operating costs and improving customer relationship management. We caution that the stock, fueled by recent positive press releases, might be due for a little breather here.
"A.D.A.M., Inc. (ADAM NASDAQ) provides online health content, decision support tools and educational products to help millions of people ‘get smart’ about their health and wellness. With one of the largest consumer-oriented medical information libraries in the world, A.D.A.M. markets its solutions to leading healthcare and pharmaceutical organizations, government, employers, and educational institutions.
"Comtech Group (COGO NASDAQ) is a module design provider in China focused on the mobile handset and telecom equipment industries, designing solutions for mobile device products, including liquid crystal display (LCD) modules, camera modules, sound system, and power supply modules. In the telecom area, Comtech targets optical solutions, public switched telephone network switching, and wireless base stations.
"DayStar Technologies (DSTI NASDAQ) has developed a thin-film, copper-indium-gallium-selenide solar cell, known as a CIGS solar cell, for the direct conversion of sunlight into electricity. Headquartered in upstate New York, the company is developing a high-volume manufacturing process that it believes could result in solar electricity power production at commercially viable rates.
"Infinity (IFNY NASDAQ) is an independent energy company engaged in the exploration, development and production of natural gas and oil and the operation and acquisition of natural gas and oil properties. The current operations are focused on its exploratory drilling program in the Fort Worth Basin of Texas as well as the development and expansion of its producing Wamsutter Arch Pipeline Field and its emerging Labarge Field in southwest Wyoming."