Monday Penny Stock Watchlist: 5 Stocks You Shouldn’t Miss

Stocks are somewhat higher Monday as investors prepare to get an earful of sales numbers for November. Among them are detailed reports on Black Friday and Cyber Mondays sales figures – two days that are especially worth watching because theyre among the biggest shopping days of the year. But while scores of investors lie in wait to see what the markets bringing this week, were getting proactive once again with our weekly Watchlist.

Each week, we take a look at a list of penny stocks that are exhibiting abnormal volume, strong technicals, upcoming news, or another catalyst that suggested they might be making a material move in the coming week.

And this week, were back with 5 stocks you shouldnt miss…

As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed, we opened the comments up to readers again last week, giving you the chance to offer up more speculative penny stock plays.

Check out the comments after this article to get a glimpse at a slew of new user-submitter penny stock picks – and the chance to submit your own!

First, though, let’s take a look at this week’s penny stocks worth watching…

Advant-E Corporation (OTC: ADVC) – This $19 million over-the-counter tech play sells software that helps businesses share documents digitally. Apparently, business has been good – shares are up 47% in the last month alone. And with ADVCs share price currently smack-dab between two key technical price levels, chances are strong of continuation of the stockss uptrend. Watch out for prices to hit the brakes at 40 cents per share, a 43% upside.

La Jolla Pharmaceutical (NASDAQ: LJPC) – Shares of this tiny pharmaceutical company took a big hit just a couple weeks ago as investors grew weary of flawed financials and slow development of the companys Lupus drug. But with todays merger announcement and triple-digit price hike, expect volume to continue to be strong in this stock for the remainder of the week.

Zenergy International (PINK: ZENG) – Pink sheet energy company Zenergy is trading higher today after the company announced its acquisition of Greenlight Biofuels. The $1.5 million purchase gives Zenergy control of Greenlights 40 acre biofuel production facility, with a total expected capacity of 5 million gallons of the alternative fuel per year. Be careful playing this one – while volume is strong on this stock, Pink Sheets stocks tend to trade sporadically.

Aware Inc. (NASDAQ: AWRE) – This semiconductor company has seen better days. Aware Inc, which licenses DSL intellectual property and sells DSL diagnostic and hardware and software to its customers saw its margins slide from a modest 5% in 2008 to negative territory in its latest quarter. A bearish chart gives us reason enough to look at this stock as a potential short play.

SWS Group (NYSE: SWS) – SWS Group is a financial holding company that like many financials seen its profit margins slashed in half in its latest quarters filings. But as usual, fundamentals arent the only reason why this stocks is facing pressure right now. With a 50-day moving average that has crossed below its 200-day moving average in the last week or so, a bearish sign, and a volume uptick on lower share prices, it seems clear that investors want to see shares of SWS lower in the coming week.

Share Your Penny Stock Picks

Once again, we’re going interactive this week…

Just post your recommendation in the comments section of this article between now and the markets close on Friday, December 11 to share your favorite penny stock play with the rest of the world.

Cheers,
Jonas Elmerraji

December 7, 2009

Read the original story at Penny Sleuth :: Jonas Elmerraji