Monday Penny Stock Watchlist: Keeping Tabs on the Healthcare Bill

Whatever your personal political anglings may be, yesterday’s passage of the healthcare reform bill is something all investors need to keep an eye on. With $1 trillion in government healthcare spending slated for the next ten years, there’s no question that the implications on Wall Street are going to be significant and long lasting.

But what’s not initially clear is exactly how the reform bill is going to impact stocks. While new consumer protection measures should prove to be painful to the bottom line of major insurers, some stocks – including pharmaceuticals – should see increased sales volume.

Stocks are starting the day off lower this morning, most likely because of the fact that dividends and capital gains are going to be fuelling the government healthcare shopping spree – a fact that will decrease real investment gains across the board. But political machinations and meanderings aside, there are still penny stock plays to be made this week, so without further ado, let’s turn to our watchlist…

In case you’re not familiar, each week, the Penny Sleuth takes 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.

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 this 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 breakout penny stocks worth watching… Remember, if you want to get first crack at these penny stock plays, make sure you’re following me on Twitter!

Mattson Technology (NASADQ:MTSN) – Small-cap semiconductor play Mattson Technology is in the middle of forming a bullish ascending triangle pattern – a sign that shares could be in store for a bigger breakout in the next couple of weeks. But as always, we need to protect ourselves from downside risk on this play: don’t even consider going long until the stock breaks above the $4 level.

ChemGenex Pharmaceuticals (NASDAQ:CXSPY) – This thinly traded Australian pharma stock could be on the verge of a material move now that the FDA is performing a panel review of a leukemia injection that the company originally expected to have reviewed last month. A favorable result could mean a big bump in share prices.

MGP Ingredients (NASDAQ:MGPI) – MGP Ingredients is a Kansas-based food processing company that produces starches, gluten, and food-grade alcohol used by the packaged goods industry. Shares of the company look to be in store for a bounce higher off of the 50-day moving average today. Wait for a second consecutive positive day before thinking about taking this trade.

TransMontaigne Partners (NYSE:TLP) – Oil servicer TransMontaigne Partners is another small stock that’s showing a bullish ascending triangle right now. As is always the case with this pattern, we’ll need to see a break above resistance before we can justify putting money on the line. In this case, that level’s at $28.50.

Share Your Penny Stock Picks…

Once again, we’re going interactive this week…

Just post your best penny stock pick in the comments section of this week’s Watchlist by Friday, March 26.

Cheers,
Jonas Elmerraji
Managing Editor, Penny Sleuth

Monday Penny Stock Watchlist: Keeping Tabs on the Healthcare Bill was originally featured in the Penny Sleuth.

This story was originally featured on Penny Sleuth.

Read the original story at Penny Sleuth :: Jonas Elmerraji