Monday Penny Stock Watchlist: Getting the Details on Microcap Plays

This week’s starting off to a mixed market, but that shouldn’t stop us from taking advantage of a few specific opportunities in the penny stock universe. First, though, I want to follow up on the information that I passed to you this weekend…

On Saturday, I filled you in on the tremendous success that Greg Guenthner’s Bulletin Board Elite service has been experiencing in 2010. You see, Greg delves into tiny microcap stocks the same way that Wall Street analysts cover the likes of General Electric and Microsoft.

I get frequent e-mails from readers who want the Penny Sleuth to cover thinly traded microcap stocks – but with 400,000 daily readers, we just can’t delve into those kind of stocks without significantly affecting them. But Greg’s small group of readers can – and they’ve managed to do it profitably on a consistent basis.

Naturally, a research service like this brings quite a few questions to investors’ minds, that’s why I want to introduce you to John Wilkinson, our Director of Trading Services here at Agora Financial…

John and his team here in Baltimore can answer any questions you have about Bulletin Board Elite, its track record, and its strategy. His direct line is 1-866-361-7662.

If you’re interested in taking your penny stock plays one step further than all 400,000 of us can here at the Sleuth, I’d seriously recommend giving John a call.

Back to the Watchlist…

While I can’t discuss the tiniest of issues like Greg can, we’re going to look for gain potential in some of Wall Street’s more widely traded small-cap issues…

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’ve 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!

Encore Energy Partners (NYSE:ENP) – This small-cap oil and gas exploration company has been bumping its head on a stalwart $21 resistance level for the past few months, but that could be about to change thanks to higher lows. The stock is forming a bullish ascending triangle pattern, a sign that shares could surge on a breakout above resistance. Wait for them to cross that line – and close above it – before going long.

ARM Holdings (NASDAQ:ARMH) – This tiny semiconductor play has been getting plenty of investor attention of late thanks to buyout murmurs and earnings season volume. But more of Wall Street could be taking note this week now that the stock has broken out of its trading channel. Watch for shares to close higher by Friday.

Hi-Tech Pharmacal Company (NASDAQ:HITK) – While HITK manages to deliver double-digit returns to its investors in its over the counter nutritionals business, short-term technicals are pointing to the possibility to a major flop in shares. The stock has been forming a bearish head and shoulders pattern since last Fall, and a breach of the shoulder level will point to a big-time fall. Don’t bet against this company until they do.

Openwave Systems (NASDAQ:OPWV) – Times have been tough for this software developer, but shares pushed through resistance last week. That could mean that more upside potential is in store for shares. A bullish moving average crossover adds to the gain possibilities, but be vigilant with this stock – earnings this week could throw everything off kilter.
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, April 30.

Cheers,
Jonas Elmerraji
Managing Editor, Penny Sleuth

Monday Penny Stock Watchlist: Getting the Details on Microcap Plays was originally featured in the Penny Sleuth.

This story was originally featured on Penny Sleuth.

Read the original story at Penny Sleuth :: Jonas Elmerraji