HLXW - Looking To Make A Move After Hitting New Lows

With recent 20,000 and 50,000% movers TSAS and GWAY last week, everyone can see just how much money can be made trading penny stocks.  GWAY was featured on CNBC's homepage the other night, an amazing feat for a stock that traded as low as $.004 the past year.  With the U.S. government printing money almost as fast as a Pink Sheet stock prints shares, you are starting to see this cash enter the highly speculative penny stock market.  That money is flowing in many directions, and one way to make money in this market is to figure out exactly where that money is going.

I think some of that money is heading toward the bottom plays.  Face it, when a stock falls it at some point or other it will bounce.  Finding that bounce is the tough part, making money when it starts bouncing is much easier, which is where HLXW comes in.  This stock just in the past year has dropped from $.65 a share to $.0005 and now rests at $.0007 a share.  How did it get there?  From dilution.  HLXW has been selling stock hand over fist for the last two years in order to get its innovative business going.

The good news is, as it stands right now, the company has very little additional shares available to sell.  Essentially the tank is dry, the printer is out of ink, which is why I think this stock stands a good chance at a substantial rally from here.  Penny stock traders are always on the look out for stocks that have fallen dramatically.  Catching a falling knife can be a very lucrative proposition and in HLXW's case the 200 day moving average sits at $.009 a share.  A rally from these levels could see very little resistance to the upside.

Lets also think about the company behind this stock.  This is an alternative energy play.  With oil continuing its rise, the alternative energy space is a smart place to be positioned in 2011 and beyond.  HLXW's innovative products capitalize on consumers demands for clean energy products.

A HLXW product can be used residentially to replace entire electricity demands.  Homes using HLXW products can be removed from the power grid after being set up and depending on where the customer lives they can recoup the set-up costs in less than 5 years.  From that point on the resident is receiving free electric via their Helix Wind Device.  There are also commercial uses  for HLXW products.  The company is working to provide Lincoln Financial Field, home of the Philadelphia Eagles, with 80 Helix Wind units.  Not only is htis great exposure for the company is shows the potential demand for HLXW products.   The bottom line:  There is more to this stock than just a bottom, share maxed out type play.  This is a legitimate start-up company that has significant potential.

No matter how you want to view HLXW there is no doubting the potential it has for a rebound and it bears watching going forward.