Friday, March 18, 2011
PPII - My New Stock Pick
Stock ticker PPII, Pro-Pointer, Inc. and its wholly owned subsidiary Coenzyme-A Technologies, Inc is my new stock pick for 2011. This stock has traded rather quietly in 2011 and looks to have bottomed recently. Since then the stock has muscled its way back over its 50 day moving average and looks poised to undertake a nice rally. At this same time last year PPII was trading for over $.45 a share. The stock has since fallen and closed today at $.0057 a share. This price is above the 50 day moving average of $.004 and is a bullish sign. I see the next point of resistance at $.045 which represents not only the 200 day moving average, but also the point from where the stock fell from last October. That is an almost 800% move from current levels.
You might be asking why I think this stock is ready to rally and why I made it my pick. For one I really like the share structure. The float is low and the authorized and outstanding stock are close to being entirely utilized. With that share figure from last summer that means anyone who wanted to sell this stock has already done so. Which bodes well if the company becomes active again in the investment community.
PPII has remained quiet since last october, but its still active at the Secretary of state. In my view this means the company can become active again at any time. The stock has been trading quietly the last few months and its during these times when investors can get into a nice stock before the rest of the crowd piles in.
Before I continue let me be 100% clear with one thing. I do not know if the company is going to update investors again, if at all. The stock could lay dormant for years and PPII could just fall from lack of buying interest much lower. That is the risk in these markets. When I made SSWC my pick at $.0002 last year, that stock was dead for almost 2 years. No filings, no news, nothing that would give any indication that the stock would come back to life. The stock did indeed come back to life soaring from $.0002 to $.0045 and making anyone who listened to my call a lot of money. There was a big risk with SSWC that it would never come back to life, but it did. VCTY also lay mostly dormant until I made it my pick at $.0008. It then became active again and hit a high of $.0365. VCTY also offered my readers and subscribers some absolutely amazing returns. While I feel the same way about this stock as SSWC and VCTY, I do not know if PPII will become reinvigorated with Coenzyme news or updates. But that is the gamble in these markets and the way to make money, speculation. By making PPII my pick I am telling you that it is my opinion that at some point in the near future PPII will become active again via filings and press releases. This will spur investor interest and send the stock much higher from here. While it is pure speculation on my part, my track history speaks for itself.
So what does PPII do? PinkSheets.com has a short one line explanation: An innovative science based company that is primarily engaged in the development of Nutraceutical Dietary Supplements.
The bottom of one of their recent press releases is a little clearer: Coenzyme-A Technologies, Inc. is an innovative company that has applied new technology to the formulation and manufacture of a series of proprietary products which address nutritional deficiencies that result from the stress of modern day living, chemical imbalances within the body, and the
deleterious effects of aging. Coenzyme-A is the first nutraceutical product to combine nutritional components that can be successfully used by the body to support its manufacture and utilization of cellular Coenzyme-A (The Master Coenzyme). Coenzyme-A contains a specific set of substrates that are designed to assist the body in converting fats, carbohydrates and proteins into energy at the cellular level. See Company website -- www.coenzyme-a.com.
Also a lot of what this company does is detailed in this four page brochure.
The company also focuses on what they call Cosmeceuticals. Cosmeceuticals represent the marriage of cosmetics and pharmaceuticals. According to industry experts, demand for cosmeceuticals in the US will increase 7.4 percent annually to $9.4 billion through 2012, driven by an aging population seeking to maintain the appearance of youth. Examples of products typically labeled as cosmeceuticals include anti-aging creams and moisturizers. Cosmeceuticals are cosmetic products with biologically active ingredients having medical or drug-like benefits. Dermatological research suggests that the bioactive ingredients used in cosmeceuticals do indeed have benefits beyond the traditional moisturizer.
A $.0057 stock in a $9.4 billion market. Their last quarterly filing showed a stock with over $500,000 in annualized revenues, as well as a small amount of debt. I do not see any convertible debt with this stock and that is a good sign as well.
With its low float and attractive share structure the $.045 price point that I see as the next big resistance, could come into focus.
If I'm right about this stock than it will be to the tune of at least 300-400%, if not the stock will likely languish for a while and could even drop in value. That is the risk you take trading these stocks. But if you believe in me, and my track record, then that risk is well worth it.
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1 comment:
When I think of penny stock picks I can't help but get excited! Some people are uncertain to buy penny stocks; because they believe penny stocks are too risky. But the advantage is that they offer incredible growth potential. The key knows how to by the book choose which stocks to invest in.
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