Wednesday's Stocks To Watch - AWYI, BFHJ, KATX, THES

AWYI the $.0003's continue to be bought and at this rate I do not think there are many left before the stock upticks to $.0004. AWYI could gain some forward momentum in the days ahead.

BFHJ has held its ground the last few sessions and looks ready to take a another stab at recent highs. Absent some news worthy impetus, the stock could see some buyers come back into the stock after witnessing its recent strong support.

KATX could see a decent bump as it has traded to $.07 from $.26 with not much of a bounce. I could see KATX doubling from these levels in the next few trading days.

THES this stock is regaining investor interest, the chart is beginning to look like a buy, and the company could release reverse merger news at any time. THES, according to changes made at its secretary of state, looks to be reverse merging with a property management company. I think THES could give recent highs a test and possibly break out from there.

Chart of the Day - THES

THES could be starting up after posting a nice late day rally. This stock is the subject of a reverse merger with a building management company called CityTowers. This has not been press released yet, and seeing how some recent reverse merger's have performed, I'd expect THES to trade past recent highs on any new developments.

Wednesday's Stocks To Watch - BFHJ, IGSM, UWRL, THES

BFHJ with the casino launch only days away, per tonights press release, look for investors to scramble to get in on the action tomorrow. I think we see the buying continue and the upward trend leading this stock higher.

IGSM this low float sub-penny stock should continue to draw interest tomorrow. Shares are becoming scarce and it shouldn't take much volume to life shares above $.003 and to $.005 or better in the short term.

UWRL this stock has bottomed. The selling has stopped and currently this stock is way undervalued considering the future potential. At $.0007 UWRL offers a great chance to get in before the crowd. No one is buying this stock now, but when the issue with Pink Sheets gets rectified everyone will be wishing they did.

THES it looks like the downward pressure has been lifted. At some point today, after the light bid hits tormented the bulls, the ask jumped 100% higher than the last trade. This stock is the subject of a reverse merger and if this news hits the wires this stock will head well above what it was trading for last week.

Friday's Stocks To Watch - THES, BFHJ, ICBU, UWRL

THES pre-market bid stomping brought the stock down right out of the gate today. It didn't get much of a chance to breath as the stock couldn't muster much of a rally. The main problem is the lack of buying pressure. Market makers and shorts can scare longs into selling by hitting the bids. I think that is what happened today. Tomorrow THES starts the day out of over bought territory and looking to regain its footing into the weekend.
BFHJ the casino is just about ready, as evidenced by the web site. This is huge news for shareholders who have been waiting patiently. I think this could send this stock much higher from here. My previous targets are still valid. This is a stock to watch the next few weeks.
ICBU it was a battle today as the stock was able to post yet another solid close. This is a stock you need to add to your watchlist if you haven't already. Look for it to break through recent highs tomorrow.
UWRL finally UWRL. This stock briefly hit $.0006 before closing at $.0008 on a few small blocks. There is no doubt in my mind that this stock has bottomed. Support is strong and I look for UWRL to work its way higher from here.

Wednesday's Stocks To Watch - EPGL, THES, UWRL, ICOA, SNEY

EPGL news released after the market closed should help propel this stock tomorrow.  I think there is a good chance it sees $.0004 and maybe $.0005.  From there we can continue working higher.

THES this stock is the target of a reverse merger and looks to build upon recent gains.  This is a stock to watch going forward.

UWRL patience will play a big roll with this stock.  I could sense investors losing patience with this stock today, and that weighed on the price.  I think UWRL sees $.006 at some point, which means those shares at $.0007/.0008 may be very rewarding.

ICOA the buying was coming quickly today for this stock.  I am interested to see if it keeps going tomorrow.  It is on watch.

SNEY it is knife catching time.

THES - An Explosive Reverse Merger

Late day trading for THES turned into a frenzy as market makers scrambled to fill orders amidst increased demand for the stock.  Why is demand increasing for THES?

THES, Thermal Energy Storage Inc, was recently reactivated at its Secretary of State.  Along with this reactivation came a new company address and a brand new CEO.  The company coming into THES is a Property Management company with experienced staff at the helm.  This is indicative of a reverse merger and in a nutshell means that THES is finally getting value back into the stock.  There is nothing better in the penny stock arena than having a stock that had zero value for 8 years finally get a company rolled into it.  Instantly the value of the stock increases, and in this case the increase could be 10 to 20 fold.

Wait it gets better...

THES was dormant for 8 years.  On its best day this stock traded 667,000 shares.  Today THES traded 6 million shares of stock.  Yesterday THES traded 3.1 million shares.  On Friday volume was at 3.5 million shares.  That is 13 million shares.  Where did these shares come from? 

I think market makers, whose main directive is helping to maintain an orderly market, have sold shares they simply do not have to keep up with the demand for the stock.  In doing so they anticipate being able to cover these shares when the stock price drops.  We all know what happened with CMGR when market makers tried the same tactic.  The stock went from $.003 to $.225!  These market makers will aid in the buying pressure as this stock heads higher.

Shorters also jump in when a stock has risen for no reason, at least they see no reason for the rise, and they short the stock with all of their firepower.  Unfortunately for them THES is rising for a reason and I think they have been caught off guard.  Margin calls can come quickly for a penny stock trader as a stock rises 100's of % in a violent fashion.

These are the ingredients for a short squeeze and this is exactly what I think started to occur late in the session today and should follow through right into tomorrow.

What is worse for the shorters and market makers is the limited supply of stock.  Remember this is a stock that over 10 years never traded more than 667k in one session.  If the demand continues shorters and market makers alike will be scrambling to cover.  This could create an explosive situation.

Just looking at this chart you can see the demand for shares of THES.  In my view market makers have been matching this demand with phantom shares, essentially naked shorting the stock.  It is this type of action that leads to a short squeeze.

After 8 years THES has come alive again.  With limited shares in circulation, market makers selling shares that don't exist, and shorters trying to find the top of this stock, things could get very interesting in the days ahead.

If you haven't already add THES to your watch list.