2 risky small gems for a speculative portfolio....
I really like the risky stocks! I have to admit, they do provide a certain type of rush! That is why I like to highlight stocks such as AXO, EBDC, MSEP, MEMY and NVAX. I have 2 more risky stocks that I'd like to introduce to you!
Cyberkinetics Neurotechnology Systems Inc (CYKN.OB) which trades at 1.91! CYKN is a development stage medical device company that is in the business of treating neurological and brain disorders (as the name suggests). It develops a wide variety of products, such as implantable medical devices and software that can help assimilate function as well as monitoring and detecting neurological diseases and disorders. CYKN offers several products, namely, the BrainGate Neural Interface System which provides disabled patients with a brain-computer interface. The companies NeuralPort Neural Signal Processesor helps monitor and record brain activity and signals.
Recently, CYKN has been the recipient of many awards for its BrainGate technology and is also set to present at the 5th Annual Biotech in Europe Investor Forum on October 5, 2005 at 11 am! There will be many fund managers, investmen firms, and leaders in the biotech field that will be in attendence. If all goes well and the companies presentation and products are recieved favorably, then the skys the limit for CYKN! Oh yeah, I almost forgot! There has been some nice insider buying lately, especially by directors and even the CEO off over $3,000,000!
CYKN 1 year chart
From the 1 yr chart, we can see a clear picture of the base forming. It seems incredible that the stock rose from 1.00 to 8.00 in a very small time frame! Well that was then and this is now! The stock is down and has formed a bottom! Notice the spike in volume in September?------------------------------------
CYKN 6 month chart
In this chart, we get a more detailed look at the base formation! The stock finally climbed over the 50day MA and is ready for take off!
CYKN 3 month chart
The new volume is incredible! Definatly a great sign of good things to come! I fully expect the uptrend to continue from here!
Approach: You can buy CYKN whenever you'd like! I believe a buy here is just fine. The insiders haven't bought much lower than 1.20.
Time Frame: This is a mid- to long term trade. You should also take profits when the stock doubles and reduce your position slightly after the double. Personally, I believe this stock will surpass its old time high of $8!
Target: My first target is $2.50. Once it hits 2.50, I'd like it to consolidate a little bit so that it creates support in the 2+ range! I will discuss 2nd and 3rd targets when the time is appropriate.
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Artisoft Inc (ASFT.OB) which is trading at 1.38! I have to say that I am excited about both picks, but I am really excitied about ASFT because of the huge insider buying that has occured just a few days ago (9/28). I would like to note that ASFT insiders have purchased over $15,000,000 in stock! The company is just a simple telecommunications company with some focus in CRM and VOiP technology for mostly Windows operating systems and servers. There is nothing really special that I see, except for maybe a possible takeover.
Artisoft Inc (ASFT) 1 yr chart
The stock has bottomed out and is ready to start a new uptrend!
Artisoft (ASFT) 6 month chart
Approach: I believe timing is very important in ASFT (just as it is in CYKN). You may miss out on several percentage points of profit if wait too long.Time Frame: This is a mid-long term trade. If any of the technicals or fundamentals change, bail out!
Target: 1st target is 2.25! 2nd target is $2.75
Artisoft (ASFT) 3 month Chart
Simply beautiful! This chart is worth a thousand words!
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posted by Nick M. @ 8:49 PM
1 Comments:
Hey Dave!
Thanks for the support of the DIY section! I figured I'd give some info on the different brokerages (there are a lot of them) and the different sites to get research. I will try to post some more DIY stuff and a lot of stuff on charts and how to spot a stock that is about to breakout, because that is verrrrryyy important! Well I'm glad you like the OB's! My favorites are EBDC, ANSFT, CYKN and even MSEP! As far as the small pharamceuticals like MEMY and NVAX, I like them both! I believe that both are getting ready for a major breakout! The question is, which one will end up being the top performer! This is a tough question to answer. My opinion is to play both! Just note, that as the stocks keep going up, pay close attention to insiders. If you see a lot of them dumping at once, that should raise a red flag. A little profit taking isn't something to really worry about. The other thing is to keep an eye on the momentum of the stock. Keep track of daily charts of the stock and note the points where the stock broke out and how much volume was on that day. For instance if NVAX goes to 2.75 and it begins to look like its losing momentum (dwindling volume, slow market start) then it is a good idea to take a profit and let the stock consolidate and retrace a little so it can rest. Then as the stock heads down, note levels of strength and resistance. A great performing stock will always retrace a rest for a bit after a monster run, it just has to happen before the next run up! lol, my bad for the lengthy explanation on my opinion on MEMY and NVAX. Bottom line is that I believe that with all the money and insider buys poured into these two stocks, they are bound to at least pull a double or more!
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