New Potentials and Hopefuls Part 2: The stocks your broker didn't tell YOU about- Volume 2

Hey ladies and gents!


I have already posted the first installment of this highlight and decided to continue it in this 2nd installment! Of course I have more stocks to add and maybe a few to throw out as well! Also note that there are some previously mentioned stocks that I will be mentioning again! I need to emphasis the real winners and I will repeatedly do so until you guys recognize the winners and get some in your portfolio.

Disclosure: I have a small position in ADST, PRLS, NVAX and QDEL



Natus Medical Inc (BABY) is a wonderful small stock that I have been watching for some time now. I have watched it grow and then I watched it trade sideways for some time, wondering when the right time to jump in would arrive! That time is now! The stock is currently trading at $14.29. What are you waiting for?

Natus Medical Inc (BABY) 3 month chart


You gotta love the big volume buys! Those are insider and institutional buys! As a matter of fact, Insiders own 38.41% of the company and Institutions own 50.90%! That means that nearly 90% of the shares are owned by insiders and institutions! Also, company insiders have bought some stock not too long ago! Insiders have bought 787,000 shares since August, most of it part of a big 600,000 buy a few days ago!


BABY's past quarter performance

When it comes to beating earnings, BABY does it like a grown up. Make no mistake, not that many companies have such a nice looking track record. This BABY is all about growth! For the moment, BABY is the most attractive and technically sound play in the Medical-Systems and Equipment Industry.




So what does BABY do? Lets take a look!
Basically, BABY develops screening products for the identification and treatment of disorders in infants. The company’s product line includes ALGO Newborn Hearing Screener, a product line for hearing screening; neoBLUE LED Phototherapy device, a medical device for the treatment of newborn jaundice; Neometrics line of diagnostic reagents, used for newborn metabolic screening; neonatal heat shields and oxygen delivery hoods designed to provide a stable environment of oxygen and humidity for newborns with special needs; and MiniMuffs neonatal noise attenuators, which is designed to reduce noise exposure for babies in neonatal-intensive care units. BABY also offers its products to hospitals, clinics, labs, physicians, nurses, audiologists, and government agencies. BABY sells its products through a direct sales force in the United States, through its subsidiaries in the United Kingdom and Japan, and through distributors in 50 other countries. As you can see, BABY's involvment in infant care is rather extensive. Now I know why the SEC gave it the "BABY" ticker! It is amusing, entertaining and fit for Natus Medical's line of work.

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Adstar Inc (ADST) is a NASDAQ small-cap weighing in at $3.15. It is in the Internet- E Commerce industry. Some of you should know this because I have mentioned ADST before. Still I feel like I need to mention it again and get into more details. To me, ADST feels like one of those stocks that you feel like you've caught early, near its break out stage. Its one of those stocks that you have a feeling can double or even triple in value in a year (or maybe less!).

Adstar Inc (ADST) 3 month chart

One of the nicest chart I have seen in a while! it is probably one of the reasons I looked at ADST! Also, 50% of ADST is owned by company insiders, which is not a bad thing. I am hoping that it picks up some more institutional ownership in the future! If you haven't done so already, grab a small position and hold onto it! It will be worth it in the long run!



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Mesa Air Group (MESA) is an airline stock that I like! Just like SKYW, MESA is begining to show signs of life! It must be the falling gas prices. Regardless, like SKYW, MESA has a great looking chart that is ready for takeoff!!

Mesa Air Group (MESA) 3 month chart MESA is currently trading at $10.51


Shorts own nearly 20% of the float, so I beleive that this stock will go up nicely just on the short squeeze alone! The bottom line is, now is the time to get into MESA, while fuel costs are balancing out!





SkyWest Inc (SKYW) 3 month chart SKYW is currently trading at $28.25


A stock chart so nice, I had to post it twice! This is a double buy rating from me for SKYW! Don't get in at the last minute! The run-up is happening now!






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Neoware Systems Inc (NWRE) and Aware Inc (AWRE) may sound similar, but thats where the similarities end. Well actually, there is one other similarity! They are both hot stocks with awesome charts and fundamentals, that you need to own! The choice is yours really! Lets see...

Aware Inc (AWRE) 3 month chart AWRE is trading at $7.01

What I like about AWRE's chart is that the stock has just begun to break out! I really do feel like this is the early stage of a much bigger and stronger breakout! Look at the volume! Whenever the stock dipped to $4.5, massive buying commenced and the stock jumped itself up. Now, the stock has finally gained enough volume and momentum and has blasted thru the 50 day MA! Currently, 15% of the company is owned by company insiders and another 27% is owned by institutions.


Neoware Systems Inc (NWRE) 3 month chart NWRE is currently trading at $17


In comparison to AWRE, NWRE has already started its runup along with a huge increase in volume right before the big jump. That was the point in time when the institutions loaded up big time! And they still are. Average volume has increased 2X and the stock is just ripping it right now! NWRE is only 2nd to AAPL in the Computer- Manufacturers industry group! And thats saying alot! Also 13.51% of the company is owned by company insiders and another 50% is owned by institutions. The stock currently has 12% of its float short.

I'd like to comment that the university I attend uses Neowares computers and they are pretty cool! They are very thin, and rely on centrally managed servers for computing power, so there is no need for a hard drive or other bulky add-on! Because of this, my school is able to fit in more computers in a single table at the Library, and that helps make use of available space and ensures better, more efficient computer use.
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When it comes to the Internet Content industry, the first name that pops up in my head is Google Inc (GOOG). Yeah thats right, GOOG the monster! The stock that just keeps defying gravity. I wish I was in this game sooner. I caught glimpse of google when it was trading at the $170-180 level. And I decided to buy some. I regard it as one of my first stocks and probably the only one that I have held onto for so long. Unfortunatly I didn't have too much to put into it, so I bought a measly 20 shares! Not too bad! By the way, I am still going to continue to hold! That is because I believe that GOOG is one of those rare stocks that hasn't reached or even realized its full potential. But enough of that. I am going to recommend an Internet Content stock that I believe you should own. I know I mentioned REDF (has more momentum left) already and its all good, you can play that! Or maybe you prefer TOMO! TOMO has an awesome looking chart as well! Ok, maybe you don't feel like playing an Asian internet company.
So how about.....

Knot Inc (KNOT). KNOT is currently trading at 12.97.

Knot Inc (KNOT) 3 month chart

KNOT boasts one healthy looking chart! And to top it off, 75% of the company is owned by company insiders, while another 12.6% is owned by institutions.

Provides wedding related content, media and shopping services through www.theknot.com to engaged couples.



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Bally Total Fitness (BFT) at 5.85 is a steal!














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Ace Limited (ACE) is not "Ace the helpful place" as in home improvment. Instead, ACE is an insurance company that is going to make a ton of money off the damage caused by this years intense Hurricane season.














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* Information, Facts and Figures courtesy of Yahoo Finance, AOL Finance, and Investors.com