Before I start on today's analysis; I want to address the holier than though attitude of Wall Street traders, financial advisers, etc. regarding low priced stocks. It is hilarious that through one side of their mouth they criticize those who buy penny stocks and then 15 minutes later go out and trade 10,000,000 shares of SIRI or 20,000,000 of Citibank when it was $1.00. It was ok then?
Do you think that a young Warren Buffet would shy away from buying a stock for $1, if it were worth $3?
Did you know that John Templeton of Templeton Funds made his fortune on Wall Street by buying penny stocks in 1939?
Take a look at The Motley Fools, who built their entire reputation on small caps, do you think they would hesitate to buy a little gem that will triple?
Please.... when are we going to get some unbiased advice from financial companies and advisers? What they should say is that...although it is a bit treacherous, if you pick the right low priced stock, it could easily double. Just make sure you buy one that is making profits and will continue to do so.
OK! On to the good stuff. I am really excited about Tengasco (TGC). The stock looks like it could make a 40% move higher in the next month/sooner. It broke over a dollar today, smashing through 150 day moving average. The technical indicators are really strong on this one. There was big resistance at $1, stock had been struggling to break through for nearly a year. Volume today was 1200% (1,700,000 shares traded yesterday) over the norm.
And as always, I have done my due diligence and this baby's fundamentals are strong enough to support a 40% move. This stock however doesn't fit all of the criteria to be put into the Stock Market Double Portfolio but I do like it as a short term trade with $1.00 being support and $1.50 being resistance. I also like the risk/reward probability. Good luck with your trading today!
And before I forget, check out Stock Market Double Portfolio Page. I updated it yesterday. No changes to the holdings but we are blazing along with a gain of 27% since December 12.