Canadian Penny Stocks Blog

A serious week of ups and downs on the stock market the past week. In a previous post we had talked about bouncing off of support levels which the TSX indeed did and continued upwards however midway through the week the bounce off of support ended and back down the markets went but on Friday, as we were testing the support level again, it fell through although came back towards the end of the day to once again confirm the support level. So we’ve now tested and confirmed the stock market price levels twice. In technical analysis, the more times you successfully confirm support and resistance levels the stronger they become. We’ll continue to keep an eye on the fundamental news for the coming week, and if it’s mostly positive then expect this to be a good buying week.

The Canadian penny stocks mentioned this past week were MAA.TO, WPX.TO. Western Potash ended where they started the week.

MagIndustries (MAA.TO) has pulled back after the news release which is to be expected as it’s common for profiting taking after the big run up in price. The next big target date for this company is now July so expect a lot of sideways pricing from here on out. (MAA.TO $0.50).

What to watch this coming week. Here are a few penny stock ideas to look at this week.

IEE.V – $0.16 – iseemedia Inc. (iseemedia) is focused on the commercialization of advanced, adaption and delivery solutions for wireless applications. The Company operates in the technology sector, and carries on development, technology integration, and marketing and sales. On the wireless front, the Company has completed development cycles for iseedocs and iseemail. The Company’s digital imaging solutions are focused at digital camera and mobile camera phone manufacturers. The iseemail solution provides accesses to enterprise and consumer emails from Microsoft Exchange, Lotus Domino, Gmail, Yahoo! Mail, AOL, Hotmail and others. The iseedocs mobile viewer can handle common document and media file types from Microsoft Office applications like Word, Excel and PowerPoint to image, audio and video files. The Company’s 70%-owned subsidiary, RealBiz360 Inc. provides marketing services, virtual tour tools and other services for real-estate brokerages, and agents.

ENA.V – $0.41 – Enablence Technologies Inc. designs, manufactures and sells optical components, subsystems and systems to a global customer base. The Company is organized along two divisions: Optical Components and Subsystems division (OCSD), and Systems division (formerly FTTx Networks Division). The core competencies of OCSD are design and integration of planar lightwave circuit (PLC)-based optical transceivers and custom integrated solutions; production of PLC-based arrayed waveguide grating devices; production of PLC-based reconfigurable switching devices, and production of advanced photodiodes. On May 5, 2008, the Company acquired Wave7 Optics, Inc. (subsequently renamed as Enablence USA FTTx Networks Inc.). The Systems division, through Enablence USA FTTx Networks and other subsidiaries, provides fiber-to-the-home (FTTH) systems that deliver voice, video and data services over fiber optic lines. On November 18, 2008, it acquired Pannaway Technologies Inc. (renamed as Enablence Systems Inc.).

Technorati Tags: canadian penny stocks, micro cap stocks, penny stocks, Small cap investing

Hello everyone and welcome to a profitable week in the world of penny stocks and the overall stock market. As was suggested by the previous post, we were testing the support levels of a longer term channel in the TSX. In most cases the support and resistance levels will be confirmed and the trend will continue which is why I was sufficiently confident that the same would follow this time around. That being said, it only take one or two bad days of economic reports to fundamentally change the market and the support level can be taken out and we’re on a whole new trading game, which is why it’s important to keep an eye on the news as well as the technicals.

Two stocks that are going to be mentioned today are MAA.TO and WPX.TO.
MagIndustries was featured on this blog several times with respect to a deal with SinoHydro. Ultimately this deal fell through and the stock was punished. It had recovered some and bounced around until this week it announced another deal of sorts with COMPLANT, another Chinese company. See more here. This brought about a 10% gain in the stock price, and will be sure to have our eye on this one again until the June/July timeframe when more significant news is expected.

Western Potash Corp (WPX) announced today some new resource estimates that brought about an 8.5% gain in today’s price with some heavy volumes traded as well. This is good long term news for the company. They are in a good region and continue to be one to watch.

Technorati Tags: penny stock picks, small cap stock, stock market investing

More downward motion in the stock markets over the past week. There was a lot of good news released during the week but the few misses were enough to scare off investors. I haven’t done any technical analysis on the site here in a while so I thought that with this clear trend downward we should take a look at the TSX chart to see if we can figure anything out.

It will be an interesting coming week because as you can see from the blue lines indicated an upward channel that has tested the top and the bottom but has stayed within this range since mid-September. Now we are testing the lower end of that range so this could mean a confirmation of the trend and a rise sooner. If that’s the case it looks like we could be going towards the orange line at 10,865.

The other thing to look at is the MACD that is strongly in the oversold side of things and has been for at least 2 weeks. This would usually indicate that buyers should be coming back into the market. If we see the support line being confirmed and the MACD moving towards neutral to positive, then we should see a bounce back, otherwise it could be “watch out below!”

Technorati Tags: canadian stock market, market outlook, tsx

Mostly a negative day on the TSX and it did end up in negative territory. The interesting thing is oil. It looks to me like it will be hitting a short term low and should see a little boune back. That’s a good thing for the penny stock picks. The picks from yesterday are indeed down today but not out. It’s still deal hunting season. With RRSP season ramping up it’s going to be a great opportunity for many people to be moving their money into the market. Get in now before the herd at the end of February.

Yesterday’s penny stock picks:
ARG.TO – $0.83 – $0.79 (-4.82%)
SGR.V – $3.46 – $3.37 (-2.60%)

Stocks to watch tomorrow:
GWG.V – $0.27 – They have hired on an investor relations company for a 1 year term. This will likely see increased volumes for the stock and could result in more volatility. One to watch for more reasons than ever.
GAP.V – $0.17 – Big volumes today with a move higher.

The big news coming out Wednesday will be with Apple. Not much in the way of a penny stock investment but it will be a great gadget and likely make it on to my must have gadget of the year, so I’m looking forward to the announcement. In other, non-penny stock related news, the Berkshire Hathaway B-class shares will be added to the S&P 500 index therefore causing an increase in demand for the share by index funds purchasing them. Expect a very tradeable run up in this stock in the coming weeks.

As for penny stock picks, here’s how they went down from yesterday:
EFG.V – $0.63 – Close $0.58 (-7.94%) This one could be over-hyped and continuing its way down. Keep an eye though.
TYE.V – $0.135 – Close $0.11 (-18.52%) Extremely low volume. Price swings can be expected with such low volumes.

Canadian Penny Stocks ideas for tomorrow include:
ARG.TO – $0.83

SGR.V – $3.46 – San Gold continues to deliver. Will be hurt by softening gold prices though. Watch for opportunities.

Technorati Tags: canadian penny stocks, penny stocks, small cap, tsx stocks

It’s been quite a busy time over at the Canadian Penny Stocks blog. Researching some stock ideas and studying up on some investing techniques that will hopefully profit the writer (and readers) of this blog. For now, here are two companies that you might want to look at:
First Gold Exploration Inc. EFG.V – $0.63
First Gold Exploration Inc. (First Gold) is a Canada-based exploration company. The Company is involved in the acquisition, exploration and development of mining properties. The Company’s properties include Matchi-Manitou – Copper, Zinc, Gold and Silver Project, Croinor 1 – Gold Project, Lac Pivert / Rose Lithium Project and San Javier Property, Mexico – Silver-Zinc-Lead Project. The Matchi-Manitou – Copper, Zinc, Gold and Silver Project consists of 29 claims in Tavernier and Pershing townships, district of Abitibi. The Croinor 1 – Gold Project property is located 75 kilometers by road from Val-d’Or and consists of a mining lease of 90 hectares. The Lac Pivert / Rose Lithium Project consist of 95 claims covering an area of 50.3 square kilometers. The Lac Pivert showing consists of a pegmatite containing 20% spodumene, beryl and trace molybdenite. The Rose showing consists of a number of en-echelon pegmatites, individually up to 15 meters wide, crosscut by centimetric quartz veins.

Troymet Exploration Corp. TYE.V – $0.135
Troymet Exploration Corp. (Troymet) is a Canada-based company. The Company is engaged in gold and base metal exploration. The Company’s projects are located in Manitoba and British Columbia. During the fiscal year ended October 31, 2008 (fiscal 2008), the Company had four mineral projects in its property portfolio. The 8,178-hectare Golden Eagle project is located just south of the Yukon-British Columbia border, 70 kilometers west-northwest of Atlin, BC. The Company controls a 100% interest in the project through a mix of 100% owned claims and optioned claims. The 596-hectare McClarty Lake property is located 47 kilometers south-southwest of Snow Lake, Manitoba. Troymet has a 100% interest in the 7,882-hectare property located 125 kilometers southwest of Vanderhoof, British Columbia. Troymet holds 100% interest the 1,373-hectare Wheatcroft Lake property located 50 kilometers southwest of Leaf Rapids, Manitoba.

Technorati Tags: canadian penny stocks, penny stocks, small cap stocks

A seriously rough day again on the stock market. Gold was below that technical 1100 for most of the day however was able to close above 1100 to maintain the daily support level. That’s good news for gold but I’m not entirely convinced that the negative market sentiment is done yet. After the market close today Google released numbers that beat estimates, but revenues were only a slight beat. The stock traded down over 5% on this news, so it is looking like the negativity will continue on into Friday’s trading session. At this point I’m starting to average into a position in XIU since I see this market wide decline may continue for another couple of days but I’d rather start a position now and build it up on the way down and when it recovers I will again be well positioned to profit from a recovery.

Yesterday’s picks were all based on the BNN Market Call Tonight’s stock picks and were all resource plays. Here’s how they did:
IAE.V – $1.39 – Close $1.53 (+10.07%)
MBC.TO – $2.90 – Close $2.98 (+2.76%)
DEE.TO – $2.00 – Close $2.02 (+1.00%)
All three stock gained on a day where the TSX was down over 200 points? We could be on to something here! It will be interesting to see if this trend continues. We’ll try it again to see if there’s a “BNN effect” that can be played.

Penny Stock ideas for tomorrow:
OGC.TO – $1.89
BXI.TO – $2.35 (It will be its first day of trading on the TSX)

Technorati Tags: canadian penny stocks, penny stocks, Small cap investing

So another downer day on the TSX with gold and oil going in the same direction. It will be interesting to watch gold tomorrow as the technical support level at $1100 may be tested and the next level is another $50 lower. Not good news for the index and it’s looking like it’s more bad news from the Asian markets as well.

Yesterday’s Penny Stock ideas were:
KNP.V – $0.155 – Close $0.145 (-6.45%)
EC.V – $0.94 – Close $0.89 (-5.32%)

Tomorrows Stock Ideas are taken from Market Call tonight. I’ve never consistently looked to see if there’s a bump in small cap stocks the day after they are mentioned or featured on BNN. So we have:
IAE.V – $1.39
MBC.TO – $2.90
DEE.TO – $2.00

If you’ve noticed that you can game the BNN small cap picks I’d be interested in hearing your stories.

Technorati Tags: canadian penny stocks, penny stock picks, Small cap investing

That’s right.  Although just the other day the Canadian Penny Stocks blog mentioned ELR.TO that is now up 228% since initially featured, we now have another 200% penny stock gainer.  Stem Cell Therapeutics announces great news and is now standing at 233% gain since initially featured on the blog.  Here’s a post entirely on Stem Cell Therapeutics that may help you learn more about them.

Two Penny Stocks to watch tomorrow:
KNIGHT RESOURCES LTD – KNP.V – $0.155
ECOMETALS LTD – EC.V – $0.94
Both of these stocks had a good run up, Ecometals has since pulled up but Knight Resources is continuing on strong.

Maybe one of these stocks could be on its way to being another member of the 200% club at the Canadian Penny Stocks blog. Happy trading all.

Technorati Tags: canadian stock picks, penny stock picks, stock market profits, Stock Picks

There’s a lot of investing noise out there.  Chances are that you’ve heard a lot of jargon when dealing with financial professionals or listening to CNBC.  While it does offer useful insight to those in the know, they sometimes leave out what really matters.  The basic way of comparing two companies side by side.  Price doesn’t matter.  What really matters is the #1 formula in investing, the Price-Earning Ratio.

The Price-Earning Formula

The formula couldn’t be easier to remember since the name of it essentially describes itself.
Price
P/E = —————————-
Earning Per Share

This very simple formula is what allows investors to have an easy comparison between any number of companies.  The key is that it relates the earnings of the company to its current share price and gives you a ratio that is comparable no matter what the price of the stock is.

What You Can Learn From P/E Ratios

Once you have calculated the P/E ratios, or looked them up online, then you can start making some observations based on some general rules regarding P/E ratios.  To make it simple, here’s a list:
- Companies with more stable earnings will likely have a higher P/E
- A company with long-term expected growth will have a higher P/E
- When investor confidence is high, expect overall P/Es to be higher
- P/E ratios are inversely linked to inflation
- P/Es of companies or sectors are always examined within the context of the greater market or index in which they participate.

With these 5 things in mind you should be able to start your evaluation of a company and see where it stacks up in relation to its competition.  This is the most important thing to consider since no company operates in a vacuum, you must always evaluate a company based on its peers, as well as its own track record.

Find The Price In The Future

It is possible to find out what the expected price of the stock will be in the future by making one slight adjustment to the P/E ratio that is typically used.  For this case we need to rearrange the formula so that it looks like:

Price = P/E * Earnings Per Share

This requires you to have an estimate of what the P/E will be in the future.  You would get this number by estimating related information by using the 5 rules of thumb above and using the Forward EPS (Earnings Per Share) number that is typically provided by investment websites.

Let’s take for example that we know a banking stock will trade at 22 times earnings during strong economic times that we see in the future.  One particular bank, BigBonusBank Inc is expected to earn $4.50 per share next year.  We should expect this stock to be worth $99 (22 * 6.50) next year.

This is by far the most often used formula in stock market investing.  It is the best first step in comparing companies,  If you can develop your skills at determining future P/E ratios and therefore future prices of stocks you stand to make a lot of money in the stock market.  For more investing ideas visit the Canadian Penny Stocks blog.

Technorati Tags: investing rule, pe ratios, stock market investing