Post your pick HERE (2nd Edition)

[REALDEALS21]

MY PICK: NGAS

Reasons: Getting cold throughout the U.S and the gas/energy prices will rise ! MACD is bullish ! Might test new highs !

About the company:

NGAS Resources, Inc. engages in the development and production of natural gas in Appalachian basin, eastern Kentucky. As of December 31, 2004, the company had 64,297,519 mcf of proved natural gas reserves and 296,128 bbl of crude oil reserves. Its customers include gas marketing intermediaries, pipelines, and transmission companies. NGAS Resources was founded in 1979. It was formerly known as Daugherty Resources, Inc. and changed its name to NGAS Resources, Inc. in 2004. The company is headquartered in Lexington, Kentucky

[dyc100]

Hello All, eventho I am new here, but I am certainly not new to the market, so I hope that my pick is da winner in the short run!

1)   Stock Pick
DCEL & Dobson Communications Corp.

2)   Reason behind this pick
Well, DCEL has been under my LONG radar for awhile now.  I was very fortunate to got in during its monstrous run up on the beginning of July 2005, one thing that I notice about this gem is that the trend is continuing with increase volume and yes, I was able to get great return after 1 month of holding(July-Aug).  So the reason behind my pick is this, after the long minor profit taking from Sep. to mid Nov.  I started to see that the trend for DCEL begins to form again with higher volume and big moves, and cause we are in the X-max season, the telecom sector tends to do well during the busy holiday.  So I will LOVE to get back into DCEL on Dec 12 and ride it for a month! Oh, with recent news about Dobson to Buy Cellular One Brand for $1.3M, it sure looks great for its near future!>

Here is DCEL profile from yahoo:
Dobson Communications Corporation provides rural and suburban wireless communications services in the United States. It offers digital service using the global system for mobile communications (GSM)/general packet radio service/enhanced data for GSM evolution digital standard and the time division/demand multiple access digital standard in its wireless markets. The company also offers various custom-calling features, including voice mail, call forwarding, call waiting, three-way calling, no answer transfer, caller ID, message waiting indicator, sleep mode for longer battery life, voice-activated dialing, and mobile originated and mobile terminated short message service. In addition, it provides advanced wireless data services, which enable its subscribers to access the Internet, to send and receive pictures and video, and to download games and music. Dobson Communications Corporation was organized in 1936 and is headquartered in Oklahoma City, Oklahoma.

3)   Stock Chart

[Tatrader]

RIGL- RIGL Pharmeceuticals.
This stock is a drop shoe.  A drop shoe is a stock that has good fund backing, that is punished mercilessly on some bad news.  RIGL reported recently that one of its products was not going to be one that would be brought into production.  The stock then went from 21.92 to a low of 7.43.  That is a drop of 14.49.  Now multiply 14.49 by 25% and you get 3.62.  Add 3.62 to the low of 7.43 and you get a one month target of 11.05.  That is a return of 35% from today's price of 8.20 a share...I'll take 35% in a month.
You need to remember that this is a drug company that has a lot of products in the pipeline.  This is not a one product company.  If you look at who is doing the speaking for the company this week, it is a Harvard professor.  I wouldn't write this stock off.  It has been overdone.  Let's go long and reap a return of 35%.


TATRADER  16% return last month, and hopefully we will double that return this month!


http://stockcharts.com/def/servlet/SC.web?c=rigl

[Bishop]

1) My Stock Pick: NT

2) Reason:

Nortel is a bottom play for me. It's sitting near the 200 dma. As per 1 year chart, NT has gapped up at the open a few times. Those days had great volume. In addition, insiders have been buying lately. The gaps were filled throughout the year.

Market Scan
Nortel Shares Could Outperform In 2006
Peter Kang, 12.09.05, 12:16 PM ET

RBC Capital Markets maintained a "sector perform" rating on Nortel Networks (nyse: NT - news - people ) and said shares could outperform in 2006 should the maker of networking equipment continue to progress on new product development.

"We believe that Nortel's stock may outperform in 2006 if the company improves its top-line growth rates and expands its product portfolio while improving its operating metrics," wrote analyst Mark Sue, in a client note. "A key ingredient of course remains its product cycle."

The analyst said product momentum has not been a strong point for the company in recent years as it has been distracted by management changes and accounting woes. "A lack of competitive new products may be one reason why Nortel lost key deals in 2005 at BellSouth (nyse: BLS - news - people ), BT Group (nyse: BT - news - people ), SBC Communications (nyse: SBC - news - people ), and Telstra (nyse: TLS - news - people )," said Sue.

"Under new Chief Executive Mike Zavirofski, we look for Nortel to exercise a more-focused approach to R&D spending and new product development. Product cycles in communications equipment can be key revenue drivers as evidenced by Cisco Systems' (nasdaq: CSCO - news - people ) ISR routers, Motorola's (nyse: MOT - news - people ) RAZR phones and Foundry Networks' (nasdaq: FDRY - news - people ) RX."

The RBC analyst reiterated a price target of $4 on the stock. "An investment in Nortel may be appropriate for long-term minded investors," he said. The price target represents a "modest premium" versus the peer average, Sue said, due to Nortel's improving operating leverage.

3) Stock Chart

[catrader]

1)  I was going to pick gnbt, but reading the rules cannot pick stocks less than $1.  That being the case, my pick then is agix, atherogenics inc.

2) why do I pick agix?  I've held it for a few months now and still see the potential in it.  Back then, there were rumors that it might be a takeover target, maybe merk or pfizer or other big pharma.  There was some movement on it last Friday so might mean something.  Merger hasn't happened yet, so it might happen in the next month, and if that happens, they say $25-30 can be a possible price for the sale.  Also, in the last few months, there been purchases by institutions implying they might know something.  Also news of maybe happenings in December with their trials too.  Also telechart 2005 with its custom indicators say maybe agix is looking bullish here.  Put this all together and the reasons I am bullish on agix.

3) chart on agix

[Waschbaer]

Gateway (GTW)

Technical considerations:
Gateway is trading above the daily sma(50) and the daily sma(200). On the daily chart, the sma(200) isn't rising yet, but the EMA(08) is greater than the EMA(21) and the EMA(21) is greater than the EMA(55). I use that as a trend indicator. Also on the daily chart, the PDI(13) is greater than the MDI(13). Wilder's indicators are often helpful -- such as his ADX. Here, on the daily chart, the ADX(13) is also rising although only slightly. It also appears that GTW is oversold on the daily chart. Recently GTW had a run-up on very decent volume and has held its ground pretty well since then. I think it's good when stocks go sideways for a while. Gateway is also a good company and has a new CEO who's doing a lot to cut costs and improve profits.

[healey]

My pick is TXCC

I was slow getting my pick in and some of the better ideas I had last week have been scooped. This pick may not be the strongest but it is late here and the end of a hectic but fun weekend....so this will have to be it.

TranSwitch Corporation designs, develops, markets and supports highly integrated digital and mixed-signal semiconductor solutions for the telecommunications and data communications markets. The company's mixed-signal and digital design capability, in conjunction with its telecommunications systems expertise, enables the company to determine and implement optimal combinations of design elements for desired analog and digital functionality.

TXCC is breaking its downward trend line with good volume support out of some low volatility trading. Rising bottoms over the past six weeks indicate that optimism is building. Support at $1.45.

[raymat]

1. OSCI

2.  reason:

A FDA approved drug--Factive;
A major partnership in the work;
Cheap.

3. Chat:  see yahoo by yourself

[finagler]

My pick is OSUR.   OraSure Technologies

OraSure has developed a saliva test for HIV virus, which gives on site results in 20 minutes with a 99% accuracy rate(according to the company). The test is currently approved by the FDA for  use by medical professionals, and approval of a kit to be sold over the counter is pending. You can imagine the market for a quick, non-invasive, accurate HIV test available over the counter at your local drug store.

The stock has had two recent gaps up, both of which have been filled. The first one was on Nov 21, when the stock was recommended by a TV stock Guru(Cramer). The second was on November 29, when the president of the company rang NASDAQ's opening bell along with the Surgeon General to promote Aids awareness.

The stock was extremely volatile on Friday, December 9, following a San Francisco Chronicle article stating the test had a 25% failure rate. This report was statistically inaccurate.  The incidence of positive results at the laboratory interviewed was 4%, and of those 4% one in four was a false positive, so the rate of inaccuracy was actually 1%. The company recommends that anyone getting a positive result have further blood testing. This rate of accuracy is better then many over the counter tests available, such as pregnancy tests.

I think the volatility caused by this article will blow over and the uptrend will continue.  If FDA approval for selling the kit over the counter appears near, the stock should take off.



http://stockcharts.com/def/servlet/SC.web?c=OSUR,uu

[RIGHT SIDE investment club]

1) Meadow Valley Corporation (MVCO)
    Last Trade: 12.60

2) Meadow Valley Corporation engages in construction services and the supply of construction materials in the United States

Share Data
Shares Out 3.7 Mil
30 Day Avg Vol 117,887
Mkt Cap $45.99
ROE 10.84
EPS 1.06

Moving Avgs.
50 Day 9.99
150 Day 8.35
200 Day 7.75

Momentums Period Status Cross point
Daily Positive
5 Days 11.00
Wkly Positive
5 Weeks 10.56
Monthly Positive
3 Months 10.08

Sector Data

Sector - Building
Bullish Percent - Bull Confirmed at 60% in Xs
Positive Trend - Bear Confirmed at 76% in Os
RS Positive - Bull Confirmed at 72% in Xs
RS in X's - Bear Confirmed at 50% in Os
Sector Relative Strength (DWA Sectors)- Buy in Xs
Economic Sectors -

Broad - Industrial - Bear Correction in Xs

Sector - Construction - Bear Confirmed in Os

Sub Sector - Heavy Construction - Bear Confirmed in Os

Technical Attributes: 5 of 5
Trend - Turned Positive on 12/13/2004
RS Mkt - Buy in Xs
RS Peers - Buy in Xs
Pattern- Bullish Catapult on 12/07/2005
Vertical Price Objective - Bullish Price Obj: $21.50

Comment

12/12/2005
[MVCO]  Meadow Valley Corporation (12.60) broke a double top at 12.500 on 12/07/2005. This completed a Bullish Catapult chart pattern. As of the very latest price (15:59:55), it is trading at $12.600. High is $12.990, Low is $12.350.

MVCO is trading above its bullish support line . Relative Strength against the Market is on a Buy signal and the Relative Strength chart is in column of X's. Weekly momentum turned positive on 11/04/2005.

Meadow Valley Corporation is part of the Building sector which is in Bull Confirmed status at 60 % in a column of X 's. MVCO is trading 62% on the overbought side of the ten week trading band, the middle of this trading band is 10.23.

Meadow Valley Corporation shares outstanding are 3.650 million, 30 day trading volume averages 95,738.5

3) Chart



Good trades...

[fous]

1) KNOL..........almost picked INSM, Gonna be mad if it outperforms KNOL
Knology, Inc.. The Group's principal activity is to provide cable television, local and long-distance telephone and high-speed Internet access services to residential and business customers in southeastern United States. It also provides advanced communications services, such as video-on-demand, subscriber video-on-demand, digital video recording, interactive television, IP Centrex services and passive optical network services. As of 30-Jun-2005, the Group had 414,341 connections for video, voice and data services. It provides the services through their wholly owned, fully upgraded 750 MHz interactive broadband network.

2)

Continued revenue growth since 2002:


Recent Insider Buys:


TA:
Price action has been in a steady down trend for 04 and 03 though has bottomed out in 05 with increased volume. Price action has been stuck in a trading range from 2.85-1.61 for pretty much the whole year and yet friday was a breakout of a long term descending trenline on heavy volume. Resitence of this rally was met at the top of the trading range of 2.85.Only to drop .15 in the AH session. I look foward to see what happens in the near future to the PPS for KNOL. Heading north is what i will anticipate.     

Daily short term:


Dailly Long term:


Weekly Long term:


Good luck all contestants!

-fousc

[small_investor]

hello again, back with another pick...

My new pick is another biotech company named Pharmion Corp. - PHRM, (Nasdaq)


Pharmion Corporation was formed in 1999 and is headquartered in Boulder, Colorado. PHRM primarily engages in the acquisition, development, and commercialization of pharmaceutical products for the treatment of oncology and hematology patients. The company's product acquisition and licensing efforts are focused on both late-stage development products, as well as those approved for marketing. Its product portfolio includes Thalidomide Pharmion and Thalidomide Laphal for the treatment of relapsed and refractory multiple myeloma; Vidaza, used for the treatment of myelodysplastic syndromes; Innohep, for the treatment of deep vein thrombosis; and Refludan, which is used for the treatment of heparin-induced thrombocytopenia. The company primarily operates in the United States, Europe, and Australia.


Reason for my pick is that PHRM seems to be very undervalued for me....


Let´s have a look to the chart:




Hope to see PHRM back in the mid twenties by january...


Good luck to all  

[Jimbo]

China Energy Savings Technology Inc. (CESV)

Fundamentals :
China Energy Savings Technology, Inc., through its subsidiary, Starway Management Limited, engages in the development, manufacture, sale, and distribution of energy-saving products for use in commercial and industrial settings in the People's Republic of China.
CESV plans to explore new business opportunities and technologies in response to the "world's growing global energy crisis." The company clearly stated that it intends to expand into alternative-energy areas such as fuel cells, solar power, and micro-hydrogen.

Market Cap: 201.30M
52wk Range: 3.90 - 28.28
Qtrly Earnings Growth (yoy): 11.40%
Operating Margin (ttm): 26.06%

I don't want to go too deep into fundamentals as I believe that China Energy is a pure speculation at this point.

Technical Analysis
The main reason for my pick - CESV recently broke "falling wedge" formation on high volume as you can see on the charts bellow. With the RSI & MACD rising this stock could gain 20%+ within the few weeks.

[bw6458]

Greetings and Happy Holidays... I am sticking with my last month's pick Avanir Pharm (AVN)

1>  New CEO was CFO of Allergen - straight shooter and knows the biz
2>  Potential FDA approval soon on NDA for Neurodex
3>  Better than expected earnings report (stock sold off)
     story:  http://biz.yahoo.com/ap/051205/earns_avanir.html?.v=1
4>  High short interest
5>  Large positions by Omnimed and J. Steinberg over last 6 months
6>  CEO purchased 500,000 @ $3.00 (good show of faith)
7>  Large short position possible squeeze
8>  Nearing the Golden Cross (1year and 2 year charts)  that everyone talks about.
   Avanir is a sleeping giant starting to wake up    [/size]


This year end rally could lift AVN to new levels ... KC prepared to be dethroned !!!  LOL

[Ramsburg]

DDDC (Delta Three, Inc)

Reasons behind this pick:
This is merely a technical pick, based on what I think is a nice looking chart for the time frame of this contest
DDDC has a market cap of 139M (source: Yahoo), provides integrated Voice over Internet Protocol (VoIP) telephony services. It offers private-label products, including Broadband Phone and PC to Phone; virtual roaming service; carrier transmission services.

Short Term:
DDDC just had a powerful breakout of a short term descending trend line, sustained with increasing volume during the last few sessions. The 2 moving averages I'm using (ema-50 / ema-200) have both been crossed on the upside, and momentum is getting hot.

Long Term:
I'm tracking a long term ascending support, touched several times since 2003 before some big upside movements... Last month DDDC touched this support again at $2.40 generating this upside move since then.

General Overview:
I'm not sure if today is the right time to buy DDDC, but I'm expecting upside continuation on this pattern and a reasonable potential for this move (maybe $4.00/$4.30). The first resistance (and confirmation) is $3.40, the risk on this position is a pullback to the $2.70's. 

Charts: