These are our top stock picks for 2009. Once again we are looking for growth. Prices reflect close of business on 12/31/2008. All trade on the OTCBB except AFOP and DVAX which trade on Nasdaq. Nasdaq stocks trading under $1.00 do run the risk of being delisted.
1) Alliance Fiber Optic Products, Inc AFOP $.64
41,776,011 s/o as of October 31, 2008; 0 preferred s/o.
$23m cash; $937k debt.
9-month revenue up ~20%; 9-month net income .08 v .05
Founded in 1995, Alliance Fiber Optic Products, Inc. designs, manufactures and markets a broad range of high performance fiber optic components and integrated modules. AFOP’s products are used by leading and emerging communications equipment manufacturers to deliver optical networking systems to the long-haul, enterprise, metropolitan and last mile access segments of the communications network. AFOP offers a broad product line of passive optical components, including interconnect systems, couplers and splitters, thin film DWDM components and modules, fixed and variable optical attenuators. AFOP is headquartered in Sunnyvale, California, with manufacturing and product development capabilities in the United States, Taiwan and China. AFOP’s website is located at www.afop.com.
2) Alloy Steel International, Inc. AYSI $.50
16,950,000 s/o as of December 1, 2008; 0 preferred s/o.
$664k cash; $301k debt.
Year-over-year sales $13,511,458 v. $8,729,644. Year-over-year net income: $2,507,912 or $0.15 per share, for the year ended September 30, 2008, compared to $1,308,865 or $0.08 per share for the year ended September 30, 2007.
Alloy Steel International, Inc., together with its subsidiary, Alloy Steel Australia (Int.) Pty Ltd., engages in the manufacture and distribution of Arcoplate, a wear-resistant alloy overlay wear plate. It offers fused-alloy steel plates for installation and use in structures and machinery that suffer wear and hang-up problems. The company is also developing the 3-D Pipefitting Cladder process. Alloy Steel International’s customer base primarily consists of companies involved in the mining and dredging industries in Australia, the United States, South America, India, Indonesia, Singapore, South Africa, Japan, China, Canada, and Malaysia. The company was founded in 2000 and is based in Malaga, Australia. Web Site: http://www.alloysteel.net
3) Artificial Life, Inc. ALIF $.915
47,724,132 s/o as of October 29, 2008; 0 preferred s/o.
$2.7m cash; $1.44m debt.
9-month revenue up ~400%; 9-month net income .18 v (-.03)
Artificial Life, Inc. is a public US corporation headquartered in Los Angeles, with its production center in Hong Kong and additional offices in Berlin (EMEA headquarters) and Tokyo. As a leading, full-service provider of mobile broadband 3G technology, mobile participation TV, mobile gaming, content and business applications, Artificial Life provides 2D and 3D multi- and single player rich-media applications for 3G, 3.5G and 4G network-enabled mobile phones. Recognized internationally for outstanding content quality and technology, Artificial Life transcends traditional modes of mobile communications and interactive gaming. For more information, please visit http://www.artificial-life.com or the company’s m-commerce portal at http://www.botme.com.
4) China Sun Group High-Tech Co. CSGH $.44
53,422,971 s/o as of October 14, 2008; 0 preferred s/o.
$11.09m cash, $0 long-term debt.
3-month rev up ~ 150%; 3-month net income .04/sh v .01/sh
China Sun Group High-Tech Co. Develops New Product ‘Lithium Iron Phosphate’
China Sun Group High-Tech Co., (“China Sun Group”) produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd (“DLX”), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People’s Republic of China. Through its research and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company plans to create a fully integrated supply chain from the primary manufacturing of cobalt ore to finished products, including lithium ion batteries. For more information, visit http://www.china-sun.cn
5) Dynavax Technologies Corporation DVAX $.84
39,854,265 s/o as of October 31, 2008; 0 preferred s/o.
$64m cash and securities; $0 long-term debt.
9-month revenue up ~ 400%; 9-month net loss (-.60/sh) v (-1.21/sh)
Dynavax Technologies Corporation, a biopharmaceutical company, discovers, develops, and commercializes Toll-like Receptor 9 (TLR9) agonist-based products to treat and prevent infectious diseases, allergies, cancer, and chronic inflammatory diseases using proprietary approaches that alter immune system responses in specific ways. The company’s TLR9 agonists are based on immunostimulatory sequences (ISS), which are short DNA sequences that enable the immune system to fight disease and control chronic inflammation. Its product candidates include TOLAMBA, a ragweed allergy therapy in Phase II clinical trial; a therapy for metastatic colorectal cancer that is in Phase I clinical trial; and a therapy for hepatitis B in Phase I clinical trial. The company’s preclinical asthma and chronic obstructive pulmonary disease (COPD) program is partnered with AstraZeneca AB. It has a strategic alliance agreement with GlaxoSmithKline plc to discover, develop, and commercialize novel inhibitors of endosomal Toll-like Receptors for the treatment of immuno-inflammatory diseases. Dynavax Technologies Corporation was founded in 1996 under the name Double Helix Corporation and subsequently changed its name to Dynavax Technologies Corporation. The company is based in Berkeley, California. Web Site: http://www.dynavax.com
6) Heartland, Inc. HTLJ $.25
41,783,107 s/o as of November 1, 2008; 2.37m preferred s/o.
$856kcash; $1.5m long term debt
9-month rev up ~ 50%; 9-month diluted net income .035/sh v (-.02/sh)
Heartland, Inc., through its subsidiary, Mound Technologies, Inc., engages in the fabrication of structural and miscellaneous steel products. The company offers structural steel, miscellaneous metals, steel stairs, railings, bar joists, and metal decks to general contractors and fabricators in the United States. It also provides erection services. The company was incorporated in 2002 and is headquartered in Middlesboro, Kentucky. Web Site: http://www.heartlandholdingsinc.com
7) ZAGG Incorporated ZAGG $.93
19,143,995 s/o as of November 12, 2008; 0 preferred s/o.
950k cash; 24k long-term debt.
9-month revenue up ~ 300%; 9-month net income .05/sh v (-.07/sh)
ZAGG Incorporated designs, manufactures, and distributes protective coverings for consumer electronic and hand-held devices under the brand name invisibleSHIELD primarily in the United States and Europe. Its invisibleSHIELD, a protective film covering designed for iPods, laptops, cell phones, digital cameras, personal digital assistants, MP3 players, watch faces, GPS systems, gaming devices, and other items. The company also offers RockStic portable speaker system designed for Apple iPod and compatible with various digital media players. In addition, it sells accessories for electronics devices, including power cords, chargers, and adapters. In addition, the company offers approximately 2,000 precision pre-cut designs through online channels, resellers, college bookstores, Mac stores, and mail kiosks. ZAGG Incorporated sells its products directly through its Web site, distributors, kiosk vendors in shopping malls and retail centers, and electronics retailers. The company was founded in 2005 and is based in Salt Lake City, Utah. (from stock board – The 4.2 million warrants at 1.20 a share create overhead resistance). Web Site: http://www.ZAGG.com
The stock market was downright frightful on Friday as the Dow suffered its largest one-day loss since May 2003. Analysts were blaming weak earnings reports and the rising price of oil. Pennyheaven Super 7 however is exhibiting one of its strongest openings since inception. All seven stocks are currently in the black.
Follow performance by clicking here.
Major indices can’t quite get into the black, NYSE is down less than 1% YTD.
However, Nasdaq is still down 5% and the Dow is down 2.5%.
The OTCBB $Volume is still trending downward. May 2005 hit a new YTD low.
Pennyheaven Super 7 seems to be holding its own.
I should have been more patient with ITSI. They recently announced that theirwholly owned subsidiary, Unisyn Solutions, Inc., has entered into an agreement with Election Systems & Software, Inc. for ES&S to manufacture and distribute a Precinct Ballot Counter developed by Unisyn. This represents an entirely new revenue stream for ITSI. (Note of caution: the bid/ask spread is still outrageous).
Stocks Up in a Down Market
AVTX (.056) They began the year at .03.Advance Technologies, Inc. develops infrared enhanced vision technology for commercial solutions and applications. It licenses and develops applied infrared enhanced vision solutions for use in diverse industries, including aviation, recreational vehicles, commercial trucking, marine, security, and fire fighting applications. The company is developing a night vision system with applications in the military, as well as civil. In addition, it is involved in the development of other electro-optical mechanical devices.
Web Site: http://www.avtx.com
CORG (2.10) up 100% YTD. Cordia Corporation, a business services holding company, through its subsidiaries, provides local and long distance telecommunications services. The company offers an integrated set of telecommunications products and services, including local exchange, local access, domestic and international long distance telephone, and a suite of local features and calling plans with service offerings to small business and residential customers in New York, New Jersey, and Pennsylvania.
Web Site: http://www.cordiacorp.com
EDGR (2.42) Began the year at 1.50 was as high as 4.00. EDGAR Online, Inc. provides financial and business information of global companies contained in the U.S. Securities and Exchange Commission filings.
4 million cash.
Web Site: http://www.edgar-online.com
PHST (1.62) Opened 2005 at .95.
Pharsight Corporation engages in the development and marketing of software products and scientific consulting services for pharmaceutical and biotechnology companies. The company’s products include software for clinical trial simulation and computer-aided trial design; for the statistical analysis and mathematical modeling of data; and for the storage, management, and regulatory reporting of derived data and models in a data repository.
Web Site: http://www.pharsight.com
SMID (1.62) Opened 2005 at .93Smith-Midland Corporation engages in the invention, development, manufacture, installation, leasing, licensing, sale, and marketing of precast concrete products for use primarily in the construction, utilities, and farming industries.
Web Site: http://www.smithmid.com
TSTA (.74) Opened 2005 at .47
TurboSonic Technologies designs and markets air pollution control products to industrial customers worldwide.
Web Site: www.turbosonic.com
Pennyheaven.com News Report – 01/01/03
First lets review and see where we are:
Major indexes are down 3 years running, Nasdaq just
experienced the worst December ever, consumer confidence
is down near a seven year low, and the thought of war is on
too many minds.
I think its safe to say now is not the best time to be a
stock picker. Still, Pennyheaven Top 10 (2002) did finish
in the black (+ 10%) even though 7 of the 10 were in the
red. HQNT finished up 400%, LDNA up 100%, and UBET
up 67%. I’ll take it.
This year we’re doing something different. The current
environment dictates we get lean and mean.
Instead of the Top 10 we’ve narrowed it down to Top 7.
No Fat; No Waste.
Ladies and Gentlemen,
Pennyheaven Super 7 (2003)
Nothing over a dollar, 50 million s/o maximum, OTCBB only,
no convertible debentures (as of this writing, as far as I can tell).
Prices reflect close of business 12/31/02.
1) Allergy Research ALRG .19 (.19 x .25)
Allergy Research Group, Inc., through its wholly owned
subsidiary, NutriCology, Inc., is engaged in nutraceutical
research and product information. For the nine months
ended 9/30/02, revenues increased 4% to $9.2 million.
Net income increased 53% to $637 thousand.
From 11/13/02 10QSB
On May 3, 2002, the Company announced a stock repurchase plan,
whereby the Company may repurchase between 1,000,000 and 2,500,000
shares of the Company’s common stock in open market transactions,
from time to time during the next two years in compliance with Rule 10b-18
of the Securities Exchange Act of 1934 and all other applicable securities
regulations. Repurchases of common shares in the open market will provide
shares for issuance to employees under stock option and stock purchase
plans. Since inception of the plan through September 30, 2002, the Company
repurchased 339,750 shares of common stock for $65,950. The Company
purchased an additional 43,500 shares during October 2002 for $11,843.
14,722,105 s/o as of 11/05/02
Market Cap: $2,797,200
2) CorVu Corp CRVU .53 (.53 x .55)
CorVu Corporation is a holding company that develops and
sells business performance management software products
and related professional services through subsidiaries. For
the three months ended 9/30/02, revenues totaled $4.4 million,
up from $2.2 million. Net income totaled $1 million vs. a loss
of $681 thousand.
183% Increase in License Sales for Q1 FY2003 and Fourth
Consecutive Quarter of Record Profits
22,197,503 s/o as of 10/31/02
Market Cap: $11,764,676
3) Electronic Systems ELST .36 (.36 x .50)
ELST specializes in the manufacturing and development of
the ESTeem Wireless Modem (which allows computers to
communicate via radio frequency waves). For the nine months
ended 9/30/02, revenues rose 49% to $1.4 million. Net income
totaled $155 thousand, .03/sh earnings after taxes, 500K cash.
Long Term Debt Zero.
This is a Wi-Fi play.
5,098,667 s/o as of 9/30/02
Market Cap: $1,835,520
4) ePhone Telecom, Inc EPHO .15 (.14 x .16)
EPHO provides next-generation, voice and data communication
solutions to businesses and residential customers worldwide.
The Company provides a growing suite of retail products and
services including branded and private label pre-paid calling
cards, pre-paid domestic calling plans and 1+ pre-paid services
as well as wholesale (carrier-to-carrier) solutions.
For the nine months ended 9/30/02, revenues totaled $15.5
million, up from $1.7 million. Net loss fell 97% to $178 thousand.
Third Quarter 2002 Results:
Record revenues of $6,358,883 million represents an increase
of 25% compared to the previous quarter and 450% over the
same period last year.
2.7million cash and cash equivalents as of 9/30/02
Market Cap: $5,615,862
5) First Aid Direct FADI .10 (.10 x .14)
First Aid Direct, Inc. is a supplier of first aid products, safety
equipment and safety training and compliance products. Its
products are available through independent distributors and
on its web site.
The Company set new profit and sales records for the third
quarter of 2002, and continued to increase its number of
distributors. For the nine months ending 9/30/02 net income
3,985,000 s/o as of 9/30/02
Market Cap: $398,500
6) Health Fitness HFIT .50 (.40 x .50)
Health Fitness Corporation is the leading provider of results-
oriented fitness, assessment, wellness, and occupational health
services to corporations, hospitals, universities and communities.
HFC has been serving clients since 1975 and manages more
than 190 sites across the U.S. and Canada. For the nine months
ended 9/30/02, revenues rose 5% to $20.3 million. Net income
totaled $2.3 million, up from $863 thousand.
Eleven consecutive quarters of profitability.
12,297,661 s/o as of 11/12/02
Market Cap $6,148,830
7) Seto Holdings SETO .27 (.27 x .31)
SETO Holdings, Inc. primarily manufactures and/or distributes
industrial ceramic products, small disposable diamond cutting
tools and cellular telephone and other rechargeable batteries.
For the six months ended 7/31/02, net sales rose 45% to $3.8
million. Net income from continuing operations totaled $873
thousand, up from $307 thousand.
From 12/13/02 10QSB
During the first nine months of fiscal 2003, the Company repurchased
249,300 shares of common stock under the Company’s authorized
repurchase program at a cost of $50,241. As of October 31, 2002 a total
of 750,700 shares remained available for repurchases under the program.
14,484,700 s/o as of 10/31/02
Have a Happy and Healthy New Year.