TFN eNews 09/22/2009: Check out this solar penny stock … and gainer #63!
Published via e-mail broadcast on September 22, 2009
In today’s TFN eNews:
* Degrees of separation from reality
* General Moly puts 26% gains to the HSC bottom line
* Is this solar penny stock for real?
Dear TFN eNews reader,
On my way into work, I heard a local college advertise a new academic degree. Hold on to your chairs: Goucher College now offers a Master’s Degree in “Cultural Sustainability”.
What exactly is that?
Your guess is as good as mine. I’d say it goes hand-in-hand with the “Upper Division Certificate” in “Diversity Awareness” offered by the University of Maryland University College and the “Upper Division Certificate” in “Leadership and Social Change” pandered by the College of Notre Dame of Maryland.
It’s a reminder of another industry of fraudulent excess haunting America: The high-ticked trade in useless claptrap degrees peddled by American institutions of higher learning. Oddly enough, people complain when gas costs $3 a gallon… but they have no problem with self-serving nonsense degrees that weigh down graduates with false hopes and real debt.
Just reading the descriptions makes me want to enrol in a Master’s Degree course kindly offered by Hood College: Thanatology. If my smattering of ancient Greek serves me right, that would translate as “Death Studies,” in the curiously target-free and open-ended lingo of politically boutique academia.
Kill me now!
*** There was no cultural sustainability invoved — other than the need to make a living — that motivated TFN’s Laura Cadden to make good use of today’s upswing in commodity prices:
“We’ve passed our 20% gain target for General Moly Inc. (AMEX:GMO),” she emailed members of Hot Stock Confidential today. “Although I believe the demand for molybenum will increase if the economy recovers as some predict, I’m reluctant to risk these gains. I recommend you sell your shares of GMO and celebrate!”
We chalked up GMO with a 26.4% gain in 34 days as double-digit gainer #63 in our 2009 Closed Positions portfolio.
This brings the average gain on our 76 closed positions to 22.6%… and the “compound gain” to 1,706.4%.
Now I admit, we’re far from perfect when it comes to optimizing gains. I sometimes feel like I am always holding too long and selling too soon, all at the same time.
But a gain is a gain… and worse than not making optimal gains is missing out on a play altogether.
So really, unless you think 63 double-digit gainers aren’t much of a track record for this year, I think it’s high time you upgraded your TFN eNews subscription to our premium service Hot Stock Confidential. This is real money you’re missing out on!
So please, sign up for the service!
*** When our German colleagues at Michael Vaupel’s Trader’s Daily published last week’s TFN call for undiscovered solar stock gems, several TD members responded.
“Let me send you a penny stock pick,” wrote Trader’s Daily reader W.E. to us: Kender Solar (PINKS:KNDR) rose 10% with a volume of 292,002 last quarter. It’s a development-stage company, active in the solar energy industry. Their prototype solar cells are currently being developed further into a larger-scale solar energy systems.
“The unique aspect of Kender solar cell technology is that they effect heat exchange between solar light and air via a closed gas circuit (usually helium).
“The exchange initiates the flow of helium within the closed circuit, which in turn powers a turbine that produces electricity via a 100% clean and renewable process. The systems main advantage is that it is efficient, cheap to produce, and modular. The company is based in Geneva, Switzerland.
“I am watching this tock because it doesn’t strike me as ‘clean’…”
The story reminded me of various alternative-energy companies I investigated in the past. I remember a marine power generator that leveraged the temperature differential between layers of ocean water… or co-generation systems that could convert any element that moved or showed temperature differentials into energy.
(My youthful optimism in predicting their implementation “within the next five years” turned out to be… well, youthful.)
That’s why I asked TFN guru Andrew Snyder for his input. Here’s what he said:
“Kender Energy is a speculative company with an interesting technology. The company plans to generate electricity from the same type of simple phsyics that keeps your refrigerator cool. But instead of using freon as a refrigerent, Kender plans to use helium. If it works on a large scale, it could be a major breakthrough.
“Unfortunately, there is no way for investors to know if the technology will actually produce efficient, cheap electricity on a large-scale basis. Buy the stock and you are buying the company’s word that it will work. You are not buying a reliable revenue stream.
“This risk, of course, is not only to be expected from a development-stage company… but also provides the upside potential for possible meteoric rises in share price that makes a pennystock like this a great speculative position.
“Shares have been extremely volatile over the past six months, ranging from highs of $1.50 to lows just north of a dime per share. At current levels of $0.30, shares are in moderate territory.
“Investors need to be aware that this is an extremely speculative investment. Cash flow will be a major obstacle as Kender works towards its ultimate mission, an economically viable ‘Kender Engine.’
“Look for shares to spike on random ‘good news’ events like distribution agreements. But be aware the markets will only tolerate being strung along for so long. If the company does not get its technology on the market soon, the general trend will be negative. My overall opinion on this pick is bearish. The solar industry is overbought and overhyped.”
*** General Moly is double-digit gainers #63 for HSC Members!
“Needless to say, I am very pleased with your service. I thank you for your efforts. It is sincerely appreciated.” — HSC Member Neil B.
Quote of the Day:
“Most people don’t realize that the federal budget has become a vast machine for transferring wealth from the upper third of Americans (who pay 90 percent of federal income taxes) to the lowest third of people, who earn less than 200 percent of the government-stipulated “poverty” level and pay no income tax. The size of this massive annual transfer rose by 40 percent to $714 billion over the last 10 years and is projected to rise to $1 trillion per year by the end of Obama’s first term.”
– Phyllis Schlafly, Creators.com
Recommended Reading:
Oil investors: Keep your eye on that dollar
Is there no end to China’s buying spree?
The 3 Best Chinese Stocks Under $5!
Today’s Top 3 Financial News Stories:
FT.com – Commodities give Wall Street a boost “US stocks crept higher on Tuesday after the dollar hit a 1-year low against the euro, driving up commodity prices. But investors were cautious ahead of the Federal Reserve’s two-day monetary policy meeting, due to start on Tuesday. A decision on interest rates is due on Wednesday but Wall Street will also be waiting for updates on financial stimulus measures.”
WSJ.com — Stocks Rise as Fed Mulls Rates “Stocks edged higher Tuesday as investors went back to betting on a global recovery. The gains came as the Federal Reserve’s interest rate committee is set to begin a two-day meeting. While investors will look for hints about possible tightening by the U.S. central bank in its policy statement Wednesday, the consensus is no move is imminent amid the lingering effects of the U.S. recession that began nearly two years ago.”
Bloomberg.com — Russia to Resume State Asset Sales to Bolster Budge “Russia will resume asset sales as the government struggles with its first budget deficit in a decade, First Deputy Prime Minister Igor Shuvalov said.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
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