TFN eNews 12/10/2009: Could this penny stock double on news again?
Published via e-mail broadcast on December 10, 2009
In today’s TFN eNews:
* Waiting for the newsman could pay off with 100% gains!
* Another 100% gains on natural gas
* Top movers today
Dear TFN eNews reader,
There’s one stock I’ve been watching for our Penny Stock Confidential members. It’s been eating me up!
Now, if you’ve been watching television in the States, you’ll have seen the commercials: Trees growing in the streets, with hippety-hoppity rodents and a few deer, while an assertive female voice coos about “saving trees” and “saving lives”.
It suggests that a central digital medical records system not only heals cancer and prevents social diseases, but waters the plants, trims your hair, and vacuums the family living room.
Much like the various healthcare reform bills: How strange that the people who saw government invading their privacy when the NSA picked up cellphone calls from suspected terrorists are now willing to let that same government administer their most private medical information!
But there’s money to be made in this racket.
In November, I recommended that members of our elite penny share trading service, Penny Stock Confidential, buy MMR Information Systems Inc. (OTC:MMRF).
A few weeks later, the stock took off.
It soared over 100% in two days on a single bit of news.
“MMR Information Systems, Inc., and Unis-Tonghe Technology (Zhengzhou) Co., Ltd (UNIS), have announced that they will enter into a definitive agreement by the end of this year to form a joint venture to build a customized version of MMR’s proprietary personal health record (PHR) services and professional document imaging and management solutions in China.”
Read it again: It’s an announcement of an upcoming announcement. Good for a short-lived blip of over 100%!
The stock has fallen back close to our initial buying price. PSC members are still up 15%-plus.
But here’s why this stock is making me antsy: The two companies have announced that “they will enter into a definitive agreement by the end of this year”. That’s exactly 21 days away — at most! I anticipate another announcement. This time of the definite agreement. Good for another press release. Good for another 100% gains?
*** TFN’s resident “gasman” Andrew Snyder took some gains today: “We just got the week’s natural gas inventory report. It’s not the news I wanted to hear. According to the Energy Information Agency, the nation withdrew 64 billion cubic feet of natural gas over the past week.
“It’s the first withdrawal of the season and it’s a whopper. What’s the cause? It’s downright cold here in the Northeast. Blame global warming! With millions of Americans putting the heat on high, natural gas was flowing at full tilt.
“So far, the action sent shares of the United Natural Gas ETF (NYSE:UNG) surging. As I write, shares are up by about 5.9%, down slightly from intra-day highs. With just over a month left in our TFN Strategic Trader put options, I don’t like this move. If it becomes a trend and our timing is off by even a week, we could lose our current triple-digit gains. So let’s take 100% gains on the second half of this play off the table and lock in the gains. We can re-enter on any dips.”
*** No doubt it’s been a strong year for the American biotech sector. The industry known for its wild, hair-raising rides is renowned for handing huge rewards to savvy investors… at least for those willing to take the risk.
If your goal was to beat the markets in 2009, the biotech sector was the place to do it. Unless something dramatic happens between now and the end of the month, biotechs will have outpaced the broader markets nearly two to one over the past twelve months.
The S&P is up 18% year-to-date, while the biotech sector (according to the AMEX Biotech Index) is up by a whopping 39%.
Andrew Snyder writes: “That kind of figure is good news for Fact Biotech (NASDAQ:FACT) as it mulls its future. Since September, Biogen Idec (NASDAQ:BIIB) has had its eye on a Fact takeover. Its first offer of $14.50 per share was promptly rejected. And now we are receiving word that the company’s second tender offer of $17.50 has been unanimously rejected by the company’s board.
“According to the letter released to shareholders this morning, Fact’s top brass believes Biogen’s offer significantly undervalues its product pipeline and overstates its liabilities…”
How does this translate into opportunity? Read on… http://www.todaysfinancialnews.com/us-stocks-and-markets/fact-biotech-open-for-bidding-10524.html
***73 double-digit gainers in 2009: Now, buy these 3 stocks as oil hits $150 a barrel in 2010:
These 3 reasonably-priced companies not only will pass most of their profits on to shareholders… but stand to gain 20%, 50%, even 100% as oil prices soar! Read on… http://www.todaysfinancialnews.com/HSC/OIL/EHSCKC01.html
*** Quote of the Day:
“Speaking on the budget in his speech on the economy this week, President Obama said that we have to continue to ’spend our way out’ of this recession. I don’t know much about economics, but aren’t we like a trillion dollars in debt? Spending our way out of the recession? Isn’t that like trying to drink your way out of alcoholism?” — Jay Leno
Recommended Reading:
Fact Biotech: Open for bidding
When in doubt, buy booze, babes and bullets
Today’s Top 3 Financial News Stories:
MoneyNews.com – Feldstein: Recovery Is Grossly Exaggerated “Reports of the economic rebound in the U.S. have been greatly exaggerated, opines Harvard University economics professor Dr. Martin Feldstein, a former White House economic adviser.”
Reuters.com — New U.S. jobless claims rise, trade gap narrows “Initial claims for state unemployment insurance rose 17,000 to 474,000 last week, after five straight weeks of declines, the Labor Department said on Thursday.”
Bloomberg.com — China’s Stocks to Jump to 4,500 in 2010, Citic Says “China’s benchmark Shanghai Composite Index may reach 4,500 in 2010 as the fastest economic growth in three years bolsters domestic consumption, according to Citic Securities Co., the biggest broker by market value.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: Top Precious Metal Stocks
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