John's Blog

Stock Trading journal of a Penny Stock Addict and sometimes Day Trader. Live vicariously through the ups and downs (and a lot of sideways here lately) of a Penny Day Trader. Add me to your favorites, because finding me once is a feat to be proud of, and twice without a link . . . a miracle

Friday, October 27, 2006

I'm moved, and settled into my new home, and I still have a little money left in the market. I'm on the hunt for a new hot stock.

To find these I usually search by P/E ratio, and current price. Then I check the news and financials on the company. I'll walk you through some of the decision making process.

I found one stock, CYBL, which is currently showing a good P/E, so I looked at the chart. Analyzing it technically, I find this chart very attractive for a value buy. Its near an all time low, and it just had a high volume sell off which could indicate that it over sold. Unfortunately, my fundamental analysis did not convince me that this is a solid value, so although the chart looks very good, and the basic numbers are good, the annual income data turned me off. I predict that this stock will go up, just from looking at its chart, but it lacks the financial strength to be a breakout stock, and for that reason coupled with my limited available funds, I'm not willing to put my money on this one.

DYHP is currently at a bottom, and has genuine upside potential, its a buy at .26 to .29 in the next few days. I'm going to look at liquidating some capital, and watch this one. If it doesn't go up big before I have the money, or show me something I don't already know about in the next few days this might be a winner for me.

EACO looked interesting until I found out that its good P/E right now is purely from discontinued operations.

Note to self: watch netguru, and see whats up when the dust settles on the restructuring.

Kicking myself in the pants for not buying PRESQ when I looked at it in March. I remember I almost did, but talked myself out of it.

THMG is a possible trade if you can get in at .10, but I'm getting tired so I didn't go as deep as I should before making it a pick. I'll try to get back online and give it a better look tommorrow.

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