Penny Stock Watchlist 8.17.10. SYUT PUDA LDK PRXI LOCM
SYUT
Mmmmm. Chinese powdered infant food. I wonder if this is like Chinese solar or biotech? Up big on the Chinese health ministry cleared the company of any link between its milk powder and apparent breast growth in babies. Full story here. http://finance.yahoo.com/news/Synutra-shares-up-following-apf-1087843117.html?x=0&.v=1 . Chinese safety incidents are nothing new. The skinny on this is that 70% of the hinese public think SYUT is lying. Not good. There could be a bullish scalp on this but the move today was toppy. Problem with longing is if and reinvestigation or claim of this nature arises again this company is toast. Will watch for now to see what play develops
PUDA
Has strong resistance set at 10. When it reached the $10 region it immediately retraced to the mid 9’s.This is the 4th time since late May that the $10 area has been tested and failed. That’s predictable and nice. Simply put if it stays at $10 and under it’s bearish above $10 it could breakout to $11. I would love to see this challenge the $10 area and fail Tuesday. If so I will short this. Not a buyer at this moment because I think upside is not parabolically rewarding.
LDK
Has been in an upward trend since June. Current support is at 6.75. I like this more as a buy because the chart looks like it’s ready to pop. That doesn’t mean I won’t short it, I just don’t think it’s a mega short and there probably will be better shorts available. This is a slow mover like AAU so you must be patient. I like the 7.70 area as a breakout long.
PRXI
Spiked as I has anticipated buy this joker held on to it’s gain and went flat. Therefore same set up applies as documented in yesterday’s watchlist. You can view it here. http://thelincolnlist.com/?p=826
LOCM
Lot’s of talk of this today. Stock was mainly bullish but it has been significantly beat down as of late. If LOCM can’t hold this spike there simply is nope for it. If you do buy this breakout be prepared as this price action is very messy. I would cut losses at 3.64 if long. A breach of that price this thing will probably be trading for pennies.