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A Busy Day- Comments on a Bunch of Stuff

Frankly, it's a bit annoying. I wish these smaller companies could get their quarterly numbers out over a few week period in time, instead of all in one or two days at the absolute deadline. I just can't get quality commentary out fast enough for investors to get it all. However, here's some mid day commentary to keep you dialed in.

• TapImmune (TPIV)- a failed penny stock idea, might just come back. I first featured this little bio tech idea early in the year at $.55 with a $.40 suggested stop loss. The stock violated the stop, and I haven't commented on it since. Today, the company announced a small financing, which is exactly what they needed. Highly speculative, put definitely worth a punt at $.30 for your penny stock capital. Now that they have a little money, they can move forward on several projects they have had in the hopper that will be very high profile and I thought we'd already see. A flyer, but worth a speculative bet down here.
• NF Energy (NFEC) came out with quarterly numbers today. Revenues were only up 17%, and the company did not hold a conference call to discuss the numbers. The stock sold off early on light volume, and has since come roaring back to about flat on the day. I personally bought nearly 10,000 shares in the $2.50 to $2.60 range, and believe I basically stole it on someone's weakness. Looking back at '09, the company delivered sequentially $2.2 million, $5.2 million, $7.566 million, and $5.119 million. Q1 is always slow for them, and they have publicly forecasted $30 million for the year. That means there's still $27.16 million to go- hence my aggressive purchase on this AM's sell off. In my view, the best bargain of them all.
• Legend Media (LEGE): This little penny stock sleeper- the China advertising company with radio and airline magazine assets, actually delivered some real growth and its first profit. Frankly, I was a little surprised. I was thinking of dropping it, but these numbers look too good. Revenues improved 46% to $3.8 million from $2.6 million, and the company netted $653,000. Quell suprise (French for "what a surprise"). Nice job guys. This one might just start to get some traction when China stocks come back.
• Beacon Enterprise (BEAC): The company made a good accounting of itself on the conference call and convinced me there is still a lot of money to be made in this stock. The key issue is improving the margins as top line growth is a fait accompli (More French). I believe margins will improve over the coming quarters, and if they can get all their business into the 45% range, this is at least a $3 number, if not more. The stock is stable at about $1.45 which is a good sign, and most stocks have been selling off on earnings. Positions the stock for another big run.

As I get more experienced with China companies, I'm starting to get the "rhythm" of the Chinese economy. I'm learning Q1 in China is roughly equivalent to our Q3- the summer. In the US as in most of the western nations, summer tends to be the slowest time for business as it relates to vacations. Most of us kind of goof off in August, and Italy figures out how to shut the entire country down for the month. In China, Q1 is like our summer. Chinese New Year is a kind of "global" vacation for the entire country, and only service industry people work for nearly a whole month.

Therefore, going forward on a seasonal basis, I suspect the May/June time frame will prove the best time to buy China stocks, and Q4, when the companies have two strong, reported quarters under their belts, will be the best time to sell China stocks. This year, the buying opportunities are certainly enhanced by the market sell off. I'll keep an eye on this pattern to see if it really plays out. More on this in future editions.

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