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The Week in Review

All in all, it's been a bit of a rough week in the microcap sector. I believe it's mostly seasonal. Every year at this time the negative stuff going on seems to have louder voice as we head into the summer months.

Poor jobs data and the increasing rhetoric out of Washington revolving around the debt ceiling is not helping matters one bit.

The DOW, S&P 500, and the NASDAQ Comp have all been in retreat coming well off the late April highs. There's been a couple of scary sell off days.

I've been investing in and trading small and microcap stocks for 24 years, and in a typical year I've found one consistent truth- I've always made the most money accumulating positions in the companies I really liked between July 15 and August 15, and waiting until the November/December time frame. There are lots of historical reasons for these seasonal patterns, and the market doesn't always behave by the calender, but in most years that's what will happen.

Here's an update from some of the stocks I've written about and continue to follow:

• Recent alert Envision Solar (EVSI)- stock continues to trade decent volume, but hasn't made much upside progress on the price this week. I wrote about it last week at $.52, and today it's printing around $.54. I'm looking for the stock to trade higher volume levels next week, and if it doesn't make some upside progress on the price I'll be a seller. I'm long this one with my own capital- about 70,000 shares.
• Midas Medici (MMED)- remember that one? After 24 years you would think I would have seen it all, but I saw something new with this one. Back in the May 11th edition I called this one the valuation of a lifetime. With only 8 million shares I&O and $50 million in annual revs, how else could you see it? I can't wait to see their June numbers. However, here's what was wierd- this stock had really never traded, and I had no idea where it might trade when buyers finally surfaced. No one knows about this company, but a few investors are starting to learn. I cautioned anyone who wanted to own it to use a limit order, and no one was willing to sell a single share, so there was no volume. Amazing- never seen that before. Earlier this week the stock did start to trade a bit in the $3 to $3.5 range- it even traded 20,000 shares one day. More on this one down the road. Still, an amazingly cheap valuation.
• Axion International (AXIH)- I called this one the potential penny stock of 2011, and I'm sticking to it. The stock gave back about $.20 this week on extremely light volume, but that's been the pattern. Smart traders will accumulate this one when it's cheap and no one wants it. This company is not standing still. Look for more good stuff out of them in short order.
• Bering Resources (BERX)- one of my long term followings and I'm long a bunch of this one as well at much higher levels. Rough week for the stock- down about 20%. The company is now or getting close to drilling in Texas, and I'm sticking with my forecast this stock will have three major runs this year- one has already happened- two more to come.
• Vringo (VRNG)- it was a very rough week for shares of VRNG- my video ring tone company. The company received what is known as a "Deficiency Notice" from AMEX. In short, AMEX notified them they could be at risk to lose their AMEX listing since their financial metrics have fallen below certain minimum requirements. The stock traded down about $.50 to $1.50 on the news. They have some time to cure the deficiency, and I'm "informally informed" there's a plan afoot to take care of this in short order. If you're look for a bargain basement steal that is likely to get better in the near future, consider this one.
   

Coming Attractions

The Sunday new ideas seem to work out the best. There are lots of different small stocks being recommended by lots of different advisories all over the internet. IPRC was the best of the Sunday bunch- starting out at $.40 on April 17th, and finding its way to $.70 in two weeks.

Here's the reason I like the Sunday ideas. Many of these companies are vying for the recognition of investors, and they implement rather aggressive marketing campaigns to get the word out. If you're on the front end of a marketing campaign and its managed well, you stand to have a darn good chance of making money regardless of the longer term success of the company. You simply learn about it before millions of other investors.

Therefore, when I suggest you get out in front of an EVSI or an IPRC, I know you're positioned with the best chance for a trade.

I'll have a new resource idea on Sunday. It's a stock that no one knows about and hasn't traded much yet, but is done doing some exploratory work in Canada, and the company has found 43 years worth of mining in iron ore for the steel industry. More importantly- you'll be the first to know about it, and I expect we'll be properly positioned.

Stand by for a mid day release on Sunday, and an idea that could make your week.

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