Here I am again, trapped between my trader-self (which wants to take a profit on the bird in the hand) and my investor-self (which is eying the two birds in the bush). The source of my conflict is CEL-SCI (CVM) of course… which is up about 111% since we bought it back in June, and is surging again today. The concern is the possibility that the stock really can’t go any higher than the recent high of $0.81 without moving considerably lower first.

The chart shows it pretty clearly. There’s something about the $0.78 to $0.80 cent level that CVM has a tough time with. That’s not to say the stock can’t or won’t break though - it’s just going to be tough to do without the benefit of a base or support level nearby to push off of. Perhaps when the rising support line from February’s low catches up with the stock the odds of a break past $0.80 will better.

So, weighing the risk and reward from a short-term and a long-term perspective, I advocate taking partial profits here at $0.79. That’s a triple-digit gain on part of your position, which ain’t bad.

If I’m wrong, the worst-case scenario is that CEL-SCI moves and stays above $0.80, and builds a base there. If so, we can just rebuy it there later… and perhaps miss a few cents worth of gain in exchange for the sure thing we have now.

If I’m right, then we’ll all be spared the move back to $0.50/$0.55, where CEL-SCI is most likely to find support again in the absence of any other support lines.

Either way though, I’m a long-term bull (as in months to a year or more) on CVM. I’m just picking and choosing my battles.

By the way, when I say ‘partial profits’, I mean sell half your position now, and hold the other half for later. That way you can abate some risk, but not give up all of a potential reward. It’s the ultimate hedge.

Want to know the penny stocks that other speculators found most compelling late last week? Here are four of Friday’s very favorite penny stocks, as measured by trading volume, net buying, and a loud buzz within the trading community. Who knows… maybe there’s nice trade waiting for you with one of these charts.

SpongeTech Delivery Systems, Inc. (SPNG)

Though SpongeTech shares actually closed lower on Friday, there some intra-day gains on high volume and intra-day pullbacks on low volume actually suggest it was more purchased on a net basis. Frankly though, when I look at the chart I can’t see much besides a big selloff setting up.

The key is support at 10 cents. If it breaks, I think SPNG could make its way to as low as 3.6 cents (May’s low) before it’s all said and done.

I wouldn’t get too comfortable with being on one side or the other with this stock though… particularly the short side. SpongeTech has made a habit of pushing out good news, and the market is eating it up (and buying shares) on a regular basis.

It’s a great trading stock… lots of up and down.

Cell Therapeutics, Inc. (CTIC)

Here’s another stock the market wants to love, and is desperate to find any reason to do so. So, the contrarian in me says we may be at the point where there’s just no upside left to give.

The nail in that contrarian coffin may have come last week when the Motley Fool named this penny stock as one of “3 Stocks Ready to Soar”. See, the Motley Fool has mastered the fine art of “right stock, wrong time”. Their writers are also under the illusion that penny stocks actually trade at what they’re worth. (The Fool is a little out of its element when it comes to penny stocks… not sure why they tiptoed in here.)

Anyway, Cell Therapeutics is the maker of Pixantrone - a leukemia and lymphoma treatment that caused quite a stir when the FDA delayed their final decision on the drug’s approval. As time has moved on, more and more doubt has been raised regarding the drug; some heart problem shave been linked to its use in the meantime.

Nobody, including me, can say whether or not Pixantrone will be approved. Given all the delays and the surfacing of questions that were supposed to have been answered prior to the approval request, this penny stock just gives me a bad feeling.

Moreover, the chart itself seems to be suggesting trouble. The company has induced four distinct rallies since March, but has yet to deliver anything of real value. The last peak was lower than the third one, perhaps telling us the market’s tired of waiting. If $1.26 falls as support, I can see this one coming unraveled in a hurry.

Oh, like SpongeTech, CTIC shares closed lower on Friday, but a handful of high-volume surges during the session hint that more traders were getting into a position.

Inca Designs, Inc. (IDGI)

Though it’s a pink sheet stock, the company has actually been reporting results to the SEC… sort of. The updates stopped in October of last year, as did any meaningful communication with its investors. Strike one.

So how did this penny stock manage to move from $0.015 to $0.019 last Friday (and from $0.008 to $0.019 in July so far)? That’s just it… it’s nothing the company did. The company itself has been dormant on the IR front.

What’s going on here is an amazing pumping and bashing war, which the pumpers have clearly been winning of late. Even if you never look at them, check out the message boards for this penny stock. You’ll find some really well-reasoned arguments for and against Inca. Some of them may even be based on facts.

This is strictly a trading stock, since there’s no telling what’s really going on with the company. I’d just follow the lead of whichever side is winning the pump/bash war at the time. After Friday’s burst, I’d be inclined to try and ride a selloff lower.

Genta Incorporated (GETA)

This one formerly traded under the ticker “GNTA”, but a reverse stock split (1 for 50) this morning also brought about a change in the ticker…. to GETA. Many resources still have it listed under the old ticker though.

If my math is right, Friday’s closing price of $0.0093 for this penny stock should become $0.465.

A little back story… Genta is the developer of Tesetaxel - an oral anticancer taxane (treatment) that appears to be effective so far through Phase II testing. The company’s melanoma treatment Genasense is entering Phase III testing, and also look pretty effective to date.

The problem is, the company was running out of money. Rumors of a fund raising or bringing a cash-rich partner on board were batted around. The former one became reality though, as Genta raised $10 million last week through the sale of new common stock. (Though this has next to nothing to do with the split, it’s still good to know.)

So what prompted Friday’s surge? Nothing other than the stock split, which is probably assumed to make the stock’s price a little more palatable to those who just can’t get over the mental hurdle of buying a stock that was priced less than one cent per share. Though it’s nothing, it may have been a wise move because, investors do make a difference between a 1 cents stock and a 50 cent stock.

This is a good ‘trading’ stock, and I have to wonder of Friday’s rally jump-started yet another upside swing.

That’s it for now, but be sure to register for our free newsletter. That’s how we deliver the ‘best of the best’ penny stock ideas and information. The newsletter even includes specific entry and exit levels.

We haven’t heard much from UFood Restaurant Group, Inc. (UFFC) since it secured nearly $5 million from the private sector in April for expanding its number of locations—14—in both traditional and non-traditional places.

In fact, just last week UFood announced that its Chicago franchisee terminated the operation of three UFood Grill Restaurants in Boston, citing the poor economy.

In response to these closures UFood says it is increasing its focus on non-traditional locations such as airports, hospitals, colleges and travel plazas. They expect to announce several new traditional and non-traditional locations in the coming months to open by the end of the year.

For example, UFood also announced last week that it has signed a lease agreement with Westfield Concession Management for a UFood Grill Restaurant in Boston’s Logan Airport Terminal C. Westfield is a premier company in the leasing of airport retail concessions across the United States.

This will be UFood’s second location inside Boston Logan Airport and the third airport location (the other airport location is Dallas/Fort Worth – the seventh busiest airport in the world). Management anticipates the new restaurant will be opened by early October 2009.

As far as what UFood’s stock price has done, it’s currently trading at $.19, up 58% since we initiated a buy on March 19 at $.12. Considering the stalling of growth, that’s a nice double-digit move for those of you who bought at that low.

If UFood makes the kind of headway it expects in the coming months, we should see the stock move further north. It’s basically been in a trading range of $.18-$.27 over the past three months; although it did reach an intra-day high day of $.35 just days after we initiated a buy.

We still consider this stock a buy at $.19 in case you wanted to invest a small amount until we see some real growth.

A new item of interest on Cel-Sci Corp. (AMEX: CVM) hit the wires today, and I wanted to address it and the subsequent move in the stock.

The company plans to raise $5 million in much-needed funds from an institutional investor to speed up work on its swine-flu treatment and also to “validate” its $15 million manufacturing facility in Baltimore.

The Maryland location is where it plans to produce its late-stage, head-and-neck cancer fighter called Multikine, something that’s been on hold until Cel-Sci received funding or found a developmental partner.

Although shares of CVM stock lost 13% on the news and volume of nearly $5 million, this isn’t cause to worry. If you’ll recall when I first brought this stock to your attention, I focused on the fact that the stock had completed a perfect 61.8% retracement at $.47. That meant from a technical standpoint, CVM was poised to rise higher.

It did, briefly, to $.50 a share until today’s news brought it down to $.39. My suggestion is that if the stock drops to 0.36%, set a tight stop in case it falls further from there.

Cel-Sci Corp. also announced today that it has filed a provisional U.S. patent application covering its L.E.A.P.S. immune therapy drugs (vaccines) for the prevention/treatment of H1N1, swine and bird flu.

Some experts believe that by the next flu season the swine flu virus will have evolved and/or combined with other viruses to create a much more lethal new virus. This patented vaccine from CVM could potentially fight this type of mutant virus.

I still see Cel-Sci as a winner. Once it secures an investor, the development process for its swine flu vaccine, its cancer treatment and shareholders’ profits will kick into a higher gear.

I can’t think of a company more entrenched in a monstrous trend than China’s NF Energy (NFES), and if a week-long 45% surge and today’s updated clean energy stats are indicative of what the future holds, shareholders are in for the ride of their lives.

Multi-billion dollar stimulus packages from China and the U.S.—with the bulk of money already put to work by the Red Dragon—boosted spending in the renewable energy industry for Q1 2009 by 12.4%. Spending on wind power led year-over-year increases with 38.5%, while coal-fired generation dropped 15.3%. Hydro and geothermal also grew but at slower paces, 1.1% and 1.7%.

During the year, China went from a small player in wind energy to becoming the world’s largest generator of wind power. China also led the global world in clean energy investments for 2008, responsible for 18% of the 27% overall $36.6 billion increase.

It marked the first year ever that investment in clean energy topped fossil fuels. Perhaps the most eye-opening statistic for NF Energy and its shareholders is that while investors (private and public) poured a record $155 billion dollars into clean energy companies and projects worldwide in 2008, that figure falls far short of the figure it will take for countries to meet their carbon emission targets.

Try this on for size: In the U.N. Environment Program (UNEP) report, “Global Trends in Sustainable Energy Investment 2009,” it says “a minimum of $750 billion” is necessary to finance a sustainable economic recovery by investing in the greening of five key sectors: buildings, energy, transport, agriculture and water. That’s equal to 37% of the economic stimulus packages and 1% of global GDP.

So, you get the picture: There’s simply no end in sight for companies like NF Energy who are in the global hub of renewable energy and attached at the hip of China—the world’s biggest spender on the very products and services it sells.

IX Energy (IXEH.OB) released more news today that shows how business may be booming soon for the designer and developer of solar and other alternative solutions.

The company said that it had completed a fully operational 20kW solar system on the rooftop of the Town Hall in Warwick, NY.

“We are pleased by the completion of this project, which is an extension of our plan to increase our efforts to deliver turnkey renewable energy solutions into the government sector and to help municipalities bring clean, green solar energy solutions to their cities,” said Steven Hoffman, CEO of IX Energy.

Shares of IX Energy soared 30% today.

We’re off to a pretty good start with my newest idea- NF Energy.  Picked at $.69 this past Wednesday post close, the stock has since seen a high print of $1- net 45% in the early going from bottom to top if you traded it perfectly.

On Thursday the stock traded the highest volume in its history and a penny below the highest price. Investors are already recognizing the value this one offers with $.10 in EPS last year. With the growth they should deliver in ‘09, value wise anything up to $1 is a bargain basement value in my view.

However, value is not always the immediate story. The chart plays a role as well, so it’s worth taking an early look at the chart and starting to think about the possibilities of a pullback. After all, this little stock has come a long way in a short time.

Here’s a look at the chart over the past two months. It started out as a $.20 stock.

It peaked out with a five fold move in short order, so a little pullback could be in order simply on a technical basis.

If it were to pull back, I’d be looking at the $.70 level as the ideal entry point.

Not only is it the 38.2% retracement level, it’s also the point at which the stock would pull back to the uptrend line. As long as the stock does not trade below that 45 degree angle line, it’s still in an uptrend.

I don’t know if it is going to happen. It certainly has traded up to this level quite easily. It might just continue higher. On a value basis, it’s entitled to.

I only bring this up to help investors have a plan for a pullback. It’s hard to say what’s going to happen.

Also, this posting will give you an opportunity to ask any questions you might have about the company.

Comments and questions are welcome.

I was in Europe for 2 weeks and fell a bit behind on my correspondence and blogging. When I returned I spent some time plowing through emails and BLOG comments, and was both surprised and entertained by the reaction of some investors to CGYV’s recent pull back to the low print of $1.50. Pretty funny stuff. This formerly hot China stock has cooled off considerably.

For those who are interested, you might want to check out this Bloomberg interview with the investment banker who financed the company. Click here to view the video. It was a pre Asian market open on Thursday, the 11th.

I don’t know why the stock pulled back like it did. I suspect it had a lot to do with a delayed reaction to Q1 numbers, which were admittedly abysmal.

One might easily believe the company, after three consecutive years of double digit growth, had fallen on hard times after looking at the Q1 numbers. After all, the company only delivered $1.5 million in revs in Q1- not much relative to expectations of more than $30 million this year.

This is of little or no concern for those who understand this company’s business model. It’s not the kind of company that delivers consistent daily sales. It’s a large project oriented company, that does a lot of work in house before delivering. Then, they get to book about 90% of the revenues. The rest comes over time.

The company delivered on a rather large project the first week of April which they had hoped and planned to deliver on in late March, so a big swack of revs won’t book until Q2, which should be a good quarter.

In the interim, I find it interesting that none of the whiners about this stock are making much of the $5 million financing the company closed. This was a convertible security, with a 9% coupon, that converts at a non adjustable conversion price of $1.80.

Consider what this means. This is a Hong Kong based fund. Their analysts went directly to the company and performed extensive due diligence. They came away with the impression they could make a significant return on their investment from $1.80 per share in CGYV. True, they get 9% while they wait, but if you wanted to put up $5 million, you might be able to get the same.

That’s the first thing. Second, and perhaps far more intriguing- what are they going to do with the money they raised? After all, if you look at the Q1 balance sheet, you don’t see any need for the cash- at the end of March they had $4 million in cash, $4.75 million in receivables, and $9 million in inventories against $2.9 million in payables- that’s pretty strong.

A recently completed waste heat recovery system for Zhejiang, China-based Mingye Chemical Fiber will add another $400,000 to the Q2 2009 coffers of China Energy Recovery (OTC: CGYV)…a quarter that should blow away reported revenue gained in the first three months of the year.

You see it’s all in the timing for China Energy. CGYV books its revenues when it ships out projects for delivery to the customer. If a major project isn’t completed prior to the cut off for the quarter, the company cannot book the revenues.

When CGYV delivered just $1.5 million in revenue for Q1, some investors saw that as a major disappointment. That’s because the $4.85 million generated from a completed project for a customer in New Guinea missed the cutoff for reporting Q1 revenue.

So, on top of the recent $400,000, you can add at least another $4.85 million to its Q2 revenue for at least $5.3 million. CGYV said its backlog of contracts signed, sealed, and delivered in 2009 to be worth $32.5 million, so who knows when the rest of that will come trickling in.

When Q2 earnings come out (I haven’t heard any dates yet), I’d expect the current stock price of $1.57 to shoot up as CGYV investors celebrate en masse.

Nighthawk Systems (OTCBB: NIHK) is one of those micro-cap stocks that can move up very quickly on light volume and fall very quickly on heavy volume.

Such was the case today after the company addressed its record revenues and enhanced margins during 2008 and painted a powerful story for growth for 2009 and beyond.

Heading into today’s news, NIHK sold for $.02 but rose 27% in mid-day trading. As the day went on, volume increased as did selling and Nighthawk closed at $.025 (+13.64%).

That $.02 mark is key. The stock hadn’t budged from it since March 2, suggesting that $.02 might be a bottom and that falling below it would not be a good sign.

However, if investors take what Nighthawk Systems CEO H. Douglas Saathoff said to heart, the stock could gain momentum in a short period of time. A year ago in May, shares sold for .08.

That’s all contingent upon Nighthawk delivering on its promises of a growing customer base, new products and better sales channels leading to growth in the second half of 2009.

Saathoff pointed to new relationships as the reason the company should be able to supplement existing order flow for set top boxes in the latter half of 2009.

With government spending for smart grid devices on the rise, demand should lead to growth in sales of power control devices in the latter part of 2009.

I know those are a lot of shoulds, ifs and buts. Until the numbers can speak for themselves, this stock is risky but promising. If you want to take a shot and hop in at what might be the bottom, go for it.

Just know what you might be getting into.

I’ve been hot on Brazil for some time now, and the price of EWZ continues to sizzle. From our $35 entry point to today’s $57.28 close, those of you who bought EWZ hook, line and sinker are sitting on a 64% unrealized profit…not to mention the sweet 4.7% yield it’s delivering.

With $6.06 billion in assets, this large-cap value ETF has many admirers. I’m sure the newest small-cap Brazil-based ETF will be just as popular and profitable.

Just weeks old, trading volume on Market Vectors BRF zoomed from just 30,000 to 282,700 with $11.1 million in assets and an 18% gain since its May 14 inception.

The reason I’ll be keeping an eye on this one is mainly due to its broad, small-cap focus. Accounting for over half of the nation’s IPOs in 2006 and 2007, Brazil’s smallest stocks fell swiftly during the height of the global crisis and almost all newly listed companies fell below their offer price.

These depressed prices represent excellent value for investors who believe in Brazil’s long-term growth prospects…as I do.

Get this…Brazil just recently announced that it has enough money lying around that it would follow in other booming countries footsteps in setting up a sovereign-wealth fund, worth between $10 billion and $20 billion, to invest its excess cash.

Also, long considered a global power in agriculture and natural resources, Brazil has added a key ingredient that had eluded it: a currency with staying power (remember what that used to be like?). As a result, the greatest burst of prosperity the country has witnessed in three decades has been unleashed, attracting foreign investors by the score and providing a growth engine for a flagging global economy.

Finally, a little icing on the cake: Back on April 30, Standard & Poor’s upgraded Brazil’s debt to “investment grade” – making Brazil the last of the BRIC nations to have its creditworthiness win that coveted seal of approval.

Now, I don’t see BRF as a complement to EWZ, but as a possible replacement for it. My 2009 target price for BRF is $60, and we’re inching closer to that mark every day. As we know, small caps historically outperform large-caps coming out of a recession.

And, like here at home, Brazil struggled to pull itself through. It’s nowhere near the trouble the U.S. still wallows in, and signs of growth are abundant. As its economy continues to churn at record RPMs, those undervalued small-cap stocks that make up the BRF stand to blossom quite nicely.

Interestingly, just two stocks make up 50% of EWZ: Vale S.A. (NYSE: VALE), the world’s largest iron ore producer; and Petrobras (NYSE: PBR), an oil, gas and energy producer. Next come two major non-state owned banks, making up the next 11.5%. That’s nearly 60% of the ETF in four companies—a rarity in the ETF world.

BRF is comprised of 51 stocks with the following sector breakdown: Consumer Discretionary, 31.7%; Materials, 15.8%; Financials, 11.7%; Utilities, 10.7% and Industrials, 10.5%.

So, we’re looking at a broader piece of Brazil in BRF. I definitely have this small-cap ETF on my radar screen. I’ll let you know when it blips even louder.

Options Media (OPMG) certainly took a wild ride today. With one hour to go in the trading day, the stock had shed 26%. By close, it had recovered half of those losses.

The fact that it fought hard at the end is a good sign and a classic example of what I call a “Wash & Rinse.” It’s a phenomenon of a stock shaking out weak hands before heading for higher levels.
After trading at $.62 back in late April, the stock has fallen to $.33 with significant volatility through May. In many cases, this volatility is followed by a shift above its 50-day moving average in a matter of days and headed higher.

In fact, I want you to think of this as a great opportunity to buy a great stock on the cheap.
Besides, none of the above changes the fact that Q1 numbers for OBMG showed a gross margin of 70%, generating $1 million per month in revenues from zero just one year ago.

With $3.3 million in all of 2008 and $2.2 million in Q1 ‘09, that’s an annualized growth rate of 166%.

One more thing: The digital advertising market is not going away, and Options Media has its feet firmly planted for future growth.

Say hello to an old friend, Nuvilex, Inc. (NVLX), a micro-cap stock we’ve been covering since 2007. Heading into trading today, shares of the emerging healthcare consumer products company sold for a ho-hum $.038.

In over two years, I’ve watched the stock start at $.18, hit a high of $.45, and sink to a recent low of $.03. By mid-day, shares rose 13% and finished up 37% higher ($.13) on some promising news.

Formerly EFoodSafety.com, Inc., Nuvlex reported today that one of its products, Infinitink (the world’s first permanent tattoo ink designed for easier removal) will be marketed, promoted, distributed and sold by Jayhur Enterprises in tatto-heavy Australia and New Zealand for the next five years.

So now we’ve got something to talk about. Nuvilex estimates that if Jayhur Enterprises
captures 30% of today’s market by the end of the agreement, the annual revenue could be as high as $3.75 million.

Get this…15% of Australia’s population over 15 years of age is considering a tattoo. Apparently, though, the permanent aspect of having “Mom” carved into an arm isn’t that appealing. These ‘fence sitters’ are excellent candidates for artists offering Infinitink tattoos. That group represents 25% of the over 18-year-old U.S. populatiJayhur Enterprises joins with MT.Derm, GmbH, Berlin, Germany as
Infinitink international distributors. MT.Derm owns Infinitink European distribution rights and since 2006 has been a development partner with Freedom2. Nuvilex is seeking a distributor for Latin and South America.

Infinitink was selected as one of Time Magazine’s ‘Products of the Year’ in its November 12, 2007 issue. Since then, Infinitink has undergone further testing and development and now some serious marketing efforts.

I don’t know how much higher the stock will go from here, but this could be the kickstart it needed to take off.

After taking a quick three-day $8,000 profit off the tables back on March 30 shorting financials using FAZ, the triple leveraged short ETF, today’s banking news tells me we were right on by maintaining a contrary position in its longer cousin FAS.

Today’s nearly 18% gain in FAS lifted its performance more than 200% over the past two months, currently trading at $10.31.
Basically Goldman Sachs urging clients to buy Bank of America (BAC) shares with conviction boosted the entire financial sector.

Warren Buffet’s bet on Wells Fargo and US Bancorp and subsequent increase of both companies’ shares during the first quarter lifted the sector as well. Buffett made bullish comments about both banks during Berkshire’s annual meeting in early May.

I still see tremendous upside in the financial sector, possibly continuing its run to the $20 level if the following three events occur: if we experience the restoration of the uptick rule, the SEC eliminates the rampant naked short selling, and more changes are made with respect to the Market to Market rules.
If you took the FAS trade back in March you’ve enjoyed a good ride and remain a good way from our suggested stop loss of $3.50. If you didn’t and are looking to participate, I’m looking for a good entry level around $4.50.

Keep in mind that being a triple leveraged ETF it can move swiftly on the upside and even swifter on the downside. This one needs to be monitored closely.

Your comments are welcome.

The Commerce Department released a rash of lousy economic reports this week, the kind that drives up the price of gold. Considering that we have positions in GLD and DGP (a leveraged ETF), the news isn’t necessarily bad.

First, retail sales dropped for the eight time in the past 10 months. Sales were 9.4% lower than in April 2008, down 10% compared with the same period a year ago.

Then, the U.S. trade gap increased in March for the first time in eight months as exports declined faster than imports. The trade deficit - the difference between exports and imports - increased by 5.5% to $27.6 billion in March from $26.1 billion in February.

Plus, that four-letter word the government hates to talk about, D-E-B-T has been rearing its ugly head in the media lately. Government public debt totals $11 trillion and counting (there’s actually A National Debt Clock in Manhattan that keeps a running tab). Debt climbs at a rate of almost $4 billion per day.

If you consider the government’s future obligations such as social security, health care and other contractual items, the total skyrockets to $71 trillion.

To pay back this debt at $1,000,000 per day would take 191,780 years! Instead of reducing the amount, the government just prints more money, making dollars worth less and less.

That’s when gold becomes alluring, valuable and very popular. While worries continue to mount about the economy, here’s what gold is up to:

The price rose $2 to $925.90 an ounce while the S&P 500 fell over 2%. In fact, it even gained in the face of the dollar’s rise. The type of demand seen in the morning sessions suggested that buyers of ETFs were catalysts for the strength.

Like we said when we first suggested adding a little gold to your portfolio, since bottoming at about $700 per ounce last October, GLD has been in a nice uptrend. I also said a break above $930 would be very bullish. At $925.90, it’s closing in fast.

We welcome your questions and comments.

You may have noticed that shares of Procera (PKT) stock fell by 5% today. Don’t worry, there’s no reason for concern about the company’s health or future outlook.

The decrease in price is most likely due to Procera’s notification to the SEC that it intends to sell approximately 4.5 million shares of stock at $0.40 per share to raise cash in order to fill current orders. They total $1.8 million and will not be eligible for free trading for six months.

Procera is a software company in the business of helping ISPs (internet service providers) save money by routing their traffice more efficiently based on importance.

It will place the $1.8 million in convertible promissory notes, and expects to realize net proceeds of approximately $4 million after the completion of the sale and notes conversion.

Most likely, the share prices will roll right back up boosted by the fact that three global tier one service providers have purchased its PacketLogic systems in the first quarter of 2009. This could easily put $28 million in revenue in PKT’s pocket and earn $0.5 per share in 2009.

Despite today’s move, with Procera trading at $0.87, those who took our suggestion to buy back on April 20 are still sitting on gains of nearly 9%.

Jackson Spears, analyst at Robbins Group and personal acquaintance, has set his short-term price target at $2.

A joint effort with Healthy Dining and www.healthydiningfinder.com has made shares of UFood Grill (UFFC) even more appetizing.

While UFood has already earned a reputation for serving wholesome food that’s only grilled or steamed, this move shows its ongoing commitment toward keeping America healthy.

The fact that we have 58 million overweight people in the United States is behind the push toward eating healthier and the reason the Centers for Disease Control and Prevention (CDC) partially funded the launch of www.healthdiningfinder.com.

This go-to-guide for health-conscious consumers who love to eat out takes the guesswork out of identifying healthy choices on restaurant menus and nutrition information for each featured menu item is provided on the website.

UFood Grill is teaming up with Healthy Dining’s nutrition experts to offer guests a selection of better-for-you menus options and corresponding nutrition information.

Since 1990, Healthy Dining’s culinary nutrition experts have been guiding and inspiring chefs and restaurateurs to create and serve a selection of healthier dishes that emphasize lean protein, fruits and vegetables and whole grains.

A leader in restaurant nutrition, the company has worked with hundreds of restaurants and analyzed more than 15,000 menu items.

We first recommended UFFC when its shares sold for a lowly and attractive price of $.13. They have since risen 76% to $.23, including a 15% gain on Thursday-still attractive considering this new partnership and the $2.8 million in financing that it secured in late March.

With a growing, hungry and loyal customer base, we think UFFC has a great future and offers an opportunity to profit from the trend of eating healthier.

More good news popped up on the China front today, boding well for FXI  (our China ETF). GDP forecasts for 2009 and 2010 have been lifted from 6% and 9% to 8.3% and 10.9%.

These updated figures should go a long way toward impressing economists who questioned whether 6% growth could support the 25 million people migrating from rural areas to cities in search of employment.

Since we first suggested buying FXI-and turning a deaf ear to disbelievers-FXI has soared 40%. There’s no telling how high it may go now that the possibility of double-digit growth is back in the picture.

Could you imagine how any U.S. index would react even with the potential of 6% growth in the GNP? The bull would chase out the bear quicker than you can say, “I love America.”

Interestingly, the adjustment in China’s GDP is attributed to the global crisis triggered by the financial mess on our turf.  Like most global markets, China came tumbling down; although it had its own share of problems to work out.

However, it seems that the Chinese don’t stay down for long. They responded quickly to minimize damage from the Asian crisis in 1997, and they’re bouncing back quickly today with a very successful $600 billion stimulus package of their own.

Chinese officials have earmarked a good chunk of the money for an infrastructure overhaul and full medical insurance policies for its population, 90% of which should be implemented by 2011.

Many believe that China will leap ahead of Japan to become the second largest economy in the world. I’m not sure where that will leave the U.S., but maybe we ought to take a few pages from their book on growth.

Currently trading around $35, we believe this ETF could trade into the $60 to $80 range next year.

Comments and Questions are welcome.

CGYV is giving it the old college try to bust through the $2 level today on the heels of news concerning the delivery of nearly $5 million in orders for mining concerns in New Guinea.

However, as far as I am concerned, that is not the really big story. Aside from recent evidence the economy is going gangbusters in China, there’s some really big news about how China is planning to deploy the funds for their stimulus plan.

According to a recently published article on a China devoted web site, in the last three months the Chinese government has decided to allocate 23 billion yuan (3.37billion U.S. dollars) for energy saving, anti-pollution, ecological and environmental protection projects.

CGYV is planted firmly in the middle of all this new money with the best solution for factories, and stands to grow quite dramatically over the next two years from this funding.

To read the article, simply click here.
Technically, the stock is trying.  $2 continues to be resistance, and in light of recent news I simply don’t understand why anyone would sell this stock at $2.

This is the fifth trip to $2 in the last month, and higher levels are inevitable for this stock. Based on the chart, there’s almost no doubt. It’s simply a question of when. Forces are building behind the scenes every day for a breakout. Stand by, and stay engaged.
Comments and questions are welcome.

Procera Networks(PKT) on the AMEX is my most current trade idea. The stock is clearly gaining momentum. I provided a Live Chart strong buy recommendation on the stock at $.80 just a few days ago, and the stock surged through $1 yesterday for the first time since October and looking like it wants to work a lot higher.

It’s a software company- they’re in the business of helping ISPs (internet service providers) save money by routing their traffic more efficiently based on importance.

Jackson Spears, analyst at Robbins Group and personal acquitance, has a strong speculative buy recommendation on the stock. He believes their losses on $12 million in revenues in CY ‘08 will convert to EPS of $.05 on $28 million in revs in CY ‘09. His short term price target is $2.

The stock clearly is entitled to honorable mention for its chart this past week. As you can see, just since I posted the buy recommendation on the stock at $.80 on the 20th, the stock has already provided a 25% return. Volume and price are surging simultaneously.

People, things are starting to happen fast and furious. These absurdly oversold stocks are coming off the canvas and gaining ground. Don’t sit on the sidelines and watch these stocks start to trade back up. Act quickly and decisively when you read something you like. We’re going to start making money on a more consistent basis again.

It’s long overdue as we are a year into this Bear Market, and if you’re like me, it’s worn you out a bit. Time to get back to our former winning ways.

Comments and questions are welcome.