GEPT Entry Level?

Global ePoint is finally rebouding today after a tough month. Late Friday, GEPT announced it had received FAA certification on the Boeing 777 for its video cockpit surveillance technology, and the news has the stock on the move.

Despite the poor performance in January, this stock could be a lot of fun to trade as it is very volatile and volatility lends itself to good trading if you can get on the right side of it.

I believe the news flow out of the company is going to pick up from here forward. Sources tell me the company has a renewed commitment to shareholder information. No guarantees- time will tell.

However, I am pretty sure the stock wants to find its way back over the $5 level in fairly short order-maybe over the next twoto four weeks.

Here’s an extremely short term look at the stock as measured from last week’s low. Today, the high trade has been $4.40- last week’s low was $3.50. A 50% retracement of that move would be just under the $4 level. No use splitting hairs over a couple of cents- the idea is either going to work or it’s not going to work whether you own it at $3.98 or $4.02. Therefore, for those looking for a good level to get in, I believe around the $4 mark looks very good as an entry point.

HYPD Sell Off- Opportunity

HYPD is selling off inexplicably today along with a number of other small and microcap stocks. There really isn’t a lot of volume associated with the sell off. I am guessing a number of trader types had a $3 mental stop loss. When the stock traded below that level, it just sold off.

Problem or opportunity? There are a couple of interesting dynamics in the chart. First, here’s a very long term look at the stock:

The trend line you see actually goes all the way back to the mid summer of ’03. That’s an 18 month trendline, and the stock has not broken below it. Long term, this appears to be an excellent buying opportunity.

Here’s a more midterm look at the stock, going back to the big gap in October:

Note the gap that was created back in October when the company announced it the results from it’s core drilling program off he coast of West Africa. The gap is depicted between the two horizontal blue lines.

That gap has been acting like a vacuum, trying to suck the stock price back in. After four months the stock appears to finally be coming back and “filling the gap”.

Most of the time, once the gap is filled, the stock turns around and heads back up.

MarketByte LLC, the parent company of the OTC Journal has been holding a position in HYPD for the long term. From time to time we have sold some to cover our costs, but have maintained a core position. We are keeping our fingers crossed for a deal with a major developer just like you are.

Today, we bought 10,000 shares for the corporate account at $2.60, bringing our total current position to 38,280 shares. Just because I bought itdoesn’t mean it can’t continue to go down quite easily. I just felt it was a good opportunity to buy some back that had been sold at higher levels. I might buy or sell this stock at any time at my discretion.

To my knowledge, nothing has changed but the price.

I believe it is going to fill last October’s gap, trade sideways for a while and head back up. We’ll see what happens.

NWKI Rebounding Nicely

NWKI sold off fairly viciously mid day yesterday. It was a very bizarre day. It was as if all the market makers decided to shake the weak hands out of all small and microcap stocks. I saw a lot of selling at about mid day across the board on stocks ranging from $2 to about $10- one position I have in the $6 range was trading very nicely – up about $.25 on the day, and it just collapsed. With the market in a mini rally mode after a tough January, it seemed like it was a giant effort to force small stocks down so shorts could cover. I don’t know how or if the big market makers do it in mass, but it sure seems like it happens every now and then.

At any rate, NWKI is bouncing nicely in this morning’s action. It gapped from $1.95 to about $2.02, and there is a chance it might come back and fill that gap. The $1.95 level will probably become the new support level. Volume levels remain much higher than in the past.

In last night’s edition I put up a long term chart, demonstrating that the uptrend which began in August has not been violated. Until it is, you must assume the stock is more likely to continue up rather than reverse course down. There will of course be bumps along the way like yesterday.

Here is a much shorter term look at the stock. This shows the stock from the rally which began about eight days ago. In this case, the stock cracked the uptrend line pretty dramatically, reversing the very short term trend. Once violated convincingly, you then look at retracement levels to pick a good entry if the longer term trend hasn’t changed. This stock put in a full 66% retracement before rebounding. I like about a 50% retracement as a low risk entry point. $1.965 would have been the number. We are now at $2.03. Look for $1.95 to become the new support level, and about $2.15 to be resistance. It could trade in this range, or it could break out as sellers become exhausted. A drop below about $1.85 would be very bearish.

All this technical mumbo jumbo has to be taken against a backdrop of a company that could triple or quadruple in size this year. Longer term in a decent year for the market this stock should do well.

NWKI Cooperative at Open

It is 20 minutes after the market opened. NWKI has already traded 130,000 shares. If the stock continues to trade at this pace for the remainder of the day, we will have the highest volume day in the stock’s history.

Despite the enormous volume on the heals of Friday’s news on their latest acquisition, the stock has not gapped up too dramatically. News like this in other situations has led to a big gap at the open, which inevitably leads to a pullback.

The uptrend that kicked off about a week ago continues. There is no gap on the chart the stock will have to come back and fill. Therefore, since the stock continues to work it’s way slowly higher with no violent breakaway move to the upside, I feel the you can continue to establish or accumulate without a high probability pullback in the next few days. Had the stock opened in the $2.30 range, I would be cautioning investors to wait. This was not the case. This one is on a nice steady roll. Good time to get on board.

HyperDynamics Delivers Revenues

HYPD was out with news this morning concerning their subsidiary, HYD Resources. This subsidiary is developing some small wells in the Lousiana and owns three drilling rigs which are in high demand.

It seems they have measured the proven reserves in 1.7% of the property they own in the gulf, and as it turns out they have about $3 million worth of oil in this mere fraction of the property.

This news is not the Holy Grail we are all waiting for on their potential multi billion dollar discovery in West Africa, this is another example of news which mitigates the risk of owning the stock. This wells will allow the company to generate cash flow for the first time in its history, therby allowing them to keep moving forward with the West African concession and not raise additional capital in the interim.

Technically, the stock is holding up beautifully. This chart suggests a major event could lead to much higher levels, and the stock is begging to be accumulated.

I put a lot of stuff in this one. You can see the uptrend line which began at the August low. That trend remains intact. Note the blue horizontal support line- there seem to be buyers at that level. I have also included the 50 day (blue) and 200 day (yellow) moving averages. The stock is just below the 50 day, but solidly above the 200 day. It probably wants to drift back above the 50 day right now.

This is a stock that wants to go higher if the company can deliver a major breakthrough. The market has kept it at its current level for four months. If you believe, accumulate.

Network Installation

For those of you who have been following NWKI, the company was out with news today of a major order from a chain of Footlocker stores in So. Cal.

The stock has been behaving very well over the last few days, and I believe will continue to behave well.

IF you are looking to jump into this stock, but are concerned it has run up too fast – it hit a high of $2.07 today- here’s a chart. I like to buy moving stocks on slight pullbacks. I look for a 50% retracement, otherwise known as a Fibronacci Retracement, as a low risk entry point. As you can see from the chart, a 50% retracement of the last two days action would suggest $1.96 as a good level to get in.

NWKI Breakout

NWKI had a sudden surge today. The stock looks like it is poised to deliver one of its volume and price surges. I hope many of you are reading this BLOG entry, so you can take advantage of the stock’s trading activity.

As I write this entry, the stock is trying to challenge the $2 level, and trading far above average volume. As you can see from the chart, the two month ceiling at about $1.90 has now been breached. This stock has a tendency to break out on high volume about four times a year, and it looks like it’s getting started now.

American Water Star and WalMart

American Water Star was out with news today that Wal Mart has begun ordering the Hawaiin Tropic line of beverages once again.

While this is certainly welcome news and the stock is bouncing a little, this is not the kind of news the market is looking for to get the stock moving again.

CEO Mohlmanhas projected AMW will achieve $80 to $100 million in sales in ’05. Only about 15% of the sales were expected to come from their branded beverages.

The market is really looking for some hard information concerning where the $80 million in revenues will come from.

In the meantime, the stock is forming a wedge wherin the lows and getting higher and the highs are getting lower. A break to either the upside or the downside is the inevitable conclusion to a chart that looks like this. The longer it extends, the more volatile the break.

I believe it could break to the upside if AMW were to provide some concrete evidence of order flow to the market. Based on today’s reaction, news of orders for branded product from WalMart is not going to do it.

Markland Breakout

Markland was out with news on another new contract with the Army this morning before the market opened. The stock has not cooperated by pulling back under $.80. Instead, the stock is breaking out.

As you can see, yesterday was a high volume day. Today appears to be following in kind. More importantly, the stock has broken above the line that had stood as resistance since early December. This could be the breakout that forecasts much higher levels for this one. Rather than wait for a pullback, I would recommend owning at least 1/2 of what you would like to own at current levels. If it continues higher, at least you own it. If not, you can pick up the reminder of your position at lower levels on a pullback.

Markland Open

MRKL opened this morning at $.84, made a high of $.86 from Friday’s closing of $.73. The stock has pulled back a little from today’s high, and is trading at $.835 on nearly 2 million shares fifteen minutes after the market opened.

As you can see from the blue resistance line in the chart, this $.86 level has been bit resistance for the stock since the beginning of December. Since it couldn’t break through the $.86 level, it will probably pull back a bit today despite trading huge volume.

Ideally, you would want to pick the stock up when it gives back about half of today’s gain from Friday’s close to today’s high- about $.785. If the stockgets moving again and breaks through $.86, look out above.

Clearly this is a company thatis undervalued and growing rapidly. I am glad the stock has not broken through the $.86 barrier yet. It gives you time to accumulate. Persistance breaks down resistance, and eventually it will break through.

A little patience is in order here. I don’t believe it will come back down to Friday’s close, but anything under $.80 is probably a reasonable level to open your position. The next major event could be the breakout.

BrandPartners Break Out

BPTR hit a new post OTC Journal coverage high today of $1.08, and finished the day at a new closing high of $1.04. This is the first time the stock has closed over the $1 mark since first featuring the company back in October at $.65.

From a valuation perspective, with an estimated $.14 per share in earnings for 2004, this stock is still absurdly undervalued, especially if they can maintain their torrid growth pace from 2004 and stay profitable.

The stock really broke out when it finally eclipsed the $.90 level in late December after three tries.

As you can see from the chart, $.90 has now become support instead of resistance. I see nothing but higher levels ahead. Pullbacks should be used as buying opportunities. This one is just getting started. $1.50 remains conservative target price.

Global ePoint: Cooperating

Global ePoint did not gap up dramatically on last nights news as it has in the past. The news apparently wasn’t enough for the market to put the kind of charge in the stock it has on past announcements. Apparently, the market is looking for news of contract signings to make this one run.

As you can see from the chart, GEPT completed a perfect 66% retracement of its meteoric rise back in December. The weak early January market conditions are probably muting the stock’s ability to run up. Today’s failure of the stock to create a huge gap is great news for those looking to accumulate. I believe it should be bought in the $4.50 to $4.75 range for a gap up on the next Homeland Security related contract signing. The $4.50 level is a perfect 50% retracement of December’s gains.