Thursday, October 4, 2007

Wish List Update

Well, tomorrow is the day that the employment data comes out, so I am waiting heart in throat to see what happens, and how the market reacts.

A lot of great ideas flew my way today, some I added to my watch list, and some I placed small orders for, as they were just too good for me to resist.

First thing this morning, I bought AFG Dec 30 calls for $1.10 apiece. I have been watching this one for a few weeks since I noticed some heavy insider trading. The stock was showing some resistance at $30.00, and has closed at $30.01. By purchasing call options, I was able to limit the amount of cash I was commiting to the trade, while still giving my self the opportunity to ride this up. The next level of resistance is at $35.00.


I added NOEC to my watch list yesterday. It continues to hit new highs, with large price swings during throughout the day. It has some support at 6.55, so I have put in an order there. I'm a bit leary about these China stocks, but a lot of the right people have been discussing this one. Louis Navellier whose advice has netted me a 7% roi in the past 10 weeks rates this a buy. That's more than 35% annually. 59% of the shares are owned by insiders or 5% owners. I've got my low ball bid in, and will keep an eye on this one. The chart shows no upward resistance, so it could go ballistic, or it could crash and burn.

Update 10/5/07: I did decrease one of my positions and get in on this one today at $7.70 on some light profit taking.

Checking the insider trades for yesterday, I found PRX. I like pharmaceuticals, they have some risk to them, so they are exciting. Here is a partial excerpt from Yahoo Financials on PRX.

Par Pharmaceutical Companies, Inc. develops, manufactures, and markets generic drugs and branded pharmaceuticals for specialty markets in the United States. The company offers generic prescription drugs comprising approximately 180 products representing various dosage strengths for approximately 80 separate drugs. Its principal generic drug products include fluticasone, amoxicillin, cabergoline, tramadol HCl and acetaminophen, quinapril, fluoxetine, ibuprofen Rx, lovastatin, megestrol oral suspension, cefprozil, paroxetine, mercatopurine, glyburide and metformin HCl, metformin ER, ranitidine, and tizanidine.
The chart on PRX is awful. It gapped down on September 27th. On October 3rd 4 officers and 3 directors purchased a total of 94,300 shares. That's a lot of insiders committing a lot of money to their company. I've got this one on my watch list, and will be monitoring it. I'm looking for a gap fill here. There is not a lot of chatter on the IHUB board about this one, and Navalier rates it a sell. My account is too extended to even buy options on something this risky.


CMGI got added to my stock list today because the CFO and the President of sales and marketing have purchased 150,000 shares between the two of them. They are planning a 10-1 reverse split in a month. Again this one gapped down. I would like to see it back up above 1.60, as it has no resistance again until about 2.40.


Well, as you can see I have more ideas than money. It's hard to not jump on every "great stock" I stumble across, but watching them here will help.

Always do your own due diligence before investing, and Good Fortune!

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