News Details – Smallcapnetwork
Absolutely Crushing It - Two New Winning Ideas
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February 2, 2024

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PDT

Howdy folks... well if you don't like how this market's going so far this year, then you definitely don't like money. Unemployment is now lower than it has been since 2008, money's flowing back into U.S. stocks, consumer sentiment is back on the mend AND more importantly, we have an opportunity to vote a new President into office who won't tell the lazy people in this country that it's OK to be a loser. I'm half kidding (not really) about that last comment. Anyhow, it just doesn't get any better than this! It's important to remember though, that the market landscape can change on a dime. As suspected and communicated to you earlier in the week, the major indexes are now testing their 52 week highs. I think what transpires in the coming weeks ahead is pivotal for this market. A break above would likely cause a bit of a pullback but we can likely look forward to a parabolic move up at some point in the next month or so. A failure to break above 2011 highs and we'll be in an unsure trading state only to gain insight based on the strength of the failure. So, we're going to know quite a bit about what this market wants to do in coming months ahead based on what happens over the next few weeks or so. Charlie Sheen Likes Winning... We Prefer Crushing It. What I'm about to tell you is no joke. We are and have been absolutely crushing it. Out of all the recent trading ideas we've been bringing you over the last few months, we've had only a couple of losers, a couple of break evens and the rest? All gainers and even some monster winners. Stevia (STEV), one of our Featured Stock late last year was getting to the point where I was starting to nod off every time I looked at the chart. Then, early this week the stock finally caught fire by tripling in less than five trading days for a whopping 300% return!! It has since pulled back but if you didn't make money there, I don't know what to tell you. Actually, I do. Bulls make money, bears make money but pigs get slaughtered. Don't be a pig. 300% return since late last year was enough to put a kid through college if you had enough in it. One of our Featured Stocks, Chromadex (CDXC), provided SCN Members with almost a 100% return in only a week when it gapped up yesterday morning to $1.18 from our entry price of $.60 cents. It has also since pulled back to around the $1.00 level but I suspect there are still good things on the horizon for this trade. Let's continue with our trailing stops but give it some breathing room, we're way in the money here on this too! U.S. Precious Metals (USPR) continues to trade well since it rewarded SCN readers with a near 100% profit play. The stock ran to a high of almost $.30 cents from our $.16 cent entry before backing off. USPR appears to be perking up again so let's see where this one wants to take us. Some Members were giving me some flack about Rite Aid (RAD) with comments like "boooring" and "are you serious??" Well, jokes on you naysayers because RAD continues to be RAD on the trading side. Yesterday, it popped again and is closing in on its 52 week high of $1.50 so don't mess with me. Ha. We suggested U.S. Energy Corp. (USEG) at $3.17 just after Christmas. We started getting a little nervous with this one but in the past few days, it's gotten into the green on our screens now trading slightly above our entry. USEG has earned a little more of our patience so we'll stick with it. As for our losers, we gave you a not so hot index option trade that didn't pan out and our entry on LSTG yesterday got stopped out at $.50 cents so if you were paying attention there, you couldn't have lost much on that one. On the no blood side of our ideas, we told you to make sure you didn't let ONSM turn into a loser, so if you stayed with us on that idea and listened, you should have broken even at worst. Then, BBLU and MFON (both recently Feature Stocks at SCN) have all been quietly just doing their thing, no major moves to the upside or downside yet so we'll stick with them as we believe these are longer-term development type stories that we believe are still worth sticking with for now. That's a quick wrap on all of our current ideas. If you're curious what other SCN Contributors or Members are saying about any of the above mentioned stocks, simply go to our homepage and type the ticker symbol or company name in the "Stock HQ" box at the top and hit GO. You'll be taken to the Community destination for that particular stock. There, you can find out what everyone else is saying and even provide some contribution of your own if you so choose. The Midas Touch Carries Over into Our Two Newest Ideas In case you missed it, we launched two new Featured Stocks to our homepage on Tuesday of this week, Dexcom, Inc. (DXCM) and VocalTec LTD (CALL). Both of these new additions represent an opportunity to have a look at two stocks that are not only wowing investors from a corporate development perspective but also from a trading perspective as well. When technical and fundamental analysis both align with a specific stock, it's a deadly combo that often yields very rewarding returns for investors. Both DXCM and CALL appear to fit this bill. We initiated coverage Tuesday of DXCM at $10.16 and CALL at $15.06 respectively. Both are up nice already with DXCM performing better of the two with a 6% gain in a couple of days. Dexcom, Inc. is a medical device company focused on the design, development and commercialization of ongoing-glucose-monitoring systems for use by diabetes patients. Its SEVEN PLUS system is its third generation technology, designed for up to seven days of continuous use. The device consists of three components (a sensor, transmitter, and receiver), and is approximately the size of a U.S. quarter. It transmits an updated glucose reading every 5 minutes to the hand-held receiver, which is approximately the size of a cell phone. Although competitors make something similar to it, nothing competes directly with it. We've provided a comprehensive analysis of DXCM for your review and perusal here. Also, you can view DXCM's Stock HQ Hub at the SCN by going here: http://www.smallcapnetwork.com/DexCom-Inc/s/quote/p/s/DXCM/. There's already some very compelling insight located there for you that you should really have a read of if you're serious about considering DXCM. The Company is in a very promising space, has the technology and revenue model to back it up and if you like to play earnings, I'd play this one all the way into their earnings report slated for the 29th of February. Is that date a typo?? Nope. Loving the leap year with an extra trading day in 2012. VocalTec LTD (CALL) is the proud owner of the Magic Jack. If you haven't heard of Magic Jack, then you must live under a rock. Basically, the management behind CALL are the early adopters and developers of VOIP. I don't want to take anything away from the brilliant work of some of SCN's best Contributors, so let me just guide you in the proper diligence direction by pointing you to a very comprehensive report on CALL located here. John Udovich breaks down the various VOIP providers in an article worth reading that puts CALL in the best-of-breed category. You can find any and all commentary, blogs and more on CALL by visiting the Stock HQ for CALL here: http://www.smallcapnetwork.com/VocalTec-Communications-Ltd/s/quote/p/s/CALL/. It appears the Street has it all wrong with CALL. Their #'s have been impressive to put it mildly and their growth potential is off the charts. A buyout of the Company by a large carrier or cable provider would not surprise many savvy investors who have been in CALL since it got its up listing to the NASDAQ early last year. It just goes to show you small cap stocks can go unnoticed for a long time before they get the recognition they deserve and I think CALL is on track to really start turning some heads. The best is ahead for this VOIP play so if you like small caps, this one is a must own in my opinion. The risk reward ratio is just simply too good for me to ignore. As always, we'll take your questions, comments or feedback but be nice. Actually, be mean if you'd like. I could use the entertainment. Happy Trading and Investing... see ya'll tomorrow.