Morning All... With options expiring at the end of last week, it's no surprise we're seeing the markets reverse their tone going into the new week. The BIG question now becomes will this market finally decide to pull back in the short-term in an effort to back and fill for more upside in the near future? I would think so considering the recent run-up has been on less than favorable volume and we're in the midst of a very important earnings season.
So far, everything has panned out as we thought it would. The NDX took a new 52 week high last week while the S & P and the DOW continue to make the same attempt. We'll likely want to enter into some put options on any strength to the upside over the next couple of days. I'd really prefer not to chase this move down so we'll be prudent and keep a close eye. Once we decide a favorable entry, we'll let you know. Let's see how the close today treats the current downside momentum.
There's No Stopping CDXC Right Now
We have some phenomenal news this morning out of one of our Featured Companies, Chromadex (CDXC). The stock has been on a tear! We alerted SCN Members with a strongly suggested entry price of CDXC at $.60 cents a few weeks back. The stock handsomely rewarded us with over 100% returns in just a few short weeks. What makes this even more exciting is the Company continues to poor on the news...
Two weeks ago, CDXC announced that its BluScience line of dietary supplements are now available for sale in one of the largest retail drug store chains with more than 8,000 stores throughout the United States. Our diligence believes the chain to be Walgreen's, which is huge news for Chromadex. This solidifies the legitimacy of their efforts to make their BluScience line a household name. A few days later, the Company announced that its BluScience (www.bluscience.com) line is now available at Drugstore.com, a leading online provider of health, beauty, vision and pharmacy products.
This morning, CDXC continued to provide more and more visibility as to where things are going by announcing a new top tier CEO in Jeffrey Himmel. And, to provide the ultimate vote of confidence, Mr. Himmel has also agreed to invest a million bucks into his own efforts! Are you kidding me? If that doesn't tell you something then I don't know what to tell you.
SmallCap Network Contributor, Matthew Briar, has sliced and diced this morning's announcement and I think it's critical you read his thoughts on it. The full article in its entirety is available here. The complete press release can be found here.
As we suspected, things are really starting to shape up for the Chromadex story. If you've been around small caps as long as I have, this is the type of landscape backdrop that starts to develop for a Company that can literally provide investors with the kind of gains that become life changing if you've got enough money working for it.
From a technical perspective, the CDXC chart is shaping up perfectly and appears to have some legs... Legs meaning more room to run. The stock hasn't even quite retraced the 5/8 line from its selloff that started back in July of last year so $1.33 becomes the first significant line of resistance there. If we can crack that convincingly to the upside, then I think we're off to the races with the next stop at $1.83.
This is really becoming the type of trade that can make a year. I think picking up CDXC on any weakness will prove savvy for investors AND traders.
The biggest news the Company could announce though would be an up listing on to one of the major exchanges. If that can happen, oh boy... watch out. I urge all of our Members to read as much as you can about CDXC and find out for yourselves why this stock continues to reward its investors and traders. Visit the CDXC Stock HQ Hub here: http://www.smallcapnetwork.com/ChromaDex-Corp/s/quote/p/s/CDXC/
SCN Featured Stock Earns Top Pick for 2012
Every year, Dick Davis' Investment Digest reaches out to their contributors and followers in an effort to uncover their top stock selections for 2012. One of our Featured Stocks, CommerceTel (MFON), made that tough list last week.
Davis goes on to explain in his 14 page report, "As a marketing tool it has no peer, and it's the fastest growing sector of the advertising world. CommerceTel Corp. (MFON) has over 1,500 major brands licensing their proprietary technology for connecting and engaging consumers' mobile phones regardless of phone type, method (SMS, IVR, MMS) or wireless network. It allows for delivery of HD-quality graphics and animation to screens - whether broadcast, stadium board or digital signage screens - connecting the advertised company or brand to the consumer. The software is called C-4 and it won the Sybase Innovator of the Year Award. CommerceTel's customers include McDonald's, Pepsi, CNN, Disney, Sony Pictures, NFL, AT&T and NBC. Taken as a whole, MFON is an unknown mini tiger with multi-bag potential. I am looking for more of the excellent quarter-over-quarter growth it has had going forward, and I believe that we'll see them acquired at a fat multiple. It's only a matter of time."
We've been following MFON since early November. The Company is starting to get the recognition it desereves. Volume and interest appears to be picking up in the stock so if you believe in the future of mobile marketing and specifically MFON, now is definitely a good time to jump in while the masses are still unaware that CommerceTel even exists. This is the kind of story homeruns are made of.
If you want to read Davis' report in its entirety, it's available here.
My NFL Picks...
Well, it could have been worse. I gave you the Pats in a blowout, they won but failed to cover. I also gave you the Giants who won and covered in a heartbreaking knock down drag out for the Niners. Harbaughs, you shouldn't be ashamed. What an absolutely impressive run. Your Teams are young and I'm sure you'll be back next year with a vengence.
Now, we have a good 'ole fashioned sports rivalry for this year's Super Bowl, NYC vs. Boston. It just doesn't get any better than this. I'm not even going to pick this one yet. However, I definitely won't be able to resist so stay tuned.
Have an excellent week and see ya'll manana.