Audience Stock Breaks Above 50 Day Moving Average


Audience (ADNC) provides voice and audio solutions for mobile devices in Korea, China, the United States, and internationally. The company’s intelligent voice processors incorporate “brain-like” technologies that allow mobile devices to deliver better voice quality for clear conversations in nearly any setting. The company boasts higher accuracy and performance for speech recognition services, enhanced audio for multimedia recording and playback, and more.

On December 3, 2014, Audience announced that China’s Yulong Computer Telecommunication Scientific (Shenzhen) Co (Yulong) has selected Audience’s eS704 Advanced Voice processor for the Coolpad Bodun smartphone announced on November 26th by Coolpad. Audience’s eS704 Advanced Voice processor technology extends the voice experience by keeping the phone in an extremely low-power and “always listening” mode so it is ready to understand and jump into action on verbal commands.

On December 23, 2014, Audience announced that ZTE has selected the Audience eS704 Advanced Voice Processor for the ZTE Star 2, its latest Flagship voice-controlled smartphone.

Audience Stock Catalyst VoiceQ

In my opinion, the catalyst that could carry Audience stock higher is the VoiceQ technology. The VoiceQ technology enables your mobile device to continuously listen to its surroundings, and act upon a simple voice command. The processor is able to do this in an extremely efficient, ultra-low power way. That’s incredible folks. Imagine a LifeAlert type app for your smartphone where your phone listens for a voice command like “Help I’ve fallen”. Below is a video Audience published showing their amazing VoiceQ technology. VoiceQ is even able to filter out background noise like the kind from a TV or radio.

Audience Stock Chart

Audience Stock Chart

Audience stock has just crossed above the 50 day moving average line. It’s been in a continuation pattern since early December.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Organovo Stock Breaks Above 200 Day Moving Average


Organovo (ONVO) designs and creates functional, three-dimensional human tissues for use in medical research and therapeutic applications. Organovo uses 3D bio-printing. The Company develops 3D human disease models through internal development and in collaboration with pharmaceutical and academic partners.

Organovo is capitalizing on 3D bio-printing for creating human organs (for now just the liver but the kidney is the next organ) for testing drugs. This is incredible as it eliminates the bad side effects when using human test subjects. Yes the upfront costs are higher, but the test results are obtained faster thus saving money.

The market for Organovo products is huge. Basically Organovo can give researchers something they have never had before: the opportunity to test drugs on functional human tissues before ever administering the drug to a living person.

Here is a video Organovo published that talks more about their company, technology, and vision:

Organovo, in some regards, is a play on 3D printing. The company uses a process called 3D bio-printing. Here is a video Organovo published where they explain their bio-printing process:

Why Organovo Stock Could Explode Higher

Organovo stock could explode higher as it forms relationships with larger medical and pharmaceutical companies. Here’s what I’ve been able to learn through press releases and SEC filings about who Organovo is working with.

In January of 2014, Organovo announced a partnership with the National Institutes of Health that focuses on printing eye tissue for drug and disease studies.

In July of 2014, Organovo filed a form 8-K with the SEC regarding collaboration with Janssen, a Johnson and Johnson company, to evaluate the use of 3D bio-printed tissue in a drug discovery setting. Janssen is interested in using 3D-printed tissue to discover drugs. By exposing many different 3D-printed cells to many different early-stage drugs, it can quickly determine which are the most effective.

On November 18, 2014, Organovo announced the release of its first commercial product called exVive3D Human Liver Tissue. This product has been recognized as groundbreaking in the field, resulting in several awards for innovation. It won the CONNECT 2014 Most Innovative Product. It also was selected by a panel of judges from industry and academia as one of the Top 10 Innovations of 2014 by The Scientist magazine.

On December 3, 2014, Organovo announced a partnership with Yale School of Medicine, Department of Surgery, to develop bioprinted tissues for surgical transplantation research.

Warning: Organovo is a Development-Stage Company

Organovo is a development-stage company so the financials don’t look that great. Still, they have $54.39 million in cash with $11,000 in debt. More than 25% of Organovo stock was short as of 11/28/2014. As of 12/15/14, that number has dropped to about 23%, with a days to cover of 11.56.

Development-stage companies are notorious for issuing and diluting stock to raise enough money to stay in business. Some development-stage companies even get greedy and ultimately destroy the share structure of their stock, effectively running off with millions of dollars, while leaving investors holding a practically worthless shell company.

Organovo Stock Trades in the Diagnostics and Research Industry

diagnostics and research industry chart

The Diagnostics and Research industry has been hot since October 15, 2014. The Diagnostics and Research industry is up +14.4% since the October lows.

Organovo Stock Chart

Organovo stock has been on a hot streak since December 11, 2014. Organovo stock is up an incredible +42% over the last 12 trading days.

Organovo Stock Chart

I really like how Organovo stock has just broken above its 200 day moving average line on good volume.

Disclosure: I am long Organovo stock (ONVO) in my personal trading account. I wrote this article myself, and it expresses my own opinions.

Digirad Stock Blast Off Above 50 Day Moving Average


Digirad Corporation (DRAD) develops, manufactures, and distributes solid-state medical imaging products. The Company’s products and services are used for the detection of cardiovascular disease and other medical conditions.

Digirad stock appears to be currently undervalued in relation to the amount of sales the company is doing with a P/S of 1.53. The company’s market value seems attractively priced in relation to the assets it has with a P/B of 2.52. The quarterly revenue growth (yoy) is a hot +11.8%.

Digirad has $21.82 million in cash with ZERO debt. Cash is king. Cash will always be king. Digirad has opportunities it can pounce on with that cash. It can buy another medical equipment company. It is also an attractive acquisition by a larger medical equipment company. The company appears to be adequately funded to finance operations for the next year. The company has enough cash to cover its current liabilities and its fixed expenses for the next 12 months. The company is in a strong financial position. At the very least, the odds of a surprise stock offering which dilutes share value, is low.

Digirad Stock Trades in the Medical Devices Industry

medical devices chart

The Medical Devices industry has been flat for most of 2014; however, after bottoming around October 15, 2014, it has exploded higher. At the start of November 2014, the Medical Devices industry confirmed a major breakout. With Republicans taking control of Congress in the November 2014 elections, the probability that the medical device tax will be repealed has gone way up. I think the Medical Devices industry has been artificially held low by the threat of the medical device tax. With the fate of that tax sealed by the Republican win in November, we could see the Medical Devices industry have a great 2015.

Digirad Stock Chart

Digirad stock is on breakout watch. It closed at $4.43 on December 29, 2014. This $4.43 is the intra-day high put in on October 29, 2014. If this important psychological level is broke, $4.85 is the next area of resistance that was hit all the way back on November 19, 2013.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Apple Stock (AAPL) Approaching Best Time of Year


Apple (AAPL) designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers.

Apple stock is attractively priced with a smoking hot forward P/E ratio of 13.32.

Apple stock has been upgraded by several analysts that follow the company. On November 11, 2014, UBS reiterated its buy rating and moved the target price up to $125. On November 17, 2014, RBC Capital reiterated its buy rating and moved the target price up to $120. On November 18, 2014, BTIG Research reiterated its buy rating and moved the target price up to $135. On November 25, 2014, Stifel reiterated its buy rating and moved the target price up to $130. On December 1, 2014, Barclays reiterated its buy rating and moved its target price up to $140. Finally, on December 2, 2014, Canaccord Genuity reiterated its buy rating and move its target price up to $135.

What seems to have analysts raising their target price is the improved EPS forecast. In just the last 90 days, analysts have moved up their EPS forecast from $2.35 to $2.54.

Apple Stock Seasonality Chart

Apple stock is approaching its best time of year. Since 2010, Apple stock has done very well between February and April.

(Click on the chart below to enlarge):
apple stock aapl seasonality chart

Over the last five years, Apple stock has ended the month of February higher than where it opened a shocking 80% of the time. This incredible feat repeats in both March and April! This makes February through April the best three months of the year for AAPL. The average gain for February is +6%. The average gain for March is +5.4%. The average gain for April is +3.8%. In other words, over the last 5 years, buying Apple stock sometime in January and holding until the end of April would result in a winning trade about 80% of the time for an average gain of more than +15%.

Apple Stock (AAPL) is in the Consumer Electronics Industry

AAPL trades within the Consumer Electronics industry. Consumer Electronics was hot for most of 2014.

consumer electronics industry chart

I expect the uptrend in the Consumer Electronics industry to continue in 2015. As the unemployment rate slowly comes down, and wages rise, Consumer Electronics will soak up a lot of that increased purchasing power. In numerous surveys, consumers have cited electronic devices like smartphones and tablets as items they would like to buy or upgrade when they have more money. Apple (AAPL) is the dominant player in this space and should benefit nicely from the increased purchasing power of consumers.

Apple Stock Chart

Apple stock did a retracement that did not exceed 61.8% in December of 2014. That is important because any retracement that does not exceed 61.8% suggests that the downward move is nothing more than a healthy pullback within a larger uptrend.

Apple stock pulled back -11% between November 25, 2014 and December 16, 2014. It has since ripped off the December 16, 2014 low.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

DryShips Stock Bottom Feeder Turnaround Play


DryShips Inc. (DRYS) owns and operates drybulk carriers. Commodities transported by the Company consist of major bulks, which include iron ore, coal, and grain, and minor bulks such as bauxite, phosphate and steel products. The Company also owns Ultra Deep Water Rigs. DryShips is based in the financially troubled country of Greece.

DryShips stock is a bargain with a crazy forward P/E of 5.91. The P/S is an incredible 0.45. The P/B is an awesome 0.19. How could the valuation be this good? Simple. DryShips has burned a lot of traders over the last few years. Trying to bottom play DryShips stock has been a disaster more often than not. Just when you think the stock couldn’t possibly go any lower, it does.

DryShips stock structureJust looking at revenue, DryShips stock seems like the bargain of the century. Folks, that would be a huge mistake to think that. This company has grown revenue from $820 million in 2009, to $1.49 billion in 2013. The problem is, this growth has come at the expense of shareholders with massive share dilution. In 2009, the company had 209.33 million shares outstanding. In 2013, that number had ballooned to a whopping $384.06 million shares outstanding. The company basically destroyed its share structure trying to stay afloat (pun intended). You can see the devastation of this share dilution in the EPS. Even though sales growth has been good since 2009, the EPS fell to -0.58 for 2013.

Folks, I think DryShips is cheap right now but it’s not because of the forward P/E, P/S, or P/B. I think DryShips could actually be turning a corner right now in terms of its forward growth outlook.

Revenue is up a whopping 48.6% from the same quarter a year ago. This crazy revenue growth has significantly improved the EPS. In fact, some analysts expect DryShips to go from -$0.58 EPS in 2013, to $0.05 per share for 2014. That’s an awesome turnaround in EPS if analysts are right.

The company’s debt is between 30% and 70% higher than its equity. The company has $496.6 million in cash, with a whopping $5.97 billlion in debt. Put simply, traders don’t trust that DryShips stock won’t take a quick downward plunge on yet another stock offering to raise money. In my opinion, that’s why this stock is still so cheap.

Global Growth A Major Concern for Dryships Stock

With the demand for oil dropping around the world due to the current slowdown in Europe, China, and Japan, some think it’s only a matter of time before global shipping volume drops as well.

The chart of the Shipping & Ports industry shows that money has been flowing out since September 2014. Folks, the goal is to buy oversold stocks in strong sectors. As the chart above shows, the Shipping & Ports industry is not strong right now.

DryShips Stock Chart

You can see that a lot of traders are bottom feeding right now in DryShips stock. The stock is up +48% since the December 17, 2014 low.

The question to ask yourself is this: do you think the U.S. consumer and the improving U.S. economy can pull the global economy out of its current slowdown? If your answer is yes, then DryShips stock might be the turnaround play for you.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Penny Stocks to Watch in Apparel Stores Cache Buyout


As the U.S. economy continues to heal and wages go up, the Apparel Stores industry has a few penny stocks to watch.

The Apparel Stores industry has been on fire. It makes sense. As the value of the U.S. dollar goes up, and the cost of energy goes down, consumer discretionary stocks are the big winners.

Consumer Cyclical (Discretionary) Chart

consumer cyclical chart

The Consumer Cyclical chart shows the sector up more than +16% since the October 15, 2014 lows. With a test of the December highs currently underway, a breakout seems likely in early 2015.

Apparel Stores Chart

penny stocks to watch cache chart

The Apparel Stores industry within the Consumer Cyclical sector is on fire. Already we had a breakout this week above the late November high. Clearly, traders are betting that a pick up in GDP growth, employment, wage growth, lower energy costs, and a rising U.S. dollar, will benefit Apparel Stores in 2015.

Penny Stocks to Watch Cache Inc.

Cache (CACH) operates women’s apparel specialty stores under the trade names Cache and Lillie Rubin. The stores specialize in the sale of high fashion apparel and accessories in the higher-to-expensive price range, targeting women who seek quality casual and formal apparel. The Company owns and operates stores throughout the United States and Puerto Rico.

Folks always remember, there’s a reason a stock is a penny stock. Never fool yourself into thinking otherwise. In my opinion, Cache appears unable to meet bills that are either past due or will come due over the next 90 days. It is facing an immediate liquidity crisis which can have a substantial adverse impact on its share value. The company is inadequately financed and requires additional capital. This funding will most likely be dilutive to shareholders and may cause the share price to decline. The company’s total liabilities exceed its equity by at least 70%. Cache has a whopping $17.82 million in debt, with only $545,000 in cash.

This company could file for bankruptcy protection soon. That’s the bad side. It is precisely for these bad reasons that Cache can be picked up for just pennies a share while a year ago, this stock traded for $6 per share. In other words this really bad news is why a possible opportunity has opened up.

Penny Stocks to Watch For Merger or Acquisition

On December 3, 2014, Cache announced that it had received an inquiry from a third party wanting to buy the company out. The Board of Directors is exploring this possible merger or sale and is looking at other “strategic alternatives”.

Cache has 239 stores in 41 states with more than 870 full-time employees. The market cap on the company is at $7.29 million. That’s crazy cheap! Let’s say a company makes an offer to buy Cache for only $15 million. That would be put a buyout share price of around $0.50 per share which is more than +100% from its current share price.

With the Apparel Stores industry on fire right now with an improved consumer outlook, Dillard’s, Macy’s, Ann, or Chico’s would be crazy not to be looking at gobbling up those 239 stores in 41 states for pennies per share. That’s a no brainer folks.

This is a very risky investment that should only be made with “mad money” with the idea that you could lose it all if the company files for bankruptcy protection within the next 90 days.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Monster Worldwide Stock Up +32% In 7 Weeks


Monster Worldwide (MWW) offers help wanted advertisements over the Internet. The company charges employers and human resource professionals to post and search advertisements, and allows job seekers to search job postings and post their resumes free of charge. Monster also operates websites that connect companies to highly targeted audiences.

Monster Worldwide stock is cheap. It has a smoking hot Price to Sales ratio of 0.53 which suggests the stock is undervalued in relation to the amount of sales it’s doing. The Price to Book is an equally hot 0.56 which suggests the market value is attractively priced in relation to the assets it has.

Monster Worldwide Stock Part of Larger Staffing and Outsourcing Trend

Staffing and outsourcing stocks have exploded higher since bottoming on October 15, 2014. The slowly improving job market shows that corporations are choosing increasingly to hire through staffing companies.

The U.S. is now seeing one of the best streaks of straight months of job increase in history. The Bureau of Labor Statistics said that 142,000 jobs were created in November 2014. This was the 57th straight month of growth. Obviously all industries are benefiting, but maybe none more than the staffing and outsourcing industry.

Below is a chart of the Staffing and Outsourcing industry:

staffing and outsourcing industry chart

As the chart above shows, the Staffing and Outsourcing industry looks very strong with a breakout in November, confirmed by a higher low and then another breakout in December.

Monster Worldwide Stock Chart

Monster Worldwide stock has done a Symmetrical Triangle breakout which is a continuation pattern. The volume continues to slowly build as more buyers keep stepping in as the stock trends higher.

Monster Worldwide stock has temporarily diverged from the Staffing and Outsourcing industry. If you compare both charts above, you can see the play I’m going for. I’m betting that Monster Worldwide stock is going to catch up to the Staffing and Outsourcing industry.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Korn Ferry International Stock Price Breaks 200 Day MA


Korn Ferry International (KFY) is an executive search firm with offices in various countries. The company provides its services from middle to executive management. The company also offers leadership and talent consulting services. It offers strategic and organizational alignment, leadership and executive development. In addition, it provides talent acquisition solutions. Korn Ferry International also offers Futurestep, an Internet-based search service for middle-management positions.

Korn Ferry International published this video about their corporation and vision:

Korn Ferry International Stock Price

Korn Ferry International stock price is at $29.23 as of 12/22/2014. It has a good price to sales ratio of 1.42. This suggests that Korn Ferry International stock price is undervalued in relation to the amount of sales it’s doing. The price to book ratio is 1.82. This suggests the market value is attractive in relation to the assets it has. Korn Ferry International stock price is a good value as evidenced by the forward price to earnings ratio of 14.52.

Korn Ferry International has a whopping $274.16 million in cash with ZERO total debt. Cash is king. Companies with a lot of cash and no debt can execute on expansion plans. It also makes the company an attractive acquisition target. At the very least, Korn Ferry has no immediate short term cash problems. The company has enough current assets to cover its current liabilities for the next six months. This means that a surprise stock dilution to raise money is unlikely.

Korn Ferry International Stock Price Versus Revenue GrowthSales have been uptrending nicely on an improving U.S. job market. In 2010, the company had $599.6 million in sales. In 2014, that amount has grown to a shocking $995.6 million in sales. The EPS has grown a shocking +111% over the last year. The EPS growth quarter over quarter is a whopping +34.2%.

Korn Ferry International Stock

Korn Ferry International stock has just crossed above its 200 day moving average on big volume. This is a major psychological victory for Bulls.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

XLE ETF and Energy Stocks Attract Bottom Feeders


Traders are quietly starting to position in the XLE ETF and energy companies. The Energy ETF (XLE) has had an explosive move higher over the last two days.

It seems incredible that traders would be bottom feeding in energy stocks when reports in the mainstream financial media suggest oil still has lower to go.

XLE ETF Short Covering

One theory on Wall Street is circulating that most of the upward move in energy stocks over the last few days is nothing more than short covering. I disagree.

Short covering in a market is usually indicated by a quick move up on the chart lasting hours or a day at most, and then a subsequent crash after the short covering ends.

In the charts below, such a pattern is not present. In fact, the candle over candle reversals look more like a bottoming and trend direction change upward than they do fickle short covering.

Folks, traders are piling into the XLE ETF and numerous energy related companies that have been hammered over the last few months from the drop in the price of oil. What do they know that we don’t? It’s impossible to say. What we do know is that the stock market leads the news cycle and the economic cycle. If you want to play a reversal in a market, you have to move early before you hear about it in the mainstream financial news.

XLE ETF Chart

The XLE ETF Energy Select Sector SPDR Fund’s objective is to provide investment results that correspond to the performance of The Energy Select Sector Index. The Index includes companies that develop and produce crude oil and natural gas, provide drilling and other energy related services.

The chart of XLE shows a powerful ‘V’ bottom bounce.

Below are 7 charts of energy stocks that look awesome.

Top 7 Strongest Trending Energy Stocks

Cimarex Energy Stock Chart

Cimarex Energy (XEC) explores for and produces crude oil and natural gas in the United States. The Company conducts activities primarily in Oklahoma, Kansas, Louisiana, and Texas.

Anadarko Petroleum Stock Chart

Anadarko Petroleum (APC) is an independent oil and gas exploration and production company with international operations. In the United States, the Company operates in Texas and surrounding states, the Rocky Mountain region, Alaska, and the Gulf of Mexico. Internationally, Anadarko has exploration and/or production operations in Africa, Asia, South America, and the Caribbean.

ConocoPhillips Stock Chart

ConocoPhillips is an international, integrated energy company which operates in several business segments. The Company explores for and produces petroleum, and refines, markets, supplies, and transports petroleum. ConocoPhillips also gathers and processes natural gas, and produces and distributes chemicals and plastics.

Carrizo Oil & Gas Stock Chart

Carrizo Oil & Gas (CRZO) explores for and produces natural gas and crude oil. The Company develops and exploits onshore properties along the Texas and Louisiana Gulf Coast regions.

Gulfport Energy Stock Chart

Gulfport Energy (GPOR) owns and operates oil and gas properties in the Louisiana Gulf Coast area of the United States.

NGL Energy Partners Stock Chart

NGL Energy Partners (NGL) owns and operates a vertically-integrated propane business. The Company’s operations consist of retail propane, wholesale supply and marketing and midstream, which consists of its propane terminaling business.

SM Energy Stock Chart

St. Mary Land & Exploration Company is an independent energy company that explores for and produces natural gas and crude oil. The Company’s operations are focused in the Mid-Continent region, the Arkansas/Louisiana/Texas region, south Louisiana, the Williston Basin, and the Permian Basin.

Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.