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9 Jan

Penny Stock Watch; 3 Great Trading Stocks On The Move

by

For reasons of wide-spread exposure, volume and trader enthusiasm, three stocks which should be on your radar right now are Liquidmetal Technologies (OTCBB: LQMT), Vantage Health Group (OTCBB: VNTH) and Creative Edge Nutrition (OTCPK: FITX).

Each stock has, what I consider to be, highly material developments or, in the case, of LQMT, a hunch of a potential material agreement with a monster-cap company soon or in the near future.

Liquidmetal Technologies (OTCQB: LQMT)

Reports that Apple, Inc. (Nasdaq: AAPL) is considering a broader use of liquidmetal’s technologies in the production of the Apple iPhone 6 triggered significant buying in shares of LQMT this week, popping the stock 50% on Monday to $0.2449.

lqmtProfit-taking ensued on Tuesday, but the stock’s trading pattern of multiple and clean bounces off its 200-day exponential moving average suggests to me an indication of its technologies beginning to take hold with leading-edge, big-name consumer products makers.

Liquidmetal Technologies develops state-of-the-art alloys and manufacturing processes that utilizes liquidmetal’s technologies for the low-cost production of precision parts with cosmetic surfaces and complex shapes of forged titanium-grade strength.

Though Liquidmetal Technologies operates at a significant loss each quarter, investors speculate that, through its intellectual property subsidiary, Crucible Intellectual Property, LLC (CIP), Apple, Inc. may once again strike a deal with CIP for the licensing of its intellectual property for the production of the Apple iPhone 6.

Since the existing licensing agreement between Liquidmetal Technologies and Apple expires in February 2014, a report by Korea-based ETNews on Jan. 5 (and repeated by International Business Times on Jan. 8) that Apple will make “full use of Liquidmetal on its casing and screen display,” according to IBT, in the production of the slimmer (6mm slimmer) iPhone 6 drove LQMT to $0.2549 on Monday, up 50% from the previous Friday’s close of $0.17.

With 20% of outstanding shares owned by two institutions and three individuals, it should give investors confidence that heavy incentives for management to provide shareholder value come with the stock.

I access an outside chance for a surprise announcement from the company involving Apple.  In which case, LQMT could explode higher on the news of any agreement with Apple regarding the iPhone 6.

Vantage Health (OTCQB: VNTH)

With the news of Vantage Health’s exclusive 5-year licensing agreement with NASA to commercialize NASA’s patented chemical sensing technology, VNTH could be a good play in the widening nanotechnology space.

vnthAs the winner of the 2012 NASA Government Invention of the Year Award, sensor technology could be the next best thing in the ‘medicine and digital technology’ sector.  Vantage Health is in the forefront for making use of NASA’s multiple patents relating to “nanotechnology, chemical sensing, carbon nanotubes, medial diagnosis, environmental sensing and cell phone applications,” according to the company.

Vantage Health is a tiny company, with no revenue and a market cap of $10.82 million.  However, I believe medical technology of this kind could make VNTH a nice takeover candidate for one of the big biotechs.

Volume since the first day of 2014 trading has averaged 496,000 shares per day, compared with 213,000 per day during the fourth quarter.  Already this year, VNTH has soared 145% to $0.135, from its close of $0.0551 on Dec. 31, 2013, taking the share price significantly higher than its 200-day exponential moving average.

According to BCC Research, the market for biosensors and chemical sensors is likely to experience a rapid per year growth rate of 9.6%, and could reach an approximate market size of $21 billion by 2016.  Large biotechs see this market as substantial enough for achieving a steeper growth rate for their top-lines.

Creative Edge Nutrition (OTCPK: FITX)

With the publicity of a Forbes article, the move in the price of FITX made some investors a more than 10-fold return within two weeks.  At the close of trading on Jan. 8, FITX settled at $0.0251, up 1,095% from the closing price of $0.0021 of Dec. 26.

fitxAccording to a Forbes interview with the Creative Edge Nutrition CEO Bill Chaaban, the medical marijuana company may become “the first U.S. company to be allowed to distribute medicinal marijuana in Canada.”

After soaring in October of 2013—in anticipation of a favorable outcome from the Canadian federal health department (Health Canada) decision to approve the company’s application to grow, distribute, import and export medical-grade marijuana—FITX spiked again from the clout of a Forbes feature article about the company’s initial success.

As mentioned about another ‘marijuana’ stock—featured on SeekingAlpha.com, Growlife (OTCQB: PHOT)—Creative Edge Nutrition has, so far, received its share of largess that goes with a socially popular sector—a sector which has finally opened up from decades of government repression of, in this case, an iconic substance.

Though I usually don’t recommend pinksheet stocks, FITX is a rare exception, for now, because I believe that company has shifted focus to a much larger market potential in medical marijuana, and will move on to the next step to SEC reporting.  If so, the stock may continue to offer a good bullish trade (at below a penny) during an eventual pullback to a more reasonable valuation, which, right now, weighs in at $77 million.

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