On Friday, your editor was up at the New York Stock Exchange along with the rest of Agora Financial's small-cap team, attending a conference on the IPO market. To be sure, the market for initial public offerings (IPOs) has dried up in the last couple of years thanks to 2008's stock market meltdown and tightly held capital... But with some exciting new companies set to go public in 2010, that could be about to change.I'll fill you in on some knowledge gleaned from the conference later this week. In the mean time, let's take a look at some key stocks in the small-cap market right now.
In case you're not familiar, each week, the Penny Sleuth takes a look at a list of penny stocks that are exhibiting abnormal volume, strong technicals, upcoming news, or another catalyst that suggested they might be making a material move in the coming week.
As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed.
Let’s take a look at this week's breakout penny stocks worth watching...
Minerco Resouces (OTC: MINE) – Here's a great example of a penny stock that's in the midst of getting pumped. At first glance, this stock should be pinging your radar - up more than 63% today, this tiny mine exploration company has no reason to be showing gains... After all, the stock has no revenues, no customers, and historically huge volatility. Instead, this stock is up thanks to a favorable article written by a penny stock pumper - someone who was paid by the company to beam about it.
Situations like this can prove profitable for traders - particularly on the short side. But beware, with so many investors getting convinced to buy shares of this stock, it could continue to move quickly and violently. I'd recommend that all but experienced investors stay away.Affymax (NASDAQ: AFFY) – Affymax is a company that I called out as a short position last week. I told you that following a breakdown pattern, shares were on the verge of moving lower - and sure enough,Sleuth readers had the chance to make more than 16% by Friday by betting against this company.
NxStage Medical (NASDAQ: NXTM) – NxStage Medical was another of last week's watchlist plays that gave you the chance to make intraweek profits. Shares are already up more than 13% since I recommended them last Monday, betting on upside from an ascending triangle pattern. For the unfamililar, you can learn about that pattern on page 4 of the report above.
StoneMor Partners (NASDAQ: STON) – Shares of this stock could be on the verge of a technical breakout thanks to a bullish ascending triangle pattern. Keep a close eye if shares move above $20.90.
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