Tuesday, May 3, 2011

Top 3 Small Stocks with Big Moves

Kurrant Mobile Catering Inc. (OTC: KRMC), Daulton Capital Corp. (OTC: DUCP) and Dr. Medical Industries Ltd. (NASDAQ: DMED) are three small stocks with big moves during today’s session.

Kurrant Soars after Favorable Mention
Kurrant Mobile Catering Inc. (KRMC, Free Analysis), a publishing company doing business under the name Cogito Media Group, soared more than 70% higher during today’s session after being favorably mentioned in a popular investment newsletter. Citing technical factors and the firm’s recent publishing deals, the newsletter suggested that it could be poised to rise higher.
Despite the stock’s move higher during the session, investors should be aware that the publishing company reported revenues of $56,848 and a net loss of more than $2.6 million during the three months ended November 30, 2010. Meanwhile, the firm’s $1,023,517 in total assets were insufficient to cover its $1,710,291 in current liabilities, suggesting it may need to raise additional capital.
Daulton Rises on Gold Property Purchase
Daulton Capital Corp. (DUCP, Free Analysis), a gold and precious metals exploration company, rose more than 20% during today’s session after announcing that it acquired 750,000 hectares in gold rich Papau New Guinea. While the property may contain significant reserves, traders have since reduced those gains to just 10% as volume dried up later during the trading session.
Despite the optimism surrounding the stock, investors should be aware that the gold exploration company has reported just $17,189 in sales since its inception in January of 2008 and net losses of $592,941 for the period. Meanwhile, the firms’ balance sheet showed total assets of $62,552 compared to current liabilities of $210,492, suggesting it may need to raise capital in the near-term.
Dr. Medical Surges on 510(K) Approval
Dr. Medical Industries Ltd. (DMED, Free Analysis), a medical device company focused on the treatment of diabetes and drug delivery technologies, surged more than 70% during today’s session after announcing that the FDA granted 510(K) clearance to market its Spring Universal Infusion Sets in the United States, targeting an enormous and growing end market of 26 million in the U.S. alone.
Despite the marketing approval, investors should be aware that the medical device company reported just $356,000 in sales and a net loss of more than $1.25 million in 2010. However, the potential for its Spring Infusion sets could drive revenues higher in the near-term, while the firm’s balance sheet remains strong with $9.9 million in cash and just $3.4 million in total liabilities, as of December 31, 2010.

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