BEST STOCKS (AROUND) UNDER $1.00 – The follow-up
Last time I wrote about LTS it was trading for $.63. Now after a monster run-up today, the stock is trading over the coveted $1.00 threshold. I don’t pretend to understand the fundamentals of the stock, and I’m completely baffled by the volume and price movement today. Maybe someone smarter than me can explain what’s happening to the stock, but for now, I’m content to see what happens. I’d love to see an increase in insider purchases above the $1.00 threshold. I plan to reduce my holdings if the stock price climbs over $1.20.
CURRENT PRICE $.63
IDEAL PURCHASE PRICE $.55 (Taking volatility into consideration)
BOLD PREDICTION $1.20 (6/1/2010)
2/1/10Current Price $1.03
Ideal Purchase Price $.75
BOLD PREDICTION $1.45
DISCLOSURE – Long with average purchase price around $.61
The stock I want to focus on today is Helicos. HLCS is a life sciences company focused on innovative genetic analysis technologies for the research, drug discovery, and clinical markets. My basic understanding of them is that they make a microscope that reads DNA and they do it cheaper than anybody else. What I love about this company is that insiders were buying fast and furious at $2.50 a share last year. That was before dilution and a recent offering at $1.00 a share. This company is so confident in its product that they give certain potential clients the use of their equipment free so that the hospitals themselves can evaluate and compare. If the insiders keep buying so will I. I’m getting a little nervous about the wild fluctuations in price, and by the fact that the last hospital to buy one of their machines was someplace I have never heard of. I really want to see some insider purchases right now to give me comfort that people at the company think they’re still headed in the right direction.
2/1/2010 Current Price $.99
Ideal Purchase $1.00
Bold Prediction $3.50
Disclosure – Long with average purchase price around $1.00
And for those who read my blogs, and there aren’t many of you, you know my passion has been and always will be for Sirius. However, I need to buy a house shortly so that my wife will be happy and I’m sad to say that in the recent run-up I sold my stake for a down payment. I had faith in Sirius at $4.00, $3.00, $2.00, 1.00, $.50, and most importantly at $.05. That being said, I have a feeling when the markets correct themselves, companies still heavy in debt and no insider purchases are going to be hit hardest. That means it could be a rocky ride for Sirius in the near future. Here’s hoping I’m wrong.