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2good2betrue (< 20)

Game Plan 1/26/2011

Recs

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January 30, 2011 – Comments (0) | RELATED TICKERS: BPOP , LVLT , EMC

Anticipating some kind of meaningful pullback underway or just around the corner, I'm looking for early recovery prospects. Here is my short list of very attractive targets which have shown they will be early comeback stocks in the past: 

 BPOP – great volume, and good upside – particularly if you can pickup under $3, short to medium term hold (target $4.20) should get there pretty quick after the correction – perhaps within a month or two. If it does well, take out original investment and hold – at some point dividend could kick in and this could go much higher, but the second run could take quite a while to develop.

 LVLT – great volume, made 30% on this last pop (from 98 cents to 1.29), and just when I though it was going to tank (down to 1.10) it popped back up to 1.27 – think this is going to push higher - $1.40 to $1.60 seems possible in near term (next few months – after correction)

EMC – great volume, excellent fundamentals, very good long term hold 2-3x possible, wouldn’t give this up for less than $50 but think $75 and higher are definitely possible – may take 2-3 quarters to get moving steady…

GKK – I missed this at 3.08, then it began to rise, if it goes back down in the low 3s, don’t miss it… great long term hold (great dividend once this kicks back in at some point), you could retire on this one

UQM – has come back strong as well, definitely worth a poke if you can pick up in mid to lower $2 range – prospects on this are mid to upper $3 in 2011 and mid to upper $7 in 2012. Has a strong following and moves – but after a correction this may be low on the priority, so likely one of the last ones to come back in my opinion. 

My Game Plan: 

Upon down cycle, pick up BPOP and LVLT on the bounce for near term hold (should be good for 30-40% gain without much wait) – these will likely be the early risers!

Opportunistically, pick up decent position in GKK for long term hold and start acquiring EMC, keep 30-40% to trade and move profits into buying more EMC on dips. 

Wildcard –  

if ACAS becomes oversold, this too is a very good long term hold. ACAS used to be a $4/year dividend stock and if a guy could pick this up in the $6 range, do it.

I also like PSEC, good stead dividend and a great buy for under $10/share. Both long term holds… 

Finally, watch AOD, my dividend special… if market starts to slow, this thing will take off… $0.06/month dividend… Buy in the low $5 range… I missed this when it dipped under $5… You could retire on AOD if you time it all right. 

Speculative Buys – [DON’T FORGET] good risk/reward at the following prices – pick these up for long term upside potential… two or more of these may trade sideways for quite a while before they pop, but the idea here is to get in ultra cheap and leave it alone. If I can’t buy at the prices indicated, just forget about it… don’t chase them… 

GSX – Buy as many shares as you can for under $0.45, not more than 30k shares
RGIN – Buy as many shares as you can for under $0.68, not more than 30k shares
RODM – take small position under $2.30 – ride till $4.75 or so, not more than 20k shares ADMP.BO – pick up 20k shares under $0.20 see where it goes

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