Lord have Mercy - 3 risky spec plays with huge potential
Some of you who follow my picks may have noticed that I recently blogged about a stock called Synthesis Energy Systems (SYMX), which today announced a deal with a Chinese investment firm to pursue additional coal gasification projects in China (and other places). The news sent the stock soaring nearly 40% by market close. I believe that this stock, though somewhat speculative and risky, could reach $8 within 6 months or so if the deal they struck results in some new joint venture projects coming online. I purchased a few shares today in my real life portfolio and plan to add more if the share price drops below $2.50. At market close it was trading for $2.83.
Another stock that I recently came across (thanks to BravoBevo) is an LED manufacturer called Energy Focus, Inc. (EFOI). Here are some highlights from today's after market close earnings report:
Fourth quarter 2010 net sales from continuing operations of $8.8 million increased 2.4 times fourth quarter 2009 net sales from continuing operations of $3.6 million.
Annual sales from continuing operations in 2010 of $35.1 million increased 2.8 times 2009 net sales from continuing operations of $12.5 million.
Cash increased $3.0 million for the full year 2010 ($1.5 million of which was net cash provided from continuing operations) versus a cash decrease of $9.5 million for 2009. The Company finished the year with cash on hand of $4.1 million.
This stock is trading for about $1.20 and could easily double from here. This is one to watch. For comparison sake, another LED company, Rubicon Technology (RBCN), was trading for less than $2/share only 2 years ago and is now trading for more than $27.
The 3rd pick is one that I recently came across and don't much about yet. Majesco Entertainment (COOL
) is a developer, publisher and marketer of interactive entertainment software. Their stock has rocketed from $0.49 to over $3 in just a few months and may be getting into overbought territory. But other game developers like MCZ and GLUU are also seeing lots of upward price action lately, so this is another one to keep an eye on.
I am not a financial advisor and I don't recommend buying these stocks without doing your own due diligence. But I am interested in what others think about these picks.