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EnigmaDude (52.85)

Lord have Mercy - 3 risky spec plays with huge potential

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March 31, 2011 – Comments (7) | RELATED TICKERS: SYMX , EFOID , COOL

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.

7 Comments – Post Your Own

#1) On March 31, 2011 at 8:37 PM, dragonLZ (72.90) wrote:

E-dude, I think you've been making great calls as of late. I'm liking your picks more and more.

Will give you my opinion on these three as soon as I find a minute to check 'em out (I remember looking at SYMX a month ago or so, and I thought it was too speculative).

Thank you for bringing EFOI and COOL to my attention.

Good Luck!

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#2) On March 31, 2011 at 9:17 PM, HarryCaraysGhost (66.06) wrote:

The one that caught my eye is COOL. Seems to be quite cyclical, so in theory I could pick this up on the cheap in June or July. By Feb or Mar I would be quite the happy camper.

Thanks Dude.

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#3) On April 01, 2011 at 9:32 AM, EnigmaDude (52.85) wrote:

thanks dragon and HCG for the kind comments. 

All 3 are quite speculative but I am really excited about SYMX right now.  It has some traction and some really huge deals in the works.

And EFOI just announced 4Q earnings.  The chart looks good and the positive report should move the stock.

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#4) On April 01, 2011 at 12:27 PM, mhy729 (30.51) wrote:

It would appear that more dilution is on the way for EFOI.  I assume that is the reason for the big drop today following the conference call, which included a short comment on a securities registration.  Someone correct me if I'm mistaken?  (Not much of an experienced investor here, btw...so yeah, I could be entirely clueless on this)

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#5) On April 06, 2011 at 2:54 AM, mhy729 (30.51) wrote:

Okay, after doing a bit more research and thinking, my conclusion is that Quercus holds restricted shares in EFOI, and are requesting registration of these shares so they can then sell them on the open market.  Is this the correct interpretation?

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#6) On May 27, 2011 at 12:25 AM, EnigmaDude (52.85) wrote:

COOL is heating up again.  EFOI is looking bad.  SYMX seems to have bottomed but not sure if the company has actual revenues. 

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#7) On February 14, 2014 at 10:53 AM, EnigmaDude (52.85) wrote:

COOL cooled off since I wrote this (and EFOI is history), but SYMX is heating up! The stock is up big today after announcing a new joint venture for clean coal gasification in China. Still pretty speculative though, in my opinion.

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