Smartstockz

[december]

ID for Animals eMerge Interactive Inc(EMRG
<http://finance.yahoo.com/q?s=emrg> ), the Sebastian Florida based
company making animal tracking and database management for feef
industry, got massive pre-market trading today after a report saying
U.S. livestock may get individual identification numbers
<http://biz.yahoo.com/ap/060301/premarket_movers.html?.v=2> . The stock
is up more than 10% today as close to 3 million shares, almost four
times average volumn, have traded so far. The news may spark rally for
the beaten down stock which has lost more than half of its market cap
for the year.

Technical
The technical chart
<http://finance.yahoo.com/q/ta?s=EMRG&t=1y&l=on&z=m&q=l&p=m50,m200&a=p12\
,ss,m26-12-9&c=> shows weakness as the stock is trading below both 50
day and 200 day moving average. Technical indicator MACD also shows the
stock is on a bull market as the on a bull market as the signal is well
below 0. One positive indicator is the KD line where K line is rising
on
top of D line generally meaning buy signal. However unless the stock
can
break above 50 day and 200 day moving average any rally is considered
bounce back in a bear market.

Insider
There is no significant activity from the insider transactions recenty.

Financial
Although the company was getting sharp descrease in revenue for 2003
and
2004 comparing to 2002, the revenue for 2005 should improve for 2005.
The additional private placement financing deal in January worth $3.2
million should also improve the balance sheet and the working capital
as
the company is still having steep operating losses.

Penny Stock Score (1~5) 5 is highest
1. Market Potential(animal identification): 4
2. News Buzz: 4
3. Technical: 2
4. Financial: 2
Recommendation: Neutral More detail: Penny Stock Pick
http://pennystockpick.blogspot.com/2006/03/penny-stock-pick-emrg.html
<http://pennystockpick.blogspot.com/2006/03/penny-stock-pick-emrg.html>