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Stock Insight
Sunday, November 27, 2005
STOCKS TO WATCH – Week of November 28, 2005

1. ISO - Closed at .38, up .01 on Friday. On the list again this week for obvious reasons. As I mentioned last week, the volume and PPS continues to increase here, along with improving technicals (Golden Cross, RSI, and MACD). The stock seems to be setting up for a powerful move up. While the current action could be occurring on positive technicals alone, there is a chance that it is an indicator of good news coming. On November 3rd, the company issued a PR where the CEO mentioned three promising deals that could come to fruition soon. In his words "each of these opportunities is orders of magnitude more than we've dealt with in the past. While nothing is certain until it is done, we are optimistic and have high expectations." So there are a number of reasons why this stock is on the list for the upcoming week.

2. EXTR - Closed at $4.96, down .07 on Friday. New to the list. For more information, see yesterday's Stock Spotlight on EXTR (previous post). Additionally, one positive thing I forgot to mention yesterday, was the increase in institutional ownership over the last quarter. It has grown by 2.8%.

3. SPSC - Closed at $1.02, up .02 on Friday. This one is on the list again this week, for two reasons. One, the company filed an 8-K on Wednesday, that among other things announced the end of the SEC investigation into the company, with no violations cited. There is a good chance that since the release was made Wednesday afternoon (the day before Thanksgiving), that many investor's will not see it until tomorrow. Secondly, a PR on this positive event, as well as the 3rd quarter earnings is expected soon. Hopefully, that will occur this week. A possible sign of things to come based on this news, is the fact that the stock traded as high as $1.05 on Friday. That's it's best mark since November 10th.

4. AOB - Closed at $5.16, up .14 on Friday. After being off the list for a week, I have put the it back on. The stock had pulled back to just above it's 50 DMA ($5.25) on Monday at $5.28, and then began to resume it's upward climb, as expected. The stock made it all the way up to $6.36 on Wednesday, when the company announced a private placement of their stock. The placement was priced at $4.80 per share, and the stock proceeded to plunge all the way down to $4.68 after the news. However, by the end of the day the stock was able to close above $5.00, and Friday it continued to make progress rebuilding it's share price. I think if the stock can hold the $5 level, and surpass it's 50 DMA again (which is now $5.26, and was Friday's high for the day), it will start to make another move to $6. The company is still involved with the bird flu epidemic, and should now have a floor of $4.80, so your loss if you purchase in the low 5's, should be limited. There should also be some good opportunities for some short term swing trades with this one next week as well.

5. VPHM - Closed at $17.73, up .03 on Friday. On the list again this week. The stock did not quite make it to my $19 target for last week, as it only went as high as $18.74, and then had a sharp pullback all the way down to $17.31 on Friday. I think the pullback was overdone, and was pleased that the stock was able to move higher after some consolidation. I would expect another attempt at $19 or so this week. There will be initial resistance at $18.00, and support should be around $17.50.

6. HIET - Closed at .59, up .04 on Friday. This one was on the list back in October and early November. It was profiled in our Stock Spotlight feature at around that time as well. The stock had made a nice move from about .58 to .69 around that time, on some positive news. Afterwards, with the lack of any new announcements, the stock began to pullback, and hit as low as .55 last week (the 52-week low). The stock successfully re-tested this mark, and made a nice rebound on Friday to .60. As I mentioned in the Stock Spotlight in October, the company was scheduled to submit a proposal to the U.S. Army for it's robotic IED finder on October 31st. Typically those contracts are awarded within 30 days. That time is now almost upon us (11/30/05), so it is possible we will be hearing something soon. Of course, there are awards that can take longer than 30 days, or that get extended. Keep a good eye on how HIET trades this week for clues on whether the announcement is forthcoming. A contract win should be a big positive for the stock, and it could drive it as high as .88, or more. Look for initial resistance at .60, then .69, on the way up.

That's the list for this week, have a great rest of the day!

Stock Insight, November 27th, 2005


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