RawGreed, considering additional speculative trades

Posted on December 4, 2005 , filed under Stocks | Print This Post

This weekend I am considering several volatile stocks to trade. I have recently purchased shares of MBAY, MediaBay Inc. I believe shares will jump up once the company announces the traffic increase for www.soundsgood.com and a new partnership with MSN. I have posted my previous thoughts on MBAY with targets and my stop price. I have two other companies I am looking at that I would invest in as speculative plays. If you have been following along with my portfolio value, seen on the far right on the blog, I have enjoyed a good run up this year. Historically December has been a good month for stock gains. I am planning on using December to invest in a few high risk, high reward stocks. If the investments work out, I will enjoy great returns this year and next, if not they will help to offset my capital gains income in either 2005 or 2006.

I am currently watching BCON, Beacon Power Corporation as a reversal play and analyzing what I consider a good entry point. Beacon Power Corporation, a development stage company, engages in the design, development, configuration, and sale of products and services to support electricity grid operation. The company develops alternative sustainable energy storage and power conversion solutions that provide electric power for the renewable energy, telecommunications, distributed generation, and uninterrupted power supply markets in the United States. Shares have traded between high $1′s-low $2′s in the last 60 days. Shares of BCON have surged from .43 to $5.35 in August of this year. BCON presents a highly volatile investment opportunity. I am expecting that shares of BCON will gain along with the market if we see a rally in December. I expect to see energy prices rise in the month of December. If I purchase shares of the company I will post my entry, exit and stop prices.

I am also watching ICAD, iCAD, Inc. iCAD, Inc. The company engages in the development, engineering, manufacture, and marketing of computer aided detection (CAD) products for the early detection of breast cancer and other health-care related applications. I believe iCAD is a far more stable company than MBAY or BCON. iCAD’s primary risk comes from declining U.S. sales of film based early detection of breast cancer technology. Doctor’s prefer digital systems that provide greater imaging detail and depth. iCAD has found a strong avenue for sales of it’s film based systems. iCAD has recently announced sales for its SecondLook film-based CAD systems to The Chinese Anti-Cancer Association. Under the terms of the agreement, iCAD will provide a minimum of one hundred SecondLook film-based CAD systems over five years to the Association. The aggregate value of the order is at minimum, $2,130,000. If iCAD can capitalize on interest from China and its partnership with The Chinese Anti-Cancer Association, the company will be among the few that can ideally use the hype over China to their advantage. iCAD is solving a basic health need of the Chinese population. China represents a good opportunity for film based technology since the country has been slow to adopt the newest digital technology over high costs. The combination of iCAD and China may unearth an undervalued gem in a declining U.S. market for film based CAD early detection of breast cancer solutions. I like ICAD at under $1.30. If I purchase shares of the company I will post my entry, exit and stop prices.

I expect MBAY and BCON to be short term, 1-3 month, investment opportunities. I expect iCAD to be a short term, 6 month-1 year, investment opportunity. All three investments would be primarily based on speculation and my own due diligence. I would not advise risk adverse investors to purchase shares of any of the companies above.

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2 Comments »

Comment by Lynda Botez

2005-12-04 14:07:47

BCON has a great story. Tuesday there will be a media event on the demo unit they have installed in California at PG&E… this stock should go up, especially when they ship the testing unit to NY state.

ICAD – well, I’d stay away from a company that isn’t switching over to digital. I’m a photographer; film is dead.

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Comment by Andy

2005-12-04 23:29:00

Thanks for the notes. I’ll be watching BCON and waiting for a propery entry. I’m not entirely sold on BCON yet. ICAD is exciting because of its partnership with China. I believe China is an ideal partner to use the older film based technology. I am also debating ICAD and a proper entry point.

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