Readers choice

Many of my readers have sent me private correspondence highlighting special situation stocks they are excited about and have asked me to render an opinion. I've picked three of the best ideas and am publishing them here for all to see and evaluate.

Advanced Cell Technologies - ACTC

ACTC was a $6.00 stock back in 2005 based on the inherent potential in regenerative medicine.

The emerging field of treatment called “regenerative medicine” or “cell therapy” refers to treatments that are founded on the concept of producing new cells to replace malfunctioning or damaged cells as a vehicle to treat disease and injury. Our focus is the development of effective methods to generate replacement cells from stem cells.

--ACTC website

In the political fallout from a conservative Republican administration, stem cell research and the companies involved in this cutting edge medical technology fell into disfavor with investors. Accordingly, this $6.00 stock fell from grace, into the realm of penny stocks and then, even lower, reaching the magic value of one cent per share in 2008. It has rebounded of late and based on it's chart run-up to 10-11 cents recently, my charts are projecting a move to 24-32 cents:


The fundamental play here is for the new Obama administration to reverse the anti-science polices of the former administration and to have federal programs work with cutting edge biotechnology companies in tackling our most deadly diseases. Look at it this way, if ACTC goes back up to 1/10 its highest valuation, it a six-bagger from current levels. Brother, can you spare a dime?

Deep Down - DPDW

Deep Down, Inc. provides products and services to the offshore energy industry to support deepwater exploration, development, and production of oil and gas, and other maritime operations worldwide. This is a really small company, but look at it's growth statistics:

DPDW was over $2 a share as recently as 2007, now struggling to break out above 20 cents. The Daily chart shows a completed 5 wave pattern down to recent lows. So some kind of bounce is due, maybe even a new bull market. An easy double or triple in any kind of extended rally.

Canadian Solar - CSIQ

I like to start these off with a really blockbuster fundamental, but, in the case of CSIQ, every damn one of these numbers is blockbuster. This is a $5 stock, down from over $50 in 2008, with $3 a share in cash, 2020% quarterly earnings growth and $10 book value.


The Daily chart is showing a completed 5 waves down with the False Bar Stochastic working its way into a Buy signal, but not quite there yet. The fundamentals here support the stock price appreciating 2,3,4 fold from current prices and still an argument could be made that's its undervalued. This is a good one to hitch your wagon to in case the market goes up any time in our respective lifetimes.

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