Saturday, January 17, 2009

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.
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.



Anonymous said...

Ahh Allan:

I awoke this morning moored here off the island of Scorpios, uplinked to the internet from my yacht, and was pleased to see this post.

This is the type of post I like- one which allows me the latitude to pick "specific fruit from the tree of life."

In this case "the Tree of Life" is your acumen.

Let me do further examination and then, as always take a large position in one or more of the fruits- fruits that are as if they fell from the table of The Gods on Olympus down to us mortals with your collecting them up for us and showing us your find.

Southern Greece

Anonymous said...


Are we readers not overdue for a post about your life story? It has been some time since we've seen the personal side of Allan and is this blog not entitled "ALL Allan"?

As usual your market picks have been spectacular, your readership is rising and this blog is a meeting place to learn and trade.

But what about the private man? How are his three offspring doing? What is the dating scene like in Phoenix? What is your lifestyle like? What are his private thoughts?

All of these are fair game. Lately ths blog has just been about "Gimme more returns, and shut up."

Should we rename it "SomeAllan?"


Anonymous said...


Please, this is a trading blog. I expect to make big $$ off of Allan's back. That is what I am paying him for after all.

He can keep his personal life personal. just show me the damn money. Not a bunch of charts. I cannot spend charts.


Anonymous said...

If I were betting on solar stocks continuing to do well this year, I would pick up some CSIQ Apr 5 calls. Based on technicals, looks to me like an easy double.


abot said...

This is the type of post I like- one which allows me the latitude to pick "specific fruit from the tree of life."

May you share how you go about this Mr. Leonidas?

Cheers from Southern America

Anonymous said...


thank you for thoughts on ACTC. I think we are very early on this one and its got a long way to go...


Anonymous said...

Dear Mr. Abot:

My methods of selection from Allan's picks are semi-proprietary but I use basic fundamental analysis (ratios and other things) to compare his various picks to each other, rather than to the market itself. Or to anyone else's picks, for that regard.

Then I wait for a small retracement and buy into those with the best fundamentals.

In this case "best" may equal "bad, but better than those of the other picks."

Then, as they move up, I use trailing stops at resistance points behind the rising equity.

This is the way I approach AllAllan.

So I am most pleased when he presents us with a list of fruit like this one instead of one at a time. It makes it less time consuming on my end.

Southern Greece

abot said...

Thanks for sharing Leonidas. You have been pointed as a good filter of Allan's picks.

Enjoy your beautiful landskape

thinking above my pay grade said...


adult stem cells pluripotent
adult stem cells treatments

NOTE: Last I heard, women had to be given LOTS of fertility drugs to overstimulate egg production.

Is this a health risk??? Well...the question "Have you been given fertility drugs?" showed up on my last gynecology questionnaire..

Thus, if long term fertility drug damage is incurred by enough women, expect a repeat of the silicone breast injection lawsuit!!!

SO...back the WINNER - and still Champion-- the ASC Adult Stem Cells!