The Microcap Speculator

• UBS upgraded Golden Star Resources (GSS) to neutral. I think GSS, and gold in general, have a ways to go.
• Considering microcap solar companies? Not me. The smart money is leaving solar energy, not entering it. By my count, in the past year at least ten solar companies have been sold to the public having an aggregate market cap. of over $20 billion (CSIQ CSUN FSLR JASO LDK SOLF SPWR STP TSL YGE). I’m sure there are more that I have overlooked. The problem here is that the market looks saturated. Only a few have decent charts and some are looking like broken IPOs. While there are plenty of microcap companies in this area, I’m staying away.
• Birch Mountain Resources (BMD) was up over 10% today on news that it signed a multi-year deal to supply aggregates to Suncor Energy. If it can clear resistance around $3.90, BMD could make another run.
• Haven’t heard a whole lot lately from the ZVUE (articles) Crew. This company needs to fold its money-losing hardware biz quick and put its internet properties on the block while it is still solvent. Investors have lost a lot, but they don’t need to lose everything.
• I’m taking another stab at Newmarket Technologies (NMKT.OB) (articles). Finally, the company appears to have settled on a strategic plan. While the partial spinoff and multiple listing of subsidiaries would not have been my approach, at least the company no longer looks like it is flopping in the wind. My buy may be premature–I expect the next few months will be tough for Newmarket. The strategic moves and restatement have diverted management resources and likely cost more than originally anticipated. Still, if the company delivers its projected $120M in revenues and increased profits for 2007, I think the stock will rebound solidly. And yes, I realize that’s a big “if.” I’ll keep this position on a short leash.

DISCLOSURE: I am long GSS and NMKT.OB. I have no position in the other stocks mentioned, except for a very short-term short in FSLR. Not a recommendation to buy or sell any security. For informational and educational purposes only.

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