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Published: March 2, 2010
Last week presented investors with
mediocrity once again. Major broad-based indexes, like the S&P
500, managed to hold their collective heads below water for the
last five trading days as economic numbers failed to live up to
the hype that was built up ahead of them. So, are there breakout
penny stock charts for March 2010 to be found right now? Of
course...
The real problem now isn’t the numbers themselves -- it’s the
expectations.
We’ve just come off the heels of one of the worst economic
bubbles in our history, and many on Wall Street expect a return
to the same old way they did business... the way that got us in
trouble in the first place. Any real recovery is going to take
time, and until analyst expectations reflect that we’re going to
see disappointing results when numbers are released.
That said, companies have seen an uptick in consumer
sentiment, increased profitability, and reasonable valuations
once again. With that in mind, we’re going to take the
fundamentals out of the equation today once again and look out
for some of the best breakout penny stock plays for March 2010
on the market right now.
In case you’re not familiar, each week, The Penny Sleuth takes a
look at a list of penny stocks that are exhibiting abnormal
volume, strong technicals, upcoming news, or another catalyst
that suggested they might be making a material move in the
coming week.
As usual, while our Watchlist errs on the safe side of
small-caps, using technical analysis to tell us where a stock is
headed, we opened the comments up to readers again this week,
giving you the chance to offer up more speculative penny stock
plays.
Check out the comments after this article to get a glimpse at a
slew of new user-submitter penny stock picks -- and the chance
to submit your own!
First, though, let’s take a look at this week’s breakout penny
stocks worth watching...
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Red Robin Gourmet Burgers (Nasdaq: RRGB) -- It isn’t
just this restaurant chain’s menu that’s delicious... right now
shares could be in for a bullish setup that could deliver some
tasty profits in the coming week. In the second half of 2009,
Red Robin formed a bearish head and shoulders pattern that
provided a textbook-perfect short play. Now, with shares
rebounding in a tight trading channel and a bullish moving
average crossover in the wings, we’re betting on shares moving
higher.
Gruma S.A.B. de C.V. (NYSE: GMK) -- This Mexican tortilla
and flour producer isn’t a stranger to our small-cap watchlist.
In addition to providing a recession-resistant product in a
volatile country, shares of the Nuevo Leon-based food processor
are sitting at the bottom of an uptrending channel -- a good
spot to make a long-side bet.
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Netgear (Nasdaq: NTGR) -- Networking product company
Netgear is benefiting in a big way from a breakout above its
trend channel, a move that clears the company to higher ground.
The $893 million firm has been riding a wave of improved analyst
sentiment in the last month, and this latest breakout could make
Netgear a winner in the coming week.
Quality Distribution (Nasdaq: QLTY) -- We’ve talked about
Quality Distribution in the past here. For a
while now, the micro-cap trucking stock has been forming a
bullish ascending triangle pattern. Wait for a breakout above
current resistance, and this stock could be in store for a
breakout ride.
Jonas Elmerraji
Contributing Editor
Penny Sleuth
Note: This article originally appeared on
Penny Sleuth.
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