Venture Capital Headed (Mid) West?

This blog mentions the likelihood that smaller, low cost markets might be getting more investment from Med-tech companies. Should we expect the next great medical technology stocks to come out of the Midwest? LECT, LecTec is a stock to watch as it bounces around $3. They are positioning themselves to be bought up by a larger company. It's a small operation with only 2 employees, but their model might be one we soon see coming out of places like Sioux Falls, SD. Sioux Falls is ready for venture capital investment.

Low Volume Strategy Remains a Winner Through Downturn

I was making money the whole time when the stocks went through their recent downturn. My current list of low volume stocks to trade are:

CAGM
JUHL
KINS

JUHL Wind Increases Revenue

JUHL Wind's recent revenue report briefly piqued interest in this small green energy company. Watch for its stock price to settle back into old patterns once the news fades. But with it reporting a 700% increase in revenue, don't doubt that it is a long term winner with the ability to play nice in the short term.

China Green Materials Opening Up New Markets

CAGM is a company that makes a disposable product in high volumes. Such a company is poised for sustained growth as it opens up new markets. Recently the company announced that it was beginning sales in Europe. They are finding support around $2.30 these days.

JUHL wind sustains pattern

Weeks ago I blogged about the patter JUHL had established of bouncing between 1.85 and 2.00. Made money off of that pattern, but JUHL continues to be a money maker between 1.76 and 1.85, reflecting the downturn in the general market.

CAGM proves a winner

This stock is great example of a low volume stock that leaps out of its head and shoulders pattern to new heights. Keep an eye on this one. It could slip out of favor again, making it a bargain buy.

JUHL Juhl Wind– and the Rules of Low Volume Trading

Rule #1: Never own a stock that's not worth owning.

I like JUHL because is in a growth industry and manages its debt well.

Rule #2: Only trade what you do not need soon.

Because it may not be easy to get a buyer when you need one, this strategy is for money that you will not need any time soon (within the year). While this makes low volume stock less attractive, that is precisely why we get to profit where others take a pass.

Rule #3: Know the history of a stock.

Low volume stock develop trading patterns over months and years. Check out where the low and the highs are for the last 6 months. Look for ping pong pattern bouncing between these buy and sell points. These patters develop as the price bounces between the bid and ask price. Ride the spread, and patiently wait for those periods of increased activity. In the case of JUHL, the price has been bouncing between 1.82 and 2.00 for nearly a year. That is a 9% gain every time you are able to complete the trade.