ALZM’s Stock Promotion Budget Should Have Been for R&D
Today we have an new entry to add to your penny stock list. The story is sexy and the company has traded in a volatile fashion. Does that mean the stock is going higher next week ? Not necessarily, but doing further research on equities like this one, is how you can potentially identify the best penny stocks to buy.
The company we are focusing on in this entry is Allezoe Medical Holdings Inc. (ALZM.OB) through its subsidiary, the company focuses on the development of devices for human organ transplants. The trading volume of Allezoe exceeded 10 million shares Friday and basically closed near middle of the day’s range at $2. However, this type of volume constituted a failure of testing a new high. From a chartists standpoint, the technical analysis does not look good for ALZM. On the flip side, we have seen some of the hottest penny stocks pullback from their highs only to rally again.
My concern with the shares of ALZM is not solely based on the breakdown of the chart. The company has put out several positive PR’s regarding subjects like patents and preparation for clinical trials. However, the company has undergone a massive stock promotion recently, which is not uncommon for many micro-cap stocks and is not necessarily bad for the share price. But, we have to ask ourselves one question. Would the funds that were allocated to stock promotion be better used for R&D ?
Time will only tell. So for now, monitor ALZM and add it to your penny stock list. The type of volume seen last week often leads to a volatile week. So be prepared. Also, stay tuned for more market reports, penny stock alerts and IPO market updates.
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