Market Overview

Pedone Watching, China Finance Online

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In this week’s email to subscribers, independent trader and technical analyst Roberto Pedone takes a look at a few interesting small and micro-cap stocks.

Below is a quick glance into two micro-cap services stocks that he likes. Inc (NYSE: CRCM) is an online marketplace for finding and managing family care. “That hammer candle looks like the bottom or...near close to it off that $5.66 print,” he explained.

The trader believes this is a good swing candidate or short-term trade if the stock can clear its 20-day at $6.32 and then close to $6.60 with volume.

The float is low and there are lots of shorts, with 16 percent of 12 million shares float sold short. “Remember, a hedge fund recently took a decent stake here,” Pedone concluded, possibly Tenzing Global Management, which disclosed a position with 2.2 million shares on May 22.

China Finance Online Co.

The other stock Pedone likes is China Finance Online Co. (ADR) (NASDAQ: JRJC).

The investor explains that he likes “hot charts of stocks with low floats and lots of shorts [because] (…) when they get volume they can explode and rack up big gains fast.”

So, as the Chinese stock market continues to surge, this play “makes a lot of sense from a theme perspective.”

“Combine that with the low float of 11.5 million shares and the high short interest at 15.9% and you have an explosive idea here,” Pedone concluded.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Roberto Pedone Tenzing Global ManagementAnalyst Color Small Cap Analysis Trading Ideas


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