Here is the watch list of penny stocks for Jan 11, 2010

Pacific Ethanol, Inc. (PEIX: 1.90 0.00%)
Cyclacel Pharmaceuticals, Inc. (CYCC: 2.35 0.00%)
Cell Therapeutics, Inc. (CTIC: 1.08 0.00%)
Adventrx Pharmaceuticals, Inc. (ANX: 0.2198 0.00%)
Adeona Pharmaceuticals, Inc. (AEN: 1.01 0.00%)
CRM Holdings Ltd. (CRMH: 0.389 0.00%)
YRC Worldwide Inc. (YRCW: 0.5192 0.00%)
Targeted Genetics Corp. (TGEN: 0.00 N/A)
MTR Gaming Group, Inc. (MNTG: 1.94 0.00%)
OpenTV Corp. (OPTV: 1.55 0.00%)
Vonage Holdings Corporation (VG: 1.52 0.00%)
GenVec Inc. (GNVC: 3.05 0.00%)

Here is the stock watch list for December 28, 2009.

Athersys, Inc. (ATHX: 3.11 0.00%) – Although Athersys failed to reach new highs on Thursday, it did manage to gain $0.24 per share to close at $5.52. It might breakout and go over $6 or pull down to mid $4’s. Watch out for the trend.

Compugen Ltd. (CGEN: 4.85 0.00%) – On December 23, CGEN went from $2.76 to a high of $5.45 and then on Thursday, it pulled back to $4.08. That was a 13% pull back. CGEN ran up because of the same reason as the ATHX – Pfizer deal. If CGEN follows the trend of ATHX, then we might have a run to mid $5’s on Friday.

CitiGroup. (C: 3.82 0.00%)- For me, Citi may not be a BUY for the short term, but it is a big BUY for the long term. It has paid back its TARP money and the United States Government will soon sell their Citi shares. There is no reason for Citi to stay below $4 in the long term. I would suggest to buying Long-Term Equity Anticipation Securities (LEAPS) or long term Options for Citi.

Fannie Mae. (FNM: 1.07 0.00%) and Freddie Mac. (FRE: 1.28 0.00%) – Everyone knows that FNM and FRE are both dead stocks, but they never seem to give up. After the market closed on Thursday, the treasury removed cap for Fannie and Freddie aid. This means, they will receive as much assistance they want to survive. This news might cause these stocks to make a short run up. Watch out for them.

Gannett (GCI: 16.06 0.00%) – Wells Fargo upgraded Gannett to $18, but as advised by TheStreet.com, we are going against the grain and selling GCI.

Penny Stocks Watch list for December 28, 2009:

YRC Worldwide Inc. (YRCW: 0.5192 0.00%)
SIRIUS XM Radio Inc. (SIRI: 0.9108 0.00%)
E*TRADE Financial Corporation (ETFC: 1.68 0.00%)
Zevotek, Inc. (ZVTK.PK)

StocksNewbie recommends Zecco.com(aff.) to trade Penny Stocks.

The stock trend of Fannie Mae (FNM) and Freddie Mac (FRE) has been utterly predictable. The stocks rise up (together) to about $0.95-$0.98, once every month or so and then die down.
Luckily, I have been able to buy them when they are down and sell when they are at their peaks. I sold mine today at an average of $0.90. But, I can kind of guarantee that it will go down to 80 cents or maybe even 70 cents and then go back up and down and up and so on………
Don’t believe me? Look at their charts. It is like a freaking wave. I urge my readers to be careful with these stocks because they seem predictable in a long run, but very risky if you are a day trader.

FRE stock Chart

This is probably the reason for the sudden increase in the price of the stocks today:

The federal regulator who has overseen Fannie Mae and Freddie Mac since the government seized control of the two mortgage finance companies last year plans to leave the government by the end of this month.

In an interview with The Washington Post on Wednesday, James B. Lockhart III, the director of the Federal Housing Finance Agency, said he will return to New York and work in finance.

Lockhart has spent about eight years with various federal agencies in Washington. He has led the FHFA and a predecessor agency for three years.

“I actually didn’t expect to stay as long as I have stayed,” he told the Post. “Given what happened a year ago, it meant I had to help work our way through this. Now we’re at the point where we’re seeing some stabilization.”

D.C.-based Fannie Mae and McLean-based Freddie Mac were put under federal conservatorship in September and received billions of dollars in federal aid as mounting problems with bad loans threatened their solvency.

In the Post interview, Lockhart said the Obama administration is reviewing its options for the future of the two companies, including spitting up both of them, establishing a government-backed entity that would absorb their loan losses and setting up another organization that would provide housing finance.

Lockhart’s replacement has not been named yet.

Source

I will probably buy them back if the price goes down to 0.70’s.

Midex Gold Corp. (OTCBB: MDXO) is a penny stock. It is a gold and mining company that has only been trading for less than 20 days.
There are only 2.5 million shares in the float, but the demand for this stock in huge. At the close of July 23, 2009, MDXO put out news that its board of directors has approved a forward split of its common stock at a ratio of five to one.

So, for each outstanding share you have you get five ( Price per share is also divided accordingly to keep the market capitalization same as the previous business day). Investors are taking advantage of this split and there is still time left for you. The stock split will be effective August 10th, 2009.

UPDATE ON FORWARD SPLIT:

The company informs shareholders that the 5 for 1 forward split is delayed while waiting on FINRA approval and processing. Management expects approval shortly and will inform shareholders as soon FINRA provides an effective date.

This means that forward split has not yet taken place in case you were wondering why you did not get your split stocks.

Here is a short profile of MDXO.OB

Midex Gold is positioned to take advantage of Tanzania’s rich mineral resources by developing a select portfolio of near-term gold and diamond production projects. With the company’s network of strategic relationships with senior mining professionals and government officials in Tanzania, it is poised to identify key mining concession targets that are ready to be developed.

Midex Gold Corp. (OTC.BB:MDXO – News) (www.midexgold.com), management announced today the company’s five shares for one share forward split of its stock will be effective August 10, 2009. “With this restructuring of the Midex Gold shares and our 100% ownership of the Magembe Diamond Property, we are rapidly moving forward to ensure our shareholders receive the maximum return possible for their investment in our company.” stated Morgan Magella, president of Midex Gold. “Our forward split of the five shares for each share issued should yield greater returns for current shareholders. And with the acquisition of our diamond property located directly next to the world famous Williamson (Mwadui) Diamond Mine, we believe that investor interest will only continue to grow in Midex Gold.”

Not all online brokers allow you to buy penny stocks. I bought mine through Zecco.

Disclosure: As of today, I only own 1000 shares of MDXO.OB. I might buy more shares of MDXO or sell these shares depending on the market price tomorrow. Again, I must insist that I am not a certified financial adviser. Please buy or sell any stock mentioned here after consulting with your own financial adviser.

Some define penny stocks as stocks that are trading under one dollar per share while some say they trade under five dollars. No matter what the exact definition is, I believe you get the idea that price per share of a penny stock is low. They are cheaper to buy compared to “normal” stocks, but the associated risk is also significantly higher.
They are not traded in the major stock exchanges in US such as NYSE, NASDAQ or AMEX, hence the reason that the daily trade volume is very low. Although, some penny stocks do have high daily trade volume. Penny stocks generally have low market capitalization and are traded over the counter (OTC) through service such as the Pink Sheets or the OTC bulletin board. Penny stocks are sometimes also referred to as microcap stocks, small caps or nano caps.
These are the things that comes to my mind when they say penny stocks.

1. There is a reason they are selling for pennies. The company is not doing well and it is moving towards bankruptcy. Investors do not expect any return or benefits from this company and if you invest here you will loose your money.

2. It is a new company which just began trading publicly. Since it is a new start up, it is hard to tell how they will perform. Before investing, you might look at their assets, both physical and intellectual to see what kind of services or products you might expect from them in the future. You might also check how strong their competition is and if you think they will be able to get a significant market share for their products or services.

3. The third and probably the best kind of companies to invest in are companies that are undervalued for no apparent reason other than the investors’ lack of trust and/or fear. For example, Citi (C) became a penny stock for a day or two because of the wall street meltdown. Those who were smart enough to load their bags that day saw an extremely generous return for their investment.