Weekly Summary

There have been a few changes in my portfolio this past week - for the better, mostly, and I'm generally pleased with its performance thus far:


Granted, much of the gain is due to GOGB, which is still trading in small quantities - but it's been going on for so long that I'm beginning to doubt whether it's one or two individuals goofing around with the stock price. All the same, it's not attracting many buyers, and volume remains unremarkable.

I also feel pretty smug about dumping E-Trade at $4.12 a share earlier this week - it's slipped further (closed at $3.74 today) and the cheery news has dried up. While none of the major analysts have downgraded it lately, that's bound to happen. I only wish I had smartened up a month ago, when it peeked over the $5 mark.

Averaging Down

When it comes to penny stocks, I'm generally not a fan of averaging down - it's sending good money after bad to double your holdings in a stock that's plummeted in price and shows no sign of recovery.

However, when a stock seems to be picking up after a long slump and signs seem positive, it can be a good idea - and that's just the case where Revlon (REV) is concerned. The company seems to be getting back on its feet, and it's getting good buzz in the financial press, and since I have the cash lying fallow, I've decided to double down on this company ... here's hoping it pays off.

Bell Buckle Holdings (BLLB)

I lamented not getting into the game with Bell Buckle Holdings, a company I had been watching for some time but was reluctant to get involved with. The stock bounded from .0017 to .0048 in a short period of time, and my remark was "let's see where it stands a month from now."

A month has passed, so I figured it was worth mentioning that the stock peaked at .0051, fell to the low .0030's, and has slowly sunk back to around where it was at the beginning. I had been hoping to ride the excitement in anticipation to its OTC move (which never happened), and just didn't have the guts to jump ... so I missed out on that one.

That's the way it goes, sometimes.

Far East Energy (FEEC)

Company:	Far East Energy Corporation
Web Site:	http://www.fareastenergy.com
Purchase Price:	$0.42
Current Price:	Click Here

Far East Energy Corporation is a domestic firm (headquartered in Houston) that is working with to develop the natural gas reserves in China's the Shanxi Province, where there are considerable unexploited reserves of natural gas and coal.

After a lot of hype, the price of the stock soared to a peak of $1.60 summer, but speculators lost patience while waiting for the company to test and prove the production capabilities of an area hyped as having the potential to become one of the largest and most profitable sources in the world.

The company has recently completed a four-month exploratory study of the region, and the results have been positive, and I expect that the fever could catch again, and the price of the stock could go back to those same levels. And so, I'm getting in early and hoping to cash out on the next wave of enthusiasm.

Directed Electronics (DEIX)

Company:	Directed Electronics
Web Site:	http://www. polkaudio.com
Purchase Price:	$1.68
Current Price:	Click Here

Directed Electronics is an established manufacturer of mid-range home audio products and has been around for years, struggling to find its niche. Historically, its products were too expensive to attract a mass market, while their products were not up to the level demanded by audiophiles who pay a premium price for high-end equipment.

Recently, the company has come out with a line of accessories for the popular iPod music player that are being carried in Apple stores and discount retailers. The company has also been able to make a substantial reduction in its debt (in the proper way - with cash flow rather than equity).

The stock price has shown a slight upturn, and given the improvement in their capital structure and refocused product positioning, it could be the beginning of a significant uptrend.

Out with ETFC

Today, I sold out of my position in E-trade. I bought into the company earlier this year, and my sense at the time was that it was headed for a turn-around ... and the stock rallied to over $5.00. But then, the new CEO made the statement that he had no intention of divesting the company of the subprime loans that are dragging the company down, and the price has been slipping ever since.

The stock regained some footing last week, with the swings in the market, but I no longer have much confidence that it will make a full recovery, so I've gotten out before it continues back along its downward trend.


In all, I've no complaints about the money I've made here - it's a very tidy profit, but I don't want to get caught holding the bag and hoping that the CEO gets over his insistence on hanging onto the "assets" that are dragging the company down.

Weekly Summary

In spite of a turbulent week on the big boards, prices of penny stocks have remained realtively stable, and damage to my portfolio has been minimal:

My total loss for the week comes to less than $100, with no notable losses (or gains, for that matter) in any of my positions.