MCX (Amex) trading float under 3 mil - NatGas / IBD100 play

Discussion in 'Stocks' started by wexin2000, Jan 3, 2006.

  1. A few weeks ago, it barely missed debuting on the Investors Business Daily Top 100 list. The requirement for it or any other company that meets IBD high earnings (EPS) and relative strength (RS) criteria is that the stock needs to close at $15 or above on any given Friday. Unfortunately due to falling Natural Gas prices and profit taking, the MCX peaked on December 13-15 and then proceeded to have a pull-back of as much as 28% (from the all-time high & overbought condition). Now, the pullback is done and the stock has started to trend higher (up 11%) since December 28 low print of 11.67. Here are some interesting charts to look at:,uu[h,a]daclyyay[pb30!b50][vc60][iUp14,3,3!Lb14]&pref=G,P&listNum=

    As one can see, the MACD and the Stochastics are turning up, and the 30 / 50 day moving averages have held nicely. The Point and Figure chart (the second link) is giving MCX a $20.25 price target.

    In case you are not aware what exactly MCX does, here is a part of a note that was posted on (#1 ranked stock information service by Barrons / WSJ) on December 28 for its subscribers:

    “MCX operates a fleet of 16 vessels that includes 10 liquefied petroleum gas (LPG) carriers, 4 container vessels and 2 small general cargo ships. In Q3, the co's EPS jumped to $0.33 from $0.04 on revs of $9.8 million, up 21% yr/yr. The co has begun negotiating new contracts for the vessels whose charters expire in the near term and is optimistic about its prospects. MCX has among the highest exposure to natural gas that we could find among the cargo shippers which explains the recent pullback in the stock. However, natural gas prices are expected to remain fairly high over the next year or so. Of note, five of its six small LPG tankers are due for renewal between Dec-Jun and the co should be able to secure current market rates at renewal which would be an improvement. Also its recent financial restructuring has improved its balance sheet.”

    So as you can see, MCX is in one of the hottest market areas: Natural Gas. The fact that two reputable analyst firms have recently started to cover the security tells us that it will get more and more exposure. MCX was initiated (six weeks ago) by Fortis Securities as a Buy with a $19 target and Cantor Fitzgerald raised (three weeks ago) their price target from $12 to $16 with a Buy rating. The company also pays a regular quarterly dividend and has very low trading float of around 3 million shares).

    Please do remember one last thing: When MCX can close above that “magical” $15 mark on any given Friday, it will then join the elite IBD Top 100 list. This will give further spotlight for holders of MCX security.

    While I personally already own shares of MCX and think the stock will eventually reach my “personal” price target of $19, I encourage you to do your own due diligence.

    Best of luck!

    P.S. MCX just announced (today, January 3 at 7:10am) a dividend of 6.25 cents per share.
  2. I don't think anyone here interest in low priced stock with less than 50k in avg daily volume.

    Didn't Bill O'Neil says don't trade stock with less than 100k daily volume?