Small Cap Network's  Instablog

Before trading Optigenex, CytRx Corporation, Dana Resources, or Lifeline Biotechnologies, think about this.

Like any other day, today certainly holds the promise of some interesting activity within the micro cap world. However, Optigenex Inc. (OPGX.PK), CytRx Corporation (CYTR), Dana Resources (DANR.OB), and Lifeline Biotechnologies, Inc. (LLBO.PK) are poised to be particularly interesting. Here's a closer look at why traders will want to keep close tabs on each one as today's session gets rolling.

Optigenex Inc. (OPGX) hasn't made any wave with company news lately, but that hasn't prevented the stock from being one of the most heavily accumulated (relatively) yesterday... the reason it's being examined today.

And, it may not have been a totally bad idea. OPGX does indeed look like it's pushing off a support line at $0.002 and trying to make it's way back up to $0.005. Of course, there's an alarming lack of follow-through today.


What's odd about all those buy transactions, is in fact, the lack of news; what did those buyers see in the absence of any Optigenex news? That's why this is more of a trade than an investment.... questionable longevity.

Optigenex makes proprietary next generation skin care and supplements. Their AC-11 is a bioactive, water-soluble form of the medicinal herb Uncaria tomentosa (whatever that is).

CytRx Corporation (CYTR) was also one of yesterday's most-accumulated (relatively) stocks, and it didn't get off to a bad start today either with a strong bullish opening gap. Both sets of buyers may have exercised poor judgment though.

The reason for Tuesday's buying was most likely the assignment of a four-star ranking (out of five) from Natixis Bleichroeder. The reason for this morning's buying is most likely the announcement that its INNO-206 tumor treatment candidate has shown significant tumor shrinkage in animals with small cell lung cancer.

We applaud the progress, but it's not a reason to buy the stock. Indeed, if anything this stock is still trying to correct its overbought condition from late July.

Between the gap and the fact that CytRx shares have been falling since the open, CYTR is more of a sell than a buy.

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Dana Resources (DANR) was easily one of the cyber-world's most-promoted stocks yesterday evening, with accolades such as "insanely undervalued" and "the most undervalued gold stock I have ever seen" flowing like water. When it's being laid that thick, investors beware.... any strength is apt to be temporary at best.

As it turns out, in Dana Resources' case, the pumping effort may have backfired. Not only have DANR shares not responded to the recommendations, but the stock's continued its downtrend.

If support around 49 cents breaks down, DANR could really be in trouble.


The message boards are being lit up by pink sheet company Lifeline Biotechnologies, Inc. (LLBO), and for good reason.... the stock was featured in a handful of speculative trading newsletters yesterday evening. Though the longevity of the effect is questionable, that could certainly fan the flames for Lifeline Biotechnologies today.

Overall - and despite (because of?) the pumping effort - LLBO actually does look like an interesting upside play. Shares are just coming off a multi-week low, and were close to making a multi-month low.  The pattern, however, is the key.... this stock has made a habit of making big moves between $0.002 and $0.2, and now that pattern is calling for a return towards $0.02.


The company doesn't seem to be helping the matter with any good news. The last we heard from this maker of medical diagnostic software was that they'd made an initial inquiry with the FDA for its Early Warning System for the detection of breast cancer. That was back on the 3rd though.

If you'd like to know of any changes in our opinion of these four stocks (or if we officially recommend them as trades), be sure to sign up for free newsletter today. It's delivered 2 to 3 times per week.