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Advance Notice - Looks at HLXW, ROSV, and IVFH

Small cap stocks Innovative Food Holdings, Rostock Ventures, and Helix Wind are sliced and diced.
By James E. Brumley

It's far too easy to be lured by one day's worth of gains from a stock. All too often, chasing that performance leads to disappointment, as the rally itself is a one day wonder. The key is to find stocks that are being slowly and methodically accumulated, especially if you're venturing into the world of OTC bulletin board names. Here are three such stocks that are being methodically and persistently bought now - and mostly without the help of news.

While I'm not thrilled with the tepid follow-through today, I'm still quite encouraged by the net progress we've seen from Helix Wind Corp (OTC:HLXW) over the last five days. The bleeding from earlier in the year has stopped, a sideways trend has been established (at least), and it looks as if the bulls are testing the waters here; this small cap OTC name has moved above a couple of short-term moving averages, and done so with a truckload of volume. Something's up.

Like I said, I'm not thrilled with today's action and lack of volume. Helix Wind Corp. does deserve a break though. Let's grant it, for a while. In fact, let's not jump the gun at all. Rather, let's just say that a move above the mid-June peak of $0.018 is our make/break line (blue). If this small cap can get over that hump, it will have by default cleared all the other hurdles. And, given the setup, I don't think such a move is too far down the road.



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On the chart of Rostock Ventures Corp. (OTC:ROSV) below, it looks like all the accumulation/buying is only materializing today. That's not quite the case though. While it's true today's a huge buy-in day, what you can't see for this small cap is the persistent net buying over the last two weeks.

What's interesting - in a compelling way - with ROSV is that the stock's price itself hasn't yet surged (and notice I said 'yet'). Given the fact that we're seeing bullish crosses of moving averages now though (the 10 and 20 day lines), something's brewing. In fact, I'd be willing to bet Rostock Ventures start to accelerate from here.... which is what the bulls have been working on for a while.



I'm opting for a weekly chart of Innovative Food Holdings, Inc. (OTC:IVFH) rather than a daily chart, because I want to show you the scope and seriousness of what's good and bad with this bulletin board stock - it's a bigger picture idea. To be clear though, IVFH popped up on my radar because of its recent accumulation.   

In the grand scheme of things, Innovative Food Holdings is trapped under a ceiling.... two of them, actually. One's at $0.0081 (which was leaped today), and the other's at $0.0089 (which is being tested today). Both are marked in blue.

At first glance, it just looks like this OTC name is ebbing and flowing, with no net progress. If you look closer at where those moving average crosses have occurred since late 2008, you'll see IVFH is actually making progress.... two steps forward, and one step back [i.e. the crossovers are occurring at higher and higher prices]. One of  these days, the ebb and flow is going to push Innovative Food Holdings over the hump.

Unfortunately, I don't think today's the day. This bulletin board play has become radically overbought over the last two weeks, and now it's time for some of that bearish ebb. I do think it's something for your watchlist though, considering we're seeing higher lows and a bigger-picture bullish trend. The $0.0089 mark is the key, but we need a healthy move above it, rather than a tired one.



If you liked these 'early warnings' on ROSV, IVFH, and HLXW, be sure to sign-up for the SCN Newsletter today! Each week, we'll send you more of these budding ideas before they completely unfurl and lose their trade-worthiness. Best of all, it's FREE. For more articles like this, visit our website www.smallcapnetwork.com


Disclosure: No Position