Trade Alert: A Microcap Gem
Taking advantage of the market pullback.
Everything But The Setup
This one has come up on my screens periodically this summer, as it scored well on a number of metrics:
A Piotroski F-Score of 9 (out of 9).
A profitability rating of 9 (out of 10) via Chartmill.
A technical rating of 8 (out of 10).
No debt.
An Altman Z-Score over 12 (where scores over 3 indicate financial strength).
No insider sales in the last year.
Heavy insider ownership, comprising more than half of the stock’s float.
The one thing it was missing was an attractive setup rating, which is a measure of technical consolidation. Now it has it, and I’ve placed a options bet on this stock continuing to do well over the next several months.
But this stock actually has a dividend, and it’s also one you could hold in your IRA and let the dividends reinvest, if you’d rather take that approach.
Details on my trade below.
