I want to do a quick refresher post here on BEHL. BestOnlineTrades first mentioned BEHL on 7/23/2009 close to 3PM eastern time. On that day the intraday low for BEHL was .021 and the intraday high was .0255. It closed at .0255 .
Today BEHL closed at .0365, 43.14% higher than when it was mentioned on that day.
The price structure and performance so far still looks quite promising to me. I indicated before that I liked the clean volume advance which looked like heavy accumulation and the rapid decrease in volume on the retracements. And as a bonus that volume and price action was coming off of a fairly long flat base of 7 to 8 months in duration. This is important because many times it shows that a stock has entered a major new uptrend phase, or mini bull market if you will.
But the reality is that most penny stocks simply do not make it too far into their new mini bull markets. They try and they fight to get higher but a lot of them just can’t get enough steam going and either the price advance is TOO LABORED, too slow or the retracements in between are too large and cause the advance to lose too much energy. These things can kill the advance and cause the move to be a false one.
But so far with BEHL we are not seeing that. We are seeing a steady advance with pretty solid price performance so far in the form of a rather steady uptrend. We have not seen a massive price blowout yet that would be a cause for concern that the uptrend has exhausted itself. So far so good.
Another interesting aspect to this penny stock is the size of the industry it is in, alternative energy and green energy. Although not a requirement, sometimes the size of the market helps a lot with the price of the stock. Plus it also helps to see these microcap stocks show TANGIBLE signs that they are actually working on something that will one day produce real revenues. In the final analysis a penny stock may never really produce any substantial revenues, but up until that point if investors see that they are really MOVING on a tangible product or innovation, it definitely helps to support the price of the stock. That has what I have seen over the years separate the weak from the strong penny stocks.
Many times you will see a microcap stock issue many press releases about progress they are making or new deals they have arranged, but unless there is that sense that it is REAL and TANGIBLE, and there is plenty of forward momentum in their actions, the stock can end up flat lining or just drifting into oblivion.
A couple other observations. GreenerDawnInvestmentGroup did a research report on the emerging algae industry. You can download the abstract of the PDF report at that link (you have to give lots of personal details) but the full report costs over $3000. Anyway in the abstract I found there to be a couple very interesting points.
Accounting for the difference is algae’s unparalleled ability to grow much more rapidly than any traditional crop. First, algae are the most photosynthetically efficient organisms, meaning they convert more sunlight to energy than plants. Second, algae benefit from a potentially year-round growing cycle, depending on cultivation method and location. Third, algae can grow from beaker in the lab to commercial density in the field in days, enabling near constant harvesting. This compares to growth cycles of three to four months for soybeans and rapeseed, four to six months for corn, and longer than eight months for sugar cane.
That last portion of text is really significant in my opinion when we consider how crucial energy is. Speed to market is a big deal in my opinion. The long growing cycles of the other crops to me is a huge disadvantage. I mean imagine if DELL had to wait 4 months or turnaround time before they can sell each new batch of computers. And those are computers, which are a nice to have, but we NEED energy, especially in times of crisis and when shortages start to become more pronounced from the peak oil effect.
They also list in the report 8 leading Algae to Fuel companies. As far as I can tell only one of them listed is traded publicly, Petro Algae (PALG) which trades on the OTCBB. All the other ones are in venture stage. So it would seem that we are in the early stages of this industry. What I find quite fascinating about PALG is that it currently has a market cap of 3.42 BILLION. That is simply astounding to me. About a year ago it was trading near 8 cents and now it is 33 dollars and change. And without even a dollar in sales yet! Also the stocks trading is on very spotty volume. There appears to be very poor liquidity and for a good portion of June and July there were no trades. So I just take that as a sign that this industry is still for the most part undiscovered.
I don’t think I can make a fair comparison between PALG and BEHL. BEHL trades on the pinksheets and currently has total outstanding shares of 621 million. For BEHL to be valued the same as the OTCBB stock PALG it would need to trade at 5.50 . I don’t know if BEHL could ever trade that high, but can it get to 10 cents based on everything we know about this promising industry and given how constructive the chart currently looks? I believe that to be the case. It could probably get to 20 cents as well based on the structure of the chart. This chart looks similar to some other pinksheet stock patterns I have seen. The left portion is rather clean looking, and there is not too much resistance until .20 cents. Of course this is all speculative guessing on my part. How the chart continues to form will be the key in determining where it may go next.