If the names Axxess Unlimited Inc. (OTCMKTS:AXXU) and MagneGas Corporation (NASDAQ:MNGA) ring a bell, it might be because yours truly posted some bullish thoughts on both names earlier this week. Although neither small cap stock had done everything they needed to do in order become a fully bullish trade at the time, both MNGA and AXXU have cleared those hurdles in the meantime. So, in case you forgot (or in case you missed the first look), an updated review of Axxess Unlimited and MagneGas is merited.
MagneGas, as a reminder, is a supplier of hydrogen gas... in canister form. The bulk of its customer base is ironworking shops, who can use hydrogen as an alternative to acetylene for welding troches. But, MNGA was finding a lot of new interest from the automotive and automation world, which is increasingly using hydrogen as a fuel source or a fuel additive.
As of the time of our last look at MNGA, however, we weren't entirely convinced the stock was going to be able to wiggle its way out of the January/February lull. It had bumped into a ceiling at $0.94 on Tuesday and Wednesday, and then didn't even bother testing that level on Thursday. Today, however, the bulls have gotten on their horse. MagneGas shares have punched through that ceiling, and have done so on huge volume. That's all we needed to see.
Axxess Unlimited was similarly hitting a ceiling of its own, at $0.50. That's where shares topped out and then pulled back in early February, and even with the early-March rally it looked like that resistance was going to be a problem. The buyers finally cleared that hurdle on Thursday though, with yesterday's high and close of $0.56. Although the stock has peeled back a little from $0.56 today, it's seems to be pretty comfortable above the key $0.50. Making forward progress from here isn't going to be terribly difficult (and as the weekly chart showed us, there's a ton of upside potential here).
AXXU is a web-marketing stock, though the description doesn't do the company justice. It doesn't simply build websites or provide domain-name-level e-mail service. It's doing some seriously high-end and high-caliber interactive marketing work for its clients, some of which are government agencies/division, auto dealers, and more... the kind of entities that need to know everything about their customers and users. No, Axxess Unlimited isn't a huge name, though as of yesterday, AXXU is a huge opportunity.
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