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.