Looking for a risky bounce play? Keep your eyes on NGAS (Natural Gas Resources). After announcing widening Q3 losses shares plummeted to a new 52-week low of .35 during trading on November 10th. This price also represented the lowest price the company has seen in the last 5 years. Can’t say I’ve had time to do my due dilligence (DD) to figure out the cause of this drop as of yet, but I will in time. All I know is that anytime a NASDAQ stock with a long history and a 50 day MA of .73 makes a significant drop on the heels of an earnings announcement I’m ready to buy the fear make back a few bucks. I’m going to be watching the action on this one very closely the next couple of trading sessions. If we see a continued drop tomorrow I will hold of and wait till a new bottom is formed. At the first sign of a turnaround I may look to scoop up some cheap shares and maybe snag a quick 10-15% gain.

NGAS - 3month chart (11/10/2010)

NGAS - 3month chart (11/10/2010)

* Note – There is a rumor that NGAS may be mulling over a sale of some or part of the company. This could be good or bad news for the share price depending on the deal that is struck.