Small Caps to Watch (& Why): AUGT, TGC, and WGAT Reports Hotpennystocks.co

Welcome back from the holiday weekend everyone - hope you're ready to rock and roll. Why's that? A handful of today's juiciest small caps have already nominated themselves as trading candidates, including Tengasco, Inc. (AMEX: TGC), Augme Technologies Inc. (OTC: AUGT), and WorldGate Communications, Inc. (PINK: WGAT). Here's a closer look.

My how quickly the tide can turn. A month ago the masses were assuming the worst for Augme Technologies Inc. The stock had fallen from a peak of $4.77 in March to a low of $2.18 by the second week of June. (Doh!) Worse, AUGT had fallen under every key moving average line in the meantime, deflating any lingering hopes of a quick bounce back.

A funny thing happened on the way to disaster though.... the bulls finally fought back when things were at their bleakest. Jump-starting the rebound with a crystal clear reversal bar on July 10th [the day the low of $2.18 was hit, but also the day AUGT raced back to close at the high of $2.50], we've seen nothing but high-volume buying. The 200-day moving average line (green) tried to cap the effort from mid-June on, but even that failed to hold the Augme Technologies bulls back on Friday.

Speaking of small caps that have turned the tide, take a look at WorldGate Communications. The bulls really shook things up - for the first time in years - in mid-June after pushing off a floor around $0.025 and reaching a high of $0.09 in the 15th. Of course on the 16th it all looked like just another small stock fakeout, as WGAT gave all of that progress up with a high-volume pullback to close at $0.04. (Doh! #2) Since then though, we've just seen stability and sideways....which beats a sharp stock in the eye.

You know what though? While WGAT hasn't been rekindled (yet), I'd be more willing to bullishly speculate oin this one more than I would most others for one simple reason. What's that? I'm 100% serious when I say this - WorldGate Communications was voted as one of the market's top three bearish stocks today, according to investors. Given that traders made a specific point of going out of their way to say a modestly-bullish stock was a bearish one just says something good is brewing, and they're desperate to talk it down.

That, or I'm totally wrong. The $0.061 mark is the Mason-Dixon line.

Last but not least, another of the sneaky small caps that's fighting its way back when nobody seems to expect it is Tengasco. After the move from March's peak of $1.50 to a low of $0.64 three weeks ago (Doh! #3) - a move that carried TGC under all of its moving average lines to boot - a lot of folks just mentally wrote it off. Take a closer look at the chart though, and see if you spot two subtly compelling details.

The first one is the sheer lack of volume we've seen on the way down. The second is the fact that TGC has crawled back above a couple of key moving average lines, and is knocking on the door of a ceiling at $0.78. If it can clear that along with the 50-day line at $0.79, then (and pardon by Jim Cramer-ism) boo-yah.... is that how you spell it? Anyway, Tengasco is a classic case of "expect it when you least expect it." And, though you can't tell it on this daily chart, there's a pretty decent history of breakout moves from this small cap stock.