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They tell me the Mobile App sector is hot, but this is ridiculous. Today's idea just absolutely exploded off the screen last week, and this could become one of the hottest and most talked about Penny Stocks of al time.
It's worth noting last Monday's idea- Imperial Resources (IPRC) at $.49 - is now trading at $.64 for a net gain of 30%!!!- now, I know in the penny stock genre 30% is not the be all and end all of profits. However- consider it's 30% in one week- not one year. That's a monster return annualized, but of course we're not annualizing trading ideas. I've gotten a few emails concerning upside target- somewhere close to $.70 would be very healthy.
Today's idea has gone through a volume explosion unlike anything I've ever seen. Until last Tuesday this stock had really never traded. I learned about it on Friday. Starting last Tuesday, and out of nowhere, here's the dollar volume: $75,000 traded last Monday; Tuesday: $3.2 Million; Wednesday: $9 Million in volume; Thursday: $4 million in volume; Friday- market closed; Today: over $5 million in volume.
Now, that's some action. And, in the course of this massive volume explosion, the stock has moved up from just under $1 to about $1.40. As I said- unbelievably hot for just a couple days of volume out of nowhere.
Upside from here? No telling. As of the last SEC filing there are only 68 million shares I&O- according to a 13D filing, one guys owns over half of them, so there can't be anymore than about 30 million in the public float. 16 million shares have turned over in the last few days. There could be a lot more upside.
Read on intrepid and opportunistic investors:
As I said, this thing came out of nowhere, and has absolutely exploded. There's not a lot known about the company, and not much history. However, I have read one report, and have some insight as to what they do.
Mobile applications are red hot right now. I learned a lot about it from one of the best internet developers I know. It relates to the massive increase in web traffic from Mobile Devices. Developers are looking at Mobile Apps as if it were 10 years ago, and they were looking at the growth of internet use and e-commerce.
It's now more difficult to get users to load software on a computer than ever. Every time I try to install a piece of software on my version of Windows 7, I get about 5 different warnings and I have to take multiple steps.
Mobile Apps are different. One click, and you're there. With the advent of Mobile Notebooks led by the iPad (I love mine), people are doing more and more of their electronic work on mobile devices. Developers know it's only one click to get it there, then you can push all the information you want. Hence, the red hot sector.
Avatar Ventures (AVVC), according to one report I have read, is going head first into the business of developing Mobile Apps for small businesses. Early adopters of a well thought out web site in small, neighborhood businesses were rewarded with enhanced sales. Add the e-commerce solution, and you have a lot more revenues. For example, I order both my Pizza and Chinese take out online now.
AVVC is going to develop mobile apps for small businesses. Thousands of those same businesses who embraced the Web and launched a quality commercial web site were rewarded. AVVC can extract the information from their existing web site and create a mobile app.
Therefore, if there's a small hotel you like, or a favorite pizza restaurant, a local dry cleaner, or even a grocery store, AVVC will create an App for their customers. Fees, residual revenues, and other business performance issues are unknown at this time.
Here's what is known: This stock has gone berserk in the last week, and who knows where the top or the bottom is. This is a really short term chart- just a week old.
I've circled the volume bars in green. The lowest bar is over 3 million shares. For a BB stock that came out of nowhere, this is truly remarkable.
The chart suggests a couple of possibilities. Either the stock could take a breather, or it could just rocket north from here. Technicians refer to the top bar- today's action- as a "Hi Flag Base". Some of the most powerful upside moves come from the Hi Flag Base formation. Most investors will be cautious. Really experienced technicians know this can be one of the most powerful technical signals for the really big upside move to come.
It could trade up tomorrow, sideways for a day or two, or correct briefly. In any case, this one has certainly captured the interest of investors. This kind of volume is certain to attract more and more attention, and there are a lot more people out there who don't own this one yet than do own it.
This massive liquidity will give you the option of trading in and out of this idea with a great deal of ease. You're going to want to own some in case it takes off for another level.
It seems to me nearly inevitable the stock is likely to head towards $2- it's simply of question of straight up, or a little detour from here.
Short term I'd be looking for $2 on this idea- perhaps more longer term. SSL would be $1.10. For Penny stock lovers, this one has a lot of sizzle. Grab hold and hang on.