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To OTC Journal Members:

Time For a New Idea

I'm working hard. If you've hung with me and acted quickly, you should have made a lot of money participating in my China ideas. I've identified three new ones I'll be introducing over the next several months, and I can't wait to share them. I have personally invested my own capital directly in each of these companies, and I expect to make a huge return. I hope you do so as well.

I'm working on a new idea for this weekend. Don't worry- I'm sticking with my theme- it's China. This one is a bit different than others I've been covering.

Most of my China stocks should not be considered "Penny Stocks". When I think of a penny stock, I think of a company trading well under $1, pre profit, highly risky, and lots of upside. My Big 3 must owns- CEU, CREG, and NFEC are all profitable, growing rapidly, and north of $3. CEU is NYSE- and that stock is breaking out today.

This weekend I'm going deliver the 411 on a good old fashioned penny stock. Don't worry, it's China. It's cheap, and it's ready to break out. This is a true turn around story, and no one is watching. I believe a lot of investors are going to start following this one, and you can get the early look and make some money.

And, speaking of the early look and making money, we're now officially up 43% on BEAC since I introduced it back on November 11th- and the party appears to just be getting started.

Beacon (OTC BB: BEAC) Busting Out- Sooooo Close

Well, this has turned out to be a really fun day for those of you who chose to participate when I introduced BEAC back in November. Q1 numbers were announced, the company held a conference call, and then the fun really started.

Today, during the conference call, the management of BEAC announced another $20 million contract- this one to stretch over 5 years. Spread out, that's about $5 million per year. The customer is only identified as a global Fortune 500 Pharmaceutical company.

As I write this edition, BEAC has already traded about 500,000 shares. That's about 4 times the average volume already, and that stock is trying really hard to break out- it's not quite there yet. Trying soooooo hard, but technically the market still needs to clean up a bit of a mess.

Here's the facts. $10 million in revenues in FY'09 (End of Sept). Since the end of their fiscal year, this company has announced nearly $70 million in new contract signings. This is a company that has found themselves one heck of a niche and is delivering the business.

After reviewing the 10Q, I learned the company now has just over 30 million shares I&O- with the current price of about $1.30 we're looking at about $40 million in market value.

I also did a quick cash flow analysis. Positive cash flow from operations appears to be about $1.2 million for the quarter- up from a deficit of $600k the same quarter a year ago. That's a big turn for the positive, and you're seeing the first signs of a financially very healthy company.

BEAC is both blessed and cursed at the same time. They have what I like to refer to as a "High Class Problem". Kind of like having to pay too much in taxes.

Going from $10 million in annual revs to $70 million in new business is a big jump, and requires infrastructure. I wonder at what point they will have more business than they can handle? The $70 million came in the last 4 months- What if they pile in more new business? At some point they will have to become much larger. Two of the major contracts are stretched over 3 to 5 years, so growth is insured for some time to come.

Their recent acquisition of NetConnect in Europe and the opening of their office in Prague will help, but at some point I believe we're looking at a major expansion to meet the demand BEAC is experiencing, especially if the contracts keep coming.

In the meantime, the stock is trying so hard to break out, but is just not quite getting there. If you own all you want, this is a little bit of a disappointment today. If you don't, it might be setting up for a little pullback to give you a favorable entry level. I can't say for sure.

Technically, this stock has slugged through some significant supply likely related to early financiers, and it has to be finite. As you can see from the chart, the stock butted up against the previous high set back in early January, and then retreated a bit.

I would really like to see this stock make a clean break above the $1.36 mark. Stocks breaking out to new highs tend to show up on everyone's radar screen, and it would likely get a whole new audience of investors looking at BEAC's achievements.

That's what investing in small companies is all about. You find the company, and bet someone will want to pay more for your stock somewhere down the road. If the company delivers huge increases in sales and earnings, your odds of making a significant return improve.

When I first wrote about BEAC, I believed someone would be willing go pay more than $.93 down the road. That was 4 months ago, and today they are willing to pay $1.30 plus. That's 40% higher.

Four months from now I believe someone will be willing to pay more than $1.30 based on the company's growth and earnings. I can't say what they might be willing to pay, but I'll bet it will be more, and I'm hoping it's around $2.

Here's today's news, and it's a good release:

Beacon Solutions Announces $20 Million Global IP Telecom Engagement

LOUISVILLE, Ky.--(BUSINESS WIRE)--Beacon Enterprise Solutions Group, Inc. (OTC BB: BEAC - News) (www.askbeacon.com), an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions, announces a multi-year global IP telecom engagement with one of the world’s largest pharmaceutical companies valued at approximately $20 million over five years.

This engagement will cover all of the Fortune 500 pharmaceutical company’s facilities throughout the world, including North America, Latin America, Europe, Africa, the Middle East and Asia. The global enterprise client is migrating their entire system to Voice Over IP (VoIP), and Beacon has been engaged to perform a global LAN / WAN remediation and upgrade, in order to bring each facility up to the standards required to handle the increased demand on the overall network.

“We are pleased to announce our latest engagement with this Fortune 500 pharmaceutical client,” said Bruce Widener, CEO, of Beacon Solutions. “This order represents a sizable project win for our global operations. As we’ve mentioned previously, becoming a preferred ITS solutions partner with our global enterprise clients and servicing their mission critical Layer 1 network infrastructure, opens numerous opportunities for additional collateral work, as evidenced by this multi-year engagement.”

Over the next five years, this engagement requires our engineers and installation teams to be dispatched globally to each client site where they will survey and document the entire existing network in preparation for a Voice Over IP (VoIP) retrofit. The engineering teams will be coordinating with client IT teams and identifying technology gaps in their current network including related environmentals and building systems. These teams will then perform a gap analysis and create a remediation design for any observed technical deficiencies. Beacon’s engineers and project managers will ensure compliance with the design during the implementation phase, while our installation teams will implement any changes or additional infrastructure required. Any additional work would fall under a separate engagement.

“A project of this scope is a perfect fit for Beacon’s global reach and best of breed customer service,” added Rick Mills, President of Beacon Solutions. “Beacon employees are currently stationed within this customer’s facilities and are performing work related to other engagements. We intend to utilize a combination of existing and new personnel resources to fulfill the engagement and believe that there are further opportunities to work with this Fortune 500 client as they continue to assess and upgrade their networks.”

This Fortune 500 client first engaged Beacon Solutions in 2008, and now uses Beacon’s ITS infrastructure provisioning expertise to assist with the management and integration of its vast network of primary facilities and remote sites around the world. This latest order relates to additional system assessments, above and beyond the previously announced North America and EMEA contracts, which encompass the day-to-day ITS provisioning, maintenance and service.

Headquartered in New Jersey, this Fortune 500 customer is a global research driven pharmaceutical company. The customer discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs.

About Beacon Enterprise Solutions Group, Inc.

Beacon Enterprise Solutions Group is an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Through an integrated team approach, Beacon offers a broad range of products and services including IT infrastructure design, implementation and management, application development and voice/data/security system integration, installation and maintenance. Beacon’s client roster includes state and local agencies, educational institutions, and over 4,000 companies ranging in size from mid-sized companies to the Fortune 500. Beacon is headquartered in Louisville, Ky., with regional headquarters in Dublin, Ireland and Zurich, Switzerland and personnel located throughout the United States and Europe.

For comprehensive investor relations material, including fact sheets, research reports, interviews and video, please follow the appropriate link: Investor Relations Portal, Investor Fact Sheet, Research Report and CEO Overview Video

For additional information, please visit Beacon’s corporate website: www.askbeacon.com

This press release may contain “forward looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

Contact:

Beacon Enterprise Solutions Group, Inc.
Bruce Widener, CEO
502-657-3507
investors@askbeacon.com
or
Porter, LeVay & Rose, Inc.
Marlon Nurse, V.P. – Investor Relations
212-564-4700
or
Trilogy Capital Partners
Darren Minton, Executive Vice President
800-592-6067