To OTC Journal Members:
 

Comments in the BLOG

There have been two new BLOG entries already this week. Earlier today I published some thoughts on NWWV's rebound on Monday. In addition, but the time you read this, there should be a new BLOG posting on a major positive development at AGSI which I hope puts some life back into the stock.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every question.
 

BrandPartners (OTC BB: BPTR) June Quarterly Numbers: Setting The Stage For More Growth

BPTR delivered its June quarterly results this morning before the market opened. Based on the response in the stock price, they weren't market moving, but they were plenty good enough to give shareholders comfort in the future.

Here's the overview:

• Revenues came in at $12.6 million, up from $11.3 million in June of '04. This represents an increase of 11.5%, and is the highest June quarter in the company's history.
• Profits came in at $.02 EPS vs $.03 EPS for the June quarter of '04. They made a net profit of $700k vs a net profit of $1 million in '04.

Clearly, the company's growth rate has slowed. However, the management at BPTR has planted the seeds required for another phase of solid expansion. Both Grafico and BPTR Europe are filling their pipelines with potential new business. These new lines will represent the BPTR growth opportunity from here.

As of August 1, BPTR had a $28 million backlog of business. This puts the company on track to deliver a minimum of $55 million in revs this year. 

Here's a chart I've shown before. In the past year the stock made a 144% move off the August low to the 52 week high. On a long term basis, it completed at perfect Fibonacci 61.8% retracement.

So- here's the two big questions. Can the stock perform a repeat of last year's performance off the August low? If so, your upside target would be about $1.76. 

Another, and just as important question- will the market ever recognize this company and value it at a decent multiple? If BPTR can manage $.15 per share in earning this year, a reasonable 20 multiple would put the stock at $3.

A good plan and a little faith could go a long way here. When companies deliver achievements, sooner or later someone comes along and wants the stock. You never know when it's going to happen. Take GEPT for example. 

I published four times on GEPT between early June and mid July. You could have accumulated all you wanted in the $2.75 to $3.25. Then - BOOM!!!! Cramer recommends the stock on Mad Money with the NBC audience and we're trading at $7 with two days and I am recommending a sell.

As long as this company stays on track and delivers the numbers, it will happen someday. Investing some of their profits in expansion is the right course. Now, they have to execute. They have shown they can execute in the past, so why should it be any different this time.

Here's another stock that could repeat GEPT's performance when the right events happen. Buy or hold- the choice is yours. With the numbers they are generating, it's certainly easy stock to hold on to this one.

Here's the complete text of today's news release for your review:
 

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