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Calling All Investors

My best call of 2012 so far (it's early in the year and I have 3 monster penny stock ideas coming) has been CALL. Check your inbox- how many emails did you get today telling you to adopt Magic Jack for $17 a year for your long distance service.

As I stated in January, this company is doing much better than anyone knows or understands, but things may have changed. Since the stock is trading just great, maybe the world is catching on.

Here's a list of recent news that has investors starting to catch on:

  • November 11: Major retailers report highest sales ever of Magic Jack
  • Dec 2: Company does 2 for 1 split
  • December 16- company announces sales of 365,000 Magic Jacks in 30 days and estimates Q4 sales in $55 to $60 million range, and cancels a proposed dillutive event and capital raise.
  • Jan 19- CALL announces $55 million stock buy back program

All in all, one would assume this company was rolling.

In order to stick with the them of low priced stocks for the OTC Journal, back on January 18th I recommended acquiring the Magic Jack March15 call options at $1.30. Right now, those options are trading at $3.90- net gain to date of 200% in less than a month.

Here's a chart:

As you can see, this stock has been a stand out in 2012, but in my view it's not too late. The company has not yet announced when it's audited financials will be released, and the stock is trading just great.

The action is February appears to be a classic William O'Neil "cup and handle" formation. Ideal, you would want the price to extend out sideways for a while, then surge again.

The recent abrupt pullback was still a great entry opportunity. If you've missed the opportunity to grab that 200% on your money, now is a second chance.

The June 15 Calls are $4.70- this gives you well past April 1 to cash in.

That's the trade for today if you've been watching from the sidelines as CALL keeps moving higher. Of course, you can just invest in the common stock, but the lower priced options fit my theme better.

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7 Minutes To Wealth
May 12, 2012

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