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There are two new BLOGS for
you to review, and they are opposites sides of the same pancake. Streaking
Nighthawk (OTC BB: NIHK), and quiet eFoodSafety (OTC BB: EFSF)
were both commented on today. Both are low priced ideas that have been
very good to OTC Journal subscribers. They are currently at opposite
ends of the spectrum in their respective trading cycles, and as such both
make informative reading. Have at it folks.
The BLOG is your opportunity
to ask questions and offer comments. I will make an effort to answer every
legitimate question. If I don't know the answer, I will contact the management
and get the answer. Alternatively, if you have questions you don't want
publicly displayed, you can always email me directly at editor@otcjournal.com.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG scrolls down from the upper right hand corner. The most
current journal entries appear on the right hand side of you screen. Check
back frequently for updates particularly when stocks are moving to overbought
or oversold levels in volatile markets.
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The Planet and
Titan On My Mind |
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Commerce Planet (OTC BB: CPNE)
and Titan Global (OTC BB: TTGL) are both on my mind this Tuesday
evening. Why? Because we are going to see earnings releases from both companies
in the next several days, and I believe both companies are going to surprise
the market to the upside.
Here's the chart of CPNE I
put in the BLOG back in March 29th. Here's the quote: "The
61.8% retracement of the entire move takes us to $1.65. At the rate the
stock is dropping, it could get to $1.65 tomorrow or Monday. I believe
this would be the ideal level to buy this stock. I can't say for certain
it will get this low, but if it does, that would be a very low risk entry
point in a highly volatile stock. If it ends up there and you jump in,
your SSL will become about $1.48. The longer term the chart, the better
predictor of the possibilities."
The stock closed today at $2.04.
Therefore, I am 2 for 3 on the stock over the last two months. I called
the SSL at $2.25- that turned out right. I called the rebuy at $2.04-
wrong. I called a buy again at $1.64- right on the money. Not perfect,
but in big league baseball 2 for 3 will get you about $200 million.
The stock is rebounding nicely on
the revelation CPNE will be announcing preliminary numbers for Q1
post close on Thursday (last night's news). The market liked the news the
numbers would come out so early. Investors have had doubts in their mind
of late thanks to the big sell off in the stock.
Buyers embraced the news today, and
bid the stock to a closing price of $2.04. They assume if the numbers are
coming out early, they have to be good. I think they are getting this one
right.
I don't know for sure, but I'll bet
CPNE
is going to announce another record quarter for revenues and earnings.
Despite the new persona taken on in 2007 by CPNE in terms of disclosure,
I have every reason to believe. Why- two major reasons- 1. After 4 quarters
of consecutive growth in sales and earnings, they have earned the benefit
of the doubt, and 2. Because they have committed $2 million in a stock
buy back program; $1 million of which has been spent. They wouldn't
commit $2 million to a stock buy back if their cup didn't runneth
over with cash.
CPNE will probably continue
to trade up into the numbers, then will behave based on how they come in.
Any weakness, and investors will probably sell. New records in sales and
earnings will probably be greeted with further upside movement.
I will publish a BLOG with
my thoughts sometime Thursday night. I don't know what time because I will
be traveling, but you will have my thoughts before the open on Friday.
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Titan
(OTC BB: TTGL): Overdue For Good News |
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Remember this image from my first
edition on TTGL. This picture of Angelina Jolie has nothing to do
with the company. My metaphor- Numbers Can Be Sexy, and TTGL has
numbers.
$140 million in annual revs
against a market cap of about $65 million. The market has not caught
on to this one yet, but it is inevitable this stock will attract some serious
institutional interest at some point down the road.
TTGL's Q1 numbers are due
out in the next few days. I believe there is a very good chance the company
will deliver its first profitable quarter- not just cash flow positive-
but EPS, which is a little better.
Why you ask do I believe this? There
are a few clues. For example- last quarter TTGL had to take over
$4
million in non cash charges for derivatives related to their debt.
I know this is going to seem ridiculous, but the charges were caused by
the rise in the stock price. Guess what? When the company refinanced its
debt on Jan 1, all those derivatives were canceled. Charges gone.
Secondly- their pre announced top
line number of $36 million. TTGL generated $103 million
in their last fiscal year- $36 million puts them at an annual run
rate of $144 million, making their forecasts easily believable.
There's a third reason I believe
they could deliver EPS- costs- costs as a percentage of sales are
coming down for TTGL- Why you ask? Because they own their phone
switches now, allowing them be their own supplier, and reducing costs considerably.
The excise tax is gone, and rebates
are coming.
Stand by to see how it comes out.
If I am right, the market is going to wake up to this one sooner or later.
The next few days are going to be
real interesting.
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