To OTC Journal Members:
 

Commerce "Rodney" Planet- Can't Get No Respect (OTC BB: CPNE)

Consider me irritated, impatient, annoyed, frustrated, etc, etc. Commerce Planet has become the Rodney Dangerfield of the microcap world- In short, no matter what this company does, this stock just "Can't Seem To Get No Respect".

As promised, on Thursday, post close, CPNE gave us some preliminary data concerning Q1 numbers, and by any metric any analyst would use, this company is now unquestionably worth at least $4 plus. They are making $1.5 million per month, or $18 million in annual cash profits. This means each share represents about $.41 per share in cash earnings.

On the asset side of the balance sheet, they are building one of the best assets you can have: CASH. I will provide more detail on this once the 10Q comes out, and I can take a deeper look at the numbers- I don't know the current fully diluted number of shares I&O- which may have actually gone down from the buy back program (that's a good thing for investors).

Despite the company's clear demonstration that is hasn't become "derailed" in any way, the market treated the stock atrociously in Friday's action, which really didn't surprise me all that much. This was a "buy on mystery, sell on history" trade. Let's look at a chart of Friday's action:

This chart shows the action on Friday in CPNE as measured in five minute increments. Notice how the stock trades up nicely right at the 6:30 AM west coast open. It trades excellent volume and surges nicely, as an initial wave of buyers react to the positive news.

Once the initial wave subsides, sellers start to take the stock down. At the end of the day, the selling accelerates and the stock falls pretty much completely out of bed in the last hour of trading. Technically, this was a lousy day. If you like value and you don't need the money today, I just don't know why you would sell this stock.

Here's how I see it- most of the day to day action in this stock is now controlled by traders who buy and sell simply based on whether the stock is going up or down. Value and longer term does not enter into their thinking.

Based on the volatility in this stock, its really not surprising. It is becoming the fodder of traders, and if you can get on the right side of this one, you can make a lot of short term money.

In light of the way CPNE behaves, I would say the only way this to buy this stock is on severe pullbacks. It will remain that way until circumstances change.

I am interested in your opinion- what do you think it is going to take for this stock to become more reasonably valued? Or, perhaps you believe the stock is a poor choice. I am interested in your thoughts.

Here's what I'm going to do- In the next week or so, I will publish a BLOG entitled "What's Wrong With CPNE? Investor Opinions"- email me your views at editor@otcjournal.com. Let's find out what people are thinking. I'll put the most comments, positive and negative, on the site.

In the meantime, based on Friday's close, you can now pay the same price fund manager Jeffrey Feinberg just paid for 4.8 million shares, and he can't sell them.

On Monday I should be covering the Titan Q1 numbers, as it is deadline time. If they deliver the goods, let's hope the market treats the stock a little better.
 

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