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Despite the market's insistence on
continuing it's migration south, there were two exciting events on Friday.
Doubters are going to have to start paying attention to the larger cap
ideas we are vending up during this tough microcap environment. Fresh off
the big win on Protein Design Labs (NASDAQ: PDLI), we scoured the
charts for a couple more biotech ideas for a trade. The April
23rd edition contained trading recommendations on Ariad Pharma (NASDAQ:
ARIA), and First Horizon (NASDAQ: FHRX).
FHRX traded down to within
$.10 of my stop loss, but made an outstanding surge on Friday when the
company announced year end numbers and forecast 2005. The entry point on
the 23rd was $17. I suggested risking 1 point with a target price in the
$19 range over the next 30 days. The stock hit a high of $18.18 in Friday's
trading, up over 10%. Too early to sell, but we're over half way there.
A second positive development occurred
with HyperDynamics (OTC BB: HYPD). For long term followers of this
exciting situation, there was great news on Friday. Apparently, HYPD
is going to make the jump to the American Stock Exchange next week.
I have a new BLOG entry up on HYPD with some thoughts. As
always, your comments and questions are welcome. HYPD was up about
20% on Friday at the $2.50 level.
To use the BLOG, simply go
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Check back frequently for updates particularly when stocks are moving to
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Don't Forget
Datascension (OTC BB: DSEN): Beefing Up For Latin America |
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Datascension ended up delivering
$8.68 million in revenues in '04, a bit less than my estimate of $9 million.
While the net loss of $4.7 million appears to be huge, after drilling down
it is just as advertised in the first publication on the company.
DSEN cleaned house at the
end of last year and ejected several unprofitable subsidiaries. Of the
$4.7 million in losses, nearly $4 million was non-cash impairment charges
from the closing of unprofitable business entities. The company lost very
little cash through the course of 2004, and is positioned for substantial
growth and profitability in 2005.
Datascension has about 400
work stations at its facility in Costa Rica you see in the picture alongside.
They conduct outbound marketing surveys, and handle incoming customer service
issues. They don't try to sell anything. They get paid a fortune to conduct
marketing surveys. They have done work for nearly every major Fortune 500
company you can think of.
DSEN is based in Southern
California, but most of their operations are conducted from a the state-of-the-art
facility in Costa Rica where they have over 600 employees.
Do you know of any other company with 600 employees and a mere $7.2 million
market valuation?
DSEN is wooing away business
from India based companies en masse, and you should see the swing reflected
in their financial statements throughout the course of 2005.
$12 billion is expected
to be spent on telephone surveys world wide in 2005, and a major focus
of that investment is the growing Latin population in North America.
To that end, DSEN announced
on Friday it was beefing up its management team with a new Vice President
of sales who has extensive experience with the Latin American target market.
In addition, DSEN is also adding a specialist to run their IT division.
Details in the press release below.
The two new hires give us a glimpse
of where they are headed. They will be expanding their services into the
IT world with their huge existing customer base, and they are going after
specialty projects for the Latin American demographic, which represents
higher margin business for them.
The chart is interesting. I first
featured the company in the mid $.50 range, and the stock dropped $.10
shortly thereafter along with the market. As you can see from the chart,
this stock made a run at the $.90 level late last year.
The run began with a gap in the chart.
Gaps are like a vacuum on a chart, and nature hates a vacuum. Stocks seem
to be fatally attracted to gaps.
DSEN has come back and filled
the Gap depicted in the red circle. This is considered a bullish event
by technicians.
More importantly, this is a value
play in high risk penny stock arena. No one is watching this company right
now, and few care about the market. If you want to try taking a position
in a completely unrecognized situation in a tough market, this stock is
for you. Oftentimes, the most money is made by investors who get in ahead
of the crowd.
I expect this company to grow dramatically
in 2005, and sooner or later it is going to be reflected in the stock price.
Put this one in your bottom fishing, undiscovered gem section of your portfolio,
and just wait for higher levels. When everyone's buying, you can be a seller.
Here's Friday's Press Release For
Your Review:
| Press Release Source:
Datascension Inc.
Datascension Inc.
to Drive Sales into the United States and Central, South America with Key
New Employees
Friday April 29, 4:05 pm
ET
Initiatives to Be Spearheaded by
Recently Appointed Sales and Marketing Professionals
BREA, Calif.--(BUSINESS
WIRE)--April 29, 2005-- Datascension International Inc. (OTCBB:DSEN - News),
a premier data solutions company, is pleased to announce the expansion
of its sales team to significantly drive its growth.
The company is focused
on several major initiatives that Datascension is confident will markedly
grow both its customer base and revenues.
Datascension intends
to expand its presence and expertise in Spanish interviewing into the United
States as well as within Central and South America. To this end, the company
announces the appointment of Heather Pomeroy, an experienced sales executive
who has been working in the market research industry for the past three
years. As vice president of sales and marketing at International Data Collection,
a Hispanic telephone data collection company with operations in southern
California and Mexico, Pomeroy was responsible for the growth and ongoing
management of that company's sales. She gained invaluable insight into
the Hispanic-American culture by working directly with that large and growing
market. Coupled with her in-depth knowledge of the dynamics of data collection
and strong reputation for building strong client relationships, Pomeroy
will be invaluable to Datascension's growth.
The company has also
obtained the services of Scott Powell, an IT professional with more than
25 years of sales and marketing experience. Powell will be taking the lead
on the company's initiative to expand its inbound customer service opportunities.
He most recently worked at IT outsourcing consulting firm Infosys Technologies.
As sales manager for the media and entertainment sector, Powell was responsible
for close to $10 million in annual sales. His expertise in the global delivery
model will prove to be a major asset to Datascension.
Joey Harmon, Datascension's
vice president, stated, "We have been extremely successful in selling our
outbound market research services to some of the largest research companies
in the world. We are anxious to establish similar results in these two
initiatives. Ms. Pomeroy and Mr. Powell will be spearheading these initiatives,
which we believe will create robust new revenue streams and add significant
shareholder value."
About Datascension
Datascension Inc., through
its sole subsidiary Datascension International Inc., is engaged in the
collection, storage and processing of data and conducting outsourced market
research with operations in California, Costa Rica and the Dominican Republic.
Datascension is rapidly becoming one of the largest Spanish-speaking call
centers. The company's commitment to customer service, quality and on-time
project management has fostered its world-class reputation among major
market research firms and corporate market research departments.
Safe Harbor Statement
under the Private Securities Litigation Reform Act of 1995: Certain statements
made in this press release contain certain forward-looking statements that
involve a number of risks and uncertainties. In addition to the matters
described above, the company's ability to initiate and complete the contemplated
transactions described above will depend upon a number of factors including
overall economic conditions, general stock market conditions and the continuing
results of the company, as well as the risk factors listed from time to
time in the SEC filings of Datascension Inc.
For further information:
www.datascension.com.
Contact:
Stock Enterprises
Jim Stock, 702-274-5400 (Investor Relations)
E-mail: stockenter@aol.com
Source: Datascension
Inc. |
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