To OTC Journal Members: 
 

Bernie Madoff Could Be Working For You

That's if you become a shareholder of today's idea. Want to know how? Read on.

Who says our Federal Government doesn't make any money? On the contrary- there are some pockets of the Federal government that are doing rather well.

Consider this company- in Fiscal 2007 it achieved $853 million in sales and $45.8 million in profit. Guess what- the company is called Unicor, and it's owned by the US Government. You can learn more about Unicor at www.unicor.gov.

Unicor likes to stay a bit under the radar. In offering it's products and services Unicor has been providing for the needs of the Federal government using voluntary prisoner labor for nearly 30 years.

Unicor offers Federal inmates the opportunity to learn skills with on the job experience. Originally founded as a tool for rehabilitation, it was a pet project of Supreme Court Justice Warren Berger. Unicor now makes a substantial profit contribution to the Federal coffers by paying prisoner wages ranging from $.23 to $1.25 per hour at its manufacturing facilities. Hence, $853 million in revs, $45.8 net.

Fast forward to today. Unicor builds a solar panel assembly plant at it's prison facility in Otisville, NY. It has 24 megawatt production capability. Unicor strikes a $55 million deal with Spire Co. to supply the solar cells.

And, here's the icing on the cake relating to my opening tongue in cheek comment - When sentenced in June, it is widely anticipated the judge will send Bernie Madoff to Otisville. It's optional, but if he chooses to work, Madoff could end up working in the solar panel assembly plant indirectly for....
 

IX Energy (OTC BB: IXEH): Leveraging Unicor for Government Contracts

Here's an excerpt from the Unicor web site:

"In keeping with Government's mission to reduce energy consumption and combat ever-rising costs, UNICOR will soon embark on a new greening initiative: solar panel manufacturing. We anticipate that operations will begin sometime during the second quarter of Fiscal Year 2009, so stay tuned for more details."

Unicor is getting ready to crank up its solar manufacturing facility. Products manufactured at Unicor have the "inside track" on getting the government contract awards. So, how much is the Federal Government planning to spend on it's solar initiatives? Here's the facts:

The federal government has a mandate to increase its renewable energy use to 5% by 2010, and to 7.5% by 2013. There's already interest from the offices of Veterans Affairs, the Interior, the Army, and the General Services Administration for solar design and installation bids, with multiple projects imbedded in each one. It adds up to many millions in contracts.

So, are these government agencies going to award the business directly to Unicor? No- Unicor only assembles the solar panels. A solar system also includes design and installation.

So, who will fill the roll of handling we could be around $75 million in contracts plus over the next 12 months? Little known and under followed IX Energy (OTC BB: IXEH) will fill that role. You have the competitive investing advantage because you know about it first.

Here's an excerpt from IXEH's annual 10k filing:
 

It's the perfect storm. IXEH becomes the design, sales, and marketing arm for Unicor. Unicor generally has the inside track on contract awards for anything from the Federal Government. The Federal Government is gearing up to spend hundreds of millions on solar installations. By using the Unicor solar cells, the Federal Government is paying itself back some of the investment.
 

How Do We Make Money? Own IXEH Today

Simple- by owning IX Energy before the rest of the world understands what's going on. You can't invest in Unicor- it's not a public company. However, you can invest in IXEH before the rest of the stock market gets an understanding for the potential value of the relationship.

Here's the 10,000 foot overview. At the last SEC filing, IXEH showed 60 million shares I&O- sporting a $30 million market cap at the $.50 level. In the whole scheme of public companies, this market cap offers considerable upside.

In CY 2008, IXEH delivered over $10 million in revenues, and sported about $5 million in cash, with very little debt. It was pretty low margin business, but it compares to zero revenues in 2007, so the gains were technically infinite.

The stock hasn't gotten much exposure yet, but this is the first formal publication covering the opportunity. There will be many to follow. You're the first to learn what's going on.

The chart shows us a little mini break out, and undoubtedly a free ride up to $.60. With the Unicor manufacturing facility open and operating, and the stimulus money just starting to be deployed, the government contracts could start flowing at any time.

If the company announces a major government installation, the numbers could be enormous in pretty short order, and you don't want to get caught watching it run away from you.

The chart tells me your upside in the short term is $1 plus (new highs). I would suggest a stop loss in the $.45 range. Longer term this relationship with Unicor gives IXEH a competitive supply and contract award advantage over just about any other solar systems supplier in the US. The relationship with Unicor alone is probably worth the entire value of the company today.

Aggressive action for your speculative capital is suggested up to $.60. SSL $.45. Longer term, unlimited upside.

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