To OTC Journal Members:
 

Remember Imaging Technologies (OTC BB: IMTO)? Is the Stock Back on the Launching Pad?

When I was first asked to look at Imaging Technologies, I was reluctant to publish on the company. Despite having completed a two year transition to an entirely new business model, pulling off a fundamental turn around, and having enormous growth potential, the stock was trading at only $.015- yes, that's a penny and a half. I wasn't sure if our readership had any interest in stocks that were trading at a penny and a half.

I thought to myself: people are really only interested in ideas that can make money. After all, if the stock is only $.015, how much lower can it go? I then asked the readership if they would be interested in learning about a company trading at $.015 with $200,000 in positive operational cash flow per quarter. I got dozens of emails with an emphatic yes.

I decided to go ahead and publish on the stock, and was absolutely amazed at the response. IMTO announced it had made the transition into the highly profitable PEO (Professional Employee Organization) market, and was already managing 4500 employees for client companies.

By way of reminder, PEO organizations are an outsourcing service for a company's employment needs. Once you retain a PEO to replace your Human Resources Department, your employees formally become employees of the PEO. They just show up for work at your place of business, and the service saves you a fortune and allows management to concentrate more fully on running the business. 

Through the power of numbers the PEO has the ability to negotiate better pricing on many employee related costs like health insurance, pension plans and 401K's, workmen's comp, etc. This allows the client companies to offer employees better benefit packages for the same dollars. 

A PEO with 4500 employees generates about $350,000 per day in cash flow, and $25,000 per day in gross profits. IMTO has achieved that level. The infrastructure is in place, so incremental increases in business yield higher margins at the bottom line.

I published a Trading Alert on IMTO on July 11th. The stock opened the following day at $.023 and throughout the course of the day found its way to $.04. It traded 34.3 million shares.

If you bought early you could have made 70% on your money in one day. Amazing- If the stock had been $2.23 and hit $4 that day, the world would have taken notice. If the stock had been $22.30 and hit $40 that day, they would have been calling for an interview on CNBC. Nevertheless, the return to the investor is the same.
 

IMTO Back in the News- Reports Major New Contract in Medical Division

It's time to take another look at IMTO. They were back in the news today with major new contract signings. They are beginning to penetrate the PEO market in the medical industry, and are starting with contract nursing services to acute care facilities and hospitals in Arizona.

IMTO has received approval for a proposed contract with Tempe St. Luke's Hospital beginning this month. St. Luke's is part of the ASICS Hospital Group, which consists of five hospitals in the Phoenix area. The Company has received an initial contract with the ASICS Group, which is forecast at $300,000 for the next 9-12 months.

IMTO has current proposals under review to an additional 10 hospitals in the Phoenix area, which are anticipated to be approved in the next several weeks. These additional agreements are forecast to provide $1 million in annual revenues.

In short, the company is continuing to add employees to its services and therefore growing rapidly.

The stock has completed a pull back and found support in the $.025 range. As you can see from the chart, the stock has pulled back into the middle of its support level, suggesting it has digested its past gains and is poised to start climbing again.

As this company continues to grow, the stock will no doubt want to challenge that $.04 level once again, which is 70% higher than today's closing level. Today's news release, which came out after the close, will probably give observers the opportunity to see if $.04 is still resistance, or simply gives way to higher levels.

Here is the complete text of today's news release for your review:
 

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