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Micros Are Busting
Out All Over |
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It looks like the game is on. This
was a really good week for several of the current OTC Journal microcap
offerings. Here's a couple worthy of a quick review:
Commerce Planet (OTC BB: CPNE)-
still my #1 call on a fundamental basis, and now it appears to be #1 on
a technical basis as well. Here's the chart as of the close of market on
Friday- with one twist I haven't shown before.
Many have asked about the "Double
Rep" of the Dinapoli 3x3 moving average- a great technical indicator of
an imminent short term move. In the case of CPNE, the 3x3 was broken
to the upside on the 27th when the stock broke above $1.33- on a
DAILY
basis.
The chart I am showing you today
is the movement of the stock on a WEEKLY basis. You can look
at these indicators on any time interval- every where from a minute by
minute to a full year. Day traders use 1 minute charts all the time.
As of the close Friday, CPNE
has now broken above the 3x3 on a weekly basis. It traded over $1.433.
The longer the time frame, the more sustainable the move. Of course- anything
can happen. However, for now it sure looks like CPNE wants to work
higher week by week. Perhaps $2 is still attainable before the end
of December.
MAIL and TTNUF were
two others that had very strong weeks. Those who have followed Incredimail
(NASDAQ: MAIL) know I recommended the stock at $6.80 back in November.
Three trading days later the company delivered their Q3 earnings report,
and the stock traded up to about $8.20 very briefly. I immediately published
a BLOG suggesting avoiding the stock until it quieted back down
to at least the $7.30 level. It did, and if you picked it up down
there you are starting to enjoy some nice profits once again. The stock
had a great week, closing on the high of $7.95, and looking like
it could eclipse the post earnings high of $8.20 next week if the
trend continues. I like this one for $10 to $12.
Titanium Group (OTC BB: TTNUF)
also attended the microcap party this week. TTNUF was the subject
of my mid week edition. Unlike MAIL, this one delivered a relatively
weak Q3, and the stock sold off a bit temporarily.
Earlier this past week I called this
one a buy at $.45. Look at the nice rebound in the stock over the
past week as it claws its way back to the $.60 level where it had
been camped in October. I still believe this one has a shot at $1- facial
recognition software is an industry with a huge, developing, and growing
market over the next 5 years. Remember- this company is participating in
pilot projects for the coming Beijing Olympic Games- talk about potential
epiphanal events? - who knows what could happen here.
It's been a good week for micros,
and it could be a precursor to break out time. We have been in a bull market
for the last several months, and investors may have chewed through enough
supply for these types of stocks start making new highs regularly. Game
on- you need to be loading up now.
Here's one that's been off my radar
screen for months, but is all of a sudden starting to catch fire.
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Remember
UpSnap (OTC BB: UPSN)? The Market Has Lately |
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UpSnap was a failed idea from
almost exactly one year ago. The stock was $3 at the time, but traded well
below my SSLs and I dropped it due to lack of interest and performance.
I might drop them, but I keep watching
just in case they wake up. This one has begun behaving as if a major breakout
is imminent, and it's worth taking a look at right now. It looks like it
might trade up beautifully in the short term.
UPSN is in the mobile content
business. One year ago, they were one of the early entrants into the mobile
search space. The business model is as follows- a mobile user texts a message
to UpSnap asking for some goods or services near their location.
It could be to get a pizza, cup of coffee, or order flowers. UPSN
sends a message back to the mobile user with the information, and gets
paid by the target business.
In the last year the company has
evolved considerably. They now have revenue producing content delivery
services as follows. They have a deal with ESPN wherein they deliver
college football audio broadcasts directly to cell phones. College basketball
is coming as well. The mobile user has an ESPN branded phone, and
pays a fee for this service. UPSN provides the platform to deliver
the content, and gets a percentage of the fee.
In addition, UPSN has another
deal with Sprint/Nextel and NASCAR. Through or Sprint
or
Nextel
phone, you can be right in the cockpit with your favorite
NASCAR
driver. You pay a fee for this service as well.
Once again, UPSN delivers
the content to the mobile phone, and gets a percentage of the fee. It has
added up to about $.5 million in revenues over the past two quarters.
I put up a one year chart on this
stock so you could see the longer term picture. As you can tell, the stock
has just started a recovery phase, and as compared to where it was a year
ago, it has a long way to go.
Of particular interest to me is the
huge increase in volume over the last month. I have circled it on the chart.
On Friday, the stock traded 363,000 shares.
The stock rose off a multi month
bottom in October sub $1 level to a high of $1.40. It sold off a bit last
week, but started bouncing right back. This stock looks to me like it is
ready to make a big move in the coming weeks based on the huge volume increases
of late.
From the $1.20 level, and
looking at where the stock has come from, I believe another couple of weeks
of decent volume could put this one right back up into the $1.75
to $2 range. It would great to see it trade above the $1.40
level, which was last month's high.
I will probably pick some up for
my own account first thing Monday morning. I'm a buyer up to $1.25
with an SSL at about $1.
Many thanks to one loyal member who
brought UPSN's recent resurgence to my attention.
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