To OTC Journal Members: 
 

New and Exciting

A quick note regarding my new idea- it will be delayed until the weekend edition in order to allow one item to develop. Stand by, and be sure to read your OTC Journal weekend edition. Now- another factoid:

Identity theft cost consumers $50 billion in 2008. Identity theft victims spend an average of 116 hours repairing the damage done - 600 hours for very extreme cases.

I've found a penny stock idea in the Identity Theft arena that I believe might be good for a trade. No one knows about it, but the company is growing by very rapidly using a strategy of teaming up with affinity organizations to get their very reasonably priced and highly effective product- a subscription based product- into the market.

Stand by for a trading idea in the weekend edition.
 

Do You Believe in Reincarnation? Doubters Should Look at Options Media (OTC BB: OPMG)

Better late than never. Delayed expectations are better than completely unrealized expectations. Much to my delight, I'm going to have to revive my coverage of Options Media Group in light of Tuesday's post close revelations out of the company. The market has gone ballistic on this idea in light of the new developments.

I'm a bit tardy in my reporting, and there's a way to play this. I'll get into it shortly. Let's start with Wednesday's action in the stock. Post close Tuesday, OPMG made three announcements, and the stock went nuts. It's still going crazy today.

As you can see from the chart, OPMG closed last Wednesday at $.064 on 24,000 shares. One short Wednesday later, OPMG traded 20.2 million shares in one day, and closed 170% higher at $.175. Nice. Wondering what happened?

I dropped this one earlier in the Fall after starting coverage last spring due to the company's failure to deliver on promised results. However, we got a major vote of confidence from financiers and vendors with Tuesday's post close announcements. The vote of confidence from the backers was one issue, but in my view not the crowning achievement that has this stock going nuts. In my view it relates to some new marketing technology the company has acquired and the commercial deployment thereof. Got your attention yet? (Ignore the red bar from today's trading- it's a technical glitch from my provider).

Let's start with the easy stuff. First, OPMG announced a number of their creditor vendors had agreed to accept equity (shares) in lieu of debt. This allows OPMG to eliminate much of the debt from its balance sheet.

Secondly, OPMG announced note holders agreed to take $1.41 million in debt and convert it to equity. In one fell swoop the company has made dramatic improvements to its balance sheet.

That stuff is all well and good, but what about growth? The company is generating just short of $8 million in annual revenues from its various email marketing services, and losing money.

In my view, it's the third announcement that has the markets going absolutely ballistic over the future of this company. It's all about a phrase I'm going to coin right now: "Proximity Marketing".

I don't know if you ever saw Speilberg's movie entitled "Minority Report". It's a futuristic movie starring Tom Cruise. In the movie, Cruise walks through a shopping mall and a device reads his eyeball to identify him. As he walks through the mall, the various stores he walks by have his identity, know his shopping habits, and provide instantaneous and targeted advertorials in both audio and video based on his former shopping habits.

In short, he's walking by the store, and they are advertising directly to him while he's in the proximity.

You never know when the future will be here. For OPMG, the future is here now, and I believe the market loves it. In the third announcement, OPMG discloses it has acquired a new Proximity Marketing technology using Blue Tooth.

In short, the company will begin marketing a machine that identifies blue tooth enabled devices in its immediate proximity, and sends an SMS text message directly to the device.

Here's how it works. You're at the mall. You have your cell phone in your pocket that is Blue Tooth Enabled. Bang- you get a text message from Old Navy (just an example) as you walk past the store. You get a text message from Old Navy with today's special discount, and you can react as you walk by.

Now, that's some cool stuff. I've had numerous discussions with CEO Scott Frohman about this new technology. There's an initial sale component, and a recurring revenue component as machines get installed and text messages are sent. Imagine this company with 5,000 installations around the country?

Now you know why OPMG is up 233% in the last week, traded 20 million shares yesterday, and over 5 million already today.

So, where to from here? First and foremost- if you choose to buy this stock today, you do so at your own peril!!!! I would not advise buying today, as it is not my method to buy stocks that have just run 233% on gigantic volume. Typically, those are selling opportunities.

We know there's been a dramatic paradigm shift in this idea. This stock will now never be the same. It has taken on a new life with a new story. We need to let it cool off and wait for the chart to tell us it's time to take a position.

I'll have a lot more on the technology the company is deploying and some saner entry levels. For the time being, know everything has changed about this situation, and let's wait to learn more and for the chart to provide a lower risk entry level.

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