Newsletter

July 15, 2008

Volume IX, Issue 50

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To OTC Journal Members:

How's Ugly Working So Far?

If those who took the time to read my weekend edition on How To Make Ugly Work For You, so far there has been one stock to look at. Genetech (NYSE: DNA) reported earnings post close yesterday, and there was a brief opportunity to take a profit on a short trade or a put option.

I didn't make a trade in the stock as it hadn't traded up into the earnings release. In fact, it traded down throughout the day as did most of the market, so I avoided it. As it turned out, a short would have yielded a quick trade for a point or so, but then it was over. The company delivered a little weakness on the top line, but the bottom line was OK, and the stock is behaving much better today- up about 4 points.

Today's post close trade would be Altera (NASDAQ: ALTR), which is expected to deliver $.27 per share in earnings. I am going to hang back and watch what happens and try to learn. There might be so much bad news priced into stocks there's no where to go but up. There are lots more opportunities on the list, so let's hang back and see what happens.

Another trade worth looking at is the long side on Research In Motion (NASDAQ: RIMM). The stock traded down to a lower perfect 61.8% retracement today, and promptly bounced. I believe the stock is going to $200 in the next bull market. Check the BLOG for more details and a chart. I believe the stock is a but right now.

Platina Energy (OTC BB: PLTG): A Microcap That Could Buck the Trend

As you all know, July has been a very tough month on stocks, and the economic picture has dulled considerably. In my view, it could take some time for the micro portfolio to come back. If you're still in, you need to think long term. There's very little sell pressure on these issues, but buyers are simply nowhere to be found. A little bit of sell pressure goes a long way in today's market, but a little buying pressure will take them back up quite easily when the time comes.

The one microcap I cover which has a really good short term chance is new idea Platina Energy Group (OTC BB: PLTG). The stock was a real roller coaster ride the first couple of days, but has since smoothed out, and is the only microcap stock trading above the introduced level $.12 in the case of PLTG.

As you can see from the chart, I first introduced the company back on June 19th at $.12. The stock made it to nearly $.18 that day, and the next day just got hammered on the biggest single volume day in its history. Seemingly, there was some pent up demand to liquidate shares. The stock promptly bounced, and it has been all quiet since then- the stock has chosen to camp on the $.13 to $.14 level.

Today's post close news is certain to raise some eyebrows and investors are going to wonder just how big this company can become. PLTG disclosed today that a conservative independent group estimates their oil and natural gas recoverable reserves at $500 million - yes folks, about $1/2 billion in recoverable reserves.

I have seen and read the report. I am no geologic engineer, so I can't really plow through the data and provide you with real meaning. However, it is an independently produced and very detailed report.

The report specfically references PTLG's properties in Laurel, Whitley, and Clinton counties in Kentucky, and Hawkins County in Tennessee. PLTG has just started harvesting from a number of these wells, and more will come online throughout the course of the summer and into the Fall.

I believe the conservative, independent estimate of $1/2 billion could be an eye opener for the market, and get this stock cranking but up the charts once again.

It seems are timing on this idea could be quite prolific. This has been striclty an exploration play until just this past month, and now PLTG will start receiving its first checks in the back half of August.

I have no idea how long it will take the company to harvest $1/2 billion in resource revenues, but if they get started on a small fraction of that number this year, it bodes very well for the price of the stock.

The company trades at a current valuation of $16.8 million. It seems to me, as these wells prove out in numbers, the company shouldn't have much trouble trading up to a $50 million valuation- this would translate to a $.40 to $.45 stock. I would be willing to go up into the $.16 to $.18 range on purchases, but a gap up in the morning should be avoided. If it gaps up, wait for a pullback or file a limit order.

As a fast growing US based energy producer, this one could trade very well. Here is today's news release for your review:

Press Release Source: Platina Energy Group, Inc.

Platina Energy Group Reports Over $500 Million in Reserves

Tuesday July 15, 4:05 pm ET

DALLAS, TX--(MARKET WIRE)--Jul 15, 2008 -- Platina Energy Group, Inc. (OTC BB:PLTG.OB - News) (Frankfurt:O5Y.F - News) releases independent reserve report data quantifying its holdings in Kentucky and Tennessee for net oil and gas reserves. According to the report, the specific net recoverable quantities are 1.85 million barrels of oil and 24BCF of natural gas. At present pricing, this represents a value well in excess of $500,000,000.00.

"This is probably the most significant news that the Company has ever released. Although we have other reserve report estimates on other fields that total another $100 or more million, this particular report is extremely conservative based on what we are recovering on the Kentucky field at the moment. We think that the actual reserves could be much higher, but it is too early to tell," stated Blair Merriam, President of Platina Energy Group.

Production in Kentucky continues to rise at a rapid rate as a result of the recent drilling activity.

About Platina Energy Group

Platina Energy is a fast growing E&P Company. Since organization in 2005, it has acquired proven producing and proven non-producing reserves in addition to other possible reserves. The Company also owns rights to German Inspired oil extraction technology. The Company continues to be aggressive in acquiring new and existing producing fields.

RISK/SEC DISCLAIMER

Information contained herein contains forward-looking statements; not guarantees of future success.

The presence or recoverability for optimal/timely reserves, costs, scheduling, etc., cannot be promised. This release contains "Safe Harbor" provisions of the US Private Securities Litigation Reform Act of 1995 & involves risks and uncertainties, that could cause actual results to differ materially from those estimated herein.

Platina Energy believes the forward-looking statements to be based on reasonable assumptions however, no assurances are made. Unpredictable & unanticipated risks, trends, potential unprofitability, cash flow impairments, access to financing, and other risks must be understood.

Platina Energy assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Issuances of shares for acquisitions, settlements or services may dilute future earnings.

Oilfield leases, contain certain terms and stipulations, often developmental or financial, that may require performance by the lessee. This could result in loss of future rights and underlying assets.

Contact:
     Contact Information:
     Platina Energy Group
     Blair Merriam
     Email Contact

http://www.PlatinaEnergyGroup.com

Source: Platina Energy Group, Inc.

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