To OTC Journal Members: 
 

Feeding the Mars Colony

Are you ready for the colonization of Mars? It's going to be tough for humans to survive on Mars when you consider that the atmosphere is 95.32% carbon dioxide and only .13% oxygen.

With so much carbon dioxide in the atmosphere, one would think it's the perfect place for crops to thrive in that environment. After all, plants take in carbon dioxide, and then give off oxygen. Hence- the depletion of the rain forest in S. America vs the debate about global warming and the ozone layer- but that's another issue and too politicized for me.

The average temperature on Mars is -63C, so crops might have a rough time. How are we going to feed everyone when we colonize Mars in 100 years? It would be impractical to ship food to Mars since it will probably take about 20 years to get there.

And- if we need to colonize Mars, won't that mean there's too many people on Earth, and we're sending our over flow to the most inhabitable planet in our solar system? So, if we're over populated, we probably won't have enough food here to feed everyone, so how could we ship it to Mars anyway?

The Mars colony will have to grow its own food and raise its own livestock.

This tongue-in-cheek Spielberg inspired preamble is an introduction to today's new idea. No, I don't expect you to invest in this stock in the hopes these guys have the answer to raising crops on Mars. They do, but that's just a little ways out in the future and the Chinese are likely to be the only country with a space program. However, they have some interesting technology to help making growing far more efficient on a very localized scale, and sales are really starting to take off thanks to a new strategy for getting their product in the hands of consumers.

Read on McDuff.......
 

Phototron Holdings (OTC BB: PHOT): Growing Like a Weed

You are looking at a unique device. There is no other product that does what this baby can do.

This is device makes indoor gardening perfect. It grows plants 365 days a year, 24 hours a day. It provides the perfect light source from germination to maturity. It is efficient and easy to use.

It also accelerates growth 2 to 3 times normal.

In the same amount of soil, it can grow 30 to 50 times the crops, has a perfect pH level, eliminates harmful pesticides and toxins, and eliminates all insects.

It has a programmable technology brain the can turn the light on and off at specified times. It has an automatic variable speed fan, a carbon filter mounted on top, and only needs to be plugged into a 110 watt electrical outlet.

There are 4 models ranging in price from $495 to $1595. PHOT sells seeds, after market replacement parts, and programmable automatic water systems.

This is a Hydroponic Indoor Gardening System, and yes- if you could plug it in, it could grow crops on Mars.

People are using this system to grow herbs like basil, chives, rosemary, and oregano. Fruits and vegetables can be grown like carrots, beets, bean, strawberries, blueberries, and peas.

Flowers are a very popular use- highly sensitive Orchids grow extremely well. However, that's not what's really fueling their rapid growth right now. The company is growing extremely rapidly due to two factors- the first is a major change in the method of distribution, and the second is-- well, you'll just have read for a couple more minutes.
 

Direct Sales and Unique Demand Fueling Rapid Growth

This past June PHOT stopped trying to market their product to retailers and went to a direct sales model through personal networks. The direct sales model has proven highly successful for many companies. Avon enjoys $11 billion in annual revenues- Amway is at $8.2 billion- Mary K $2.4 billion, and Tupperware $2.2 billion.

Direct sales brings together like minded people with networks of friends who can benefit from use of the product. And, if there was ever a like minded target market custom designed for this product, it's booming right now.

Let's pullback the curtain, see the real Wizard of Oz, and discuss what's fueling this company's growth. You're either going to hate this or love this, but either way you'll have to admit it's a sweet spot in the market in today's world.

All of a sudden, 17 states and DC have passed legislation making medical marijuana legal. 10 more states have pending legislation. Where I live in California, like it or not, Marijuana has basically become legal. Anyone with a headache and $75 for a visit to the doctor can get a prescription.

Of course it's abused. And, it's still hotly debated. Most people don't like the idea of college kids abusing the substance. However, who am I to judge someone's use of the stuff if they are in severe pain with cancer. If it really helps, have at it as far as I am concerned.

It's now become legal in many states to grow and dispense this crop. It brings in a lot of cash from a pretty small space. If you have a license to sell it, the unique Hydroponic Indoor Gardening System can probably generate thousands in annual revenues, yet costs less than $1,000 to set up. Great margins, and very attractive to home based business.

Hence, the perfect product for Direct Sales. No doubt, this is popular with like minded Orchid and Rose growers. If you met anyone who gardens and competes at the county fair, you know there's no holds barred on cost.

The Cannabis growing community- legally and compliant of course, is a tight knit bunch. If someone has the latest and greatest technology, everyone has to have it.

Their new direct sales model was launched in June, and sales are now climbing 25% higher month to month. Do the math- a few months at that clip is massive growth.

By combining the power of Direct Sales and providing a product that revolutionizes indoor agriculture, PHOT is going to end up on lots of investor's radar screens.

Like Midas Medici (MMED), this is another super thinly traded stock. It's not offered any lower than $.50. What typically happens in a Direct Sales company like this is the sales associates in the network end up buying gobs of the stock as the company grows.

The more the company grows, the more stock the associates buy because they are making a lot of money off product sales. In this case, the customers can make money both using and selling the product, so there's two potential income streams.

There's one way for you to prosper- own the stock, but $.50 is the maximum I would consider trading into this one. It traded over $1 several times the 1st quarter of the year, so that gives you a reasonable risk/reward ratio.

Also- check your news feed today. PHOT announced they have added Alan Liker to their Advisory Board. This guy is a former Harvard Law Professor, and a board member at Herbalife, one of the most successful direct marketing companies in the world.

Final thoughts- $.50 maximum limit order- $.25 stop loss- $1 price target. Set your sell trigger as soon as you own it by filing a GTC limit order with your brokerage firm. This is the kind of stock that could shoot up there for a moment, then pull back. If your order is not already in, you'll probably miss the profit.

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