Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Today's edition has a virtual smorgasbord
of events I need to report to keep you properly informed on several of
the issues I have been covering. I'll try to keep the points down to a
couple of paragraphs to make it an easy read.
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Review
the Trading Strategies Section If You Paid $.45 for QTFV |
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If you took advantage of last night's
trading alert on QT5 (OTC BB: QTFV), and you bought the stock in
the first 45 minutes of trading at $.45, you paid too much.
The last trade in the stock on Wednesday
evening was about $.31. Between the news which came out after the close
and our coverage, there were buy orders at the open and the market makers
gapped the stock up to $.45.
In last night's edition I specifically
stated not to pay more than $.40. Also, at the home page you can
find a section entitled "Rules
For Successful MicroCap Investing". Please review this section. You
will find a Trading Strategies Section which specifically states
you should never buy a stock at the market which gaps up at the open. Use
a limit order. Most of the time the stock will trade back down and give
you a more favorable entry point.
If you did buy at $.45, don't worry.
I still believe you will make money over the next 30 days. Raise your stop
loss to $.25.
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Profit Alert-
QQQ's |
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Last Wednesday, May
21st, I published a Trading Alert on the QQQ's. I followed my own lead
and purchased the July 27 Calls at just under $2 the following morning.
I have closed out my position with
a solid one week gain, and recommend you do the same if you are long.
Today was a big volume day on the
NASDAQ without much upside progress in the price. The QQQ's, which I stated
might trade to $30, hit $29.80 and reversed.
Based on today's closing price, if
you simply bought the QQQ's at the open last Thursday, you paid about $27.80.
Today's closing price was $29.31, a 5.4% return on invested capital
in one week. I'll take that anytime.
For those who used the leverage of
the option I suggested and bought for my own account, the return was much
more exciting. Those July 27 Calls closed at $2.70 today- net return on
invested capital- 50% in one week. I'll take that every time.
Sell at the open tomorrow. The market
could go higher, but we are overdue for a breather. The next pullback will
answer the questions about new bull or ongoing bear market.
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Teco
Energy (NYSE: TE)- Profit Alert |
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Teco was featured on March
22nd at $10.95 as a moderate risk idea for those seeking both growth
and income. The stock is no longer a buy, and possibly a sell if you want
to lock in a nice two month profit of 17% plus the quarterly cash dividend
you received if you've been holding the stock.
The stock surged nicely in conjunction
with the tax relief bill which has made their dividend tax free. The recent
drop in interest rates also contributed to the stock's price surge. At
this price, the dividend yield is now below 6%.
Since their bonds have been downgraded
to junk status, the company is a little riskier than it was at the time
of my recommendation. If more positive fundamental achievements are announced,
it could easily trade higher. However, you might want to lock in your gains.
The 17% gain with the cash dividend are nothing to sneeze at.
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SHEP
Technologies (OTC BB: STLOF) |
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SHEP Technologies was in the
news yesterday. The company announced the program to develop a prototype
Jaguar
with the SHEP Stored Hydraulic Propulsion System
had begun
with PI Research in Cambridge, England. Pi Technology specializes in the
design and development of advanced electronics and software for the volume
automotive and related markets, and is owned by Ford Motor Company.
Despite the recent weak price performance
in the stock, my recommendation has not changed on SHEP. I still
believe this is a stock every microcap investor needs to own in the risk
end of your portfolio. I believe you have to plan to be involved in this
stock for two years if you want to maximize your potential to make money.
The SHEP system has the potential
to end up on every vehicle manufactured world wide. The heavier the vehicle,
and the more stops and starts, the greater the benefit.
Keep my original suggested trading
strategy in mind - allocate 10% of your high risk capital. Of that 10%,
invest an initial 25%. If you haven't done so yet, do so immediately. If
you have already established an initial position, wait for a cue from the
company to invest Part II. If you followed this strategy, you should be
excited about the stock getting cheaper.
Now would be a good time to review
my initial presentation on SHEP. This technology is as exciting
as you will find in the microcap arena. Click
Here to visit our archive section. Click
here to read the original profile on SHEP Technologies.
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How
Do You Buy $20 million in Annual Revenues and $1 Million in Profits For
Free? |
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Answer: Cam Commerce Solutions
(NASDAQ: CADA)
Cam Commerce is a stealth
situation I have uncovered, and is an excellent stock to consider for your
IRA. I first reported on this stock in an edition published back on February
28th.
Cam Commerce is the largest
provider of commerce solutions catering to the highly fragmented market
of small to medium sized retail businesses. The company has over 10,000
customers, and enjoys about $20 million in annual revenues.
I call this a stealth stock, because
no one is following the company. This is the type of stock that will double
overnight once someone recognizes the value.
Consider the following:
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Cam Commerce has $11 million in cash
and no debt.
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Cam Commerce has enjoyed positive cash
flow from operations $554,000 over the last two quarters, and the cash
balances have gone up correspondingly.
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The June and September quarters are
seasonally the best for the company.
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President and CEO Geoffrey Knapp has
been buying the stock for his own account in the open. I estimate he has
purchased approximately 50,000 shares in the open market over the past
month. He has raised his ownership stake from 433,000 shares to 578,000
shares over the last 60 days.
There are only 3.1 million shares issued
and outstanding. Therefore, each share of the stock represents $3.54 in
cash. The cash balance is going up every quarter. At $4.25 you are only
paying about $.70 for the business, which generates $20 million in annual
revenues and about $1 million in cash profits. Seems like a great value
to me.
Again- A limit order- too thinly
traded for a market order.
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Calypte
Biomed Dropped from Ticker |
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I've been negative on the potential
for price appreciation on Calypte for several months, despite the company's
fairly robust performance. The company completed a 30 for 1 reverse stock
split this week, and now trades under the symbol "CYPTV". I'm dropping
from the scrolling ticker and dropping coverage. If the company gets a
major industry partner I will pick it up again.
Over the Weekend- An
Exciting Turn Around Situation Trading Alert
Charts Provided Courtesy
Of TradePortal.com |
