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To
OTC Journal Members:
My previously announced new idea
for today has been delayed for the time being. I expect the video associated
with this new idea to play at www.otcjournal.com tomorrow after the close,
and I'll release the associated newsletter on Saturday. Stay tuned this
weekend if you want to learn where you can buy $.60 in EPS for $2,
with about 30% growth.
In the meantime, have you been watching
one of my summer's "Crazy Penny Stock" ideas? After having a nice trade
in this one the first time around, the summer treated shareholders about
the same way a baby treats a diaper.
SingleTouch (OTC BB: SITO) is
really catching a bid once again, and has come up nicely off the canvas
in the month of September. The chart you are looking at was published in
the OTC Journal back on June 15th.
I had covered SingleTouch about 18
months before, and it was an abject loser. The company provides ADCs (Abbreviated
Dialing Codes) for cell phone use. #WMT gets you WalMart on your mobile.
#SEARS gets you Sears. #TAXI gets a taxi service.
The company got in bed with WalMart
(NYSE: WMT) in a big way through AT&T (NYSE: T), and is providing millions
of text messages to WalMart customers.
After two years of testing and delays,
WalMart is taking the total plunge on use of text messaging a bunch of
different ways, and minuscule SingleTouch is the recipient of all their
businesses thanks to good fortune and persistence.
In an edition published on June 22,
I predicted SITO was headed for $1.70. I was close, but I should have provided
a range. The stock made $1.61 in July, and then tanked along with the market
over the summer.
The stock crashed in the summer downturn,
and it was caused by a few factors. 1- the ugly market environment was
a major contributor. In addition, there was a problem with the CEO and
his ex wife.
The CEO of the company is not particularly
well thought of, and quite full of himself. It appears the company will
be very successful, so he gets some credit for that part of the equation.
However, his self annointed genius status has not made him rich enough
to meet his financial needs, so he started selling his own shares. At the
same time, the ex wife got the court to award her a bunch of shares, and
she was selling as well.
The net result was as you see here.
The stock did make the $1.61 high in July, notching us a nice gain
from $1.20. Then the bottom fell out as both the market collapsed, and
the idiot CEO was selling alongside his x.
As you can see, the stock crashed
from $1.60 to $.70.
The recent financiers who put $6
million into this company weren't pleased with the CEO's actions, and put
a stop to the selling. The market has come back some since then, and the
stock is firming up nicely.
I don't know exactly where it will
head from here, but the chart looks great. The stock is coming back nicely,
and hopefully it will continue to climb. It is beginning to restore my
faith.
Stand by for more out of this one.
Disclosure: I don't own any SITO,
WMT, or T at this time. I might in the future. There's been no payment
for this coverage.
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