Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
A
Preview of a Coming Event |
 |
A couple of weeks ago I mentioned
that I was looking for ideas in the oil and gas and biotech sector to round
out the slate of offerings. Many thanks to those who sent in suggestions.
I looked at a few- we have some very astute investors in the readership.
I'm still looking in the biotech
arena, but I think I've found the idea for the oil and gas sector. It's
not just another run of the mill coal bed methane find in Kansas, or some
new technology to exploit exhausted wells. This idea fits the theme of
the OTC Journal perfectly. I have identified a small, virtually
unknown company that may have stumbled onto the mother lode.
This little company has the rights
to what could prove to be a massive find in an exotic region of the world.
We're talking trillions of cubic feet of natural gas and millions of barrels
of oil. President Bush's policies are very supportive towards this region.
Stand by for more details. Information could come before the end of next
week. I'll give you the facts- you decide if you like the idea.
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Titan General
(OTC BB: TTGH)- Loads Up Bank Account Painlessly |
|
In the September
8th edition I suggested Titan General could be headed for the
$1.75 range with the announcement of contracts for 11 separate new customers
including Textron and several other undisclosed Fortune 500 companies.
I felt the stock was poised to break out because it had seemed to "drift
up" the previous week on fairly light volume.
The stock didn't make it to $1.75
as I had predicted. In short, I was wrong. It wasn't the first time, and
it definitely will not be the last. The stock seemed to hit a wall at about
$1.45, and couldn't make any progress beyond that point. Since first writing
about Titan on August
26th, the stock has tried to break above $1.45 four times, and tried
to break below $1.30 the same number of times. The stock is range bound.
During the week Titan made
an additional announcement specifying they had completed an assignment
for Textron, and had subsequently been awarded another contract
for $350,000.
Then on Friday, just after the market
closed, Titan made another announcement which I believe speaks volumes
about the quality of the management team. The company announced it had
entered into a definitive real estate agreement which will yield a one
time gain of $700,000 plus for Titan.
They are exercising an option to
buy the building which houses their Massachusetts facility, and selling
the property immediately for a gain of $700,000.
This transaction is not a reflection
of the ongoing business, but it will provide capital to fuel expansion,
and it's not coming at any cost to the shareholders. This is money the
company might have otherwise raised in an equity financing, which would
have been dilutive.
I am becoming more enamored of this
company with each press release. Each positive fundamental announcement
brings us one step closer to a breakout. Persistence breaks down resistance.
I don't know if it will happen on Monday, but it easily could. One biotech
stock I own took six tries to break through $.30, only to be repelled back
to $.20 each time. When if finally broke through, the stock ran to $1.25
in four weeks. I'm sure the sellers at $.30 felt like idiots. It's now
trading at $.75, and I still own it.
Fundamentally, the PCB (printed circuit
board) fabrication market is huge, and Titan seems to be gaining
a stronger foothold daily. I'm expecting serious growth out of this company.
Technically, the stock hasn't broken
out yet, but it seems inevitable if the company continues on its current
path. If the stocks breaks below $1.30, I would look at $1.20 as a potential
mental stop loss.
However, if the company continues
on its current path, a break to the upside seems more likely. It could
become a longer term idea than I had originally forecast, or it could break
out on Monday. If it does break out and you don't own it, you'll be chasing
the train as it pulls out of the station.
Here is the complete text of Friday's
press release for your review:
| Press Release Source:
Ventures-National Incorporated
TTGH Announces Lucrative
Real Estate Contract
Friday September 12,
4:52 pm ET
Anticipated $700k Gain Significantly
Enhances Working Capital and Minimizes Issuance of Equity
FREMONT, Calif.--(BUSINESS
WIRE)--Sept. 12, 2003--Ventures-National Incorporated, dba Titan General
Holdings, Inc. (OTC BB: TTGH), announced today it has entered into a definitive
agreement for a $2.6 million real estate transaction. Andrew Glashow, Titan's
president, made the announcement. The transaction is expected to close
within the current fiscal quarter.
"Under the terms of the
contract, TTGH is exercising its option to purchase the commercial real
estate occupied by our Amesbury, MA tech center and concurrently reselling
that real estate at a significant profit," stated Mr. Glashow. "The completion
of this transaction, on which management has been hard at work for a number
of months, will allow us to "flip" the option we obtained when we purchased
Eastern Manufacturing in February of 2003. On conclusion, we, in turn,
will lease the property back from the new buyer."
With respect to the anticipated
profitability of the transaction, Mr. Glashow went on to say, "Our exercise
price is $1.825 million and the purchase price is $2.6 million -- with
an expected profit in excess of $700,000 after fees. We can fund working
capital needs while minimizing the issuance of additional debt or equity."
Robert Ciri, TTGH's chairman
stated, "A major tenet of our strategic plan is making intelligent acquisitions
consistent with our high growth strategy - and monetizing those assets
at optimal levels."
About Titan General Holdings,
Inc.
TTGH is a dynamic and
innovative fabrication services company producing time sensitive, technologically
complex prototype, and high margin printed circuit boards. The Company
was established through the acquisition of SVPC Partners, LLC in August
of 2002 and Eastern Manufacturing Corporation in February of 2003. The
management and board of directors of TTGH are focused on significant growth
and shareholder value. TTGH operates two tech centers, one in Amesbury,
Massachusetts and the other in Fremont, California, which is the Company's
corporate headquarters. For additional information on the Company, please
contact Trilogy Capital Partners, info@trilogy-capital.com. Investors who
are interested in learning more about TTGH are encouraged to visit the
company's website at www.titanpcb.com. The company's site contains current
information on the company, its operations, management and board of directors.
Cautionary Statement
Regarding Forward-Looking Statements
Statements made in this
news release, other than those concerning historical information, should
be considered forward-looking and subject to various risks and uncertainties.
Such forward- looking statements are made based on management's belief
as well as assumptions made by, and information currently available to,
management pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Titan General Holdings, Inc.'s actual results
may differ materially from the results anticipated in these forward-looking
statements as a result of a variety of factors, including those identified
in Titan's annual report on Form 10-KSB for the fiscal year ended August
31, 2002 and its quarterly reports on Form 10-QSB filed with the Securities
and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
Trilogy Capital Partners
Tel: 800-330-6540
info@trilogy-capital.com
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