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Making Another New All Time High

When I started writing this morning's edition, I didn't even have to change the headline from the last edition. This headline is titled "Making A New All Time High", and, just as two days ago, the same stock is making a new all time high today.

I've been beating the Bering Exploration (OTC BB: BERX) drum, and the market is cooperating. This morning, as I got up and looked at the early morning quote, BERX is trading at another new all time high. That's a solid 16% return in the first week, and there's been plenty of time to accumulate this one. Up 16% in the first week is not too late to get on board, but you're starting to give up some upside if you don't own this one yet. 

Bering Exploration (OTC BB: BERX) was $1.00 at the beginning of March, $1.25 last Friday when I introduced it, and is now making a new all time high at  $1.48 today. 
 
 

The Volume Break Down of All Time

If you like a really good penny stock story, this one might be for you. If you like a really good penny stock story that has been beaten to death by one huge seller in a couple of days, this one might just be for you. If you like a great penny stock story that has been beaten to death and could be due to rebound, this one is definitely for you.

It there were a penny stock award for the company with the "Most Noble Cause", this one would get that award. Now, I don't know a lot about this company, but yesterday it had one of the biggest volume explosions and breakdowns, I have ever seen this week, so it's certainly worth putting on the radar.

Until Monday the highest volume this stock ever traded was 600,000 shares. That was just one day. Last week it traded from 500 to 25,000 shares each day. Nothing. Monday, out of nowhere, this stock traded 4 million shares, and jumped from $.20 to $.28, only to only to get clobbered the remainder of the week.

The volume surge alone certainly makes it interesting and worth watching. All of a sudden, someone has decided they want to offload a lot of this stock, and whenever this happens there's an inevitable and tradable rebound. 

By now you must be wondering what I'm talking about. The name of the company is Web Safety (OTC BB: WBSI), and an outfit called Harbinger Research describes the company's "Product and Value Proposition Extremely Compelling".

WBSI has developed software to help prevent the risks associated with teen use of social media. This is a huge issue, and one many well intentioned people are trying to address. The company has software for both PCs and mobile devices restrict or disable the use of certain features while that particular phone is in motion. The technology uses GPS to identify if the phone is in motion. If it is, the software disables the phone's ability to text or email.

Guess what that means- no texting or emailing while driving. And- did you know? Texting is causing more highway deaths now than drunk drivers.

The software can be activated from a PC- thereby bringing potential corporate customers on their radar screens. Insurance premiums have risen rapidly thanks to texting accidents, and the company expects it's technology will lower insurance premiums for fleet operators of motor vehicles.

In addition, WBSI has developed software to help prevent cyber bullying and sexual predators from getting onto your kid's computer or their mobile device. It's compatible with all the major wireless carriers- AT&T, Verizon, Sprint, T-Mobile- Bell Mobility, Rogers, and Telus.

Here's some eye opening stats from their current investor presentation:

• 2 x as many teens are injured while texting and driving vs drinking and driving
• 73% of kids admit to driving and texting
• 40% of kids admit to being cyber bullied
• 20% of kids have been sexually solicited online
• 70% of kids admit to having received pornography online

The company also boasts the world's largest database of sexting, pedophiles, cyber-bullying, suicide, drugs, and gun phrases. The software not only blocks all of this before it can be viewed on your browser, but it also prevents Instant Message services from accessing these same phrases.

There are a few competitive services available, but they only have the location services. They don't have the ability to shut down texting and prevent unwanted intruders.

WBSI is starting to establish relationships with organizations like AAA, insurance companies, and the like.

The service runs about $15 per month, and the company currently has its first 3,000 subscribers. It's not a lot, but it's a start.

Now, here's an interesting and potentially profitable chart. The first thing I noticed was the run up from $.20 to $.45 back in February- it only took 2 trading days.

The really interesting part of this chart is the action in this stock this past week. This stock traded anywhere from 10,000 to 50,000 shares on a daily basis all of last week. 

On Monday, everything changed. The stock 4.1 million shares on Monday, nearly 10 times the highest volume it has ever traded in it's entire history. Interestingly, it traded up in the early going, then turned around and to smashed.

So. here's what I find interesting. This company has a great social story. It's starting to become commercially viable, but a long ways from profitable. The stock is the real story here.

Whenever you see a giant blow off like this into a big volume surge, 90% of the time it is followed by a tradable rally. 

The stock has stabilized around the $.15 level, implying whoever had to get out of this one has completed the dastardly deed. 

If you like the social component of the story, and you like an oversold bounce, this one is for you. It will be interesting to follow their progress. When my 12 year old starts driving a car, this is a product I would definitely get.

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