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I'm going to be very busy in the
BLOG
for the next two days. Today, I posted pretty comprehensive updates on
both Commerce Planet (OTC BB: CPNE) and eFoodSafety (OTC BB:
EFSF). These are your mid summer observations. By Wednesday morning
look for new BLOG postings on Universal Capital Management (OTC
BB: UCMT), PhotoChannel Networks (OTC BB: PNWIF), Bad Toys
(OTC BB: BTYH), and New Century Industries (OTC BB: NCNC). I am off
for about one week, so that might be it for the OTC Journal until
early August when I return. However, major breaking news stories will be
covered. If you post any questions or comments you might not get a response
for a week or so.
The BLOG is your opportunity
to ask questions and offer comments. I will make an effort to answer every
legitimate question. If I don't know the answer, I will contact the management
and get the answer. Alternatively, if you have questions you don't want
publicly displayed, you can always email me directly at editor@otcjournal.com.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG scrolls down from the upper right hand corner. The most
current journal entries appear on the right hand side of you screen. Check
back frequently for updates particularly when stocks are moving to overbought
or oversold levels in volatile markets.
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Titan Global
(OTC BB: TTGL) Enters Energy Fray In a Big Way |
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We are in the middle of the mid summer
doldrums- the microcap world is a complete snore fest and everyone is on
vacation. In short, if you love microcap stocks and have a six month time
horizon now is the best time of year to make money.
Let's look at some of our favorites
one year ago today: CPNE was $.50 ($.1.20 today), PNWIF was $1.20 ($3.75
today), NIHK was $.04($.105 today), and TTGL was $.60 ($1.05 and today's
subject). Throughout the course of the last year they were all much
higher than they are today, but if you had loaded up on all of them you'd
be sitting on some huge profits a mere one year later. I know it's sometimes
hard, but the slightly longer time frame gives you some perspective.
Between now and Mid August is the
prime time to set yourself up to make a lot of money in microcap stocks.
Accumulating today will give you the best possible opportunity to make
strong returns over the next six months. And, by the way- don't forget
to sell in January when everyone is gobbling up the stocks thinking they
have no where to go but up. Summer will come again later in '08.
Titan Global, one of our coma
victims on the technical side, but a powerhouse on the fundamental side,
made an announcement today which could bring the stock back into the microcap
cross hairs and get this quiet, pathetic wretch moving in the right direction.
TTGL announced it is making
a major vertical move into the energy space. TTGL plans to buy Appalachian
Oil as its "initial" acquisition into the energy space. According to
today's press release, Appalachian delivered $400 million
in revs in 2006. There was no disclosure on profit levels, but with 160
dealers and 550 employees it is safe to assume they are making
money with oil at these lofty levels.
According to the press release, Greystone
Business Credit will finance the transaction. This is what Wall Street
likes to call a Leveraged Buy Out. TTGL will be using the
leverage of its credit worthiness to borrow money to buy the company.
There are literally dozens of examples
of public companies who have used the LBO strategy to accelerate their
growth. TTGL is following suit.
Fresh off a strong quarter wherein
TTGL
delivered just north of $30 million in revs and just under $2
million in real cash profits, TTGL appears to want to get very
aggressive and start swallowing up companies.
We don't know what TTGL is
paying for the company, and what the financing terms will be. If it's a
straight debt arrangement as with other Greystone financings, it might
not have any dilution. They expect to close the transaction in September.
Here's a long term look at TTGL.
This chart is a weekly look going back nearly about 16 months. The chart
shows a nearly perfect 38.2% retracement level over the period of
the company's resurgence.
This is a great chart, and suggests
the stock could be ready for another leg up. This sideways trading has
extended nearly for over 3 months, and the longer the base, the better.
All things being equal, post close
TTGL
will now enjoy a revenue run rate north of $1/2 billion. This, against
a market cap of about $50 million at today's closing level. Trading at
1/10th of revenues? Come on.
From a stock price point of view,
perhaps this is just what the doctor ordered. Perhaps a move into the red
hot energy sector will trump the great performance in the rather cold telecom
sector, and the stock will begin finding a bid and climbing the charts.
In any case, it's a new day at Titan
Global.
Here's the complete text of the
news release for your review:
| Press Release Source:
Titan Global Holdings, Inc.
Titan Global Holdings
Announces the Formation of Titan Energy Group
Monday July 23, 4:01
pm ET
Company Executes Definitive Purchase
Agreement to Acquire $400 Million Appalachian Oil Company as Initial Acquisition
RICHARDSON, Texas--(BUSINESS
WIRE)--Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL - News), a high-growth
diversified holding company, announced today that the Company has formed
Titan Energy Group, a division engaged in the acquisition and management
of complementary energy sector assets. Concurrent with the formation of
Titan Energy Group, the Company announced the execution of a definitive
purchase agreement to acquire 100% of the outstanding stock of Appalachian
Oil Company, Inc. ("Appco"), representing the Company's initial acquisition
in the sector.
The formation of Titan
Energy Group further validates the Company's strategic vision for creating
long-term shareholder value through the creation of a dynamic, high-growth
diversified holding company. Titan Energy Group, capitalizing on earnings
opportunities within the energy sector, has been formed to aggregate undervalued
assets which can provide significant opportunities for revenue and earnings
growth.
Appco, formed in 1923
and based in Blountville, Tennessee, is a privately held petroleum company
that owns and operates an extensive petroleum product distribution network
that generated approximately $400 million in revenues for fiscal 2006.
Appco distributes petroleum products to more than 160 dealers in the southeastern
United States and owns and operates 56 convenience store locations. Appco
has more than 550 employees and maintains long standing partnerships with
strategic terminal operators and major oil companies.
"It is the opinion of
Titan's Board of Directors that the formation of Titan Energy Group and
the acquisition of Appco are the most important events in our Company's
history," said David Marks, Chairman of Titan Global Holdings. "Titan's
initiatives in the energy sector are consistent with Titan's unwavering
commitment to the creation of shareholder value. Our expectation is that
Titan will continue to grow as a high-growth diversified holding company
and extend its reach even beyond energy."
"For more than two years,
Titan shareholders have benefited from the strategic business model that
helped build our communications division into a major force in telecommunications,"
said Bryan Chance, Chief Executive Officer of Titan Global Holdings. "Titan's
senior management is firmly committed to building on that success through
the execution of a strategic plan to similarly increase revenues and earnings
in the dynamic energy sector. Appco's strong revenue base and storied 84-year
history provides Titan with an ideal platform company for further expansion
of our energy efforts. Furthermore, Appco's management team has more than
125 years experience in the petroleum and convenience store industry. We
will preserve and leverage Appco's industry-leading management team."
The Company is acquiring
Appco principally with debt financing provided by Greystone Business Credit.
The terms of the agreement to acquire Appco were not disclosed. The Company
anticipates closing the transaction in September 2007.
"Through the formation
of the Titan Energy Group and the Appco acquisition, Titan's management
team continues to demonstrate its ability to seek out businesses with value
potential," said Drew Neidorf, President of Greystone Business Credit.
"We continue to be enthused about our relationship where we already provide
financing to other Titan related entities and look forward to considering
the financing of many future businesses this talented team surfaces as
Titan progresses into a formidable player in the energy sector."
"The vision of Titan's
management coupled with the Company's financial strength bode well for
Appco's future growth," said Jeff Benedict, Chief Executive Officer of
Appalachian Oil Company. "Titan has a track record of not only preserving
but also creating jobs following its acquisitions and we are confident
they will continue our legacy."
"Titan enjoys the stewardship
of its equity sponsors at Crivello Group and Farwell Equity Partners, our
forward thinking management team dedicated to increasing shareholder value,
and seasoned business unit leadership that leverages its expertise to organically
grow each business unit," said Mr. Chance.
About Titan Global Holdings
Titan Global Holdings,
Inc. ("Titan") (OTCBB:TTGL - News) is a high-growth diversified holding
company with a dynamic portfolio of companies engaged in emerging telecommunications
markets, advanced technologies and energy. In its last fiscal year Titan
generated in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom
Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas,
is a market leader in prepaid telecommunications products and the second
largest publicly-owned international telecommunications company focused
on the prepaid space. Oblio leverages strategic agreements with Tier 1
telecommunications leaders Sprint and Level3 to supply its brand-name prepaid
calling cards. Annually Oblio sells an estimated 35 million of its brand-name
prepaid calling cards through its established distribution channels estimated
at more than 60,000 retail outlets.
Titan Wireless, Inc.
("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network
operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products
and wireless services through Oblio's established distribution channels.
Titan's Electronics and Homeland Security division specializes in advanced
manufacturing processes to provide commercial production runs and quick-turn
delivery of printed circuit board prototypes for high-margin markets including
Homeland Security and high-tech clients.
For more information,
please visit: www.titanglobalholdings.com. For investor-specific information
and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html.
To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement
Under the Private Securities Litigation Act of 1995 -- With the exception
of historical information, the matters discussed in this press release
are forward-looking statements that involve a number of risks and uncertainties.
The actual future results of TTGL could differ significantly from those
statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as the inability to finance the company's
operations or expansion, inability to hire and retain qualified personnel,
changes in the general economic climate, including rising interest rate
and unanticipated events such as terrorist activities. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of such terms, or other comparable
terminology. These statements are only predictions. Although we believe
that the expectations reflected in the forward-looking statements are reasonable,
such statements should not be regarded as a representation by the Company,
or any other person, that such forward-looking statements will be achieved.
We undertake no duty to update any of the forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
the foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk factors
associated with our Company, review our SEC filings.
Contact:
Trilogy Capital Partners
Financial Communications:
Ryon Harms, Toll-free:
800-592-6067
ryon@trilogy-capital.com
Source: Titan Global
Holdings, Inc. |
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