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Yesterday's comment, in case you
haven't had a chance to review it, was about streaking Spicy Pickle
(OTC BB: SPKL). If you read my BLOG, you will learn that I believe
the stock could be a bit ahead of itself, and if you are looking to accumulate
more or open a first position, I believe you should wait for a pullback.
Read the current BLOG for my thoughts.
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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Do
You Think the World is Getting Safer, Part II? |
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Do you know how much it cost the
US Taxpayers to upgrade Airport Security post 911? Are you ready for this
number? $2 Billion. With help from the government, officials
at Logan Airport in Boston alone spent $140 million just
for explosive detection equipment. The Federal government paid 75% of the
tab.
Do you know what the TSA is spending
for airport security in the Fiscal '06 budget? $4.98 billion. Frost
and Sullivan estimates the top 30 companies in the security technology
space will generate $6.1 billion in 2009- an eye popping
number.
Stand by next week to learn about
a speculative company that might get a small but nice chunk of that number.
They detect explosives better, cheaper, and faster than we do it now.
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Titan Global
(OTC BB: TTGL) Looking Tasty |
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I don't want to go into a big long
explanation of the fundamental picture, or why you should own this mini
conglomerate, Titan Global. Let's just say when I first started
covering the company last October at $.86, it had evolved out of a habitual
money loser in the PCB space, into a cash generating monster in the pre
paid phone card/mobile telecom company to the tune of about $130 million
in annual revenues.
Thanks to recent LBO style acquisitions
in September, TTGL now boasts north of $700 million in annual
revs, and should be substantively cash flow positive on a go forward
basis. The old TTGL had substantial toxic debt. The new version
is slowly but surely exorcising the demons of the past, and to that end
put its money where its mouth was. TTGL bought a full 1 million
shares of its own stock out of the public market over the course of the
summer. The money is gone, and the stock is retired.
At last count there were less than
50 million shares I&O- based on Thursday's closing price, we are looking
at a market valuation of a mere $96 million against over $700
million in annual revenues.
TTGL was a source of frustration
for investors when the market was strong last winter- why- because the
stock kept butting up against $1.40, and could never get through
that level. From December through May the stock made three tries to break
through $1.40, only to be sent back south of $1.25 every
time.
As you can see from the chart, the
big breakthrough came in late July and early August. If finally broke through
the $1.40 level convincingly, and then scampered straight up to
the $2.20 level in fairly short order.
If you are flush with cash from SPKL
or any other idea of late, and looking for another stock that could be
good for either a very strong long term hold, or a high probability trade,
jump on TTGL right now.
Last week in my BLOG I suggested
the 38.2% retracement level on SPKL was the perfect level
to pick up the stock. It turned out extremely well for those in jumped
in pretty short order. Believe me, that is not always the case.
TTGL, another stock that has
traded very well over the last several months, is now at the perfect 38.2%
retracement level, and is starting to turn back up. On a purely technical
basis, this stock should be pounced on right now. Longer term, I believe
this one is going to $4.
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