To OTC Journal Members:
 

Trading Alert: American Water Star (OTC BB: AMWS)

The May 11th edition, entitled the "Four Phases of Microcap Evolution" covered the process for achieving success in the microcap world. At the end, I cautioned investors to look for an outstanding buying opportunity in American Water Star, who's recent registration statement on behalf of investors flew through the SEC review process in record time; a Stage III event.

As I write this, American Water Star's exciting new beverage line, Hawaiin Tropic, is arriving at Wal-Mart Superstores all over the country, and the free sampling process is beginning. 73 Truckloads of beverage left AMWS's bottling facilities in April, and were delivered to Wal-Mart's central depot in May. From there, it has gone on to the individual stores, and is starting to show up on the shelves.

In fact, during the months of March and April, AMWS generated more in revenues than it had in its entire history. That's what I call a breakthrough event.

In that same May 11th edition, I cautioned members there was some technical risk in AMWS. With the effective registration statement, there could be a supply of shares hitting the market from financiers.

The registration statement went effective on Monday. The shares were fairly stable for a couple of days, and today succumbed to the predicted selling pressure, creating an outstanding opportunity for those willing to act immediately.

As I write today's edition about half way through the market day, the stock has already traded over 1 million shares. The bottom was made at about $.90, which is no accident.

Here's the bottom line: After an exhaustive due diligence process, some very sophisticated fund managers invested $8 million in AMWS back in February. Their cost basis is $.90, a level from which they determined there was a high likely hood they would make a substantial return on their investment.

The stock traded down to $.90 today, and immediately bounced. For you technicians, the stock has completed the right shoulder of a head and shoulders formation, which is extremely bullish technically. Like a homing pigeon, it returned to last summer's breakout level.

If you have the courage to act quickly, you can now own this stock just a few cents above the level fund managers put their $8 million at risk. The stock could fool me and go lower. However, the stock is a bargain basement steal thanks to some short term thinkers, and you should pounce on it immediately. I can assure you, there will be some exciting developments coming in June.

Pick it up immediately up to the $1.10 level. Use someone else's weakness and short term thinking to put yourself in a position to make money right along with the guys who invested $8 million. Now is the time to act. I believe this window of opportunity will close quickly as bargain hunters sense the bottom and snap up the stock. 

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