To OTC Journal Members: 
 

Allied American (AAST) Hits Target

Ok loyal readers- I hit this one dead on. One week ago Monday I suggested you participate in AAST at $1.20. My forecast was $1.50 t0 $2 per share.

I also called it a potential breakout two days ago at $1.32.

The stock is now firmly bid at $1.50 just as I predicted. That's 25% real cash on your money in 10 trading days.

More importantly, this wasn't some sort of flash-in-the-pan where you had one second to buy and flip out to make money. You had a whole week to accumulate this stock.

I've been calling for $1.50 to $2. If you're happy with your profit, go ahead and take it. You also might consider waiting a bit- the stock is working higher every day.

Consider me very satisfied on this idea. 

Eagleford Energy (EFRDF)- A Major Transformation

I've been preaching about the "Thrill of the Drill" as a good theme to make money with the smaller oil and gas stocks.

Eagleford (EFRDF) has now been good to us twice. I went from $1 to $2 last December. Over the past two weeks it has gone from $1 to $1.70, and could be destined for $2 again.

However, there is a big difference between the last pullback and the current potential pullback. The company has changed quite dramatically.

As was announced yesterday, EFRDF has gone from an exploration company to a producing company. Their San Miguel property is now producing oil, and likely will be developed into a good cash flow entity.

I am a proponent of accumulating these kinds of stocks when they are cheap and no one wants them, and then being in a position to take a profit when the stocks are surging.

It's highly unlikely EFRDF will give us another opportunity to accumulate at $1. It's now a producing company, and as such will likely command a higher valuation in quiet times.

I don't know whether the stock will now push forward to $2 again, or whether it will start to quiet now after this great news. I suspect we will now have to accumulate this one at much higher levels to make money in the future.

If they keep finding oil, the upside potential on this one is far greater than $2.

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