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Profit
Alert- M Systems (NASDAQ: FLSH) and Global E-Point (NASDAQ: GEPT) |
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For those who were in it for a trade,
I recommend taking your profits on FLSH- one of the stocks we featured
in the
October 9th trading ideas edition for the annual Santa Claus rally.
The stock had a parabolic move to the upside at the end of this past week,
and based on past trading patterns is due for a pullback. I have sold the
2,000 shares I had in my own trading account. You should be able to get
somewhere between $18.50 to $18.70 based on Friday's close,
and barring any significant change on Monday morning. This should give
you a cool 30% since October 9th. Double the return on invested
capital if you bought on margin. I love it when we find a good one.
On an even more exciting idea,
GEPT will no doubt trade very well on Monday morning. The company was
out after the close on Friday with news of a major new contract, and the
stock could gap open as it did this past Tuesday. In after hours trading
on Friday it was bid as high as $5.30- that's nearly a double from
last Monday. GEPT was a new idea, just published in last
Monday's edition. If the stock gaps the way it did last Tuesday, short
term traders might want to take some capital off the table. On the other
hand, this might just be the beginning, and a pullback after the inevitable
surge might represent a good entry point. In either case, this one is setting
up to be a major win for OTC Journal subscribers. This is the best
short term idea I have come up with since August of 2003 when NetWork Installation
went from $1.80 to $6 in three days.
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GPS Industries
(OTC BB: GPSN): The Shark Invests and the Stock is Cruising |
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If you are looking for a red hot
penny stock to wrap up your holiday market shopping, GPS Industries
fits the bill. Despite tripling in the last month, the company's new good
fortune is just beginning, not ending. A 200% move is a major feat, but
seems less daunting when one considers the stock has only risen from $.06
to $.18.
This little stock is developing a
big audience. It trades at least 1 million shares nearly everyday, and
eclipsed the 3.5 million share mark out in front of Friday's powerful post
close news release.
GPS Industries has developed
exciting technology for golf course management. The company is the first
I have ever seen that integrates two of the hottest technologies in the
market today; GPS (Global Positioning Satellite) with Wi-Fi
in order to create the complete golf course management solution.
Their flagship product, the INFOREMER,
has all the components pictured to your right. They have both a 5 inch
hand held version and one with a larger screen that is fitted inside a
golf cart for the player's use.
Through a combination of Wi-Fi and
GPS satellite technology, the golf course management system can push all
sorts of content to the golfer. The GPS component maps the course so that
the golfer knows his (or her) precise distances. It also helps speed up
play, a critical goal of every busy golf course.
The Wi-Fi component can be used for
a myriad of other applications. For example, the lunch menu can be displayed
and orders can be taken. If you are playing in a tournament, players can
post their scores during play, and participants can see a leader board.
A user can have high speed internet access using the mobile device.
The system is currently installed
on eight golf courses in North America, and the company believes it can
obtain orders to install 100 systems (about $200K per installation) in
2005. This would equate to $20 to $25 million in revenues if achieved.
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Recent
Developments |
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Just prior to the Thanksgiving Holiday
GPSN
disclosed it had acquired the rights to patents which control the use of
GPS technology for golf course applications in North America. The company
purchased the rights using a combination of cash and newly issued restricted
stock. These patents are currently spinning off about $1 million in annual
royalties. Any golfer who has used a GPS system on a golf course knows
how efficient it is.
Of the total cost, the agreement
required GPSN to pay a total of $1.1 million in cash. A quick look
at their most recent financial filings reveals that they didn't have the
money.
However, after the market closed
today, GPSN disclosed just where the money would be coming from.
World Class golfer and entrepreneur Greg Norman, widely known as
"The
Shark", has invested $3 million in GPSN. Already a board
member and a spokesperson for the company, Norman is now putting
his money where his razor sharp teeth are.
Norman has a well earned reputation
as a savvy businessman. He owns a leisure wear and golf clothing line,
wineries, real estate developments, and a myriad of other highly successful
businesses.
His investment and backing lends
a lot of credibility to this little company. Not only should it keep the
stock moving up the charts, but it should open some new high profile doors
on the sales side to get the company's revenue stream on track.
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Conclusion |
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When the stock started up back in
October they didn't have any money. Now they do. One of my best contacts
in the microcap world introduced us to the company, and it caught my attention.
Combining Wi-FI and GPS is very exciting and has potential applications
far beyond golf courses. The company is looking at an on-site NASCAR application
for potential expansion. Greg Norman ponying up his money is the
exact event this company needed to keep its momentum.
The October catalyst for the initial
surge in the stock was the announcement they were opening new sales offices
in Europe. Apparently, the market had given this company up for dead until
that point.
There is no doubt this stock is going
trade gangbusters on Monday, but I have no idea whether it will be up,
down, or sideways. Likely it will be up in the early going, and then perhaps
higher from there if this news was not widely circulated. The chart reminds
me of Calypte Biomed (now HIV on the AMEX) when we first covered
it in June of '03. That stock went from $.06 to $.14 to $.18 before touching
off $.40 within a month and then heading south.
The company's balance sheet is a
mess. They have invested $32 million to develop the technology,
and need to start turning that investment into sales. There is no logical
way to evaluate the potential value for this idea. However, the balance
sheet doesn't have any problems that $20 million in revenues and a healthy
stock price cannot fix throughout the course of 2005.
This is a high risk/high flyer. The
stock and the company both have a lot of momentum right now, and for risk
takers who like a high flyer this one fits the bill. The previous all time
high was $.22, so a break through that level would be very bullish.
If you take the plunge a tight stop
might be in order. If traders have been buying with an eye towards selling
on the big news, the stock might trade up on Monday and then back down
a little, which would provide a great entry level. This one is red hot
and Friday's news insures a huge volume day on Monday.
Here is the complete text of Friday's
news release for your review:
| Press Release Source:
GPS Industries, Inc.
GPS Industries Receives
$3 Million Financing From Legendary Pro Golfer and International Business
Leader Greg Norman
Friday December 3, 4:50
pm ET
Norman Backing Enhances Company's
Worldwide Marketing of Next-Generation GPS-Based Products for Golf and
Sports Industry
SARASOTA, Fla.GPS Industries--(BUSINESS
WIRE)--Dec. 3, 2004-- GPS Industries Inc. (OTCBB:GPSN - News; FWB:252179),
a leading innovator of Wi-Fi wireless and GPS-enabled multimedia communications
and management solutions for golf facilities, resorts, sporting events
and residential communities, today announced that Greg Norman's Great White
Shark Enterprises has committed to financing of $3 million in GPS Industries
(GPSI) The announcement was made by Robert Silzer, Sr., President and CEO
of GPSI.
The financing, to be
channeled into ongoing product development and patent procurement programs,
reaffirms Mr. Norman's ongoing commitment to GPSI's strategic vision and
next-generation products.
GPSI's family of Inforemer(TM)
products is a proprietary combination of global positioning system (GPS)
technology and wireless Wi-Fi communications that has transformed GPS from
a distance-measuring tool to a key business solution and revenue generator
for golf courses, resorts and communities worldwide. Inforemer employs
a complete Wi-Fi network infrastructure and cart-mounted or handheld mobile
display units to provide a range of backend facilities management communication
tools, revenue-generating advertising, as well as innovative multimedia
and communication services for customers, such as golf shot distance measurement
and course information.
Mr. Norman, CEO of Great
White Shark Enterprises, has been actively involved with GPSI for the past
two years. An international sports icon, he is one of the most recognized
and respected names in professional sports, with 86 career victories and
two British Open Championships, and holder of the world's number one golf
ranking for 331 weeks.
As a businessman, Mr.
Norman has numerous interests in the design and development of golf courses
and residential communities. Mr. Norman has also taken a leadership position
in the development and integration of next-generation technology for resort,
sports and residential applications.
"GPSI has an unparalleled
combination of high-value Wi-Fi and GPS technologies that place its potential
well beyond golf and into residential communities," said Mr. Norman. "The
possibilities for leveraging these technologies and their applications
beyond golf continue to expand."
Great White Shark Enterprise's
financing follows GPSI's recent acquisition of the North American rights
to pivotal global positioning patents for next-generation Differential
GPS (DGPS) golf technology. The patents provide new revenue streams in
the world's most lucrative and growing golf marketplace. GPSI also owns
the DGPS patents for golf and other industries in 13 other countries, including
11 European nations, Australia and Japan.
Mr. Norman cited GPSI's
powerful strategic vision and its ability to execute highly value-added
acquisitions as central elements in his decision to invest further in the
Company. Said Norman, "GPS Industries understands how best to deploy its
technology in an innovative fashion to help grow the game of golf."
Mr. Silzer, GPSI CEO,
said the Great White Shark financing confers substantial additional credibility
on GPSI and its technology solutions. "Greg is highly regarded not only
as a golfer, but for his business acumen. Greg has built a reputation for
identifying winning business opportunities and adding value to them in
numerous ways."
Added Mr. Silzer, "Greg
has a singular understanding of both the game and the business of golf.
His ongoing commitment to GPS Industries illustrates his recognition that
this company is executing the right plan in the most strategic fashion.
Our wireless capabilities and flexible product configuration, along with
proprietary assets that include an array of patents providing broadly applicable
and highly favorable licensing opportunities set GPSI apart from the field."
"Through its design and
development activities Great White Shark Enterprises provides powerful
value-added business synergies for GPSI," said Mr. Silzer. "Greg has already
been instrumental in promoting our products by introducing them to his
pace-setting golf course and residential developments around the world.
I am confident his involvement will continue to help us build business
momentum worldwide as well as increase value for our shareholders."
About Great White Shark
Enterprises, Inc.
Great White Shark Enterprises
is a multi-faceted corporation with offices in the United States and Australia.
The enterprise comprises several companies and divisions focused on golf
and related lifestyle and ventures, including the Greg Norman Collection
(clothing and sportswear), Greg Norman Golf Course Design, Greg Norman
Turf Company, Medallist Developments (Real Estate), Greg Norman Estates
(wine), Greg Norman Interactive, Greg Norman Production Company, as well
as other merchandising and licensing.
About GPS Industries,
Inc.
GPS Industries, Inc.
(GPSI) develops and markets GPS and Wi-Fi wireless multimedia solutions
to enable managers of golf facilities, resorts, sporting events, and residential
communities worldwide to generate significant new revenue streams and improve
operational efficiencies. The company's unique and patented Inforemer(TM)
product line provides a complete GPS golf business solution, combining
a powerful backend management information system and revenue generating
modules with mobile color handheld or cart-mounted Differential GPS units,
seamlessly connected via a wireless, high-speed Wi-Fi network. GPSI's Board
of Directors includes legendary golfer and businessman Greg Norman. For
additional information on GPSI and its solutions, please visit www.gpsindustries.com.
Forward-Looking Statements
This news release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially as
a result of certain risks and uncertainties. These risks and uncertainties
include, but are not limited to: The Company's ability to raise finance;
global and market conditions within the golf industry; demand for and market
acceptance of new and existing products; successful development of new
products; the timing of new product introductions; pricing pressures and
other competitive factors; the ability to develop and implement new technologies
and to obtain protection for the related intellectual property; as well
as other risks and uncertainties, including but not limited to those detailed
from time to time in the company's Securities and Exchange Commission filings.
These forward-looking statements are made only as of the date hereof, and
the company undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or otherwise.
Other brands and names contained in this release are the property of their
respective owners.
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4778099
Contact:
GPS Industries Inc.
Nicole Croizier, 604-576-7442 ext. 136
nicolec@gpsindustries.com
Source: GPS Industries,
Inc. |
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