Plandai (PLPL) Gets $13 Million

It’s Been Lots of Fun Lately

Winner #4 in the last 30 days should be dished up post open today, and I couldn’t be more excited about the way things are going. In case you haven’t been paying attention of late, here’s three stocks I’ve been covering that have dished you up monster profits if you invested recently:

  • Vringo (AMEX: VRNG): Introduced May 1st, 2011 at $1.50, closed Friday at $3.62 for a 141% gain.
  • Liberator (OTC: LUVU): Introduced January 8, 2012 at $.15, closed Friday at $.44 for a 193% gain.
  • Luxeyard (OTC: LUXR): Introduced April 11, 2012 at $.80, closed Friday at $1.70 for a 112.5% gain.

I know these gains seem extraordinary, and they are. I know there have also been a few losers sprinkled in over that time frame, and there have been. However, these are real returns, and you can just click on the dates, read the original editions, and look at where the stocks are now.

That’s really good news, but there’s great news today as well. I’m as near as certain as I can be that I’ll be adding a 4th recent idea to that extraordinary list based on the pre-open news from one of the other followings.

Please tell me you already own this one. If not, it’s probably not too late. I don’t know where the stock will open or even if it will open a lot higher than Friday’s close. However, today’s news turns the Plandai (OTC BB: PLPL) dream into a reality, and I suspect the stock is poised to rock.

Read on- only if you like making money….

Plandai (PLPL) Gets Its $13 Million; Game On

Lest you think the health food sector has not been hot of late, consider the following:

  • Annie’s (NYSE: BNNY); organic pasta maker- came public at $19 on March 28th- 30 days later the stock hit $44 for a 131% return
  • Whole Foods (NYSE: WFM): the best of breed organic grocery store chain has traded from $10 to $85 in the last 3 years- 750% return
  • Fresh Market (NYSE: TM): the second largest organic grocer- from $32 to $52 in the last year – 62% gain
  • Hain Celestial (NASDAQ: HAIN): natural and organic food manufacturer was $16 a year ago- $45 now – 182% in the last 18 months
  • Monster Beverage (NASDAQ: MNST): Formerly Hansen’s natural sodas- $20 to $64 in the past year- 220% in the last 15 month.

So, lest you think this sector is not smoking hot- just look at those numbers and I believe you’ll see it differently.

Identifying the up and coming small stocks in a hot sector can yield remarkable returns.

Today, before the market opened, Plandai Biotech (PLPL)- a stock I featured back on March 26th, announced a watershed event and one that I am very certain will add PLPL to the big winners list featured in the first section.

Rather than a full review of what the company does, I’ll simply reference my initial presentation if you want all the details. The March 26th edition tells you all you need to know. The stock was $.25 that day, and closed at $.28 on Friday- so there’s still plenty of upside.

The quick over view- Plandai (PLPL) is a combination agricultural/biotech technology company. The company’s founders have developed a revolutionary new technique for super charging Green Tea Extract- a food product in huge demand. Rather than license, they plan to grow tea, process extract, and sell it to major beverage companies to maximize their profit potential.

Today, before the market opened, the PLPL horses left the gate. The company has a 49 year lease on 8500 acres in prime South African tea growing country, but needed money to start growing and to build their processing plant.

Today, PLPL disclosed it had finally gotten the long awaited 100 million Rand ($13 Million US dollars) low cost loan from the South African Land Bank- an agency of the South African government.

The terms of the loan are remarkable- they pay .5% interest- yes, that’s 1/2 percent. They don’t have to make a payment for 25 months. It’s secured by the assets of the company and agricultural receivables. One subsidiary must share 15% of profits somewhere down the road.

At $.27, the stock reflected a company with interesting and exciting technology, but no money to implement its strategies.

This is a resounding endorsement of the company from the South African government. Land must be cleared, tea must be grown, and production equipment must be acquired, assembled, and producing.

Can you imagine owning this stock somewhere down the road when they start getting purchase orders from major international names in the healthy beverage industry?

You’re getting this information on PLPL before anyone. The company has filed this information with the SEC, but hasn’t put out a formal press release yet. I’m sure that’s to follow.

By the time you read this, I have no idea where the stock will be trading. If the market hasn’t jumped on it, you might be able to acquire shares at $.30 or under.

Here’s what I know. The company announced this funding from the South African government in January, and the stock ran up to $.60. Then there were complications, and it took 3 more months to close the transaction.

A return to $.60 would be a cool double from Friday’s levels. Regardless of what happens in reaction to the news in the short term, I am certain PLPL will now join the ranks of the big wins listed in the first section of today’s edition.

Much more to come on PLPL.


I’ll be featuring Plandai (PLPL) on today’s BigBizShow at about 12:30PM Eastern, 9:30 AM Pacific. Tune in.

Simply go to www.bigbizshow.com, and click on the “Watch Us Live” button. I’m the guest host on the show every Monday.

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Liberator (LUVU) Gets “Stern” For More Sales

Our Second Last “Pre Football” Edition

Are you ready for some football? To end? I’ve really enjoyed this theme- a Sunday morning edition prior to the NFL games. Only the Superbowl remains after today’s Championship games.

So, sit back, relax, and read this Sunday’s OTC Journal before Baltimore tries to handle Brady and New England, and the NY Football Giants head into San Francisco. Watch for the Niners- a great defense and a good running game can take you a long way this time of year. The Baltimore/New England game is a toss up. Baltimore does not play well on the road. Slight edge to the Pats there.

So, how about this past week? Four ideas so far this year, and here’s your update:

  • Liberator (OTC BB: LUVU) made a new multi month high this week, trading up to $.23 from the $.15 entry level. Post close news Friday on this one bodes well for Monday trading. A 53% gainer so far.
  • As predicted- FrogAds (OTC BB: FROG) jumped from $.24 to $.40 this past week- that’s a 66% move this week. I think that one could continue higher next week.
  • Dexcom March 10 Calls (DXCM) I recommended at $1.40 closed at $1.40- unchanged. DXCM is rumored to be a good acquisition target.
  • Magic Jack March 15 Calls (CALL) I recommended at $1.40 closed at $1.75- a nice 25% gain, but not even close to what I’m looking for.
  • Investors who listened to my caution warning on red hot penny stock North Springs (NSRS) might have been a little disappointed. I predicted it would drop 70% in one day, and it only dropped 60%. It did deliver the inevitable bounce, but I suspect the game is over, and the stock will head lower again.

That’s 4 gainers and 1 break even this week. If every week was this good. I can only hope. This market is really heating up. The market is not listening as intently to the noise out of Europe, and the economy is perking up nicely. With stocks this cheap, it’s a great time to get aggressive.

And, speaking of aggressive, did you catch Friday’s post close news on Liberator(LUVU)?- Off a new multi year high this week, it’s looking like another strong week might be in the cards. Read on McDuff………..

Liberator (LUVU) Gets Stern To Expand Revenues

As mentioned above, Liberator (LUVU) made a new multi month high this past week, hitting the $.23 mark. It’s not easy to find stocks this low priced with $60 million in total revenues in their history, and $20 million likely this calender year.

In order to boost sales for their traditionally best quarter of the year- CY Q1- Liberator (LUVU) is headed in a new and ideal advertising direction. The self proclaimed “King of All Media” is widely perceived to have invented the “Shock-Jock” genre of radio broadcasting.

Despite his controversial programming, Stern was the unquestioned master of the highly coveted 18-34 male demographic was he broadcast on terrestrial radio. Stern is also credited as a pioneer in the field of syndicating radio content to affiliates around the country.

Since moving to Sirius, Stern’s audience has aged a bit- the 35-64 demographic is more likely to listen to Sirius than the younger group.

However, there can be no argument Stern’s audience is ideal for LUVU products. The sexual wellness revolution’s best spokesperson might be Howard Stern, and his monster demographic will bring a much larger audience to LUVU’s products. Advertising will be heavily concentrated around Valentine’s Day.

Here’s what I’m interested in- will Stern just drive traffic to www.liberator.com? or will Stern mention LUVU’s products can be found at Amazon.com and many main stream stores where their products are found?

I’ll be listening. Look for LUVU to make another leg up next week on this news. Still very undervalued. Ask yourself how many stocks you own in the $.20 to $.25 range delivering $20 million in annual revenues.

LUVU is likely to continue higher this week. I’ve been looking for $.30 plus on this one in the first 1 to 2 months, and I believe we’ll get it if the stock continues to trade this well and the company delivers news like this.

Meet The Fockers Meets LUVU

 

 

 

January 8, 2012
Volume XV, Issue 4

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Meet The Fockers Meets LUVU

 

Meet The Fockers is the 2004 comedic comic film starring Ben Stiller, Teri Polo, Dustin Hoffman, and Barbara Streisand. Greg Focker (Stiller’s character) is marrying Pam Byrnes (Polo’s Character). Her retired CIA agent dad (De Niro) wants to meet his quirky, hippy like parents- Hoffman and Streisand.

It was the second movie in the franchise, and was wildly popular. The film cost $80 million to make, and ended up grossing over $500 million worldwide.

Roz Focker – Greg’s mother (played by Barbara Streisand), plays a sex therapist who specializes in senior sexuality. The plot line is hysterical, especially when Streisand interacts with uptight, ex CIA agent Robert Di Niro.

There’s plenty of sexual over tones in the movie, especially in light of Streisand’s character.

One of the unintended stars of the movie is some unique furniture displayed prominently in several of the scenes. This same furniture has been shown in several other Hollywood movies, and more recently on a highly popular reality show.

Atlanta based Liberator, Inc (LUVU), a company that has generated over $60 million in revenues since its inception in 2002, came up with a very clever way to use left over foam scraps. The company is hitting new sales records every quarter, and is just starting to turn profitable for the first time in its history.

Liberator takes left over foam and cuts it into a variety of triangle and incline shapes to create specially shaped pillows and furniture. It’s primarily designed as bedroom accessories, but they make lines of bean bag chairs popular with college students and others.

While it doesn’t get a lot of attention, there is a whole new category of consumer products being categorized as Sexual Wellness or Sexual Well Being.

Visit the Web Site at www.soap.com. It’s a household and personal care site selling everything from discount diapers to toothpaste and hair products. There’s a category on the home page on the top menu bar for Sexual Wellness.

These products are getting main stream adoption rapidly. Liberator’s single biggest customer is Amazon.com. Amazon has a full product offering in a section known as “Sexual Wellness”. Click Here to visit Amazon’s product offerings in this category.

Drugstore.com, Vitaminshop.com, and Brookline are other retailers moving rapidly into the space. These products are no longer shopped for a seedy little specialty stores. It’s all behind closed doors, but it’s main stream now, and the market for these products is growing very rapidly.

Liberator (OTC BB: LUVU) Delivering the Numbers

 

This past September, LUVU delivered its best quarter ever. The companies top line came in at $5.6 million- a 113% increase from the same quarter in 2010. Gross profits were $1.8 million, and the company’s adjusted EBITDA loss was about $5,000. This company is on the verge of making the turn to profitability, which can be one of the best times to own the stock-especially when its extremely cheap.

Friday, after the market closed, LUVU issued guidance for the FYQ2- the December quarter. The company announced projected revenues of $4.2 million, which will be a 14% increase over the same quarter in 2011. The top line is down a bit from the September quarter, but the company sold an online division for $800,000 during the quarter which didn’t work with their future growth plans, leaving some extra cash on their balance sheet.

According to Business Week, the commercial sex industry is now ranked one of the “Top 5 Rising Industries for 2031″- expected to grow over 17% each ear. In 2006, this industry contributed $13.3 billion to the total US economy. It’s bigger than the NFL, NBA, and MLB combined.

At its current growth rate, is will be a $47 billion global industry by 2030. There are numerous research reports highlighted how the commercial sex industry has moved from underground, small scale operations to more normalized, main streamed companies.

For more information, read researcher Emily Empel’s on The Future of the Commercial Sex Industry in 2030. Click on the title to get there.

Conclusion- Your Upside

 

Lest you think there’s no money to be made in the few stocks in this sector, think again. Check out this chart.

This is Rick’s Cabaret. Yes- this was a reverse merger bulletin board stock many year’s ago. This $84 million per year company is been a smokin hot stock from time to time. As you can see from this weekly chart, RICK was $4 in 2009, and nearly $30 in 2010. Not bad if you owned it at $4.

LUVU is a story of clever American ingenuity. I love stories like this. Found Lewis Friedman took discarded foam scraps and turned them into $60 million in revenues over 9 years.

Furthermore, in the Sexual Wellness category, LUVU is the only company that exists with a real brand. With customers like Amazon, Drugstore.com, Wallgreens, and VitaminShop.com, their products are easily attainable by Main Stream consumers.

Absolutely no one knows about this stock. I personally invested in the company about 3 years ago in a private placement priced at $.25 per share. The company was smaller than, but market valuations were richer. I had 100,000 shares- I now have nearly 90,00 shares left.

As you can see from this chart, LUVU has traded sporadically throughout 2011, but has traded up as high at $.30- double Friday’s closing price. Funds were raised for this company at $.25, so open market buyers will enjoy 66% profits before myself and the other investors break even.

I suspect this one will trade up rather easily and rapidly once investors start catching on to the growth in both their sector and their company.

There’s under 90 million shares I&O, so at $.15 the entire market cap $13.5 million-it’s trading about 1/2 of annual sales, which is absurdly cheap.

I see no reason why this stock couldn’t trade into the $.30 to $.45 range over the next 30 to 45 days as more investor get exposed to the story. From Friday’s close, this would represent 100% to 150% return on investment.

If you like this idea, I would act right at the open tomorrow, and of course use a limit order- I wouldn’t pick it up any higher than $.18 to $.20 on the first day.

However, I do plan to cover every development out of this company for the next 30 days, or longer. Use $.12 as your SSL. Risk 3 cents to double your money or more.

Here’s one last item. This company was recently featured on the Bravo Show the Real Housewifes of Atlanta. They make a visit to the Liberator retail store. WWW.Liberator.com is their retail web site.

Click Here to check it the Real Houswives of Atlanta show. Of course, I had never watched the show, but I have to admit this is pretty entertaining. This is the kind of publicity that makes shareholders a lot of money.

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