HYPD Graduates to AMEX

HYPD was out with news this past Friday. The company has been granted a listing on the American Stock Exchange.

This is great news for investors, but this news doesn’t make it a better company today. However, it does make it a better stock, which can be two different issues.

For example, many of you are familiar with AMW, which traded to $1.80 just after announcing their deal with WalMart last spring. At the time, it was a much better stock than company, and despite obtaining an AMEX listing the company and the stock are in big trouble right now.

BPTR on the other hand is a much better company than stock at this point in time. An AMEX listing would probably help them become a much better stock.

There are some powerful implications in HYPD’s jump to the AMEX. The stock qualifies by Market Capitalization. However, the limited cash on their balance sheet in light of the ambitious plans for West Africa would make it difficult to obtain an AMEX listing.

I believe they must have convinced the AMEX that they are generating signficant revenues from their Louisianna properties. We will see hard numbers from the June quarter.

As you can see from the chart, the market liked the news, and the stock made a nice spike on Friday.

If the company is successful with it’s operations, the AMEX should help enhance shareholder value and improve the scope of the audience. I suspect the company is doing much better with its Lousianna properties than anyone realizes.

I’ll publish a special edition with thoughts and information on the date the stock will begin trading on the AMEX along with the new symbol.

This is a big deal for shareholders. Your comments and questions are welcome.

BPTR Rebounding

As promised, here is a new BLOG entry for BPTR. I don’t have a lot to say beyond last night’s edition. I am providing today’s BLOG entry mostly for more current comments and questions.

For those who are frustrated by the stock’s inability to move up despite the outstanding corporate performance, a long term perspective might be valuable.

Here is a weekly chart going back to August of ’03 when the stock rebounded after making a low below $.10. While it feels disappointing and frustrating that the price of the stock is not reflecting the true value of the company, the stock has been making an effort to meet the value.

Looking a bit longer term, it is evident this stock has been in a uptrend for nearly 20 months. As long as the company keeps growing, the stock should remain in an uptrend.

Note that over the past two years the uptrends have really kicked off in Mid August- I expect the same kind of seasonality this year. It could be more exagerated than ever in light of the hideous market conditions in the 1st quarter of the year.

I’d like to know where you see the stock at the end of 2005? Your price projections are welcome.

American Water Star Drowning In Deep Water

American Water Star has been halted for trading by the American Stock Exchange for failing to file it’s year end audited financial statements in a timely manner.

This is an inexcusable breach of responsibilty on the part of management.

I have no idea when the stock will reopen for trading, but I know it will at some point in the future. There is a possiblity the stock will not open for trading on the AMEX again. I am not certain, but I believe there is a regulation which states that if a stock is halted for trading for a certain number of days, it automatically gets listed on the Pink Sheets, and must reapply for listing to a higher level.

The company’s decision to fire its previous auditor in mid quarter and replace them with a new auditor is no doubt a contributing factor. Thanks to one of the more draconian aspects of the Sarbanes Oxley act, companies must fire their auditors prior to the year end audit. If not, the prior auditor has to sign off on every regulatory filing over the next year. This allows auditing firms, which have become nearly extortionist in nature since Sarbanes Oxley, to over charge substantially.

If this is a matter of a day or two more, it might not have significant consequences. However, if this drags on for much longer, I suspect it will have significant negative consequences to the stock price.

In the meantime, there is nothing to do but wait and see what happens. While this doesn’t really effect where the company could be headed if they get their plants online and operating and generating the kinds of revenues Mr. Mohlman has projected, it certainly calls into question management’s competency on the public company side.

Stand by for updates as news unfolds.

Your comments are welcome. They should be interesting.

BrandPartners- Update

There’s widespread disappointment on behalf of BPTR shareholders, myself included, concerning the recent poor performance of the stock.

The company delivered growth and earnings that justify a much higher valuation by any metric. The value is not being realized in the stock price at this time.

I believe there are two issues creating or adding to the problem. First is the challenge of institutional participation. The company is delivering institutional numbers, but the stock only has minimal institutional participation. The problem is the price and the exchange. Many institutions simply cannot buy a BB stock trading at $1. It falls outside of their rules for investing. If the company were to engage in a reverse split to get the price higher, then the problem would be limited supply. Institutions would have a hard time buying enough to matter without moving the price considerably.

The company could qualify for an AMEX listing on a market cap basis once the price gets to about $1.30. Perhaps that would help.

Secondly, I believe many people bought the stock out in front of year end earnings, hoping for a big surge in price. We got the earnings, had a big volume day, but no surge in price. I believe the poor market conditions and the stock’s downward movement are causing some selling in the stock. In the absence of buyers, the stock is drifting down.

With regard to 1st quarter numbers- I have spoken with management. I don’t know what the numbers will be, but I expect a continuation of growth in both sales and earnings as we have seen in the past. Perhaps Q1 numbers will get the stock back on track.

For those looking for a bargain basement price, here’s a chart for some guidance. Like so many microcap stocks, this one started to trade well last August. The uptrend has now been broken, so if you are a buyer, it’s time to look for favorable entry points.

The 38.2% retracement level gave way. Therefore, we now look to the 61.8% retracement level as the ideal entry point. The level would be $.73. If the stock trades that low, it would represent a perfect buying opportunity. It might not get there, but there is no telling what will happen in the current anemic market environment.

I suspect we will be looking for a lot of 61.8% retracements in the coming months. As always, comments and questions are welcome.

Datascension Swoons- A Little

Datascension is a recent new idea, and I’m very excited about the company. It’s strictly a numbers story. The company is worth far more than where it is trading.

Year end numbers are due out any day now. I’ll publish a complete review of both the highlights and lowlights. I expect a large number of non-cash charges to skew the bottom line, but I also expect to see a company that is cash flow positive from operations. Future quarters should bring net profits.

The stock has dropped $.10 since I first featured it a couple of weeks ago. No doubt market related. If this concerns you, you should be out of the market right now. We are going to see some stocks weakening until this market turns around. Please read today’s edition entitled “Short Term Traders Stay Out” for more info.

However, if you want to accumulate value, use the opportunity to sock away a few shares.

Here’s a link to the original presentation on the company:

http://www.otcjournal.com/archive/listserv/20050322-2.html

The chart presents an interesting picture:

This stock made it’s low last October at $.21. Since then it has seen a high of $.90. As measured from the October low to the December high the 38.2% retracement level is about $.47. This makes $.47 a good value and high probability entry point.

Look for a complete review of their year end numbers next week, including some thoughts about q1 performance and the future of the company.

DSEN is stealing lots of business from India, and getting lots of news business from Latin America.

Your comments and questions are welcome.

Xenomics Expands Potential Applications

XNOM was out with news on Friday after the close. I continued to be fascinated by the concept of Transrenal DNA and it’s potential applications.

XNOM filed a patent application in Italy for applications in both HIV and tuberculosis.

If you missed the introductory edition on this company and you have an interest in revolutionary new disease detection technologies, now would be a good time to give it a read.

http://www.otcjournal.com/archive/listserv/20050317-1.html

To read the specific press release on their patent filing, here’s your link:

http://biz.yahoo.com/bw/050401/15568.html?.v=1

As stated in the past, I believe it will take some time to develop an audience for this stock, so volume will continue to be thin.

However, the technology is far too exciting for the market to ignore this one for too long.

The stock seems to like this $2.50 level. Accumulate before the market learns about this one.

Comments and questions are welcome.

NetWork Up Off the Canvas

NWKI took a bit of a beating inexplicably last week, and naturally investors are concerned. Whenever a stock sells off abruptly, there are always concerns about any undisclosed problems.

Here’s what I know about NWKI. The company made the turn into 2005 with the highest backlog of contracts in its history. Their acquisition opened the door to US Govt business, and sales are strong.

They got the contract from Comcast to handle the networking installation at the massive Playa Vista community project in West Los Angeles.

But by far, the most important news, was the addition of Jeff Hultman as CEO. If you want to bet on management, you should load the boat on NWKI. Hultman was the former CEO of PacTel, and ran the company as it grew from $100 million to $1 billion in sales. This guy was a pioneer in the wireless build out.

Today, it’s wireless internet access instead of wireless phone calls.

The chart brings up some interesting thoughts. I included volume in this chart, because I wanted everyone to notethe January volume as the stock was trying to climb was considerably higher than the volume during the recent decline. The volume is too light fora true big sell off.

Also, the stock briefly dropped below it’s 38.2% retracement level, but managed to close back above at $1.80. If $1.80 holds, the stock will probably rebound.

It seems like someone just decided to sell on a day when there was an absence of buyers, and the stock kind offell in a vacuum. Bargain hunters then surfaced, and the stock rebounded.

Comments and questions are welcome.