Trading 101: Luxeyard (LUXR) Reviewed

Trading 101

Want to be smart about making a lot of money in low priced stocks? Actually, this philosophy works well for all stocks. The key is to be willing to invest when stocks are under followed, then be a seller when everyone is piling in.

Today’s trading 101 lesson is a perfect demonstration of how well this style can work. The recent example is our giant win with current idea Luxeyard (OTC BB: LUXR). On April 12th- just 16 days ago, I published my first edition on Flash Sale Site company Luxeyard- this is the future of retailing. I stated I believed the stock was 50% undervalued based on the recent valuations VCs have awarded to like companies through investments.

The market rapidly became aware of LUXR, and the stock has been trading just gang busters of late. Since it was $.80 at the time of introduction, if it was 50% undervalued at $.80, it would follow the stock would be fully valued at $1.20. The stock has since seen a high of $1.60.

After running to $1.25 in short order, I revealed I had been a seller of part of my position about that $1.20 level on the first run. After all- $1.20 was my fully valued number. When the stock pulled back as you can see in the chart, I suggested there was a “mulligan” for those who missed the first big move in my April 19th edition.

This past week has been huge for this stock, and I took advantage of the opportunity to further lighten up on my position. This is Trading 101. When you see big surging bars for both volume and price, it’s generally a good time to lock in some profits.

I was once again a seller of part of my position earlier this week when the stock traded up over $1.50. LUXR has so far been a good candidate for trading as it has been extremely volatile- both up and down. This past week there were a couple of huge spikes up accompanied by big volume. Those are the days you want to lighten up your position.

Note the stock fell back the last couple of days on much lighter volume, suggesting another volume surge would take it back up rather easily. There’s fewer sellers than buyers, but if the volume bars surge as the stock pulls back, my view could change.

At this point, I’m a buyer if it pulls back much farther, and a seller if it surges again with high volume bars.

That’s Trading 101 for today. Big Volume and Price bars on a chart like this should suggest to you to lighten up. Low volume retractions are a chance to add to your position. I remind the readers I am an investor in both free trading and restricted share of LUXR with my own capital.

One Step Ahead

So, if you’re going to be a successful penny stock investor, you have to be one step ahead of the market, and accumulate when no one is watching. You have to like the company, you have understand the chart, and it helps to be a little lucky timing wise.

There are two stocks in my coverage universe that I believe are likely to deliver major fundamental developments- the kind that sends the stocks running up the charts.

Those two stocks are Plandai Biotech (PLPL- March 26th Edition) , and Nuvilex (NVLX- March 19th Edition). I’m committed to covering both of those companies for six months as I see both of them having very significant upside in those time frames, and want to give everyone the maximum opportunity to profit handsomely from both of these ideas if they work out.

In my last edition on April 24th, I suggested PLPL had gotten quiet enough to jump in- sure enough, this past week the stock surged from $.20 to $.29 before giving ground of only 1 crummy penny. See how this works? I’m expecting PLPL to deliver in a much bigger way when it completes the promised $13 million financing from the South African government to begin the process of delivering it’s miraculous version of Green Tea Extract.

My other longer term following is Nuvilex (NVLX)- the company that has Encapsulation Technology for drug therapies proven to enhance the ability of drug therapies. Clinical trials done in Germany about 5 years ago on Pancreatic Cancer patients yielded remarkable results.

NVLX is now gearing up to take it’s unique therapy systems back into a clinical environment and move the process of eventual commercialization one more step. Capital is needed. Stand by for developments and more upside on the stock.

This little $.07 stock offers a ton of upside from this super cheap level. It popped from $.05 this past week, and it’s just a development or two from finding $.25 in my view.

I plan to be talking about NVLX Monday morning on the BigBizShow at about 12:30 Eastern, 9:30 Pacific. Tune in if you want to learn more about the company. Here’s how you can view the show:

Catch Me Live

Catch me LIVE!! on TV every Monday from 12 to 2PM eastern on the BigBizShow. The show broadcasts on several hundred radio shows live, is syndicated to over 30 milion cable homes, and is broadcast on the Armed Forces Radio Network in 79 countries.

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

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Plandai (PLPL) Poised: One For Two On Bounces

One For Two

In the last week I’ve made the call on two different stocks that were streaking, and corrected to provide a better entry point for those who either missed the first run, or traded out for a profit.

One gigantic win, and one fizzled. In Major League Baseball with a bat in your hand, that will get you millions. In small stocks, it’s still pretty darn good- after all, stocks go only go to zero- there’s no ceiling as to how high they can go.

My win- calling the bounce in Luxeyard (LUXR)- which looks like it could make a new all time high today or tomorrow. As I disclosed in a previous edition, I sold some of the shares I own the last time the stock was close to the $1.20 level- I still own most of it- not this time- I believe the stock is destined to surpass $1.50 and might even find $2. Putting all the ups and downs aside, I picked it at $.80 on April 12th- $1.15 today for a 44% gain.

Yesterday call for a bounce on American Liberty (OREO) was premature- it appears I missed it by a day. If you pick it up on the open, you’re in at $1.40- now $1.30, but below my SSL of $1.30, so you might be out. The stock could still set up for a rally, and the volume is coming in nicely.

Perhaps unnoticed in yesterday’s trading was the big bounce in Nuvilex (NVLX)- which I called at $.06 back on March 18th. I’m sticking with this one for six months. I love the technology they’re working on. The stock has been quiet of late, but hit $.077 yesterday on huge volume- interest in surfacing. Net gain on that one 28% from day 1.

The Next Bounce: Plandai Biotech (OTC BB: PLPL)

I’m calling it – right here, right now. It’s sometimes tough to call the streaking stocks- up and down. Sometimes you just don’t hit the number perfectly. So, if you want to make money, and want to get in ahead of the crowd, perhaps it makes sense to look at one that is quiet, down, under followed, and no one wants. Then, when the market goes nuts for the stock, you can be a seller and notch some significant gains when everyone else is piling in.

I’d ask you to look back at my presentation on Plandai Biotech (PLPL)- back on March 26th. If you want to read the original presentation, simply go back and click on the date. At the time, the stock was $.25, and it’s quietly hovering just above my SSL of $.18- $.20 bid- but offered at $.245- we started at $.25, so no damage done on this one- still plenty of upside.

If you read the original presentation, this company is a combination Ag/Technology story that has developed a revolutionary new method for processing Green Tea Extract- a substance that is in high demand. This company is making the stuff 10 times more powerful than anyone else on Earth.

The company will be commercializing its product in South Africa with a debt financing of $13 million from the South African government, but the loan has not closed yet. When it does, I suspect the stock will go bonkers. It’s impossible to predict how high it will go, but the stock hit $.75 when the agreement was announced.

Today- in quiet trading, it’s about $.25.

I can’t guarantee it will head back to $.75- but I suspect the company is getting very close to closing this transaction, and once announced the stock will have a new life.

So, it you’re tired of chasing these stocks up and down the charts and trying to get on the right side of a trade, you want to own this one ahead of the closing, which I believe is imminent. If just makes too much sense from an economic development stand point.

Accumulate PLPL today while no one is paying attention. Look what happened with NVLX yesterday. Others have surged out of nowhere. Have a 2 to 4 week window in time, but don’t be surprised if the fireworks happen in short order. It simply makes too much sense- the South African government needs employers in these ag regions, and this company is perfectly positioned to put a mere $13 million to work- that’s chump change on a government scale, but huge for PLPL shareholders.

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Regency Resource (RSRS): Technically Tasty

Wow: Zero To Hero In Two Weeks

It’s been a bit of a dry spell lately, with a few of my ideas backing up this year and generating losses. That’s the nature of penny stock investing- when you’re hot, you’re really hot. When you’re cold, it seems like winter in Alaska. You might have thought I couldn’t hit my backside with a tennis racquet. So, just when you least expect it….BOOM

On Vringo (AMEX: VRNG)- if you’re a trader, you should take profits. If you own it from my original call of $1.25 a year ago, last Fall at $1.20, or two weeks ago in the mid $2 range, you should be up anywhere from 220% to 60%. In either case, the stock gets hot when news drives it up, and drifts down when it’s quiet. With Monday’s huge gap up on the Mark Cuban news, it’s time to lock in gains and reacquire when it quiets down. The stock will likely fill the gap and head back to $3.

The response to my Luxeyard (OTC BB: LUXR) idea has been overwhelming. I suggested the short term price target of $1- a 25% gain in a few days. Yesterday the stock closed at $1.19 on 3.6 million shares of volume. A new high for both price and volume. Investors love this one. That’s a 50% gain in the first 5 trading days, which I’m of course very pleased about.

LUXR is just getting started, but it’s not going to rocket up like this everyday. As I’ve disclosed, I have a very large position in both free trading shares and restricted shares, all picked up with my own money. I’ve liquidated a small percentage of shares into this rally, but technically the stock sure looks like it wants to go higher. I have the restricted shares for my long term position, so I’m not afraid to lose a little into this frenzy.

If you’ve been watching, you might want to wait for a pullback to get involved. I don’t know. I could be $1.50 today, or it could be $1. Either way, a short term gigantic win for OTC Journal members.

If you missed my interview with the Chairman of Luxeyard on the BigBizShow on Monday morning, just go to www.otcjournal.com, and hit the play button on the video window whenever you’d like.

Penny stocks are very hot right now. I’m looking for technical breakouts, and watching a couple of names. If you’re looking for a good trade, here’s one you can check out right now. Big volume has appeared out of nowhere, and this one might be just getting started.

Read on………

Regency Resources (OTC BB: RSRS): Technically Tasty

Another one is blowing up out of nowhere. I’m a huge fan of the new direction for digital technologies. Consider my last few ideas: iTrackr (IRYS)- despite it not working out; Vringo (VRNG)- a giant win that helps you watch your cell phone ring; and Luxeyard (LUXR)- the new frontier of digital shopping and a giant short term win.

So, when I see a heretofore unknown and unfollwed stock explode with volume after announcing they are acquring a company that is building out media for delivering content to the next generation of Internet TV, it gets my attention.

3D TV did not take off. I don’t think people really cared about having their TV in 3D- I mean, after all, the Hi Def picture we get now is so fantastic there wasn’t enough incentive to switch your TV out.

However, I can’t tell you how many times I wished I could browse on my TV. There’s so much Hi Def programming you can get online, people want to get it to the TV screen.

That’s probably why investors are pouncing on Regency Resources- soon to acquire Digital Distributed Acquisition Corp, a “media based business offering an in-depth portfolio of content for Internet TV distribution” (according to a recent press release).

I dug into the SEC filings and learned RSRS has entered into a binding agreement to merge, but the merger is not closed at this time, which adds a bit of risk to the idea. Without the Digital Distribution company, the company doesn’t have much.

However, the market seems to love it. As you can see from this chart, the intention to acquire DDAC was announced on the 12th. The stock traded 500,000 shares that day, and has now traded nearly 3 million shares in 4 trading days. That’s quite a step up from less than 10,000 shares a day before the acquisition was announced.

The stock has also traded from $.85 to about $1.10, and could be just getting started. I’ve seen a few of these huge volume surges of late, and they all seem to be taking these stocks higher (see LUXR).

I really like this chart. I suggest owning it immediately, but the lack of information about company leads me to also suggest a tighter stop than normal. If the pattern repeats itself I could easily this one finding its way to $1.75 to $2.

Pick it up in this $1.10 range, but use $.90 for your SSL (suggested stop loss). If it trades below $.90, you’re on your own. However, if this volume continues and the stock continues to look this good technically, you might just find yourself notching a $.50 to $.75 gain (45% to 70% gain) against the possibility of a $.20 loss. I’m looking for this one to find these higher levels in the next two weeks.

All the major manufacturers are beginning to introduce pre configured Internet TVs, and someone has to provide the technology and content to make them worth it. Why not RSRS- if for nothing but a trading profit?


A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.

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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Luxeyard (OTC BB: LUXR): Price and Volume Breakout

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Catch me live on TV every Monday from 12 to 2PM eastern on the BigBizShow. The show broadcasts on several hundred radio shows live, is syndicated to over 30 million cable homes, and is broadcast on the Armed Forces Radio Network in 79 countries.

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

 

New High: Price and Volume on LUXR

There’s no way you can tell me this is not a great chart. It looks perfect, and looks like higher levels are in store. My short term price target of $1, and longer term price target of $3 looks like it’s a distinct possibility- the $1 short term price target appears to be a fait accompli with Friday’s breakout.

And, speaking of the $1 price target, let’s take a quick look at the chart. In the last hour of trading on Friday, the stock broke out on big volume.

Here’s what happened this past week. On Monday, LUXR traded 168,000 shares. Tuesday- 165,000; Wednesday-254,000, Thursday- 259,000, and Friday- get ready- 580,000 shares.

Perhaps more importantly, the $.80 level had acted as a ceiling for the stock. In the last hour of trading on Friday, the stock broke through to the $.90 level. suggesting the market had eaten through the $.80 resistance level, and was finally ready to go higher.

$1 in short order- perhaps even Monday. You might not have believed my hypothesis this stock was indeed 50% undervalued based on registered users. It would appear the market is buying into that hypothesis.

If you don’t own this stock yet you’ve only missed the first 11% move- in the first two days. More to come likely.

If you want a little better understanding of their model and you want to meet the Chairman, I suggest you tune into the BigBizShow on Monday at 12:30 Eastern, 9:30 Pacific.

Instructions above.

As many of you know, I’m the co host of the show every Monday from 12PM to 2PM eastern. The show finds its way onto hundreds of AM radio stations into into about 30 million cable homes throughout the course of the day.

Amir Mireskandari, Chairman of Luxeyard (OTC BB: LUXE), will be interviewed live on the show by Sully and myself. He’ll be discussing the future of retail in general, and discussing some specifics of the Luxeyard business model.

11% in the bag. More to come.

Vringo (AMEX: VRNG) Finds High Profile Sponsorship

It’s likely VRNG – one of my current favorites, will surge Monday. Late in the day it was reported Mark Cuban, owner of the Dallas Mavericks NBA team and well known technology investor, has taken a 7% passive stake in VRNG.

Watch for a surge on Monday on the heels of that news.


A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.

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

Home Page : www.otcjournal.com

Email Questions or Comments To: editor@otcjournal.com

 

 

Luxeyard (OTC BB: LUXR) Still 50% Undervalued

Luxeyard (OTC BB: LUXR) Still 50% Undervalued Today

Yes, it’s still shameless to put up a picture of this beautiful woman in a skin tight dress to get your attention. After all, most guys want to meet her, and most woman want to look like her in this dress.

Luxeyard (OTC BB: LUXR) Still 50% UndervaluedThe name of this designer line is Stretta Apparel, and I count about 50 retailers around the globe carrying the line. While many are small boutiques, Nordstrom is included on their customer list, and the line is available in N. America, the Carribean, Hawaii, Europe, Asia, and Australia. It might not be a household name to us stock market nuts, but it’s a hot line in the designer world.

As I pointed out yesterday, this dress (the Charlotte) sells for $498 on the Stretta web site. You can find it online and on sale at a few outlets for $262.

However, if you are a member at Luxeyard (www.luxeyard.com), you can purchase this dress for the lowest price you will find it anywhere- $228- as long as you buy it by Friday.

American consumers have an insatiable appetite for luxury goods. Americans also have a keen eye for a bargain, and are willing to act when motivated by a deep discount combined with a limited time frame. The explosion of highly successful flash sites proves the point.

Moreover, the Flash Sale Site space is the beneficiary of a gold rush like mentality of Silicon Valley venture capital money, and the funding is just pouring into this new generation retailer segment.

As of right now, there are about 500,00 registered users on the Luxeyard site.

Luxeyard (OTC BB: LUXR) is one of the newer kids on the block, but is gaining market share and popularity very rapidly.

As I stated yesterday, based on the valuations awarded to these companies as sophisticated VCs pour money into the space, LUXR should be worth $100 million today. Instead, at about $.80 with 65 million shares I&O, the market is valuing the company at $52 million.

Here are the LUXR facts- plow on………..

$192 Per Registered User

VCs have been pouring money into the new breed of Flash Sale sites. Here’s a couple of recent examples:

  • iDeeli raised $70 million from Kodiak Ventures, Constellation Ventures, and StarVest
  • Fab.com received $40 million from Andressen Horowitz as a start up
  • Zuliiy received $43 million from Meritech Capital Partners
  • One Kings Lane received $23 million from Kleiner Perkins and $40 million from Tiger Global

Based on the valuations these sophisticated investors paid, one can easily argue LUXR is 50% undervalued. Luxeyard (OTC BB: LUXR) Still 50% Undervalued

This table shows a list of Flash Sale sites that have received financings from sophisticated Venture Capital investors in the last 18 months.

When one looks at the valuations of the fundings, and compares those valuations to the amount awarded per registered user at the time of investment, the valuations have come in at $197 per registered user.

Fab.com is probably the best comparison to LUXR as the user base is at the 1 million level.

LUXR, after many months of development, officially opened for business on January 24. According to a recent press release, LUXR has already eclipsed the 400,000 registered member mark, and at the present pace, should reach 1 million members by the end of June.

Fab.com, with its 1 million members, was financed at a $200 million valuation.

If we’re lucky enough to have LUXR trade to the $200 million mark by the end of June, the stock would hit the $3.07 level.

That would represent a 315% gain above the current trading range of the stock.

The Market Is Starting to Catch On to LUXR

I suspect millions of investors will be learning about this stock over the coming weeks and months. The action has started already. I have a lot more data on both the sector and this company in particular, but I can save it for some follow ups next week.

Luxeyard (OTC BB: LUXR) Still 50% Undervalued

Luxeyard (OTC BB: LUXR) Still 50% Undervalued

There’s lots more for you to learn about the TrendSetter Celebrities endorsing the products- led by world famous designer Daniella Clark (married to the guitarist from Guns ‘N Roses) who was responsible for designing the current low cut, high priced jeans. Their management team includes top executives formerly with names like Pottery Barn, Willams Sonoma, Ray Ban, Nordstrom, Hautelook, Calvin Klein, etc. More on that as well.

As you can see from this chart, LUXR has started to develop a following since early March. As the registered users piled in and the company started marketing products, the stock started to climb.

This is a very bullish and healthy chart. The stock was $.50 six weeks ago. It then made a nice leg up, making a new high at $.75. After a 50% move, the stock pulled back to a normal retracement of $.60, traded sideways for a few days, then headed on to a second new high. The average daily volume is now about 160,000 shares and climbing.

To simplify the picture, the stock is establishing a pattern of higher lows and higher highs.

Note there’s presently a short term pullback going on, which is why I was anxious to share this idea now. I wanted you to be able to take advantage of the brief weakness if you’re so inclined.

My first threshold is over $1 for this stock, and if the current pattern continues, it might be met on the next leg up. Longer term I believe there’s a chance the stock could find the $3 mark over the next several months if the registered users keep piling in.

Again, I remind you I’m a shareholder of both free trading and restricted shares, all acquired with my own hard earned money.

I would be an investor today in the $.80 range where it closed. Use $.60 as your suggested stop loss- it shouldn’t drop below the previous pull back level if the pattern is going to repeat itself.

The short term upside target over the next 1 to 2 weeks is $1, with a six month target of $3.

Special Notes

You should go to the web site and become a registered user. Simply visit www.luxeyard.com and sign up.

Also- there’s a special event coming up. Next Monday, when I co-host the BigBizShow, I should have Amir Mireskandari, the Chairman of the company, live in the studio for an interview and update.

He will be on at 12:30 Eastern, 9:30 Pacific Time- that’s on the internet streamed version.

Simply go to www.BIGBIZSHOW.com and click on the “Watch Us Live” link to view the interview on your computer.

We might have a gigantic winner with this one.

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Where Are VCs Clamoring To Invest? VRNG Near New High

Where Are VCs Clamoring to Invest?

There’s a new, red hot sector in internet investing, and the Silicon Valley venture capital firms are just flinging money in this direction even faster than Ben Bernake prints the stuff up at the Federal Reserve. Believe me- that’s fast.

Here’s a few eye opening facts:

  • Amazon (NASDAQ: AMZN) bought a company in this sector for $110 million in 2010
  • Nordstrom (NASDAQ: NOBE) bought one for $270 million in 2011
  • American Express (NYSE: AXP) did a 50/50 joint venture valued at $3 billion in May of 2011
  • $70 million just went to one competitor in the sector for under 10% of the company.

Have I got your attention? Here’s more…..

Flash Sales: The New Gold Rush of Silicon Valley

Flash sale sites are the new Gold Rush of Silicon Valley- a place that has seen more than its fair share of gold rushes over the years. Flash sale sites are borne out of the 2008 recession.

When the US was facing a complete financial collapse three years ago, manufacturers and retailers found themselves in the precarious position of having too much inventory laying stagnant in their warehouses and on their shelves.

Retailers can have special sales, but their brick and mortar customer bases are limited to the immediate area. Manufacturers can offer big discounts to retailers- but again- you are limited by the brick and mortar proximity.

eCommerce pioneers came up with the brilliant idea of a Flash Site, and here are the main components:

  • Build a user of base of 1 million plus consumers who are highly motivated by deep discounts on merchandise.
  • Negotiate a very deep discount “bulk” purchase from a manufacturer of some sort of excess inventory.
  • Offer the product to your subscriber base by passing on these huge discounts for a limited time- while the supply of inventory lasts.
  • Move mountains of merchandise in a limited time, thereby freeing up badly needed capital trapped in the manufacturer’s excess inventory.

Needless to say- you have to find products consumers want at a deep discount, and have the registered user base to move the merchandise.

As I stated above, the Silicon Valley VCs are just throwing money in the direction of these companies. Here’s more examples:

  • Gilt Group was recently valued at $1 billion based on an investment made by Goldman Sachs, Pinnacle Ventures, Matrix Partners. Gilt is expected to do an IPO in late 2012.
  • Zulily received $43 million in VC funding last August from Meritech Capital Partners
  • iDeeli just raised $70 million from Kodiak Ventures, Constellation Ventures, and Starvest for just under 10% of the company.
  • OneKingsLane was valued at $440 million in a recent investment by Kleiner Perkins.
  • Fab.com received a capital injection of $40 million from AndresenHorowitz this past December. The financing valued this total start up at $200 million.

So, where is all this fantastic information leading? Glad you asked, because I happen to have the answer.

Believe it or not, there is only one public company in the Flash Sale business, and as compared to the money raised by the names you see listed above and the valuations, this stock is very undervalued.

I’m also personally an investor in this company. I own both free trading shares I’ve purchased, and restricted shares I’ve purchased when I helped finance this company’s growth.

In light of the explosion of interest in the sector, I’m very optimistic about the opportunity to notch some major profits in the near term.

I’ll be introducing the company to you on Thursday- remember- it’s the only Flash Sale Site public company you can participate in today.

Stand by for the 411…. I’ll have all the information, and then you can make your own informed decision.

Vringo (AMEX: VRNG) Trying For New Highs

In case you’re following huge OTC Journal win VRNG (introduced last year at $1.20- now $3.37- the stock has been trying for another new high the last couple of days on some very positive developments.

It’s traded over 1/2 million shares today, down from over 1 million shares yesterday.

The surge in the stock is being fueled by a research report out of Five Star Equities, citing the significant opportunities in the growth of the 4G LTE networks as being significant fuel for companies with services in the sector.

Five Star forecasts LTE Phone shipments will grow 10 fold in 2012, from 6.8 million units in 2011 to 67 million in 2012 globally.

Two companies mentioned in the report that should benefit greatly from the growth of 4G LTE networks and handsets are Zynga (NASDAQ: ZNGA), and Vringo (NYSE: VRNG).

If this company continues receiving this kind of positive press, breakouts to new highs are inevitable.

If the stock pulls back to the $3.15 level, that would be a good time to accumulate. If it softens more and holds $2.50, that would be a great time to pile in with a full position and a tight stop. I would not hesitate to suggest jumping into this one if and when it pulls back to that level.

This stock has gone from quiet and under followed to “In Play”. Several analysts and writers have picked up on the story, and I suspect there’s more to come.

Use a pullback to get positioned.

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