Markland Breakout

Markland was out with news on another new contract with the Army this morning before the market opened. The stock has not cooperated by pulling back under $.80. Instead, the stock is breaking out.

As you can see, yesterday was a high volume day. Today appears to be following in kind. More importantly, the stock has broken above the line that had stood as resistance since early December. This could be the breakout that forecasts much higher levels for this one. Rather than wait for a pullback, I would recommend owning at least 1/2 of what you would like to own at current levels. If it continues higher, at least you own it. If not, you can pick up the reminder of your position at lower levels on a pullback.

19 thoughts on “Markland Breakout

  1. As I stated yesterday this is all due to bad financing on the part of the company that is a total disfavor for it’s shareholders. Financing with no restriction for selling given stocks. And, in a strategic manner to the favor of the investors the company released this news in late September after the stock hit a high of $1.32 due to a series of back-to-back good news. I think this was extremely vicious. The company could have released the financing news earlier to prevent the sucker rally. However, the people at SEC are looking the other direction in such circumstances. There is no control as to when and how, and in what order the news should be released. If you have a good news and a bad news at the same time you cannot release the good news first to cause a rally and then release the bad news shortly after in favor of fat investors.

     

    I assume you are referring to Markland- you should know that the news flow and when the SEC finishes reviewing a registration statement are out of the company’s control. I think the timing was unfortunate, but I don’t think it was vicious on the company’s part. If you are a long term investor, this should be viewed as a hiccup. If you are short term, you should have a stop loss and been out without major damage, looking to get back in. The stock technically looks positioned for an attempt at higher levels in my opinion.

     

  2. I love this site but how do I know what has been updated (profiled stocks) in the BLOG unless I click on each one?

     

    Editor: Good Question- The home page will always show the most current BLOG entries from the top down. Also, if you click on the general tab, you will get all of them. In addition, once you learn how to use an RSS feed at a Yahoo home page, all blog entries will automatically show up on your home page.

    Also, I intend to use the BLOG to provide short term trading ideas – sometimes it’s hard to get them to people in a timely manner. By using the BLOG on your home page you will get the information instantaneously if you are online.

  3. This is not real that Markland is selling off like this in the light of so much strong news. The company is in defense and homeland security sector and is backed up by solid contracts. Have you considered the possibility of naked short selling? The resistance the stock is showing to move up might be the result of manipulation by big money by shorting the stock to drive small investors out and accumulate the shares at lower prices.

     

    I don’t believe this one is a victim of naked short selling. The fundamentals are too good. I believe the stock just needs to eat through supplies from financings.

  4. Powel said the troops are coming home in 2005. How a reduced precence in Iraq will affect MRKL sales! How a confirmation by Bush, about troops coming home, will hit the part of Defence sector that grew on Iraq!

     

    As we covered in the initial presentation, MRKL is going to be using the technology to cross over the homeland security applications.  If they achieve this target, it won’t matter what happens in Iraq. Personally, I believe Iraq will be a big problem for a long time.

  5. just a heads up – the edition on MRKL said 58 million shares and about 20 million shares worth of warrants were outstanding. That tally did NOT include the company’s Series D convertible preferred stock, which will likely be converted in 2005. (12 million shares were converted last quarter, and then the company threw the sole shareholder a nice juicy bone to agree to hold off converting shares until March.) Based on current market prices, the Series D shares would convert to nearly 30 million additional common shares.

     

    The numbers I was using came directly from the President. I will make note of your calculations and go over it with him personally.

  6. Thank You, you sure have made looking for the latest updates easy. Now I have a question maybe you can help me with, I know you are a very busy persin and if its inconvient for you just ignore ok. How do i use and/or set-up an RSS feed?

     

    Coming in a future edition.

  7. I smell another reverse split on MRKL coming soon after all those additional shares hit the market. Dilution is a very vicious act to deprive investors of their shares. What do you think? How many shares have you been given by the company as compensation? Something is extremely fishy about this company and it’s stock! There is too much selling that is driving the stock down. I think this is pure manipulation! What company did regarding it’s recent financing with so many unrestricted shares issued was the greatest disfavor to it’s shareholders. I just don’t trust them!

     

    Editor: I haven’t spoken with management directly about the possiblility of a reverse split, but in my opinion it is not likely. I believe the company did a reverse split in the past when there were was no business and a failed entity before they became what they are today. According to my research, when fully dilluted there will be less than 100 million I&O- quite reasonable for a company with $60 million in annual sales. Shareholders are simply frustrated because the company has engaged in some stupid and toxic financings which continue to hurt the share price. If the company continues to deliver, it will eventually be fine.

  8. Is now a good time to buy MRKL since it has pulled back to.67?

     

    Editor: I believe so- planning on a BLOG entry soon.

  9. All that is good, now only if Tarini and Ducey leave the company and/or they quit issuing new shares and stop issuing fluff PRs the company would hit that $1.00 mark. MRKL is one of the more frustrating companies Ive owned, huge potential but very very slow in translating that into profits… it worth holding but you really have to keep an eye on Tarini and Ducey, no one trusts those guys – the main reason every rally over .80 fails…

     

    Editor: I am doing so digging into this issue before next publishing on the company. It seems they have adopted the posture of not worrying too much about the share price in order to raise capital for expansion. You might have to take a longer term view if you are going to make any money on this one. On the plus side, this is a very exciting company with great technology. They are building a nice defense technology machine.

  10. MRKL entry level now ?

     

    Editor: I will do some work on this in the near future. For the time being, down near $.60 is a low risk entry point. I believe the supply of stock is priced at $.60, so no money is made below that level.

  11. Remember the true support level for this stock is 45 cents. With the crooks involved here and their ability to operate on berlin they could run it down that far.

     

    Editor: Where do you get $.45- I believe it is $.60.

  12. There have been a number of news releases at Finance on AOL.com under the MRKL symbol, the latest was today. These have not shown up on my Scottrade ticker nor Dow Jones News.

     

    Editor: Some wire services post news at various places. Yahoo filters quite a number of news releases on small stocks. This is fairly normal. AOL finance probably has no filters.

  13. Please help me to understand what is going on with this MRKL. Something fishy is cooking. You need to talk with someone on the inside. If they are considering a possible future reverse split they need to inform the share holders right now and not a week before they actually do it at their owm discretion. I do not trust those who run the company. they also need to find out if they have been listed on berlin stock exchange to investigate possibility of naked short selling.

     

    Editor: In the case of MRKL, I believe there is simply a huge supply of stock related to the company’s enormous appetite for capital. They keep raising money to fund operations and and acquistions, and the level they seem to be willing to sell at is $.60. Therefore, I now believe close to the $.60 is the ideal entry point for this stock.

  14. In answer to some of the comments, you have said that you would talk to the Markland’s president. So far we have not heard from you about the outcome of your talks! You are promoting an entry point of 60 cents. I wonder if that should be an exit point in the light of the way the stock is behaving. If they are in security sector and winning contracts from the army and the navy, why they woud not seek government financing to get rid of vultures who have provided funds for the company’s operation, but at the same time are destroying shareholders equity. I cannot tolerate another reverse split and neither should other investors. The company has an obligation to its shareholders to inform them of any adverse move long before it take place. Tarini needs to address shareholders regarding markland’s operation and any financing surprise prior to the actual event. Also, please respond to trading on Berlin Stock Exchange and naked short selling. Is the company listed on BSE? Is the company investigating the possibility of any naked short selling? Thank you.

     

    Editor: I believe you are mistaken when you say I am “promoting” an entry level of $.60. I am suggesting $.60 makes sense as an entry level for 2 reasons: 1- the company’s recent warrant issuances all have a conversion price of $.60- ergo there is no money to be made below $.60- 2. The stock has held that level twice in the last several months. If the stock were to collapse below $.60 that would be a major technical negative. With regard to your comment on feedback from the company- when I have the information I want I will publish it. If I don’t publish it, I don’t have it. With regard to naked shorting- I have heard people say stocks can be naked shorted in Berlin, but I have no idea how, and no one has ever presented me any evidence showing me how it can be done.

     

     

  15. With the news on the orders, good quarterly and the high volume…..Any thoughts as to why this hasn’t moved, or why it fell back … haas me puzzled. Thanks

     

    Editor: Simple- excess supply created by company’s multiple midly toxic financings.  When they stop issuing stock to finance the growth, the stock will go up.

  16. I’d love to hear your possible reasons for all the selling of this stock in light of all the recent positive news releases. If the recent warrants were issued at $0.60, why would so many be wanting to sell in the low 60′s for such minimal gain, when this company seems to have such strong potential ? Thanks in advance.

     

    Editor: Simple- they are financing the company with hedge funds who’s main purpose is to turn their money over as quickly as possible- perhaps keep some warrants in case the stock really takes off. When they stop raising capital, the stock will go up. They have issued millions of warrants with a conversion price of $.60- that’s why $.60 is acting as a floor for the stock- won’t exercise the warrants and sell the stock if it’s below $.60 because they don’t make any money.

  17. Thanks to you, Larry, for keeping tabs on MRKL…and I’ll be interested to hear what your impressions are after you have an update conversation with management.

     

    Editor: You are quite welcome. This one is tough for the time being. At some point there will be a concerted effort to right the ship. Their SEC filings are so lengthy and convoluted it’s tough to tell exactly what is going on with regard to the share issuances.

  18. Maybe, I remember…2002? Somebody named Eurotech owned 90% of Markland and held the patents and licenses for the technology that Markland uses. At one time they tried to unseat the board and then backed off? Does this ring a bell with you?

     

    Editor: I don’t know the history of the company to comment on that. However, in my opinion based on the last quarterly numbers, the stock could be viewed as very undervalued.

  19. Hello there. MRKL fell below 60 cents! I think your warrant theory does not work anymore! Any other theories? I have one. The one I have been trying to get across for the past 90 days. Company is setting the stage for another reverse split. Often that is what that follows the toxic financing. Of course, that is not toxic for the company. That is toxic for the shareholders. What a great company to put your money in!

     

    Editor: Obviously you have a negative attitude towards the company probably because you got burned in the past. If you are so worried about the day to day trading in the stock, why not just get out of it and move on. Take all that negative energy you have towards MRKL and commit it to something you think you can make money on. You’ll come out ahead in the long run.

    It is technically negative that the stock is below $.60- However, the last time it traded this low it hit $.54 (12/9)- the next day it hit $.86.