The OTC Journal goes out to a lot of investors, and since we have a pretty big reach we get some pretty good information before others get it. Sometimes, we simply have a competitive advantage on the rest of the investing public. This is the power of many.
I got the drop late this afternoon thanks to two of my sources who are watching for developments very closely.
For PNWIF, the CVS relationship earlier this year made a lot of believers, and this stock is developing a bit of a cult following. There hasn’t been a lot of demand lately, but there appears to be almost no supply. I think this stock is poised to move up- the market is just drooling for an excuse.
That excuse could be coming in the near future, thanks to what I learned today. One loyal supporter sent me the following link:
http://kmart.pnimedia.com/home.aspx
If you visit this web page, you will find it is the photofinishing order page for KMart. If you look at the bottom, you will find the following statement: “Powered by PhotoChannel Networks, Inc.”
There has been no formal announcement, but it appears PNWIF has now landed the KMart as a customer.
Look at this chart:
This stock has been trading very well throughout this entire year. It has been nearly a triple off the level it turned in 2006.
I first brought it to everyone’s attention at $1.80. It closed Friday at $2.57. The stock has surged in price in the last couple of days. My target continues to be $4, and my SSL $2.10. At this point, I don’t believe $2.10 will ever come into the picture.
Buy this one before the rest of the market learns about the KMart relationship.
Comments and questions are welcome.
Kmart has linked to http://kmart.pnimedia.com/home.apx from their home page. I guess that seals it. Just waiting for the official announcement. Do you know how many stores Kmart has?
Editor: I did a little research- I found an article from 2002 that claimed 1500 roughly. There are 3800 Sears and Kmarts. Since Sears and Kmart have merged into 1, can Sears be far behind?
Hi,
Is there a way for me to buy warrents on pnwif and/or ttgl?
Thanks,
Dan
Editor: Neither have publicly traded warrants. At their prices, they are kind of like warrants that don’t expire- especially TTGL.
I found about the same amount of Kmart stores – 1500. I checked Sears.com and they already have what appears to be a home grown online photo finishing service. But who knows what can happen. Do you have any knowledge of an official announcement of the Kmart deal?
Editor: No idea of an official announcement. I don’t see Sears as a big photofinishing customer- Kmart is probably a better source for lots of prints. However, I did notice the stock is trading at a multi year high today- let’s see if we can break out from here.
I have a question? Why would they not announce immediately news this big!
Editor: Typically in a situation like this the smaller company needs permission from the big company. These large companies have many layers of beauracracy that require a long time to get these things done.
I believe we are experiencing a breakout here which will put PNWIF into a new trading range. You mentioned that availability of the stock has dried up. I guess this is the result. Also, it seems that the company making no announcement about the Kmart deal is better than if they had announced it! IMHO.
Editor: You might be right about no announcement on the Kmart deal. As long as it goes without a formal announcement, investors might feel they are getting the drop on the rest of the market. When they make the formal announcement, if it goes down, we will know that was the case. Sure behaving like a champ, but it will pull back and test your resolve at some point.
PhotoChannel management issued several press releases regarding their “great” fiscal year and fourth quarter, why have they chosen to issue a press release without financial tables? Instead, they issued a release exuberantly citing trends and growth figures in various metrics. Yet, now that they have audited financials that have been submitted to SEDAR, where is the press release that touts the anemic and troubling financials? A quick look at the numbers reveals that accounts receivable jumped from Q3 to Q4 by 30% while sales were basically flat. Why weren’t they able to collect from these tier-one customers?
Editor: Wow, this is one of the most misleading and absurd posts I have read in some time. Perhaps you are confused about the order of things- Their year ends at the end of September. October to Dec is their Q4, which is where all the gains were made. Here are the facts. At the end of the fiscal year (Sept) they had $2 million in cash and $1.3 million in receivables. At the end of December, which is the quarter where all the gains were made, they had $3.3 million in cash and $1 million in receivables. Cash was up by about 70%, and receivables were down by about 30%. You simply don’t have your facts right, unless you are referring to Q3 to Q4, which is already ancient history and the market could care less about.
If you want to argue PNWIF is a sell, you should focus on the market cap vs the top line. There you would have a point. What you bring up here is just flat out absurd and very poorly researched.