On April 23rd I published my first edition on Luxeyard (LUXR)- The edition was titled “Still 50% Undervalued”. At the time, LUXR was $.80.
On May 8th, I published my last (not forever) edition on LUXR, where I disclosed I had sold my entire position in the stock – with the last trades being around the $2 level. The net gain for you over 2 weeks was about 150%. I wish they were all like that.
That’s all very nice- but here’s the point of today’s edition. During the course of that two weeks, there was one pullback in the stock. The April 19th edition had a section entitled LUXR- You’re Getting a Mulligan. The stock had abruptly traded down from $1.25 to about $.80. If you acted quickly, you had a second chance to jump in.
Here’s the chart:
Learn from the past to make money in the future. The back half of this week is your mulligan in my by far current favorite idea- Barfresh (BRFH). This is Deja Vu all over again.
The Barfresh (OTC: BRFH) Mulligan
While there’s no guarantee BRFH will be a perfect repeat of what happened last month with LUXR, I believe there’s a good chance we’ll see a repeat of the pattern. As I disclosed in my initial presentation, I am a very large shareholder of BRFH shares, but have not been paid in any way by the company.
I’m also plan to be very active both buying and selling in this security. Last week, I was a seller of a very small percentage of my position. Yesterday, I was buying it back, and will likely do so again today and/or later in the week if I am lucky enough to be able to acquire the shares in the $1 range.
Here’s a chart:
In my initial presentation on May 13th, I described Barfresh (OTC: BRFH) as representing the “Most Profitable 7 Square Inches on Earth”. I’m referring to the roughly 7 square inches a blender uses on the counter of a Quick Serve Restaurant.
Their product has taken Australia by storm.
Again, if nothing else, I strongly recommend you invest 5 minutes of your time to watch the video you can find at this web page:
You’re getting a mulligan on this one. It’s one of the better ideas you will read about for this entire year in the high risk, high return microcap sector.
If you missed LUXR, use this shallow pullback to take advantage of this one. I was yesterday, and could very well do so again today.
A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.
Quietly and unnoticed there is a major stealth bull market going on in the health food sector. Here’s some examples:
Organic pasta, breakfast cereal, and frozen pizza company Annie’s (NYSE: BNNY) came public at $19 per share on March 28th. Within one month, the stock traded up to $44 per share, yielding a 131% return in 30 days for investors lucky enough to get the IPO shares.
Since the market low in 2009, nationwide organic super market chain Whole Foods Market (NYSE: WFM) has traded from $10 to $85, delivering a mere 750% to investors over a 3 year period as the company continues to deliver an annual growth rate in excess of 10%.
Organic Grocer Fresh Market (NYSE: TFM) – a competitor to Whole Foods, was a $32 stock in 2011- today the stock trades closer to $52 for a 62.5% gain over the past year. Fresh Market delivered 13.5% growth in 2011.
Hain Celestial Group (NASDAQ: HAIN), a natural and organic food manufacturer, was a $16 stock in early 2011. Today, HAIN trades for about $45, delivering a 182% return for those who have held the stock for the past 18 months.
Monster Beverage Corp (NASDAQ: MNST), formerly known as Hansen’s Natural Sodas, was a run of the mill Southern California beverage company for many years. Hansen’s introduced a line of natural sodas and bottled carbonated fruit juices, and sales exploded. In the past year, MNST has run from $20 to $64- yielding a whopping 220% to investors who chose to hold the stock the past 15 months.
Attention health food investors- there’s a new food specialist in town. This company’s products have been marketed in Australia, New Zealand, and the Middle East for the past seven years, and the same management team is now in the US and ready to penetrate the market. They have perfected the product Down Under, and are now introducing it to a market 30 times the size.
Their specialty beverages can be found in over 1100 locations Down Under, and is about to take the US QSR (Quick Serve Restaurant) market by storm in the US.
For your consideration:
Barfresh Food Group (OTC: BRFH): The Most Profitable 7 Square Inches in the World
McDonald’s put their smoothie program in last year, and same store sales went up 6%. For an established restaurant chain like McDonald’s, a 6% same store sales increase is a massive gain. Its unheard and drove McDonald’s stock to all time high of $100 per share.
Once behemoth McDonald’s gets a result like that, every other chain follows suit to take advantage of the new trend and remain competitive. So, naturally, Burger King has introduced their version this year, complete with a major advertising campaign starring David Beckham, Jay Leno, and Mary J. Blige. I guess a 6% revenue bump is worth a major advertising investment.
Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth
The key ingredients in a smoothie are ice cream (or sorbet), fruit, fruit juice, and ice. So, if you’re a quick serve restaurant with fairly limited space to prepare new menu items, how do you put together a Smoothie offering to your customers? The difficulty is by far the ice- most QSRs do not have ice behind the counter- the only ice in the store is on the other side of the counter, and comes out of the soft drink fountain machine.
Enter Barfresh with the perfect solution, and no other food provider on Planet Earth can provide this same solution. It is patented in many countries around the world, and patent pending in the US.
BRFH sells this product to all kinds of customers- but their largest category of customer is the QSR- Quick Serve Restaurant. This is the perfect solution for a QSR to get in the Smoothie business with a great deal of ease.
All the store needs 5.5 ounces of water, seven square inches on a counter for a blender, and some freezer space. These specially designed packages sell to restaurants for about $1 each.
A high quality Smoothie can be made in a blender is just 30 seconds and served to the customer. Restaurants charge anywhere from $2.50 to $4.50 for the finished product, making the Smoothie one of the highest margin products on the menu.
Hence- my belief the 7 square inches required for the blender might be the most profitable 7 square inches on Earth.
It’s extremely easy for any employee to prepare, and there is zero waste, and a great margin- QSRs love this.
BRFH Ready to Deliver
The packaging process is proprietary, and took many years to perfect. Their patented production lines can be added on to any ice cream factory, which will allow the company to expand rapidly in the US without huge capital investment.
No one else in the world has the capability to put ice, ice cream, frozen fruit, and fruit juice in the same frozen package.
BRFH has completed the installation of its first production in an ice cream factory in Salt Lake City, and is ready to begin accepting purchase orders in the near future.
This product was developed in Australia, and the Barfresh Smoothie is served in nearly every Subway store in Australia, New Zealand, and the Middle East. Krispy Kreme is a customer as well, along with many other names that aren’t familiar to US consumers.
One important note: Barfresh USA and Barfresh Australia are separate companies with the same ownership. Founder Riccardo Della Coste is the CEO of both companies, and is running the show on both sides of the oceans.
You can invest in the US version now under symbol BRFH. The company has just completed its first US production line. This line is capable of producing about 7 million units annually. The company has been showing product in the US for 3 years, and I believe its first major orders are just around the corner.
I suspect the stock will trade a lot higher when the company starts announcing its first orders. A close relationship with a major QSR chain like Taco Bell, Dunkin Donuts, or Quizno’s subs would like send the stock screaming up the charts.
Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth
For risk oriented investors, this is the time to get involved- before the orders come.
Time to Invest Your 7 Minutes in BRFH
As I mentioned yesterday, all you need to do is commit 7 minutes of your time to watch a video on the company. I know everyone can afford to invest 7 minutes.
Click Here to watch the video and read a lot more about the company from another source.
Longer term, the QSR market in the US is 30 times that of Australia
There’s some other information you should have. For starters, I’ve purchased a lot of this stock through my company and my family account. I was instrumental in helping the company raise capital in the US to get the operations started.
I expect to be very active trading this stock- both buying and selling. I did both last week, and will continue to do so without any prior notification. I’m both hoping and expecting the company to start delivering its first purchase orders in the near future, and am hopeful these future events will have the stock trading much higher.
Much more on this company in the coming weeks. There’s a lot to know and understand.
I love this stock around the $1 level. I believe it could follow the same trajectory we saw with LUXR last month- trading to about $1.50, backing and filling, and eventually finding the $2 level over the next 4 weeks. Fundamental developments will have a lot do with the short term upside.
Longer term, the QSR market in the US is 30 times that of Australia, so the company has massive upside potential. QSRs are scrambling to put in a Smoothie program, driven by the need to catch up with McDonalds and Burger King. Invest 7 minutes to watch the video- you can afford it, then own the stock if you are as compelled as I am.
A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.
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): IntroducedMay 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.
On January 15th I published my first coverage of Liberator (LUVU) when the stock was $.15. LUVU then proceeded to bore everyone to death by spending January, February, March, and April trading between $.15 and $.20 on fairly light volume.
However, when I saw the 2nd quarter numbers for the December ’11 quarter, I knew it was just a matter of time before the stock found an audience and its way to a valuation that is more reflective of the company’s achievements.
LUVU has tapped in to a growing segment of the economy that is widely followed by anyone but the retailers who want your business. Companies like Amazon, Drugstore.com, Walgreens, and CVS are all jumping on the bandwagon, and LUVU is the only pure play in the sector.
Since starting the company in 2002, LUVU has achieved over $60 million in revenues, and turned profitable for the first time in its history last quarter. Over $20 million is a real possibility this calender year- which is huge growth when one considers it took 10 years to get past the $60 million mark.
The stock has started trading beautifully. The audience is developing, and the next quarterly numbers will reflect LUVU’s best time of year- no wonder it’s trading so well out in front of the numbers.
Here’s a refresher edition for those who want to take another look- I believe there’s still tremendous upside from these levels.
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.
(OTC BB: LUVU) - Turns Profitable
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 very popular reality show- the Real Housewives of Atlanta.
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 by turning it into portable furniture. 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- Turns Profitable
This past December, LUVU delivered its best quarter ever. The companies top line came in at $4.3 million- a 17% increase from the same quarter in 2010. Gross profits were $1.25 million. For the first time in company history, LUVU reported a net profit of about $40k- this turn to profitability has investors taking a hard look at LUVU for the first time.
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. You cannot afford to ignore this industry group- after all, It’s bigger than the NFL, NBA, and MLB combined.
At its current growth rate, this 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.
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. Founder 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.
This chart tells the whole story. Even though it was only a $40,000 profit last quarter, it was a major turning point for the company. Once the profit corner is turned and growth continues, the bottom line can accelerate, and the market knows that.
I suspected this one will continue to trade up rather easily 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 $.385 the entire market cap is only $35 million-it’s trading at less than 2x annual sales, which is absurdly cheap.
I see no reason why this stock couldn’t trade into the $.75 to $1.00 range over the next 30 to 45 days as more investor get exposed to the story. From today’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 $.40 to $.45 on the first day. It’s important to own this stock before the March quarterly numbers are released as it’s generally their best quarter thanks to Valentine’s Day sales.
However, I do plan to cover every development out of this company for the next 30 days, or longer. Use $.30 as your SSL. Risk 10 cents to double your money or more.
Consider Rick’s Cabaret (RICK)- had you bought it at the absolute bottom at $4- you could have ridden it to $30. The move from $10 to $30 was still a triple, so there was plenty of upside after the initial surge.
Catch Liberator on The Real Housewives of Atlanta:
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 Housewives 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.
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.
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.
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.
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.
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.
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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.
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.
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.
The 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.
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
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.
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.
All the Tea in China is no longer All the Tea in China. I’m sure you’re wondering what the heck I’m talking about.
China is where they invented the stuff, and it’s been consumed as an enjoyable beverage with some perceived positive side effects for 5,000 years. In the last 20 years, scientists have started to understand the very powerful healthy side effects Green Tea extract delivers to the body- therefore, while the euphemism“All The Tea in China” used to mean a whole bunch of tea- about all there was in the world, it’s no longer the case. Tea- more importantly tea extracts- have spread globally, and all the Tea is no longer In China.
There is more tea consumed globally than any other individual beverage. The only liquid with higher human consumption is water. Only about 2.9 million tons of tea are grown annually around the world. The beverage was discovered about 5,000 years ago by Shan Nong, a Chinese Emperor, in 2737 BC. Like many of the world’s great discoveries, it happened by accident. A few leaves fell into his drinking water as it was being boiled, and he is said to have enjoyed the alluring aroma and taste.
Western cultures have only consumed tea for the last 500 years as trade expanded between East and West.
Tea has taken on a whole new persona in the last 10 years as research has proven the therapeutic value of tea has long been underestimated. Tea extracts, through multiple clinical trials, have now been proven to extend life, reduce medical costs, decrease weight, increase metabolism, decrease stress, and increase anti oxidants.
The demand for healthier alternatives is proven out by two outstanding companies in this sector:
GNC (NYSE: GNC): This retail chain has grown to 5849 US stores, and 504 International stores generating about $1.2 billon in annual revenues.
Royal DSM (NYSE Euronext N.V) is a global science based has 22,000 employees and annual sales of $11.8 billion. Royal DSM manufactures a Green Tea Extract that is used in many US based products.
Green tea extracts have become a prominent part of the businesses of many of these health product companies. There are six major manufacturers of Green Tea Extract globally, and the stuff sells for anywhere from $80 per kilo to $540 per kilo.
Today’s new idea has the most exciting new technology to ever come along in this sector. Plandia Biotechnology (PLPL) has developed an extraction process for Green Tea Extracts that delivers many times the health benefits of the status quo.
Read on McDuff………
Enter Plandia Biotechnology Inc (OTC BB: PLPL): Superior Technology
PLPL is a complicated story. However, the way you can make money in the short term is very simple.
Here’s the 30,000 ft overview. A couple of pHd scientists spent the last 10 years developing new extraction technology that creates by far the best green tea extract known to man. In several studies it has proven to be far and away the most “Bioavailble” green tea extract. About 2 ounces of their extract provides the same benefit you would expect from a gallon of the other guy’s stuff.
In order to begin commercialization using this revolutionary new technology, the company ventured to one of the best places on Planet Earth to grow green tea. It also happens to have a very favorable political climate- money is available from the government.
The tea growing region of South Africa has a 70% unemployment rate and tea plantations have grown fallow since Apartheid. Native South Africans took back their plantations, but they didn’t have the skills or resources to operate them.
At the end of January PLPL received a formal commitment from the Land and Agricultural Development Bank of South Africa for a 100 Million Rand debt financing (about $13 million).
The capital will be used to restore 300 hectares of prime green tea farm land in South Africa. This land is absolutely ideal for this crop. Nine months of the year green tea can be grown and harvested every 19 days.
A smaller portion of the funds will be used to restore the tea growth. The larger portion of the funds will be used to build and install PLPL’s proprietary Green Tea Extraction technology, which is patented and proven out in many scientific studies.
The loans have not closed as of this time. The Land Bank, which is a quasi government agency in South Africa assigned to task of making loans that will put people to work, has required the company to restructure the loans so they could be divided up equitably amongst the company’s subsidiaries. To read the SEC filing that describes the delay on funding and the subsequent completion of the requirements, simply click here.
140% Upside
Since I’m going to be covering this one for the next 6 months, I’m going to leave out a lot of information I’ll save for future editions.
I could write volumes on the revolutionary new Green Tea Extract method the company has devised and patented. When seen to fruition, this extract will be far more “Bioavailable” to the human body (meaning the body will absorb a far higher percentage), and be pharmaceutical quality. Lots more on this in future editions.
However, making money in the short term is a very simple matter, and the chart tells us exactly what’s likely to happen.
PLPL announced the signed commitment for the capital from the Land Bank at the end of January. As you can see from this chart, the stock traded up to $.60 on the news.
The closing of the financing has been delayed, and the stock is now $.25.
If you invest in this stock today at about $.25 while it’s at the very low end of it’s trading range, and wait until the company gets the funding closed, the stock is likely to head back to the $.60 level- where it was when the market expected the loan to close in the short term.
Hence- 140% on your money from today’s levels if and when it happens.
While no one can use the word “guarantee” with regard to the closing of the loan, I have interviewed CEO Roger Duffield extensively from South Africa, and reviewed last week’s SEC filing.
I believe it’s highly likely this loan will close, and the company will immediately begin the process of restoring these lands to productivity and assembling the required equipment for their amazing extraction process.
There you have it- $.25 today. Back to $.60 on the news, which could come any day. There’s not much technical downside as the stock is trading very close to its lowest historical level.
Once the funds have been secured, we can take a much harder look at the value of Green Tea Extract, and in particular PLPL’s proprietary technology that makes for the highest grade and most bioavailable Green Tea Extract in history.
I would suggest accumulating at around $.25 with a short term price target of $.60 and an SSL of $.15.
Take your position, then hold for the news, which will be just the beginning of this story, and the start of a highly profitable saga.
Treating cancer- it’s a huge industry. The estimate? Glad you asked: The number is so large, I couldn’t even find an estimate. One study shows Americans lose $2.3 billion every year waiting for cancer treatment.
The answer on how much is spent is many billions. Cancer is a wide ranging term, so numbers are only available for specific types of cancer. $1 billion is spent on research for breast cancer alone. The estimate for therapy costs- $13.9 billion for breast cancer. That’s a whole bunch of billions.
Chemotherapy- the introduction of chemicals that kill tumors, is one tried and true therapy for either slowing down the spread of cancer, and/or sending it into remission. However, the downside of chemotherapy- it’s a shot gun effect treatment. Another words, patients are heavily dosed with poisons that have been shown to greatly effect specific kinds of cancers. In many cases, the treatment is worse than the disease, and patients often opt to live out their lives without the aggressive therapy.
A new delivery system known a “Bioencapsulation”- nicknamed and copy writed as “Cell-in-a-Box” has been designed to significantly increase the locally available amount of an active cancer drug directly to the tumor- thereby minimizing the surrounding damage and reducing harmful side effects.
Rather than the shotgun effect- this is a laser targeted “Sniper” effect designed just to kill the tumor: Read on…..
Pancreatic Cancer – Hard to Diagnose and Quickly Fatal
Pancreatic Cancer is a solid tumor with a very poor prognosis and extremely limited treatment options. The median survival time from this difficult to diagnose condition is less than 6 months. There’s about 120,000 cases diagnosed annually in the US, Europe, and Japan combined.
US based Nuvilex (OTC BB: NVLX) has acquired the rights from SG Austria to develop and market this revolutionary “Cell-in-a-Box” therapy that has been proven effective in a Phase I/II clinical trial on Pancreatic Cancer patients in Germany. The trial was performed on 14 patients at the Rostock Medical University.
For those of you who are not familiar with the FDA process for drug approval, here’s the overview for dummies like me:
A Phase I trial is used to prove the therapy won’t kill you
A Phase II trial is used to demonstrate the product has some level of effectiveness on a small sampling of patients
A Phase III trial is a much larger patient study and is the last step prior to an FDA approval- if one is granted.
It takes about $1 billion and many years to get a new drug through the FDA process. Sometimes, depending on the severity of the disease being treated, studies are combined for patients with little other recourse- another words- extreme terminal situations.
Such is the case with the Phase I/II trial performed on 14 Pancreatic Cancer patients in Germany.
The patients’ median survival rate doubled compared to historical controls when using Chemo drug Gamzar. The one year survival rate tripled, and only 1/3 the standard chemo dosage was used.
Pain was diminished and quality of life was improved considerably while visible tumors stabilized during the course of treatment.
How It Works
NVLX’s cancer therapy is not a new drug. It is a new way to laser target the delivery of an existing drug. The delivery system works something like GoreTex- the water proof fabric that breathes. With GoreTex, the pores in the fabric are designed so that smaller air molecules can pass through, but water molecules cannot. Hence- the fabric breathes, but you stay dry.
The drug is “bioencapsulated” in a cell and injected into the body near the site. Immune cells- like water molecules with GoreTex are too large to attack the “Cell-in-a-Box”, so they are ignored by the immune system.
However, small cells can pass out of the Bioencapsuled cell and attack the tumors in the immediate vicinity.
Using a catheter, the Bioencapsulated cells containing 1/3 the normal dosage of the cancer drug were introduced near the tumors using a catheter. These x-ray images show the actual catheter and subsequent implantation of the “Cell-in-a-Box” placement.
Now- are you ready for the eye opening results?:
The patients’ median survival rate doubled compared to historical controls when using chemo drug Gamzar. The one year survival rate tripled, and only 1/3 the standard chemo dosage was used.
Pain was diminished and quality of life was improved considerably while visible tumors stabilized during the course of treatment.
There’s More
Here’s what one of these capsules looks like- this is an actual photographic image.
Pancreatic Cancer has been the first target for a clinical trial- mostly because it’s so difficult to treat and nearly always fatal. The harsh reality is exotic and unusual therapies are easier to get into trials when patients and doctors have little recourse.
However, the whole process of bioencapsulation has far greater potential uses.
Plans are underway to use Encapusation technology for many other purposes. This same technology can be used to laser target Stem Cells.
It is also suggested Encapsulation can be used to target infectious diseases such as Hepatitis C Virus, West Nile, Dengue, Influenza, and HIV.
Diabetes is also a potential disease for NVLX to pursue. Early studies suggest encapsulated cells can still deliver insulin 6 months after implantation.
And, of course, other and more widespread forms of cancer could become targets for its use- such as Lung, Breast to name two obvious candidates.
Various therapies are being explored in joint activity between NVLX’s us operations in Silver Spring, MD, and the SG Austria operations in Singapore.
Where to From Here?
There’s a lot more to cover on NVLX. I’m just showing you the recent developments in this first edition. More to come as I’ve committed to follow every move this company makes for at least 6 months.
I’m very intrigued by the potential for this therapy- here’s the hook- At $.06, the market is saying this company is worth about $20 million.
The therapy they own for market in the US just demonstrated in could DOUBLE THE SURVIVAL RATE of 14 terminal Pancreatic cancer patients, using 1/3 the normal dosage of chemotherapy, and double their life expectancy.
True- it’s a small sampling of patients, but $20 million is equivalent to about zero in the biotech world. As this story develops, I could easily see this stock trading at $.50 as the company works towards a partnership to go into Phase III clinical trials and turns its attention to other potential uses for Bioencapsulation.
As you can see from the chart- buyers have been coming for this stock. About 10 days ago this stock traded nearly 13 million shares over two days.
It surged from $.03 to $.09 and settled back at about $.06. Someone decided they needed to own a bunch of this one in a hurry.
I say we give the company 6 months to thrill the market as it develops this Bioencapsulation technology.
We can sit around and guess all day where the stock might go- that’s a “subjective” issue.
However, double the survival rate, tripling the one year survival rate, and doing it with 1/3 the chemotherapy dosage is a fact- there’s nothing subjective about it.
This little $.06 gem is just starting to show up on some radar screens- Long term, I like it for $.50. Short term- it’s hard to predict- a break above that $.09 surge would give the stock a ceiling of anyone’s guess. It might happen today, in two days or two months.
It’s easy to hold since the company has proven it can help extend life.
Let’s at least go for $.12, or a double in the next 30 days. $.50 longer term. For those who feel they need an SSL, use $.03- the level the last surge started from.
If Steve Jobs had only met NVLX sooner- who knows?
On October 6, 2011, Steve Jobs- the helmsman of Apple Computer, died after a long battle with a rare form of Pancreatic Cancer.
Jobs was not fortunate enough to find a treatment that would extend his life, and he might have only been months or a year or two from a therapy that might have been able to extend his life for at least several more years.
There are many companies developing cancer therapies designed to extend life anywhere from several months to many years. However, its a real rarity to find a small stock, trading with about a $20 million market value that has already completed a Phase II clinical trial that demonstrates a therapy effective in the treatment of Pancreatic Cancer.
If seen through the entire FDA process, this therapy could be worth billions.
Here’s the real kicker for those of you who like a low priced stock- this was a 6 cent stock at the close on Friday. Moreover, about 2 weeks ago, this little stock traded over 13 million shares in 2 days and surged to a high of $.09- 50% above Friday’s close.
It’s time for us to make some money in the penny market again. This story reminds me a lot of Cel-Sci (CVM)- a biotech company I’ve covered on an off over the years. CVM is working therapies for head an neck cancer. When you’ve been publishing for 14 years, you have a lot to look back at.
On June 13, 2009, I published an edition on Cel Sci (CVM) at about $.47 per share. Here’s a chart of what happened with the idea over the next 4 months.
As you can see, CVM headed up to the $2 mark at its peak, and settled in around $1.50 for no less than a three to four fold return for all.
Tomorrow after the market closes I’ll be introducing a new idea that reminds me a lot of CVM when it was at the $.50 level- only this one is just $.06.
As I said above, in the last two weeks this little stock traded 13 million shares in two trading days two weeks ago and surged to $.09. The company hascompleted aPhase II clinical trialon a therapy for Pancreatic Cancer, and it gearing up to move to Phase III trials.
What a find. I’ve committed to covering all the developments with this new idea for six months, so I have expectations this one could be absolutely huge.
Watch your inbox post close tomorrow- especially if you love the really low priced ones.
It’s worth noting- the whole market is buzzing about Apple’s move from $400 to $600 this year. I assure, this little stock could go from $.04 to $.06 in a day- or even $.06 to $.10 on a good day. Of course, there’s more risk, but it’s no different than AAPL running to $1,000 per share.
CALL Short Killed by Oppenheimer
I’ve never seen this happen before, but you live and learn. Friday, with no news release and no conference call, CALL put out its year end numbers through an SEC filing, and they were lousy compared to 2011. Their revenues were down, and losses up.
However, the moment they put out the numbers, Oppenheimer raised its price target on the stock to $27, and it started working higher.
I immediately published a “close out and cover” recommendation. Since I had recommended shorting at $24, and it was about $25, the loss was only 4.1%- 8% on cash in your margin account. If you own put options or shorted calls the loss would have been a little higher- I lost about $1,000 on a $3,000 investment. I was going for a higher return, so I had a higher percentage loss on a lot less money.
I’ve never seen a firm come out so quickly with a price upgrade, so something very positive is going on for CALL. Better to take a small loss and move on.
Stand by for one of the best stories I’ve seen on a very low priced stock tomorrow post close. I believe you penny stock fans will love this one.
Just in case you were wondering, I thought it was time to provide and update on my latest ideas- one that has been rather disastrous, and one that is yet to be decided.
Shorting Magic Jack (CALL) for a quick trade and owning iTrackr (IRYS) have been my ideas over the last month, so here’s an update on both:
Shorting Magic Jack (CALL)
I’m not opposed to taking a bite out of both sides of the apple. Magic Jack (CALL) provided us with a generous meal this year as we notched a 400% gain on the call options I recommended back in January when the stock was $16. Now it’s $24.
When you think about the gain, it’s extraordinary. Let’s look at stock market darling Apple (AAPL)- over the same time frame, AAPL has risen from $400 to $600, while Magic Jack (CALL) has risen from $15 to $24. AAPL is up 50%, with CALL is up 60%. So far this year, CALL has been the better stock to own.
Last Friday I recommended going short CALL into their annual earnings report which, according to Yahoo!, was due out Monday after the market closed. I describe this kind of trading idea as an “Event Driven Trade”. The events leading up to recommending the trade are the upside movement in the stock over the past two months, combined with the earnings release.
It’s been my observation over many years of trading that whenever a stock runs up into an event- in this case the year end numbers, 95% of the time it will sell off once the proverbial cat is out of the bag.
In the case of Magic Jack (CALL), apparently Yahoo! and the management at CALL are not talking, and Yahoo! has it wrong. CALL has not released it’s 2011 audited financials, and as such the event I’m betting on has yet to happen.
In fact, if you look at the daily earnings calender, Yahoo! how has the company releasing its numbers every day. Sooner or later their calender will be right.
Fortunately, I chose to buy the April $25 put options at $3, which leaves me plenty of time to wait for the release.
Under normal circumstances, CALL is required to file their annual 10k audited financial statements today- March 15th. However, there are several factors which could affect the timing. If the numbers are not disclosed today, I believe the company has a grace period of a week or so, and then it can file for an extension to buy another 10 days if required to do so. When companies file for an extension, the market generally views this as a negative, so I would expect the stock to ease down during this time frame.
There’s one other factor that could effect the timing- CALL is actually a “foreign issuer”- the company is domiciled in Israel. This could effect the amount of time they are given to disclose their year end numbers.
So, we have no choice but to wait it out- at present, we are simply on CALL Waiting. The company itself has provided no disclosure about when its numbers will be coming out, but this could be one of those situations where they make some sort of announcement a day or two before.
My most recent penny stock idea- iTrackr (IRYS) is a bit troubling. There’s really no nice way to say it- this stock has been an absolute mess. This could end up being a great opportunity for those who either sat on the sidelines or sold on the way down, but the chart is just butt ugly.
There’s been a number of explanations bandied about. My own personal conclusion- I believe short sellers pounced on this stock and beat it down back on Monday, the 5th. The sudden drop caused existing shareholders to panic and just sell with little regard for price. Shorts targeted this one due to some rather inflammatory information that was published about the company.
As an young and under followed penny stock, the bottom simply fell out. The volume in this stock has been rather insane against an estimated “effective” public float of about 3 to 4 million shares. At present, the volume would suggest the entire float is turning over every 2 to 3 days.
I suspect this stock could be good for a bounce for a few reasons. For starters, their platform for marrying local consumers to local merchants is just getting off the ground. It’s only available in Beta Test version, but it’s very robust and has a lot of features that should eventually play well with both sides of business.
Secondly, if there is a big short in the stock, eventually the shorts will buy back and close out their positions. That’s how they lock in their profits.
A Fibonacci bounce suggests this stock is entitled to regain 38.2% of the ground it lost. If it does, the target price is circled in green on the chart. The stock would be entitled to bounce back to about $.38 which coincides with the 50 day moving average.
From today’s level, that would be a 52% gain, and a suitable risk. At this point, it’s unlikely there’s a lot of downside risk technically for the next few weeks, as it’s likely everyone that wanted to sell has done so- or pretty close to it.
I sold very little of my rather large position in this one on the way down, so I’m still holding quite a bit and hoping for a turn around.
There’s the update on both situations- just in case you were wondering.
Two of my 2012 calls have gone insane this week to the good and the bad, and it’s time to turn the pancake over on both of them. Magic Jack (NASDAQ: CALL), which has been a monster win, is offering us another opportunity to make money in my view. More below.
Recently introduced iTrackr Systems (OTC BB: IRYS), has been a absolute mess and I believe has been targeted by market makers who are aggressively shorting the stock. The stock might have now sold off enough to be good enough for a bounce, and that’s the other side of the pancake.
Here’s a review:
iTrackr (IRSY) Under Attack
My recent idea on IRYS looked pretty darn good out of the gates- having made a short term move from my $.68 entry level to about $.85- a quick gain of about 25% in the first two trading days. Yesterday, however, was a different story.
While I was making an appearance as the guest host on the Big Biz Show (www.bigbizshow.com- btw- sorry the online broadcast got screwed up- it should be working now)- the stock got absolutely annihilated.
To me, this looks like a classic manipulated short raid on the stock by market makers. You simply don’t see stocks trade like this for no reason.
Actually, in my view, there were some reasons behind this little penny stock getting tagged with the short seller bulls eye- there was some content published on the company from other sources that was highly inflammatory in my view, and brought poor little IRYS squarely into the short cross hairs.
The stock has traded an incredible amount of volume since making it’s debut last week. There are only about 8 million shares in the public float. The stock has traded 8.8 million shares since last Wednesday- there’s no way every single share in the public float has changed hands.
A quick look at the chart tells the whole story. Stocks don’t drop like that with no news. The two day drop is insane.
The stock may have made its bottom today. There was mid morning news that seemed to turn the tide, and it’s an endorsement of the company’s potential from a really strong investor.
About mid morning IRYS disclosed it has received an executed term sheet from Cornucopia Fund- managed by Omar Amanat. According to the news, Mr. Amanat is the co-founding board member of Twilight Studio as well as Summit Entertainment’s largest shareholder; Peak Group Holdings. He provided and raised 50% of the capital during Peak’s $1 Billion financing of Summit Entertainment. Recently Summit was sold to Lions Gate Entertainment Corp. (NYSE: LGF – News) for $412 Million.
Summit Entertainment owned Twilight Studio- the studio of the Twilight Movie Series Franchise. Just Google Omar Amanat – you will see this guy is one big hitter. The fund executed a term sheet which allows them to invest up to $1 million in IRYS at a fixed price of $.40. It was not disclosed how much has been invested so far. The shares the fund is purchasing will not be free trading for 6 months.
The stock is regaining some ground since this news came out. Perhaps short sellers are rethinking their view on this company after the indirect endorsement of one of the most astute investors and successful businessmen around.
In the meantime, my SSL, as published on the home page, for IRYS was $.60. If you’re out, you might want to consider coming back in. This could be a “V” shaped bottom if short sellers decide to start covering.
This one could be good for a bounce. I haven’t seen one attacked like this in sometime, so it’s a little strange, but could be a tremendous opportunity.
BTW- Full disclosure-I’m still long every single share I had when I published on IRYS last week. I have my own money at risk. I have not been paid anything by the company.
Magic Jack (NASDAQ: CALL) – Let’s Have Another Look
CALL has just gone nuts, rolling through $20 without much problem as settling in around $23. Fantastic move, and I hope everyone clipped 400% off the call options I recommended.
It might be time to either buy a put, sell or call, or short this stock. Next Monday the company comes out with the 2011 year end audit numbers after the market closes.
Now, I have no idea how good the earnings will be, but here’s what I do know.
95% of the time, when a stock makes a big run into earnings, it blips up briefly after the release, then sells off as the hot money comes out on the news.
I see no reason why that pattern wouldn’t repeat itself here.
Tomorrow I’ll have a specific recommendation for a trade on a post earnings pullback.
From time to time over the last several years I’ve made appearances discussing all sorts of market related topics on the Big Biz Show. The Big Biz show is a kind of irrevant stock market and business related TV show that is also streamed online. It started out on radio, but evolved.
Here’s how the show’s description:
“Thanks for listening and watching ”The Big Biz Show with Sully and Russ T Nailz” nationwide and coast to coast in 35 million cable television homes, and 150 radio stations in 175 countries via American Life Network, Biz Television, FOX Business Network, Armed Forces Radio Network, CBS Radio Network and The Business Talk Radio Network!”
The show has been broadcast every business day from 3PM to 5PM. Starting Monday, the show is moving to the new time slot of 12PM to 2PM eastern time.
Yours truly will be the co-host of this Monday’s first broadcast in the new time slot, so please tune in. I plan to talk about generating income from your stock positions by writing covered calls. Forget dividends- this is the way to go for investors seeking higher returns.
More importantly, the first of my “Big 3″ penny stock ideas is iTrackr Systems (OTC BB: IRYS). IRYS opened at $.68 this past Wednesday when I released the pick, and closed Friday at $.80. There’s been a volume explosion, and reasonable price movement of 17.5% in the first three trading days.
Tune in at 10:20 Eastern time to catch Jeremy Brooks, the President of IRYS, interviewed live on the Big Biz Show.
Rather than try to figure out where it might or might not be on your local cable system, you can watch it, or listen online.
Any way you look at it, my recommendation to invest in the Magic Jack (NASDAQ: CALL) options has been a gigantic win. At the same time, I suggested the Dexcom (DXCM) options, and those were a break even, so no harm done there.
The March 15 CALL call options I recommended back on January 18th at $1.30 closed Friday at $6.70 bid- yielding at gain of 415%.
Time to hang up on the call. Anyone still holding those call options should sell them and close out their position immediately.
Those options will expire in two weeks, and the stock has run up very nicely into their earnings release. No matter how good the earnings, there’s a 90% chance the stock will briefly blip up then sell off after the earnings release.
Analysts love the phrase “First Mover Advantage”, but first is not always best. The first mover in the online coupon world has been highly publicized and controversial Groupon (NASDAQ: GRPN).
The company had humble beginnings. It started with a small email distribution list. It offered a “Flash Sale” discount. What was offered? A half price pizza at a restaurant located in the fledgling company’s office building. Lots of people showed up for pizza, and a new concept was born.
The concept expanded in the Chicago area, and Groupon looked to go national. With $1 billion in financing from a Venture Capital group, Groupon started buying up Daily Deal services in larger cities all over the world, and became the fastest company is history from its birth to achieve $1 billion in annual sales.
Groupon has first mover advantage and a global footprint. But first is not always best. The best is always the one consumers like the most. Do they have the best model for the consumer?
Consider the history of First Movers in the internet space. How about the early behemoth AOL. AOL was able to swallow up Time Warner in the rah rah days of the 90′s as the market believed the AOL model would dominate online browser, shopping, and communications.
However, AOL only allowed users to see what they wanted you to see, and there were subscription fees. This closed community failed miserably, and AOL lost its dominance and retreated into oblivion.
AOL was knocked of its pedestal by Yahoo! (NASDAQ: YHOO). Their open community and free services destroyed the AOL model. The Yahoo! community grew rapidly, and opened access to a lot more content on the internet.
However, as it turned out, Yahoo!’s model was flawed as well. Yahoo’s! search service only allowed users to find content if the content provider paid Yahoo! an advertising fee. Yahoo! failed to see this approach was vulnerable.
Google (NASADAQ: GOOG) came along, and with its completely open search features and superior technology, wiped out Yahoo!’s dominance in search.
The ever growing population of internet users doesn’t want their experience to be controlled by anyone or anything. Consumers of goods, services, and information want what they want, not want they provider wants to cram down their throat.
They say one picture is worth one thousand words. I say one chart is worth millions of dollars. Here’s a chart that says it all. This chart shows the relative performance of AOL, Yahoo!, and Google since the 2008 market crash.
AOL, the “First Mover” with the most flawed model, is depicted in blue and clearly the worst performer. Yahoo!, the upstart that wiped out AOL, is shown in Black. This stock has done poorly as well.
Google is depicted in red, and its by far the best performing stock of the group. Google was last to the party, but has the best model for the consumer.
This chart provides definitive proof that early entrants with a new business concept don’t necessarily offer the best model for consumers.
Look out Groupon- there’s a new kid on the block about to knock you off. Read on…..
iTrackr (OTC BB: IRYS): The Power of 15 Million and 200 Million
Data, when properly used, is powerful stuff. Data, simply defined, is information. Websters defines “DATA” as individual facts, statistics, or items of information.
iTraker (IRYS) has lots of data, and therefore lots of power- IRYS has 15 million items of information in one category, and 200 million in another category. The company intends to marry the two, and provide consumers with the discounts they really need and want.
200 Million is the number of records IRYS has already obtained on individual consumers. The data includes names, email addresses, street address, demographics, and spending preferences.
15 Million is the number of records IRYS has on businesses in the US. The IRYS service officially launched this past weekend, and you can go to www.itrackr.com, set up your username and password, and start negotiating your own deals with your local merchants.
iTrackr has introduced the first web based platform that allows consumer to interact directly with local merchants onlne.
The screen shot on the right is the home page where you can go to register. Merchants and consumers alike can set up their profiles, and the platform can join the two together.
Merchants will have the ability to reach to local consumers with a special offer.
Consumers have the ability to ask for a discount from businesses on the site.
Unlike Groupon, the merchant collects the money from the customer, rather than Groupon collecting the money and stretching the merchants out 60 to 90 days to get paid.
As an example- let’s say you want to take in your dry cleaning tomorrow. You log in to the site, go to your map, click on the proper service button, and all the local dry cleaners in your area come up with icons.
You simply click on the ones you want to do business with, and ask for a discount. The merchant can then respond by accepting, declining, or making another offer.
With Groupon, only Groupon wins. With iTrackr, everybody wins.
Make Your Deal
I wanted to show you one additional screen shot. This is the interface that allows you to try to make a deal for a coupon with a local merchant.
This is a map of my neighborhood. The icons on the map show some of the local restaurants. I clicked on the icon for my local Ruths Chris Steak House. I now have the option of requesting anywhere from a 25% to a 70% discount on my next visit.
Once I’ve decided on my offer, the interface will send a message directly to the restaurant on my behalf.
Ruths Chris then has the option to decline my offer, accept it, or counter with a different offer.
Ruths Chris now knows I’m a consumer interested in their restaurant, and they now have the ability to reach out to me through the iTrackr.com interface with future offers.
From the current levels, if the company makes money, there’s little doubt you will make a lot of money on the stock. So, how does IRYS generate revenues?
Lest you think differently, IRYS is no start up. In order to introduce their platform, this company needed to have deep seated roots in internet marketing.
The first generation of the iTrackr.com model allowed consumers to find local merchants with hard to find items in stock. That version of the service was spun out in the 2008 recession, but eventually was developed and sold to eBay for $90 million.
The company is building its new platform off a rich heritage of behemoth customers that currently pay IRYS in monthly fees. Saveology, a $1 billion digital marketing company you never heard of provides customers for companies like:
Cox Cable
Verizon Wireless
Time Warner
Comcast
ATT
An IRYS application is embedded in online marketing sites for all these companies, and this service generates significant revenues and allows IRYS the leverage to launch a platform robust enough to manage the records and transactions for 200 million consumers and 15 million small businesses in the US.
Once launched, IRYS will generate revenues from the businesses- not from consumers. Businesses who enroll in the program will pay a nominal monthly fee to be included in the interface. Fees will range from as low as $14.95 to $39.95 per month depending on how pro active the business owner wants to get with IRYS and its local customer base. It’s far cheaper than a Yellow Pages ad, and allows for direct contact with local customers. This could end up being the most cost effective advertising any local merchant has.
Where To From Here?
I suspect IRYS is going to explode between now and the end of March. Why? The company is focused on uploading the most valuable parts of its 200 million record consumer database, and 15 million record business database. IRYS will focus on businesses with the right SIC codes for local merchants, and consumer in certain high density parts of the country.
The site went live this past weekend, and a look at the chart gives you an idea of how market investors feel about the upside potential of this new platform.
I suspect the chart and the useage level of the site will track each other. So, as local businesses and consumers all over the country slowly realize there’s a win/win competitor for Groupon, buyers are likely to flock to the stock as they adopt the service.
Consider that IRYS already has hundred of thousands of sign ups from the first version of it’s online service, and people are now coming to the site in droves and signing up.
The key to making the dream returns of a lifetime in a situation like this is getting in early- getting in before the crowd realizes robust nature of the service and the substantial growth potential.
By the summer consumers will be telling all their friends about a web site that allowed them to ask for a discount at 5 different local dry cleaners, and how they got a 25% discount from the one that replied.
The platform is still in development, and won’t be finalized and really robust for several months. There’s going to be a major initiative to enroll businesses as subscribers.
This new service is what the Internet is all about. It’s getting information and saving money and time quickly and efficiently. It’s surprising no other company has launched a service that allows consumers to negotiate discounts with local merchants, but perhaps no other company has ever had access to the data that can marry both sides of the equation.
Today, IRYS only trades in the $.70 to $.80 range. There’s massive upside as the company grows and the stock moves higher. This is the kind of stock investors want to accumulate before the word gets out.
I believe the stock has the potential to easily trade into the $1.50 to $2 range over the next 2 to 3 months, and a $5 target price is possible long term as iTracker’s service gets widely adopted by consumers and merchants. The possiblity of 100% to 500% returns on this stock in 2012 are very real.
Get into this stock ahead the millions of other investors who will learn about over the coming days.
Full disclosure- I am a shareholder in this company, and I invested in a substantial number of shares with my own capital. You should view my ownership in shares of IRYS as a potential conflict of interest. Beyond that, I have no business relationship with IRYS. I simply believe we can make money on this idea.
I could be buying and/or selling shares at anytime, so keep that in mind. I’m hoping to see the stock well over $1 with plenty of volume in the next several weeks.
You might be wondering what the heck is going on with the latest series of publications. It’s time to give you the full view so you’re dialed into the method behind my madness.
Of late, I’ve been referencing three, new, Big Ideas I’ll be delivering over the next several months- the first coming this Wednesday. I’ve also been showing you a marketing campaign featuring penny stock guru Timothy Sykes, which is not the sort of content I normally publish.
The two are intertwined. Let me explain.
2011 was one of the worst years I’ve ever had professionally. I spent the summer months of 2010 working on the launch of my www.emergingchinastocks.com subscription based site, and rolled it out in October of 2010.
After a few months of strong performance, the China small cap sector was decimated in a way I’ve never experienced in the 25 years I’ve been involved in small stocks. I didn’t understand the extent of the high levels of fraud being committed by Chinese companies on US investors. I lost a substantial amount of my own capital, and the service ended up having little value in the face of the tsunami of fraud.
If nothing else, after all these years I know I can make money in the small cap world. I’ve proven it time and time again. In order to reverse the tide, I turned my attention to 3 major new ideas back in the good old USA. I’ve been working on these projects since November, and my efforts are now coming to fruition.
I’m not giving up on the China small cap sector. I simply recognize there’s nothing to be done there for now. The truly great companies in the sector are trading rather listlessly, and as soon as they perk up, I’ll pounce on the solid opportunities that remain.
Exciting new companies come along regularly in today’s penny stock environment. While many of them have little or no audience, the technology exists to develop big followings for the favored few, and I’m going to put you at the front end of major awareness campaigns.
The Timothy Sykes offerings I’ve been publishing of late are all focused around the first of my 3 big ideas. Thousands of potential investors, through a number of publishers, have signed on to learn about the first pick, and you’ll be learning the symbol the day before most of them.
The truth of the matter- I need to make a lot of money this year. I need to make up for last year’s extensive losses. I’ve taken three major positions. I’ve put my own capital at risk.
While I have no contractual obligation to cover any of these names with OTC Journal subscribers, I’m going to- because that’s what I do.
Wednesday’s first idea will feature company that has the potential to revolutionize the way consumers interact with local merchants. The Groupon model is doomed unless the company makes some major changes.
Here’s a phrase I’ve coined that sums it up:
With Groupon, only Groupon wins. With xxxxx, Everybody Wins.
This new company just launched an interface that marries consumers to merchants in a new and unique way, and it is growing and evolving everyday. This company is already providing technology services to the likes of AT&T, Time Warner, Comcast, and many others. It’s no start up.
On Wednesday, you will learn just who xxxx is, and what they do.
In the meantime, if you want to follow the Sykes campaign, here’s the today’s content. If you have an interest, sign up and go through the process. Sykes is a pretty bright guy in this sector, and has a big following.
His involvement gives us a really strong possibility for a great short term surge in this stock simply because in the early going, there will be more buyers than sellers.
I have a pretty substantial position in this stock that I’ve acquired by putting my own capital at risk, so you should probably view that as a potential conflict of interest. If you decide to invest, I might be selling you the stock you’re buying.
In this case, I’m not in a hurry to sell this week- I expect higher levels and better volumes over the next 3 to 4 weeks, so I plan to be rather stingy on providing my shares to the market. Nevertheless, you should view my position as a potential conflict.
Here’s the next installment of the Sykes campaign which you might find interesting and informative.
NEW VIDEO: Big Trade Lining Up
If you like the idea of trading stock promotions (those marketing campaigns that Tim Sykes showed recently that drove stocks up 280% gain in 14 days… 642% in 42 days…and even 1,540% in 21-days in 2011)…
…then Tim’s new video is going to rock your world, because he says another trade is lining up.
The Best Part: Tim—who spent 3 years as a #1
rated hedge fund trader—is going to take you step-by-step through trading one of these promotions LIVE and with REAL MONEY, so you know exactly how to play these promotions.
Just the other week, one of Tim’s students, a college kid, used one of Tim’s alerts on a stock promotion to make 108% in 1 day, without leverage, from his smartphone while waiting in line at the Department of Motor Vehicles.
Remember, Tim has a long history of major successes as a trader, including: In 2007, he was named one of Trader Monthly’s top 30 traders under 30. He turned $12,415 of Bar Mitzvah money into $1.65 million in four years before he graduated from college, and then grew it into $2,730,000# Yes, you read that right, he published his broker statements online to prove it.
Barclay Rankings, the hedge fund ranking company, rated Tim the #1 short-bias hedge fund for three years running, 2003-2006, while he still ran his hedge fund. PLUS…
Tim’s been ranked the #1 trader out of 60,000 traders on Covestor—a website that verifies trades and performance—over the last four years.
When the market crashed in 2008, he still ended his year with a 197% GAIN.
Since 2008, he has helped members in one of his trading services generate a verified $1.7 MILLION in profits. In a second service, he has helped regular investors generate $1.5 MILLION in profits.
So Tim’s not only a great trader, he’s a great trading teacher as well.
If anyone can help you take your trading to the next level, Tim can.
Now he’s offering to take you, step-by-step, through trading a real, live, stock promotion as it unfolds. Just click here to get all the details.
I wouldn’t put this off because you don’t want to miss out on the trades when they come through.
Mark it on your calender- the week of March 12th. My big win for 2012- the March 15 CALL options recommended in early January at $1.40 needs to be liquidated before that week. Here’s why.
This is a good one for your market experience “hard drive”- burn it onto your mental disc drive. When a stock runs up into an earnings release, 99% of the time it will sell off immediately after the news comes out. The one exception would be Apple Computer (AAPL)-the company absolutely blew away analysts estimates and the stock went up.
I called this perfectly on Baidu (BIDU) last week- choosing to suggest to subscribers at www.emergingchinastocks.com they sell covered calls against their position on the earnings news. Kaching- 65% gain in 3 trading days.
As you can see from the chart, the stock had traded up beautifully into earnings. The company beat the estimates by 10% on a strong top line, then the stock sold off 4 consecutive trading days before heading back up.
This happens when hot, short term money makes a bet on an earnings surge a month or two ahead of earnings, then looks to harvest profits when the news comes out.
In the case of the Magic Jack (CALL) Call options I recommended at $1.40- they are now trading at $3.50- down from their high of around $5. Today, it’s 150% return in 6 weeks- not bad.
Magic Jack (CALL) has announced it will release Q4 and year end audited results the week of March 12th. These options expire on March 16th. The time value is eroding on these options, and the stock will likely sell off after the news comes out.
Therefore, you would be well served to be out of these options by the end of next week of the latest, if not earlier. If the stock has traded up or remains close to the $20 level when the numbers come out, I will suggest a quick trade on the short side to take advantage of the inevitable sell off. If you see the stock approaching the $20 level, sell immediately. That will likely be the ceiling in the short term.
The First of a Blockbuster Trio
As alluded to in previous editions, I’ve been working on 3 incredibly strong penny stock opportunities, to be released consecutively over the next 3 months. These are a different breed of cat from the few hit or miss, quick trade ideas I’ve delivered this year.
On these 3 ideas, you will have a “First Look” out in front of millions of investors who will learn about these three ideas a week or two after you get the “first look”. There will be lots of follow up on these ideas.
I’ll be releasing my first “Monster Idea” next Wednesday, and you’ll want to be first to make a trade ahead of the rest of the world. Here’s a little preview:
Groupon (NASDAQ: GRPN) has been highly touted as the company to get to $1 billion in revenues faster than any company in history. I guess $1 billion in revenues ain’t what it used to be.
I believe the entire Groupon model is fatally flawed, and unless the company makes some changes, this ship is destined to sink. The market is catching on as well – the stock is now permanently camped below its IPO price.
There’s problems on both the user and merchant side. Speaking as a user, I can’t recall the last time Groupon notified me of any “flash sale” on any item I was actually interested in purchasing. Every day it seems like I’m bombarded with a myriad of offerings that include bikini waxes, yoga classes, and tanning beds. I have zero interest in any of those offerings.
On the merchant side, Groupon is getting the bottom of the barrel. When you “pre pay” Groupon for a 50% discount at a restaurant, Groupon keeps half the money, and sends the other half to the merchant in about 90 days. Therefore, only the most desperate of merchants are using the service in most cases.
Groupon does have the largest network, so there’s value in their ability to distribute. However, this model is doomed. Without adjustments, Groupon will go the way of many of the early entrants into explosive digital markets- does anyone remember Netscape, AOL, or MySpace? All early entrants with flawed models.
Move over Groupon- the first online site that creates a direct interface between consumers and local businesses is about to launch, and it will allow the consumer to reach out to local merchants and negotiate a discount in advance.
For example- you could pick 3 dry cleaners in your neighborhood, ask for a 25% discount between from any or all of the 3, then go wherever they will work with you. For me- this has value.
Stand by to learn more next Wednesday. I’ll have more early next week.
Oil, Gold, Copper, Silver- it’s all any commodity player can talk about. However, there’s another commodity the main stream media is ignoring. Why- I’ll tell you why- It’s because the big boys on Wall Street are accumulating their position before they let their secret out to the public through the talking heads of Wall Street media.
When Cramer goes on his Mad Money show and tells the suckers of the world it’s time to buy Uranium and Uranium stocks, he will be acting as a puppet for the big boys who already own it cheaper than you. Where do you think these “journalists” get their stories? From Hedge Fund Managers with positions must cheaper. They use the Cramers of the world to create an exit strategy.
So – what is this forgotten commodity? Glad you asked- it’s Uranium- nuclear fuel. A big run in Uranium was sabotaged in 2011 by the Japanese Tsunami- who could forget the imminent threat of a nuclear melt down in Japan? All of a sudden, the world lost its enthusiasm for building nuclear power plants. So, where is new demand coming from?
Nuclear In China – All the Rage
Coal is the only cheap commodity in China, and the Chinese are trying to reduce pollution and diversify into other forms of energy.
Mainland China currently has 14 nuclear power reactors in operation. 25 more are now under construction, and more are about to start construction soon.
Additional reactors are planned, including some of the world’s most advanced, to give a five- or six-fold increase in nuclear capacity to at least 60 GWe by 2020, then 200 GWe by 2030, and 400 GWe by 2050.
This aggressive build out by the Chinese has led to massive new demand for Uranium for the foreseeable future.
Over the last two months Uranium has quietly sneaked up from $40 to $53- heading back toward’s its high of about $110 per pound pre 2008.
Uranerz Energy (AMEX: URZ): Recent Drilling Programs Have Stock on Fire
Uranerz Energy is absolutely on fire. Coming off a severe low last October of $1.40, the stock recently ticked up to $2.85 and is looking higher nearly every day.
URZ has been drilling in Wyoming’s prolific Powder River Basin. 6 uranium exploration holes were drilled to a total of 140,000 feet, with three drill rigs in place. Last week the company reported the best drill results to date from the nose area of the Nichols Ranch deposit that were even better than had been expected. URZ had resources of over 19 million pounds of U3O8 as of October 14, 2010.
According to a recent press release as it relates to their mining operations: ” Construction is well underway and is currently on schedule. The Company’s focus is on the construction of the processing plant, the office and laboratory, the maintenance facility, and the installation of monitor and production wells required for ISR uranium mining. Six drill rigs are engaged in production well installation.”
This company is fully underway- mining and processing are in place, and the Chinese are knocking on their door.
Is it any wonder the stock is behaving so well?
A quick look at this chart shows me a stock that has traded nicely in 2012, but has a long ways to go.
URZ has been in a solid up trend since December as the price of Uranium started to surge once again.
URZ is owned by 10 large institutional holders, and 10 different mutual funds.
The stock is part of the Russell family of indexes- specifically the 3000, 2000, Global & Microcap.
URZ trades, on average, 517,000 shares per day, and as you can see the chart looks absolutely outstanding.
As demand for Uranium continues to expand, and URZ moves further down the road with harvesting Uranium from its Power River Basin operations, there’s no reason this stock couldn’t at least go back to its 2011 high of $6- before the Japanese Tsunami caused an unwarranted sell off in Uranium stocks.
I like URZ for at least $3.50 in the next week or two, and much higher levels over the coming months. This one is not just a trade- this is a good long term hold for your small cap, commodity oriented portfolio.
Uranium is the forgotten commodity. When Cramer is talking about this one again, you’ll know it’s too late. Accumulate while this one is still relatively under followed, then sell when Cramer tells everyone its safe to buy.
China Stocks and Penny Stocks - Discover Tomorrow's Winners Today
Rather than a full review of what the company does, I’ll simply reference my initial presentation if you want all the details. The
However, when I saw the 2nd quarter numbers for the December ’11 quarter, I knew it was just a matter of time before the stock found an audience and its way to a valuation that is more reflective of the company’s achievements.
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.
This chart tells the whole story. Even though it was only a 
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 
I’d ask you to look back at my presentation on Plandai Biotech (PLPL)- back on 
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.
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.
And, speaking of the 
It’s traded over 1/2 million shares today, down from over 1 million shares yesterday.
China is where they invented the stuff, and it’s been consumed as an enjoyable beverage with some perceived positive side effects for 5,000 years. In the last 20 years, scientists have started to understand the very powerful healthy side effects Green Tea extract delivers to the body- therefore, while the e
Here’s the 30,000 ft overview. A couple of pHd scientists spent the last 10 years developing new extraction technology that creates by far the best green tea extract known to man. In several studies it has proven to be far and away the most “Bioavailble” green tea extract. About 2 ounces of their extract provides the same benefit you would expect from a gallon of the other guy’s stuff.
If you invest in this stock today at about $.25 while it’s at the very low end of it’s trading range, and wait until the company gets the funding closed, the stock is likely to head back to the $.60 level- where it was when the market expected the loan to close in the short term.
The answer on how much is spent is many billions. Cancer is a wide ranging term, so numbers are only available for specific types of cancer. $1 billion is spent on research for breast cancer alone. The estimate for therapy costs- $13.9 billion for breast cancer. That’s a whole bunch of billions.
Pancreatic Cancer has been the first target for a clinical trial- mostly because it’s so difficult to treat and nearly always fatal. The harsh reality is exotic and unusual therapies are easier to get into trials when patients and doctors have little recourse.
I’m very intrigued by the potential for this therapy- here’s the hook- At $.06, the market is saying this company is worth about $20 million.
When you think about the gain, it’s extraordinary. Let’s look at stock market darling Apple (AAPL)- over the same time frame, AAPL has risen from $400 to $600, while Magic Jack (CALL) has risen from $15 to $24. AAPL is up 50%, with
There’s been a number of explanations bandied about. My own personal conclusion- I believe short sellers pounced on this stock and beat it down back on Monday, the 5th. The sudden drop caused existing shareholders to panic and just sell with little regard for price. Shorts targeted this one due to some rather inflammatory information that was published about the company.
While I was making an appearance as the guest host on the Big Biz Show (
It might be time to either buy a put, sell or call, or short this stock. Next Monday the company comes out with the 2011 year end audit numbers after the market closes.
However, AOL only allowed users to see what they wanted you to see, and there were subscription fees. This closed community failed miserably, and AOL lost its dominance and retreated into oblivion.
200 Million is the number of records IRYS has already obtained on individual consumers. The data includes names, email addresses, street address, demographics, and spending preferences.
The screen shot on the right is the home page where you can go to register. Merchants and consumers alike can set up their profiles, and the platform can join the two together.
The site went live this past weekend, and a look at the chart gives you an idea of how market investors feel about the upside potential of this new platform.
This is a good one for your market experience “hard drive”- burn it onto your mental disc drive. When a stock runs up into an earnings release, 99% of the time it will sell off immediately after the news comes out. The one exception would be Apple Computer (AAPL)-the company absolutely blew away analysts estimates and the stock went up.
Mainland China currently has 14 nuclear power reactors in operation. 25 more are now under construction, and more are about to start construction soon.
This company is fully underway- mining and processing are in place, and the Chinese are knocking on their door.