Sub-Urban Video

Sub-Urban corrected shortly after the last edition, and now appears to be headed back in right direction. I’m sticking with my Suggested Stop Loss for traders of under $.44. On Monday, it blipped down there briefly, but rebounded nicely.

It would appear the first correction for this one has run its course in a day. The stock has a very shortterm trading history, so it’s the only way you can look at it.

Here’s the chart:

Notice how the 61.8% retracement level from its initial move up proved the turning point once again. Love those 61.8′s.

For your viewing pleasure, there is a two minute video, packed with trendsetters in pop culture. This is really reflective of where the company is going from a marketing perspective.

To access the video, simply Click Here. Alternatively, copy and paste the following URL into your browser:

Until viewing this video, I did not know that Eva Longoria was a White Boy fan. Is there a bigger name in the tabloids these days? There’s a few rap stars as well as other. Check it out.

Comments and questions are welcome.

HESG - Eyelids Flutter Out of Coma

Health Sciences has taken its first step towards coming out of its current extended comatose condition. The proverbial eyelids have fluttered, and the patient could have a chance of recovering.

If you own the stock from the $1 range, I don’t believe there is much hope for a recovery to and through that level. However, opportunities come in many forms, and the stock at $.14 level offers some upside for adventurous bottom fishing penny stock lovers.

This morning, HESG announced it had hired a new skipper to take the helm of this grounded ship. According to today’s news, Stuart Gold has bravely agreed to attempt to right the ship.

He is credited with developing the “Republic of Tea” along with the cofounders of Banana Republic. The press release does not disclose the performance history of the Republic of Tea.

As I have been saying all along, the current management team of this company has fallen flat on its face. Last summer, when I first tried their flagship product and agreed to cover the story, I was given a formal projection of $10 million in sales for 2005. The number came in at virtually zero.

While SHUGR has gotten some traction in the market, supplies are limited now and most retailers are out of the packaged product. The company had a lousy $30k in cash as of their last SEC filing.

Here’s a chart of this unmitigated disaster:

The only thing positive you could say about either the company or the chart is that there might be nowhere to go but up.

However- here is my major concern. In order for this company to move forward, they need money. I’m pretty sure they can get money, but at what terms? How toxic will it be for existing shareholders? I’d like to see that information before suggesting this stock could or should be bought.

On a product update-I still believe in SHUGR as a potential blockbuster product. Their cholesterol lowering product, Sequestrol, was a bust for me. It is the most foul smelling vitamin, and had very negative effects on my stomach. I stopped taking it after a few weeks.

All I can say at this point is that the company has taken the first step. It can only get better, because bankruptcy was probably the alternative.

There must be some sort of plan to resurrect this company in place. Otherwise, they wouldn’t be bringing in new management.

If you want to take a big risk, the stock might be a buy at this level. Comments and questions are welcome.