(NEW YORK)--The following research upgrades and downgrades were issued on two different GPS related companies this morning.
In a research note to clients and investors, Zachs Investment Research downgraded LoJack Corporation (NASDAQ:LOJN) rom an “outperform” rating to a “neutral”.
LOJN has been performing extremely well since late October 2010 from where it has climbed from around $3.50 to $7.00 a share over the past few months. More information on their research opinion can be found by visiting www.zachs.com
EarthSearch Communications, a wholly owned division of East Coast Diversified Corp. (OTC:ECDC), was upgraded by Ludlow Capital, a small cap equity research firm, with a near-term target of $0.10 per share based on valuation.
In their research note the firm commented attraction based on very low valuation of ECDC, which was currently trading around $360,000 market cap. The firm has issued a $6 million valuation based on EarthSearch GPS a RFID cargo tracking and anti-theft technology.
Cargo Tracking and Asset Protection
EarthSearch produces a wide-range of commercial and cargo tracking and asset protection products.
LogiBoxx - An intelligent device with embedded GPS and RFID modules in the hardware, offering a layer of business logic and intelligence that allows it to take immediate action when anomalies occur with RFID tagged assets. LogiBoxx can communicate with both active RFID tags and passive readers simultaneously.
MobileManager(TM) - Allows operation and control centers to communicate directly with drivers in the field via voice and text messages that are displayed on the MobileManager screen. The unit offers GPS, GSM and direct satellite communications, draws power from the vehicle battery as well as containing an internal back up battery.
TrailerSeal - An innovative mechanical, battery-powered padlock that is embedded with RFID, GPS, and GPRS for remote container tracking, all in one unit; records and transmits every location / event and sends alerts of undesignated stops or trailer access by a driver or unauthorized persons.
About EarthSearch Communications
EarthSearch Communications, an ECDC Company, is a US-based business whose flagship product, LogiBoxx™, integrates GPS and RFID at the hardware level. When combined with its proprietary Global Asset Tracking and Identification System (GATIS) middleware, LogiBoxx and GATIS become the centerpieces of a LogiBoxx Certified Solution. An unprecedented business decision-making tool, a LogiBoxx Certified Solution offers continuous visibility within the Supply Chain, Logistics, and Asset Management and Control industries. Along with its integrated, patent-pending GPS and RFID technologies, EarthSearch also offers a complete line of innovative RFID solutions. Its expertise with GPS and RFID technologies, combined with exceptional support and service facilities, distinguishes EarthSearch as a leading manufacturer and supplier of real-time location solutions in the marketplace. For more information on EarthSearch, visit www.earthsearch.us
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Thursday, January 13, 2011
Tuesday, November 16, 2010
Avanir Pharmaceuticals Offering Not All Negative
(NEW YORK)--Avanir Pharmaceuticals (NASDAQ:AVNR) announced after the bell Tuesday that the company intends to offer and sell shares of its common stock in an underwritten public offering, but investors may want to consider some points before making any quick decisions.
Offering Size
First off, the Company currently has an effective registration statement from late September for up to $75 million of common, and preferred shares. Now its important to note that this is for $75 million in stock, and not 75 million shares.
Secondly, being that the registration is already effective the company could sell up to $75 million of stock at a set price to the public market, but that does not mean the company will elect to sell the whole $75 million in one shot. Some rumbles after the bell indicate that the offering may be as little as 4.1 million shares, which would provide for minimum dilution to common shareholder. Again, these are just rumors and is still just speculation until confirmed and priced by the company.
Third, the company may elect to set a price for sale at a later date, higher price, or not at all. More then likely a company would not make such a public statement unless an offering was planned, but this doesn't mean today's closing price is the price they plan to sell. The Company could elect to keep this option open and set a price when the stock is at a much high levels.
The main thing is just because a company has an effective statement for up to $75 million doesn't mean they plan on issuing the whole block in one shot and at such a low price. With $43 million of cash on hand the need for an extra $75 million in one offering seems a little unlikely.
Institutional Placement
The Company announced that Jefferies & Company would be acting as sole book-running manager for the offering, and Canaccord Genuity Inc, Wedbush PacGrow Life Sciences, Summer Street Research Partners, and Merriman Capital are acting as co-managers for the offering.
These are investment brokerage firms with established retail and institutional desks. If you take into account institutional ownership has increased in Avanir over the past couple of weeks, the demand for any such offering may be high for their institutional clients. Unlike OTC stocks, which have no means of share distribution and tend to unload right into the open market, Avanir is a NASDAQ listed issue, and will thus be underwritten by several institutions in a syndicate.
It is very well possible that a large portion (60%+) of this offering could be placed through large blocks directly into longer-term hands through their institutional placement desks. The remaining amount of the offering could then be pitched to the firms best clients through their extensive broker retail desks.
Point being that any potential offering will not be just poured into the public market at will, but rather placed in stable and diverse hands to control the offering. Thus is the reason why it's always a positive to be underwritten by an extensive syndication.
Retail Desk Support
The firms underwriting this potential offering all have strong retail trading desks, managed by several hundred, if not thousands of stockbrokers. As with anything on Wall Street, you are only as good as your last deal, and these firms will provide a floor to the stock around their clients offering price, if not higher. All of these firms have price targets on the Company well over $10 per share, and you could now expect these firms to have their retail desks provide support on the phone for the stock going forward.
Buyout Indication
What this offering does indicate is the likelihood of a near-term buyout from a larger pharmaceutical company has now been diminished. This does not mean a buyout on the company still couldn't be something that may happen down the road, but does show the company may be planning to at least get their sales operations in place before making any moves in that direction.
The point being is investors should trade the facts, and not with their hearts. Until actual data on any price or share amount is announced traders may find themselves trading right into this the syndicates hands. The other main fact to come away with is this is not an OTC stock, which tends to unload into the open market, but rather an underwriting through a syndicate of brokerage firms with strong institutional and retail placement desks.
Secondly, being that the registration is already effective the company could sell up to $75 million of stock at a set price to the public market, but that does not mean the company will elect to sell the whole $75 million in one shot. Some rumbles after the bell indicate that the offering may be as little as 4.1 million shares, which would provide for minimum dilution to common shareholder. Again, these are just rumors and is still just speculation until confirmed and priced by the company.
Third, the company may elect to set a price for sale at a later date, higher price, or not at all. More then likely a company would not make such a public statement unless an offering was planned, but this doesn't mean today's closing price is the price they plan to sell. The Company could elect to keep this option open and set a price when the stock is at a much high levels.
The main thing is just because a company has an effective statement for up to $75 million doesn't mean they plan on issuing the whole block in one shot and at such a low price. With $43 million of cash on hand the need for an extra $75 million in one offering seems a little unlikely.
Institutional Placement
The Company announced that Jefferies & Company would be acting as sole book-running manager for the offering, and Canaccord Genuity Inc, Wedbush PacGrow Life Sciences, Summer Street Research Partners, and Merriman Capital are acting as co-managers for the offering.
These are investment brokerage firms with established retail and institutional desks. If you take into account institutional ownership has increased in Avanir over the past couple of weeks, the demand for any such offering may be high for their institutional clients. Unlike OTC stocks, which have no means of share distribution and tend to unload right into the open market, Avanir is a NASDAQ listed issue, and will thus be underwritten by several institutions in a syndicate.
It is very well possible that a large portion (60%+) of this offering could be placed through large blocks directly into longer-term hands through their institutional placement desks. The remaining amount of the offering could then be pitched to the firms best clients through their extensive broker retail desks.
Point being that any potential offering will not be just poured into the public market at will, but rather placed in stable and diverse hands to control the offering. Thus is the reason why it's always a positive to be underwritten by an extensive syndication.
Retail Desk Support
The firms underwriting this potential offering all have strong retail trading desks, managed by several hundred, if not thousands of stockbrokers. As with anything on Wall Street, you are only as good as your last deal, and these firms will provide a floor to the stock around their clients offering price, if not higher. All of these firms have price targets on the Company well over $10 per share, and you could now expect these firms to have their retail desks provide support on the phone for the stock going forward.
Buyout Indication
What this offering does indicate is the likelihood of a near-term buyout from a larger pharmaceutical company has now been diminished. This does not mean a buyout on the company still couldn't be something that may happen down the road, but does show the company may be planning to at least get their sales operations in place before making any moves in that direction.
The point being is investors should trade the facts, and not with their hearts. Until actual data on any price or share amount is announced traders may find themselves trading right into this the syndicates hands. The other main fact to come away with is this is not an OTC stock, which tends to unload into the open market, but rather an underwriting through a syndicate of brokerage firms with strong institutional and retail placement desks.
Tuesday, November 02, 2010
Analysts Raise Target on AVNR to $13 per share
(NEW YORK)--In a note to clients, Wedbush raised its price target for Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR) from $9 to $13 per share.
This upgrade comes on the heels on Jefferies upgrade on the company from $10 to $15 per share on Monday.
Late Friday, the U.S. Food and Drug Administration approval makes the drug Nuedexta the first approved treatment for the little known, but not that rare, condition called pseudobulbar affect (PBA) in which patients cannot control outbursts of crying or laughter.
Large pharmaceutical companies are on the lookout for strong ready-to-market or late-stage product as many face an impending patent cliff on several blockbuster products. Some potential acquirers could be Biogen Idec, Teva Pharmaceutical, and Novartis AG that focus on central nervous system disorders could find Avanir an attractive purchase
About Avanir Pharmaceuticals, Inc.
AVANIR Pharmaceuticals, Inc. focuses on acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States and Canada. Its lead product candidate includes Zenviatm, which has completed three Phase III clinical trials for the treatment of pseudobulbar affect; and a Phase III trial for the treatment of patients with diabetic peripheral neuropathic pain. The company also offers Abreva, an over-the-counter product for the treatment of cold sores. AVANIR Pharmaceuticals, Inc. was founded in 1988 and is headquartered in Aliso Viejo, California.
About Wall Street Newscast
Based in New York City's Financial District, Wall Street Newscast manages an extensive database of active traders who follow the small the small to micro cap markets. To receive updates on this and other companies making moves please register to our free newsletter by going to http://www.wallstreetnewscast.com/form/newsletter.html
This upgrade comes on the heels on Jefferies upgrade on the company from $10 to $15 per share on Monday.
Late Friday, the U.S. Food and Drug Administration approval makes the drug Nuedexta the first approved treatment for the little known, but not that rare, condition called pseudobulbar affect (PBA) in which patients cannot control outbursts of crying or laughter.
Large pharmaceutical companies are on the lookout for strong ready-to-market or late-stage product as many face an impending patent cliff on several blockbuster products. Some potential acquirers could be Biogen Idec, Teva Pharmaceutical, and Novartis AG that focus on central nervous system disorders could find Avanir an attractive purchase
About Avanir Pharmaceuticals, Inc.
AVANIR Pharmaceuticals, Inc. focuses on acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States and Canada. Its lead product candidate includes Zenviatm, which has completed three Phase III clinical trials for the treatment of pseudobulbar affect; and a Phase III trial for the treatment of patients with diabetic peripheral neuropathic pain. The company also offers Abreva, an over-the-counter product for the treatment of cold sores. AVANIR Pharmaceuticals, Inc. was founded in 1988 and is headquartered in Aliso Viejo, California.
About Wall Street Newscast
Based in New York City's Financial District, Wall Street Newscast manages an extensive database of active traders who follow the small the small to micro cap markets. To receive updates on this and other companies making moves please register to our free newsletter by going to http://www.wallstreetnewscast.com/form/newsletter.html
Tuesday, October 26, 2010
Stocks that Could Be Effected by the Upcoming Midterm Elections
(NEW YORK)--As the US midterm election approaches in early November, there are several stocks and sectors that could be effected by the pending results.
First on the radar is online gaming. PokerTek, Inc. (NASDAQ: PTEK), a developer of electronic poker-related products for use in the gaming and amusement markets, could benefit from a possible move to push the current House bill HR2267 through a 'lame duck' session after the election in early November. It is more then likely that the US House of Representatives will fall into control of the Republicans, but Democrats may attempt to push through the stalled bill into the more gaming friendly Senate for consideration in early 2011.
As states and local officials scramble to find new sources of tax revenue, the prospects for a relaxation on regulations for online gaming may find some hope in the more libertarian Tea Party agenda. In addition, a victory for Sen. Harry Reid (D - NV) could bode well for the gaming industry as a whole as the state looks to develop jobs in their all important gaming industry.
PTEK currently has only around 15 million shares outstanding, with a tight float of around 7 million. The Company recently announced that for the third quarter revenues had increased, gross margins continued to expand and their operating cash flow was in the black for the first time in Company history.
The Company is expected to release third quarter financial results before the bell on Nov. 2, 2010.
California Proposition 19
Another sector that may be effected by the upcoming election is the popular Marijuana stock sector, including Cannabis Science, Inc. (OTC: CBIS), a US biotech company developing pharmaceutical cannabis products.
As polls show Democratic Governor candidate Jerry Brown and Sen. Barbara Boxer (D - CA) now pulling ahead in the polls, the prospects of an increased democrat turn-out could push California's Prop 19 in the yes column. Prop 19 would make it legal, in the state, for the possession and cultivation of small amounts of marijuana for personal use. Through new legalization and regulation the state would also benefit from the increased tax revenue generated from this new industry.
This could have a sharp effect for marijuana stocks, such as Cannabis Scientific, and the prospects for increased legislation in other states across the country. Polls currently show Prop 19 leading in the yes column, but it could still be too close to call at this time. But again, with the new poll data showing a lean towards the democratic side of the ballot, the prospects for Prop 19 passing have surely increased.
CBIS recently announced plans to develop a FDA Investigative New Drug Applications (NDA) for its cannabis clinical trials.
Other stocks in the marijuana sector are Marijuana, Inc. (OTC: PCIO), International Merchant Advisors, Inc. (OTC: IMAI), and Converted Organics (NASDAQ: COIN).
For now, traders have their radars focused on the upcoming midterm elections, and how certain stocks may or may not benefit from the results next Tuesday.
--------------
Contact:
Wall Street Newscast
Email: info@wallstreetnewscast.com
First on the radar is online gaming. PokerTek, Inc. (NASDAQ: PTEK), a developer of electronic poker-related products for use in the gaming and amusement markets, could benefit from a possible move to push the current House bill HR2267 through a 'lame duck' session after the election in early November. It is more then likely that the US House of Representatives will fall into control of the Republicans, but Democrats may attempt to push through the stalled bill into the more gaming friendly Senate for consideration in early 2011.
As states and local officials scramble to find new sources of tax revenue, the prospects for a relaxation on regulations for online gaming may find some hope in the more libertarian Tea Party agenda. In addition, a victory for Sen. Harry Reid (D - NV) could bode well for the gaming industry as a whole as the state looks to develop jobs in their all important gaming industry.
PTEK currently has only around 15 million shares outstanding, with a tight float of around 7 million. The Company recently announced that for the third quarter revenues had increased, gross margins continued to expand and their operating cash flow was in the black for the first time in Company history.
The Company is expected to release third quarter financial results before the bell on Nov. 2, 2010.
California Proposition 19
Another sector that may be effected by the upcoming election is the popular Marijuana stock sector, including Cannabis Science, Inc. (OTC: CBIS), a US biotech company developing pharmaceutical cannabis products.
As polls show Democratic Governor candidate Jerry Brown and Sen. Barbara Boxer (D - CA) now pulling ahead in the polls, the prospects of an increased democrat turn-out could push California's Prop 19 in the yes column. Prop 19 would make it legal, in the state, for the possession and cultivation of small amounts of marijuana for personal use. Through new legalization and regulation the state would also benefit from the increased tax revenue generated from this new industry.
This could have a sharp effect for marijuana stocks, such as Cannabis Scientific, and the prospects for increased legislation in other states across the country. Polls currently show Prop 19 leading in the yes column, but it could still be too close to call at this time. But again, with the new poll data showing a lean towards the democratic side of the ballot, the prospects for Prop 19 passing have surely increased.
CBIS recently announced plans to develop a FDA Investigative New Drug Applications (NDA) for its cannabis clinical trials.
Other stocks in the marijuana sector are Marijuana, Inc. (OTC: PCIO), International Merchant Advisors, Inc. (OTC: IMAI), and Converted Organics (NASDAQ: COIN).
For now, traders have their radars focused on the upcoming midterm elections, and how certain stocks may or may not benefit from the results next Tuesday.
--------------
Contact:
Wall Street Newscast
Email: info@wallstreetnewscast.com
Sunday, October 24, 2010
Potential US China Trade War Could Support Rare Earth Prices
(NEW YORK)--A negative ruling late Friday in the WTO against Chinese steel pipe imports, and unanimous approval in the ITC for tariffs on Chinese coated paper, could be the begin of a potential tit-for-tat trade skirmish between two of the worlds largest economic superpowers.
On Friday, Oct. 22, the WTO ruled in favor of the US to impose duties on Chinese imports of steel pipes that are being dumped or subsidized into the US market. The specific duties that China had challenged involved circular welded pipe, light-walled rectangular pipe and tube, off-road tires and laminated woven sacks.
In addition to the action taking by the WTO, the U.S. International Trade Commission (ITC) also approved late Friday in a 6-0 vote to impose punitive duties on China exports of specialty paper to the United States. China has called the duties protectionist, while US lawmakers and makers of steel, paper and textiles say they are crucial to countering what they call unfair trade practices. The panel’s decision sets the stage for the tariff rates to take effect within days.
These actions come on the heels of a US probe of China subsidies for their clean energy market, which in turn drew a sharp rebuke from the Chinese government. China’s top energy official, Zhang Guobao, said the probe was misguided and based on a desire by politicians to garner votes. “I was very much astonished at it, wondering what the United States wants,” he said last Sunday, according to state-run media.
In retaliation, reports emerged this week that China has been delaying or blocking shipments of rare earth elements to Western nations in the US, Japan, and EU. Rare earth elements are used in the production for a wide-range of tech products, such as hybrid cars, mobile phones, flat-screen televisions, fiber-optic cables, and latest-generation wind turbines.
"Rare earths are a commodity. Each country has the right to decide how much it exports or imports. This is normal economic behavior," the People's Daily said.
Tom Bustamante, the Managing Director of Ludlow Capital commented, "Although a full trade war is very unlikely between both countries, the recent developments over the past week have now increased the possibility of China striking back with their own trade tariffs and restrictions on US, and Western goods. This is turn now increases the potential that the rumored delays and halts of 'rare earth. materials are surely going to be put in place after these events."
"China is flexing their new found economic muscle, and the pressure for them to appreciate their currency will also box China into a corner where they may push back. The ruling from the WTO late Friday may also encourage some other US industries to go forward with their own petitions as this recent WTO ruling clarifies the law and reduces the potential cost of litigation. It's a bit worrisome, as protectionism was one of the main causes for the prolonged effect of the Great Depression, but we're also seeing a growth of what you could call economic nationalization, not just of industries, but resources as well. This in turn could provide additional price support for rare earth commodities. Hopefully cooler heads will prevail, because a trade war now would be in no ones best interest."
Price for Chinese rare earth producers have run-up strongly recently due to these developments, but in an opinion letter to their members the company saw an better entry point into this sector after a nearly 30% pullback from recent highs, and the potential for retaliatory actions from China to provide support for these commodities.
Chinese Rare Earth Plays
Some of the biggest performers within the sector are China Shen Zhou Mining & Resources, Inc. (SHZ), China Direct Industries (CDII), Qiao Xing Universal Resources, Inc (XING), and China Gengsheng Minerals (CHGS). These stocks have been performing spectacularly over the past few trading sessions, but now they may be getting ahead of themselves on a valuation bases.
http://www.wallstreetnewscast.com/news/2010/october/chinaearth.html
On Friday, Oct. 22, the WTO ruled in favor of the US to impose duties on Chinese imports of steel pipes that are being dumped or subsidized into the US market. The specific duties that China had challenged involved circular welded pipe, light-walled rectangular pipe and tube, off-road tires and laminated woven sacks.
In addition to the action taking by the WTO, the U.S. International Trade Commission (ITC) also approved late Friday in a 6-0 vote to impose punitive duties on China exports of specialty paper to the United States. China has called the duties protectionist, while US lawmakers and makers of steel, paper and textiles say they are crucial to countering what they call unfair trade practices. The panel’s decision sets the stage for the tariff rates to take effect within days.
These actions come on the heels of a US probe of China subsidies for their clean energy market, which in turn drew a sharp rebuke from the Chinese government. China’s top energy official, Zhang Guobao, said the probe was misguided and based on a desire by politicians to garner votes. “I was very much astonished at it, wondering what the United States wants,” he said last Sunday, according to state-run media.
In retaliation, reports emerged this week that China has been delaying or blocking shipments of rare earth elements to Western nations in the US, Japan, and EU. Rare earth elements are used in the production for a wide-range of tech products, such as hybrid cars, mobile phones, flat-screen televisions, fiber-optic cables, and latest-generation wind turbines.
"Rare earths are a commodity. Each country has the right to decide how much it exports or imports. This is normal economic behavior," the People's Daily said.
Tom Bustamante, the Managing Director of Ludlow Capital commented, "Although a full trade war is very unlikely between both countries, the recent developments over the past week have now increased the possibility of China striking back with their own trade tariffs and restrictions on US, and Western goods. This is turn now increases the potential that the rumored delays and halts of 'rare earth. materials are surely going to be put in place after these events."
"China is flexing their new found economic muscle, and the pressure for them to appreciate their currency will also box China into a corner where they may push back. The ruling from the WTO late Friday may also encourage some other US industries to go forward with their own petitions as this recent WTO ruling clarifies the law and reduces the potential cost of litigation. It's a bit worrisome, as protectionism was one of the main causes for the prolonged effect of the Great Depression, but we're also seeing a growth of what you could call economic nationalization, not just of industries, but resources as well. This in turn could provide additional price support for rare earth commodities. Hopefully cooler heads will prevail, because a trade war now would be in no ones best interest."
Price for Chinese rare earth producers have run-up strongly recently due to these developments, but in an opinion letter to their members the company saw an better entry point into this sector after a nearly 30% pullback from recent highs, and the potential for retaliatory actions from China to provide support for these commodities.
Chinese Rare Earth Plays
Some of the biggest performers within the sector are China Shen Zhou Mining & Resources, Inc. (SHZ), China Direct Industries (CDII), Qiao Xing Universal Resources, Inc (XING), and China Gengsheng Minerals (CHGS). These stocks have been performing spectacularly over the past few trading sessions, but now they may be getting ahead of themselves on a valuation bases.
http://www.wallstreetnewscast.com/news/2010/october/chinaearth.html
Wednesday, October 20, 2010
China Rare Earth Element Stocks Trading at Rich Valuation Levels
(NEW YORK)--Rare Earth element Chinese stocks have been showing strong performance since China announced it was holding off shipments of these industrial minerals over the past weekend, but have they moved too far too fast.
Some of the biggest performers within the sector are China Shen Zhou Mining & Resources, Inc. (SHZ), China Direct Industries (CDII), and Qiao Xing Universal Resources, Inc (XING). These stocks have been performing spectacularly over the past few trading sessions, but now they may be getting ahead of themselves on a valuation bases.
For example, SHZ has a market capitalization of around $115 million, and is currently trading around 2.86 times book value. A pretty rich market cap for a company with only around $6 million in revenue, and total cash per share of just $0.02.
But, on the other hand, you are dealing with a potential embargo from China, one of the world's largest producers of rare earth elements. This story could unfold well into the 2011 as the Obama Administration continues to put pressure on the Chinese government for more fair trading practices.
This could be a play well into the end of the 2010 trading session, but for new investors looking to partake in this story it may be prudent to hold off at these levels. Most of these stocks are currently trading well above fundamentals, and technical analysis on the charts are indicating a potential sharp pullback in the sector within the next few trading sessions.
After any pullback, the rare earth element stocks and China's effect on this market, could be just the start of a monster trade as a potential trade-battle between the West and China starts to unwind. That, in itself, would send these issues to unimaginable valuation levels in the coming months.
http://www.wallstreetnewscast.com/news/2010/october/chinaearth.html
Some of the biggest performers within the sector are China Shen Zhou Mining & Resources, Inc. (SHZ), China Direct Industries (CDII), and Qiao Xing Universal Resources, Inc (XING). These stocks have been performing spectacularly over the past few trading sessions, but now they may be getting ahead of themselves on a valuation bases.
For example, SHZ has a market capitalization of around $115 million, and is currently trading around 2.86 times book value. A pretty rich market cap for a company with only around $6 million in revenue, and total cash per share of just $0.02.
But, on the other hand, you are dealing with a potential embargo from China, one of the world's largest producers of rare earth elements. This story could unfold well into the 2011 as the Obama Administration continues to put pressure on the Chinese government for more fair trading practices.
This could be a play well into the end of the 2010 trading session, but for new investors looking to partake in this story it may be prudent to hold off at these levels. Most of these stocks are currently trading well above fundamentals, and technical analysis on the charts are indicating a potential sharp pullback in the sector within the next few trading sessions.
After any pullback, the rare earth element stocks and China's effect on this market, could be just the start of a monster trade as a potential trade-battle between the West and China starts to unwind. That, in itself, would send these issues to unimaginable valuation levels in the coming months.
http://www.wallstreetnewscast.com/news/2010/october/chinaearth.html
Tuesday, October 19, 2010
Ludlow Capital Issues Alert on Coverted Organics (COIN)
(NEW YORK)--Oct. 19, 2010--Ludlow Capital, and equity research firm based in new York's Financial District, issued a traders alert for Converted Organics, Inc. (NASD:COIN), with a near-term target of $1.00+.
Coverted Organics announced today that it has eliminated $43.6 million of outstanding debt, liabilities, and future obligations through a restructing with Oppenheimer Rochester National Municipals and Oppenheimer New Jersey Municipal Fund. This move now makes COIN debt free and should add $9 million in cash for the company in 2011, and $600,000 immediately to their balance sheet.
This restructing now clears the way for the closing of the acquisition of TerraSphere Systems, LLC, a vertical crop grow system, and further development of other industrial wastewater business and growth of their profitable organic fertilizer business in California.
Now debt free, the company can focus on developing their TerraSphere acquisition, and benefit from their profitable organic fertilizer operations in California. Based on recent activity in companies who may benefit from the upcoming Prop 19, which would make growing marijuana for personal home grown use legal, and the elimination of all their debt, we anticipate the common shares could make a run for and above the $1.00 mark in the near-term. Until more details of further acquisitions, and upcoming earnings and guidance, we are withholding any specific price target at this time. But, based on these facts, COIN could now be looked at in a brand new light.
COINW are warrants that trade against the common shares. They expire on Oct. 14, 2014, are non-callable, and have a strike price of $1.30 per share. These warrants are currently trading at around $0.11 per share, with volume of around 130,000.
Coverted Organics announced today that it has eliminated $43.6 million of outstanding debt, liabilities, and future obligations through a restructing with Oppenheimer Rochester National Municipals and Oppenheimer New Jersey Municipal Fund. This move now makes COIN debt free and should add $9 million in cash for the company in 2011, and $600,000 immediately to their balance sheet.
This restructing now clears the way for the closing of the acquisition of TerraSphere Systems, LLC, a vertical crop grow system, and further development of other industrial wastewater business and growth of their profitable organic fertilizer business in California.
Now debt free, the company can focus on developing their TerraSphere acquisition, and benefit from their profitable organic fertilizer operations in California. Based on recent activity in companies who may benefit from the upcoming Prop 19, which would make growing marijuana for personal home grown use legal, and the elimination of all their debt, we anticipate the common shares could make a run for and above the $1.00 mark in the near-term. Until more details of further acquisitions, and upcoming earnings and guidance, we are withholding any specific price target at this time. But, based on these facts, COIN could now be looked at in a brand new light.
COINW are warrants that trade against the common shares. They expire on Oct. 14, 2014, are non-callable, and have a strike price of $1.30 per share. These warrants are currently trading at around $0.11 per share, with volume of around 130,000.
Monday, October 18, 2010
COIN a NASDAQ Listed Marijuana Play
(NEW YORK)--Oct. 18, 2010--In case you haven't noticed, Marijuana stocks have been showing increased interest as California's Prop 19 heads to the polls for the upcoming election.
Coverted organics (NASD:COIN), (www.convertedorganics.com) is dedicated to producing high-quality, all-natural, organic soil amendment and fertilizer products through food waste recycling. The Company uses its proprietary High Temperature Liquid Composting (HTLC) system, a proven, state-of-the-art microbial digestion technology, to process various biodegradable food wastes into dry pellet and liquid concentrate organic fertilizers that help grow healthier food and improve environmental quality. Converted Organics sells and distributes its environmentally-friendly fertilizer products in the retail, professional turf management, and agribusiness markets.
In addition to selling organic fertilizer for home-grown use, the company also acquired TerraSphere Systems (www.terraspheresystems.com), which provides hydroponic and grow room solutions for mass produce growers.
The stock is a small-cap NASDAQ pennystock, but if you are looking for a Marijuana play for the upcoming election, but wish something trading on a larger exchange, you may want to give COIN a look as a possible play.
Included to the common shares, which trade under the symbol COIN, the company also has a publicly trade warrant against the company, which trades under the symbol COINW. The warrant grants the buyer the right to puchase COIN common shares at a price of around $1.30, are non-callable, and don't expire for several years.
If you are looking for something with a bit more risk/reward, then you may want to give a look at some Marijuana micro-cap stocks such as Cannabis Science, Inc. (CBIS), MARIJUANA, INC. (PCIO), Medical Marijuana, Inc. (MJNA), Cannabis Medical Solutions, Inc. (CMSI), and International Merchant Advisors, Inc. (IMAI)
Coverted organics (NASD:COIN), (www.convertedorganics.com) is dedicated to producing high-quality, all-natural, organic soil amendment and fertilizer products through food waste recycling. The Company uses its proprietary High Temperature Liquid Composting (HTLC) system, a proven, state-of-the-art microbial digestion technology, to process various biodegradable food wastes into dry pellet and liquid concentrate organic fertilizers that help grow healthier food and improve environmental quality. Converted Organics sells and distributes its environmentally-friendly fertilizer products in the retail, professional turf management, and agribusiness markets.
In addition to selling organic fertilizer for home-grown use, the company also acquired TerraSphere Systems (www.terraspheresystems.com), which provides hydroponic and grow room solutions for mass produce growers.
The stock is a small-cap NASDAQ pennystock, but if you are looking for a Marijuana play for the upcoming election, but wish something trading on a larger exchange, you may want to give COIN a look as a possible play.
Included to the common shares, which trade under the symbol COIN, the company also has a publicly trade warrant against the company, which trades under the symbol COINW. The warrant grants the buyer the right to puchase COIN common shares at a price of around $1.30, are non-callable, and don't expire for several years.
If you are looking for something with a bit more risk/reward, then you may want to give a look at some Marijuana micro-cap stocks such as Cannabis Science, Inc. (CBIS), MARIJUANA, INC. (PCIO), Medical Marijuana, Inc. (MJNA), Cannabis Medical Solutions, Inc. (CMSI), and International Merchant Advisors, Inc. (IMAI)
Friday, October 08, 2010
Ludlow Capital Issues USA Technologies (USAT) $2.00 to $2.50 Target
(NEW YORK)--Ludlow Capital, and New York based equity research firm, issued an upgrade to USA Technologies (NASD: USAT), a developer of cashless payment vending machine technology, with a near-term target of $2.00 to $2.50 per share.
The growth in customers, and cashless transactions may now be positioning USAT on what the company itself calls a 'tipping point' in regards to the growth and use of their ePort Connect Service. For the quarter ending September 30, 2010, the Company reported that it had processed a record 14 million in transactions for a total of $24.5 million for their customers, which represents an increase in transactions of 89% over the same period 2009.
In addition, the Company reported 1,200 customers now connected to its ePort Connect Service, up from 1050 on June 30, 2010, or around a 12% to 15% increase from just a few months ago.
As more and more people become comfortable with using cashless means to pay for such products as vending machines products, the company should see continued sharp growth going into the 2011. The use of credit and debt cards for payments from younger demographics is only growing, such as in college dorms or military barricks. The ability to purchase snacks and other products through cashless means has very strong growth potential, which should allow USAT to gain more of that market share well into 2012.
The company projects being EBITA positive by end of quarter Dec 31, 2010, which will mark a major milestone for the USA Technologies. The Company has very little long-term debt ($730k), with around $7 million in cash in the bank as of the end of the June 2010 quarter.
The Company is expected to release their earnings for the quarter ending Sept 30, 2010 on or before Nov. 12th, which in our opinion could see the stock already trading in the $2.00 to $2.50 price range.
In addition to the common shares, which trade under the symbol USAT on the NASDAQ, the company also has preferred shares which trade under the symbol USATP, and warrants with a strike price of $1.13 which trade under the symbol USATZ.
Ludlow Capital began coverage on USAT on October 7, 2010 at a price of $1.10 per share.
http://www.wallstreetnewscast.com/news/2010/october/usat.html
The growth in customers, and cashless transactions may now be positioning USAT on what the company itself calls a 'tipping point' in regards to the growth and use of their ePort Connect Service. For the quarter ending September 30, 2010, the Company reported that it had processed a record 14 million in transactions for a total of $24.5 million for their customers, which represents an increase in transactions of 89% over the same period 2009.
In addition, the Company reported 1,200 customers now connected to its ePort Connect Service, up from 1050 on June 30, 2010, or around a 12% to 15% increase from just a few months ago.
As more and more people become comfortable with using cashless means to pay for such products as vending machines products, the company should see continued sharp growth going into the 2011. The use of credit and debt cards for payments from younger demographics is only growing, such as in college dorms or military barricks. The ability to purchase snacks and other products through cashless means has very strong growth potential, which should allow USAT to gain more of that market share well into 2012.
The company projects being EBITA positive by end of quarter Dec 31, 2010, which will mark a major milestone for the USA Technologies. The Company has very little long-term debt ($730k), with around $7 million in cash in the bank as of the end of the June 2010 quarter.
The Company is expected to release their earnings for the quarter ending Sept 30, 2010 on or before Nov. 12th, which in our opinion could see the stock already trading in the $2.00 to $2.50 price range.
In addition to the common shares, which trade under the symbol USAT on the NASDAQ, the company also has preferred shares which trade under the symbol USATP, and warrants with a strike price of $1.13 which trade under the symbol USATZ.
Ludlow Capital began coverage on USAT on October 7, 2010 at a price of $1.10 per share.
http://www.wallstreetnewscast.com/news/2010/october/usat.html
Tuesday, October 05, 2010
Ludlow Capital Upgrades TerreStar (TSTR) to $1.00+ Per Share
(NEW YORK)--Oct. 5, 2010-Ludlow Capital, a New York based equity research firm, upgraded TerreStar Corporation (NASD:TSTR) to a new range of $1.00 to $1.50 per share.
In their note, they referred to the upcoming partnership between Microsoft and AT&T and their planned launch of the Windows Phone 7 OS. This move could be Microsofts real push to enter the smartphone market, and with AT&T and T-Mobile as their partners, TerreStar could see benefits from their satellite feature on new upcoming Windows based phones with AT&T.
Both Microsoft and AT&T are expected to make this major announcement next Monday, Oct. 11th in New York City. During that time, the executive team of TerreStar is also expected to be in the city for upcoming investor conference.
In addition, there could be an announcement before the holiday season regarding a consumer based product using the TerreStar system.
With these unfolding events, and increased prospects financially for the company, Ludlow foresees a new trading scope for the stock above its 200 day moving average in the $1.00 to $1.50 price range.
In their note, they referred to the upcoming partnership between Microsoft and AT&T and their planned launch of the Windows Phone 7 OS. This move could be Microsofts real push to enter the smartphone market, and with AT&T and T-Mobile as their partners, TerreStar could see benefits from their satellite feature on new upcoming Windows based phones with AT&T.
Both Microsoft and AT&T are expected to make this major announcement next Monday, Oct. 11th in New York City. During that time, the executive team of TerreStar is also expected to be in the city for upcoming investor conference.
In addition, there could be an announcement before the holiday season regarding a consumer based product using the TerreStar system.
With these unfolding events, and increased prospects financially for the company, Ludlow foresees a new trading scope for the stock above its 200 day moving average in the $1.00 to $1.50 price range.
Monday, September 13, 2010
CEHC (.018) Updates Plans on MMA iPhone Apps
PHOENIX, AZ, Sep 13, 2010 (MARKETWIRE via COMTEX) -- Cephas Holding Corp (PINKSHEETS: CEHC) today outlined its plans for its iPhone and iPad apps related to the growing sport of mixed martial arts.
The company has several MMA apps on the iTunes store or in development with expected launches before the end of the year. Initially, the company expects to have on sale its Mobile Fedor app with Fedor Emelianenko for both the iPhone and iPad shortly.
The newest version of the popular MMA Underboss app is also being completed. The company launched a new site: www.twitter.com/mmaunderboss.
Development has begun on UFC superstar and MMA legend, Wanderlei "The Axe Murderer" Silva's series of signature apps.
"Training with The Beast" featuring UFC Hall of Famer Dan Severn has completed principal development. This product is the first app dedicated to preparing to compete in mixed martial arts that is designed by a former UFC champion.
Cephas believes that training and instructional apps related to MMA will be extremely popular. Plans to incorporate features that allow new fighters to get feedback and encouragement from current athletes, utilizing GPS and accelerometry technologies to track progress of workouts, and saving workouts to an athlete or coaches laptop.
MMA has become one of the fastest growing sports in the world. Mixed martial arts fans are younger and more affluent than the general population, according to a leading consumer researcher.
Cephas is also exploring licensing and development deals with other UFC athletes and MMA personalities and brands.
FORWARD LOOKING STATEMENTS The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, adding specific features to its apps, marketing, market acceptance, developing any new products competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Cephas Holding
Info@cephas3g.com
Other Small Cap iPhone Developers
CDIV - Cascadia Investments, Inc.
STHG - Stratton Holdings Inc
SDVI - Signature Devices, Inc.
The company has several MMA apps on the iTunes store or in development with expected launches before the end of the year. Initially, the company expects to have on sale its Mobile Fedor app with Fedor Emelianenko for both the iPhone and iPad shortly.
The newest version of the popular MMA Underboss app is also being completed. The company launched a new site: www.twitter.com/mmaunderboss.
Development has begun on UFC superstar and MMA legend, Wanderlei "The Axe Murderer" Silva's series of signature apps.
"Training with The Beast" featuring UFC Hall of Famer Dan Severn has completed principal development. This product is the first app dedicated to preparing to compete in mixed martial arts that is designed by a former UFC champion.
Cephas believes that training and instructional apps related to MMA will be extremely popular. Plans to incorporate features that allow new fighters to get feedback and encouragement from current athletes, utilizing GPS and accelerometry technologies to track progress of workouts, and saving workouts to an athlete or coaches laptop.
MMA has become one of the fastest growing sports in the world. Mixed martial arts fans are younger and more affluent than the general population, according to a leading consumer researcher.
Cephas is also exploring licensing and development deals with other UFC athletes and MMA personalities and brands.
FORWARD LOOKING STATEMENTS The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, adding specific features to its apps, marketing, market acceptance, developing any new products competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Cephas Holding
Info@cephas3g.com
Other Small Cap iPhone Developers
CDIV - Cascadia Investments, Inc.
STHG - Stratton Holdings Inc
SDVI - Signature Devices, Inc.
Thursday, September 09, 2010
Watch List: SMNG, IFXY, AAVG, CEHC, FNRC
Ludlow Research issues update to watch list:
Strategic Mining Corp. (SMNG) - up 9.52% to $0.092 on breakout trigger for small-cap gold play. Target of $0.12 to $0.14 short-term.
Infrax Systems Inc. (IFXY) - up 206% to $0.0092 on news, and breakout out in technicals.
AvStar Aviation (AAVG) - up 2.86% to $0.0144 per share. Maintains target of $0.08 to $0.10 on small aviation airline.
Cephas Holdings (CEHC) - last trade $0.0189 on news watch for Fedor MMA mobile app release in September. Target of $0.04 to $0.05 near-term.
1st NRG Corp. (FNRC) - very undervalued at $0.30 per share. 4.4 million shares outstanding, with only 2.8 million in public float. 5.8 Bcf in proven natural gas reserves value at $19 million. Price target of $2.00 per share.
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Safe Harbor Statements:
This investor presentation may include statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Disclaimer:
This is NOT a solicitation to Buy or Sell any security, but rather is for informational purposes only. Content contained herein includes facts, views, opinions and recommendations of individuals and organizations deemed of interest. Ludlow Capital ("Ludlow") does not guarantee the accuracy, completeness or timeliness of, or otherwise endorse these views, opinions or recommendations, or give investment advice. Ludlow, its affiliates, or directors, may or may not hold a position in the above security from time to time, and investors are encourage to consider this as a possible conflict of interest when reviewing this information. In Compliance with SEC Rule 17B Ludlow may hold positions in above mentioend companies, and may have alos been compensated companies, or third party members for featured profiling and distribution of company information and content, thus should be considered a conflict of interest when reviewing this report.
Strategic Mining Corp. (SMNG) - up 9.52% to $0.092 on breakout trigger for small-cap gold play. Target of $0.12 to $0.14 short-term.
Infrax Systems Inc. (IFXY) - up 206% to $0.0092 on news, and breakout out in technicals.
AvStar Aviation (AAVG) - up 2.86% to $0.0144 per share. Maintains target of $0.08 to $0.10 on small aviation airline.
Cephas Holdings (CEHC) - last trade $0.0189 on news watch for Fedor MMA mobile app release in September. Target of $0.04 to $0.05 near-term.
1st NRG Corp. (FNRC) - very undervalued at $0.30 per share. 4.4 million shares outstanding, with only 2.8 million in public float. 5.8 Bcf in proven natural gas reserves value at $19 million. Price target of $2.00 per share.
************************
Safe Harbor Statements:
This investor presentation may include statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Disclaimer:
This is NOT a solicitation to Buy or Sell any security, but rather is for informational purposes only. Content contained herein includes facts, views, opinions and recommendations of individuals and organizations deemed of interest. Ludlow Capital ("Ludlow") does not guarantee the accuracy, completeness or timeliness of, or otherwise endorse these views, opinions or recommendations, or give investment advice. Ludlow, its affiliates, or directors, may or may not hold a position in the above security from time to time, and investors are encourage to consider this as a possible conflict of interest when reviewing this information. In Compliance with SEC Rule 17B Ludlow may hold positions in above mentioend companies, and may have alos been compensated companies, or third party members for featured profiling and distribution of company information and content, thus should be considered a conflict of interest when reviewing this report.
Monday, August 30, 2010
Small-cap Basic Resource Plays - KATX, SMNG, AAPH, FNRC
(NEW YORK)-- Ludlow Capital issues a profile on several small-cap basic resource plays in the areas of gold and oil and natural gas exploration.
Gold Exploration
Kat Exploration, Inc. (OTC:KATX), a mineral exploration company developing gold mining rich regions of Newfoundland, announced positive results for their drilling program at their Handcamp Project, which showed very encouraging gold mineralization at shallow depths. In addition, the Company continues on track to complete all regulatory filings for their share dividend distribution of Bella Viaggio, Inc. (OTC:BVIG) to KTAX shareholders of record.
Strategic Mining Corp. (OTC:SMNG), is a gold mining exploration company focused on development of gold mining projects, announced they had completed their geological report for its East Canyon gold property located in both Nevada and Utah. In addition, the Company announced today that the land survey for its Nat Son property has been approved by the Vietnamese Provincial Government, and has completed construction of new industrial roads that allow year round access to the property.
Ludlow Capital has issued research coverage on SMNG, and based on current shares outstanding of around 95 million shares, and progress towards gold production, we have issues a 'speculative' near-term valuation target of $0.12 to $0.14 per share.
Oil and Natural Gas
American Petro-Hunter, Inc. (OTC:AAPH), an oil and natural gas exploration company, announce the Company is finalizing plans to drill a horizontal oil well on the North Oklahoma Project leases located in Payne County, Oklahoma. The Company also announced that July oil production from the #1 and #3 Lutters wells at the Postons Project located in Trego County, Kansas totaled 1,280 barrels.
1st NRG Corp (OTC:FNRC), an oil and natural gas exploration company based in Colorado, announced letter of intent for new development project with estimates of reserve potential to be over 2 billion cubic feet of natural gas proven reserves. Along with their Cedar Creek project, the Company proven reserves now top around 5.8 Bcf for these two projects. With only around 4.5 million shares outstanding, and current market capitalization of around $1 million, the stock could have substantial upside potential.
Ludlow Capital has issued research coverage on FNRC, and based on current shares outstanding of 4.5 million shares, and proven reserves valued near $15 million, we have issues a 'speculative' valuation target of $2.50 to $3.00 per share.
Gold Exploration
Kat Exploration, Inc. (OTC:KATX), a mineral exploration company developing gold mining rich regions of Newfoundland, announced positive results for their drilling program at their Handcamp Project, which showed very encouraging gold mineralization at shallow depths. In addition, the Company continues on track to complete all regulatory filings for their share dividend distribution of Bella Viaggio, Inc. (OTC:BVIG) to KTAX shareholders of record.
Strategic Mining Corp. (OTC:SMNG), is a gold mining exploration company focused on development of gold mining projects, announced they had completed their geological report for its East Canyon gold property located in both Nevada and Utah. In addition, the Company announced today that the land survey for its Nat Son property has been approved by the Vietnamese Provincial Government, and has completed construction of new industrial roads that allow year round access to the property.
Ludlow Capital has issued research coverage on SMNG, and based on current shares outstanding of around 95 million shares, and progress towards gold production, we have issues a 'speculative' near-term valuation target of $0.12 to $0.14 per share.
Oil and Natural Gas
American Petro-Hunter, Inc. (OTC:AAPH), an oil and natural gas exploration company, announce the Company is finalizing plans to drill a horizontal oil well on the North Oklahoma Project leases located in Payne County, Oklahoma. The Company also announced that July oil production from the #1 and #3 Lutters wells at the Postons Project located in Trego County, Kansas totaled 1,280 barrels.
1st NRG Corp (OTC:FNRC), an oil and natural gas exploration company based in Colorado, announced letter of intent for new development project with estimates of reserve potential to be over 2 billion cubic feet of natural gas proven reserves. Along with their Cedar Creek project, the Company proven reserves now top around 5.8 Bcf for these two projects. With only around 4.5 million shares outstanding, and current market capitalization of around $1 million, the stock could have substantial upside potential.
Ludlow Capital has issued research coverage on FNRC, and based on current shares outstanding of 4.5 million shares, and proven reserves valued near $15 million, we have issues a 'speculative' valuation target of $2.50 to $3.00 per share.
Thursday, August 26, 2010
Ludlow Issues .02 Target on AMSZ
(NEW YORK)--Ludlow Capital issued a research note on AcuMedSpa Holdings, Inc. (OTC:AMSZ), a provider of Medical Aesthetic, Spa and Acupuncture services, with a B+ rating and near-term price target of $0.02 per share.
Investment Highlights
- Reducing Shares Outstanding and Authorized
- Pending Share Buyback Program
- Operational Revenues, Profitable
- National Expansion and Acquisitions
- Tightly Held Public Float
- Market Cap of only $600,000
Summary
Unlike many other plays, AMSZ offers one of the best share structures and valuations of any stock currently trading under $0.01 per share. While most companies push their shares outstanding higher and higher to access liquidity, AMSZ has taken the old school route of reducing its share structure to increase shareholder value. Dilution is NOT an issue here, but rather the opposite.
AcuMedSpa is an operational company, with around $2 million in revenues, profitable, and developing a national roll-out expansion plan through acquisitions.
The Company has been reducing both their shares authorized and outstanding, and announced a possible share buyback program which should reduce the shares outstanding even further.
AMSZ currently has around 146 million shares issued and outstanding, which at a current price of $0.004 a share would equate to a market capitalization of only $600,000. Thus, based on their efforts to actually tighten the share structure, share buyback program, pending acquisitions, and operating revenues/profits we are adding AMSZ to our premier watch list with a near-term target of $0.02 per share, and a B+ rating.
Other Premier Holding Plays
- KAT Exploration (KATX)
- MOP Environmental Solutions (MOPN)
- Title Consulting Services, Inc. (TITL)
- Liberty Star Uranium & Metals (LBSR)
Risks
The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Ludlow Capital began coverage on AMSZ on August 25, 2010 at a price of $0.0039 per share.
Investment Highlights
- Reducing Shares Outstanding and Authorized
- Pending Share Buyback Program
- Operational Revenues, Profitable
- National Expansion and Acquisitions
- Tightly Held Public Float
- Market Cap of only $600,000
Summary
Unlike many other plays, AMSZ offers one of the best share structures and valuations of any stock currently trading under $0.01 per share. While most companies push their shares outstanding higher and higher to access liquidity, AMSZ has taken the old school route of reducing its share structure to increase shareholder value. Dilution is NOT an issue here, but rather the opposite.
AcuMedSpa is an operational company, with around $2 million in revenues, profitable, and developing a national roll-out expansion plan through acquisitions.
The Company has been reducing both their shares authorized and outstanding, and announced a possible share buyback program which should reduce the shares outstanding even further.
AMSZ currently has around 146 million shares issued and outstanding, which at a current price of $0.004 a share would equate to a market capitalization of only $600,000. Thus, based on their efforts to actually tighten the share structure, share buyback program, pending acquisitions, and operating revenues/profits we are adding AMSZ to our premier watch list with a near-term target of $0.02 per share, and a B+ rating.
Other Premier Holding Plays
- KAT Exploration (KATX)
- MOP Environmental Solutions (MOPN)
- Title Consulting Services, Inc. (TITL)
- Liberty Star Uranium & Metals (LBSR)
Risks
The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Ludlow Capital began coverage on AMSZ on August 25, 2010 at a price of $0.0039 per share.
Thursday, August 12, 2010
TITL - Microcap Alert Issues Price Target of .04 to .05
Microcap Alert Issues Float Lock-Up Watch on Title Consulting (TITL)
Last Updated: August 12, 2010 - 11:30am EST
(NEW YORK)--Microcap Alert has placed Title Consulting Services, Inc. (OTC:TITL), an independent title insurance agency, on float lock-down watch as company retires 400 million shares from shares outstanding, potential price target of $0.04 to $0.05 near-term.
Title Consulting Services, Inc., through its wholly-owned subsidiary Accu Title Agency, operates a network of up to 20 independent title insurance agency locations strategically located across the state of Florida. The company is headquartered in St. Petersburg, and has been in operations since early 2001.
Share Structure
On August 10, 2010, the Company announced it was rescinding a resolution taken on July 29 whereby it raised the outstanding common shares by 400,000,000. This reversal will result in the outstanding common share count reverting back to 115 million common shares issued and outstanding. The float has not been affected by this transactions and remains at 28 million.
The move to reduce the shares outstanding was a smart move on the part of the CEO. The recent drop in the price had brought in a number of traders who may have taken a sizable portion of the public float out of the market. Thus, with the increased demand for shares has put the company of a potential float lock-up watch.
* The Company transfer agent is un-gagged for full public transparency.
Merger and Acquisitions
The Company is currently in the process of seeking out an operating Property and Casualty Insurance Agency (PCIA) to bring under the Title Consulting holding umbrella. The acquisition of an operating and cash-flow positive PCIA will help diversify the Title Consulting portfolio, and provide the company the ability to present current title insurance clients with alternatives to their existing homeowners insurance.
An acquisition of a new insurance provider could push the company into the profitability range, while providing cash-flow for operations. News of first insurance acquisition is pending, and expected shortly
National Expansion
In addition to expanding their market reach and product offerings in the State of Florida, the company also anticipates expansion nationally through acquisition of property, title, and causality insurance targets. This will allow the company to expand their market breath, and begin marketing the company as a national insurance provider.
Operations
For the three months ending April 2010, the Company reported total revenues of $364,204, with a gross profit of $231,527. After operational expenses, the company reported a net loss of just ($114), compared to a loss of ($30,683) for the same period 2009. At the end of this period the Company reported total assets of around $1.4 million.
The Company is expected to file financials for the three-months ending July 2010 in the very near-future, and could be a strategic move to bring the company 'current' with OTC markets.
Valuation and Technical Analysis
The RSI has turned upward and crossing 50 which indicates additional upside from these levels. The stock has broken above its 5 and 50 day moving average, with resistance seen at the 10 day at $0.015. A break above the 10 day ($0.015) could provide for a sharp run. The TRIX remains in positive territory, and the MACD has now turned upward indicating near-term run in the stock.
Based on the new share structure of 115 million, and an every increasing tight float, TITL could see a near-term run up to the $0.035 to $0.05 range as investors scramble to buy back in. A share price of $0.05 a share would now equate to only a $5.5 million market cap. Watch for a move above $0.015, and increased volume, as a possible break-out alert.
Risks
The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Recommendations
We have submitted the following recommendations to Title Consulting on what actions the company could take to better assist them in building additional value for the company, and its shareholders.
- Issue Series A Voting Preferred to company management. This would give management ongoing majority voting control of the company, while providing for no dilution to the common shareholders.
- Use Series B and C Preferred, in conjunction with common shares, for any large acquisitions. This would decrease the dilution in any acquisitions or mergers, and in-turn increase the value of the company in rapid form.
- Develop a solid Board of Directors, and Advisors. The company could offer Director seats to new acquisition targets, executives with strong insurance backgrounds, and an individual with investment banking experience.
Microcap Alert began coverage on TITL on August 10th, 2010 at a price of $0.0115 per share.
http://www.wallstreetnewscast.com/news/2010/august/titl.html
Last Updated: August 12, 2010 - 11:30am EST
(NEW YORK)--Microcap Alert has placed Title Consulting Services, Inc. (OTC:TITL), an independent title insurance agency, on float lock-down watch as company retires 400 million shares from shares outstanding, potential price target of $0.04 to $0.05 near-term.
Title Consulting Services, Inc., through its wholly-owned subsidiary Accu Title Agency, operates a network of up to 20 independent title insurance agency locations strategically located across the state of Florida. The company is headquartered in St. Petersburg, and has been in operations since early 2001.
Share Structure
On August 10, 2010, the Company announced it was rescinding a resolution taken on July 29 whereby it raised the outstanding common shares by 400,000,000. This reversal will result in the outstanding common share count reverting back to 115 million common shares issued and outstanding. The float has not been affected by this transactions and remains at 28 million.
The move to reduce the shares outstanding was a smart move on the part of the CEO. The recent drop in the price had brought in a number of traders who may have taken a sizable portion of the public float out of the market. Thus, with the increased demand for shares has put the company of a potential float lock-up watch.
* The Company transfer agent is un-gagged for full public transparency.
Merger and Acquisitions
The Company is currently in the process of seeking out an operating Property and Casualty Insurance Agency (PCIA) to bring under the Title Consulting holding umbrella. The acquisition of an operating and cash-flow positive PCIA will help diversify the Title Consulting portfolio, and provide the company the ability to present current title insurance clients with alternatives to their existing homeowners insurance.
An acquisition of a new insurance provider could push the company into the profitability range, while providing cash-flow for operations. News of first insurance acquisition is pending, and expected shortly
National Expansion
In addition to expanding their market reach and product offerings in the State of Florida, the company also anticipates expansion nationally through acquisition of property, title, and causality insurance targets. This will allow the company to expand their market breath, and begin marketing the company as a national insurance provider.
Operations
For the three months ending April 2010, the Company reported total revenues of $364,204, with a gross profit of $231,527. After operational expenses, the company reported a net loss of just ($114), compared to a loss of ($30,683) for the same period 2009. At the end of this period the Company reported total assets of around $1.4 million.
The Company is expected to file financials for the three-months ending July 2010 in the very near-future, and could be a strategic move to bring the company 'current' with OTC markets.
Valuation and Technical Analysis
The RSI has turned upward and crossing 50 which indicates additional upside from these levels. The stock has broken above its 5 and 50 day moving average, with resistance seen at the 10 day at $0.015. A break above the 10 day ($0.015) could provide for a sharp run. The TRIX remains in positive territory, and the MACD has now turned upward indicating near-term run in the stock.
Based on the new share structure of 115 million, and an every increasing tight float, TITL could see a near-term run up to the $0.035 to $0.05 range as investors scramble to buy back in. A share price of $0.05 a share would now equate to only a $5.5 million market cap. Watch for a move above $0.015, and increased volume, as a possible break-out alert.
Risks
The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Recommendations
We have submitted the following recommendations to Title Consulting on what actions the company could take to better assist them in building additional value for the company, and its shareholders.
- Issue Series A Voting Preferred to company management. This would give management ongoing majority voting control of the company, while providing for no dilution to the common shareholders.
- Use Series B and C Preferred, in conjunction with common shares, for any large acquisitions. This would decrease the dilution in any acquisitions or mergers, and in-turn increase the value of the company in rapid form.
- Develop a solid Board of Directors, and Advisors. The company could offer Director seats to new acquisition targets, executives with strong insurance backgrounds, and an individual with investment banking experience.
Microcap Alert began coverage on TITL on August 10th, 2010 at a price of $0.0115 per share.
http://www.wallstreetnewscast.com/news/2010/august/titl.html
Friday, August 06, 2010
Microcap Alert Issues 'Float Lockup Alert' on AAVG
MicrocapAlert Issues 'Float Lockup Alert' on AAVG
Last Updated: August 6th, 2010 - 10:15am EST
(NEW YORK)--Microcap Alert has issued a 'float lockup alert' on AvStar Aviation Group, Inc. (OTC:AAVG), a full service aviation maintenance company, and non-scheduled air carrier, with a traders target of $0.08 to $0.10 per share.
Technical Analysis
AAVG has been trading with above average retail volume for the past two weeks since announcing thier acquisition of Twin Air Calypso Limited, Inc., a South Florida air carrier certified by both the United States and Bahamas government.
Last week AAVG traded around 12 million shares, with this week on track to exceed 15 million shares. With around 118 million shares issued (confirmed Aug 2, 2010), and float of around 15 or 20 million shares, AAVG has now entered a 'float lock-up' stage.
AAVG is currently in the process of breaking through their 50 day moving average, with the MACD turning above 0 to go positive. The TRIX still has a bit more to go before going positive, but the uptrend is becoming more parabolic. The accum/dist continues a sharp move upwards indicating increased purchase of what little float remains. Next resistance look to be in the .025 range, but the decreased float available for trading at this level may not hold in our opinion.
Based on breakout technicals, decrease in the public float available to trade, and company fundamentals, we project seeing AAVG moving very quickly through the penny price ranges, with a high probability of reaching or exceeding .10 per share in the near-term.
AvStar Aviation is a full service aviation maintenance company, non-scheduled air carrier, and full service Fixed Base Operator (FBO). The Company plans to grow through the acquisition of small airline carriers and land based aviation maintenance companies in the South Florida market. www.avstarinc.com
For 2010, the Company is projecting annual revenues to be around $7 and $9 million through this growth strategy, with a projected goal of doubling those numbers to $14 to $18 million in 2011.
Previous 'float lockup alerts' issued were on TGGI at $0.0004 in late July, and AVTI at .0012 in early July. MicrocapAlert.com is issuing its initial alert on AAVG on August 6th, 2010, at a price of $0.007.
Last Updated: August 6th, 2010 - 10:15am EST
(NEW YORK)--Microcap Alert has issued a 'float lockup alert' on AvStar Aviation Group, Inc. (OTC:AAVG), a full service aviation maintenance company, and non-scheduled air carrier, with a traders target of $0.08 to $0.10 per share.
Technical Analysis
AAVG has been trading with above average retail volume for the past two weeks since announcing thier acquisition of Twin Air Calypso Limited, Inc., a South Florida air carrier certified by both the United States and Bahamas government.
Last week AAVG traded around 12 million shares, with this week on track to exceed 15 million shares. With around 118 million shares issued (confirmed Aug 2, 2010), and float of around 15 or 20 million shares, AAVG has now entered a 'float lock-up' stage.
AAVG is currently in the process of breaking through their 50 day moving average, with the MACD turning above 0 to go positive. The TRIX still has a bit more to go before going positive, but the uptrend is becoming more parabolic. The accum/dist continues a sharp move upwards indicating increased purchase of what little float remains. Next resistance look to be in the .025 range, but the decreased float available for trading at this level may not hold in our opinion.
Based on breakout technicals, decrease in the public float available to trade, and company fundamentals, we project seeing AAVG moving very quickly through the penny price ranges, with a high probability of reaching or exceeding .10 per share in the near-term.
AvStar Aviation is a full service aviation maintenance company, non-scheduled air carrier, and full service Fixed Base Operator (FBO). The Company plans to grow through the acquisition of small airline carriers and land based aviation maintenance companies in the South Florida market. www.avstarinc.com
For 2010, the Company is projecting annual revenues to be around $7 and $9 million through this growth strategy, with a projected goal of doubling those numbers to $14 to $18 million in 2011.
Previous 'float lockup alerts' issued were on TGGI at $0.0004 in late July, and AVTI at .0012 in early July. MicrocapAlert.com is issuing its initial alert on AAVG on August 6th, 2010, at a price of $0.007.
Wednesday, August 04, 2010
Microcap Alert Issues .003 to .004 Price Target on TGGI
Microcap Alert Issues Price Target on Trans Global Group (TGGI)
Last Updated: Aug. 4, 2010 - 6:00am EST
NEW YORK--Microcap Alert has issued a traders opinion on Trans Global Group, Inc, Inc. (OTC:TGGI), a diversified investment holding company, with a near-term price target of $0.003 to $0.004 per share.
Story Background
In June 2010, the Company announced that it had entered into an agreement to merge Full Spectrum Media, a wholly-owned subsidiary of TGGI, into American Life Holdings Company, Inc. (OTC:ALFE), a fully reporting OTC BB company. Upon completion of the merger, shareholders of TGGI would receive new shares in ALFE through a stock dividend issuance.
News Pending
Early in July the Company announced it had begun work on auditing Full Spectrum Media preparing for the upcoming merger, and was expected to be announced around August 1st, 2010. This indicates the market may be receiving an update on this merger/acquisition sometime in the very near-future.
TGGI and ALFE Connection
Randy Schneider, the President and director of Kazore Holdings, Inc. a subsidiary of TGGI, was recently elected to the Board of Directors of ALFE as well. This points to increased odds that a merger between TGGI and ALFE have now grown.
Reducing Shares Outstanding
The Company also announced it had reached an agreement to cancel 500 million shares issued in exchange for preferred shares, which would reduce the shares outstanding from around 1.5 billion to around 1 billion common shares. This would indicate that TGGI may currently be trading at a market cap of less then $1 million under the $0.001 price range, which would be far to low for a company about to merge onto the OTC exchange.
Technical Analysis
The stock has recently broken above its 50 day moving average with strong retail volume which may indicate a potential 'lock-up' of the public float. The MACD is in the process of turning positive, and the TRIX indicates possible move to the plus-side later in the week.
Price Target
Based on the move to merger their subsidiary into ALFE and issue new shares out to TGGI shareholders, the connection between these two companies through Mr. Schneider, prospect of the retirement of 500 million shares, and the bullish technical indicators makes TGGI a play to watch. Based on these facts, and the technical aspects of the chart, it is our opinion that TGGI could be trading up to the $0.003 to $0.004 range in the very neat-term.
About Microcap Alert
Founded in 2009, Microcap Alert is a central portal for investors and financial professionals to discover under-the-radar micro and nano cap public companies. The site provides independent research and frequent trade alerts which are distributed to a wide array of financial institutions, trading desks and fund managers. The company enables small startup companies to address a select audience of investors and institutions that are specifically looking for the next great microcap news story. www.microcapalert.com
http://www.wallstreetnewscast.com/news/2010/august/tggi_target.html
Last Updated: Aug. 4, 2010 - 6:00am EST
NEW YORK--Microcap Alert has issued a traders opinion on Trans Global Group, Inc, Inc. (OTC:TGGI), a diversified investment holding company, with a near-term price target of $0.003 to $0.004 per share.
Story Background
In June 2010, the Company announced that it had entered into an agreement to merge Full Spectrum Media, a wholly-owned subsidiary of TGGI, into American Life Holdings Company, Inc. (OTC:ALFE), a fully reporting OTC BB company. Upon completion of the merger, shareholders of TGGI would receive new shares in ALFE through a stock dividend issuance.
News Pending
Early in July the Company announced it had begun work on auditing Full Spectrum Media preparing for the upcoming merger, and was expected to be announced around August 1st, 2010. This indicates the market may be receiving an update on this merger/acquisition sometime in the very near-future.
TGGI and ALFE Connection
Randy Schneider, the President and director of Kazore Holdings, Inc. a subsidiary of TGGI, was recently elected to the Board of Directors of ALFE as well. This points to increased odds that a merger between TGGI and ALFE have now grown.
Reducing Shares Outstanding
The Company also announced it had reached an agreement to cancel 500 million shares issued in exchange for preferred shares, which would reduce the shares outstanding from around 1.5 billion to around 1 billion common shares. This would indicate that TGGI may currently be trading at a market cap of less then $1 million under the $0.001 price range, which would be far to low for a company about to merge onto the OTC exchange.
Technical Analysis
The stock has recently broken above its 50 day moving average with strong retail volume which may indicate a potential 'lock-up' of the public float. The MACD is in the process of turning positive, and the TRIX indicates possible move to the plus-side later in the week.
Price Target
Based on the move to merger their subsidiary into ALFE and issue new shares out to TGGI shareholders, the connection between these two companies through Mr. Schneider, prospect of the retirement of 500 million shares, and the bullish technical indicators makes TGGI a play to watch. Based on these facts, and the technical aspects of the chart, it is our opinion that TGGI could be trading up to the $0.003 to $0.004 range in the very neat-term.
About Microcap Alert
Founded in 2009, Microcap Alert is a central portal for investors and financial professionals to discover under-the-radar micro and nano cap public companies. The site provides independent research and frequent trade alerts which are distributed to a wide array of financial institutions, trading desks and fund managers. The company enables small startup companies to address a select audience of investors and institutions that are specifically looking for the next great microcap news story. www.microcapalert.com
http://www.wallstreetnewscast.com/news/2010/august/tggi_target.html
Tuesday, July 27, 2010
Ludlow Issues .01 to .015 Price Target on AVTI
Last Updated: July 27, 2010 - 10:13am EST
NEW YORK--Ludlow Capital issues research opinion on Avitar, Inc. (OTC:AVTI), a holding company focused on investments in joint venture projects, with a valuation price target of $0.01 to $0.015 per share.
Overview
On June 29, 2010, the Company announced that it had entered a joint venture agreement with Johnnie's Famous Shoes, Inc. (www.johnnyfamousshoes.com) of New York for the purpose of producing and distributing its summer run of high end, luxury, Men's footwear. The Company is expected to not only back the summer production run, but will also be involved in the management of this project, and share in the profits as well. Upon successful completion, Avitar will partner on future production runs with Johnny Famous Shoes as new product lines roll-out.
Production and Distribution
What could set this company off is any announcement of distribution for this new summer product line out to the stores. Johnnie's Shoes offers a nice selection of retail products and has shown strong initial sales growth in recent months. According to reports, the Company may have already begun production of this new line under the joint-venture, which moves them even closer to having products out in the stores in the very near-future. Thus, the market is currently anticipating an announcement regarding distribution of their first shipments out to Broadway stores in New York City.
Valuation Target
On July 22, 2010, Ludlow Capital was able to confirm directly with Mr. Cory Gelmon, the CEO of Avitar, Inc, that the shares structure for the company is currently around 620 million shares outstanding, with 800 million shares authorized.
To be conservative in structuring a valuation formula for this company lets take into consideration a share structure at maximum dilution of 800 million shares outstanding. There is no indication that the company has issued anywhere near this level, but to get a clearer and more reasonable idea of price valuation we are taking that maximum possibility into effect to render a more conservative and realistic target.
Based on solid initial growth for Johnnie's retail consumer-line, the prospects of having their first partnership products out in retail outlets in the near-future, and Avitar's management and profit sharing on this and possible future ventures, we feel it wouldn't be out of the realm to justify a fair-market value for this company in the $8 to $10 million range. Based on maximum shares authorized of 800 million, that would equate to a price valuation target of around $0.01 to $0.015 per share.
Risks
The company is currently traded on the Pink Sheet exchange, and thus has limited public information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Thursday, July 15, 2010
ELCR, HFBG, TSPG, RELM on traders watch
(New York)--July 15, 2010--Wall Street Newscast issues traders alerts for ELCR, HFBG, TSPG, and RELM.
Electric Car Company, Inc. (OTC:ELCR) - announced major deal to begin electric car production, with 12 month goal of 10 cars per day. Stock strong at $0.0008, and is currently attempting to break its 10 day moving average. This is one to watch into next week.
Hall of Fame Beverage, Inc. (OTC:HFBG) finding some resistance at the 50 day moving average at $0.001 per share. All hands on alert for announcement of distributer. Could move into to .00's pretty fast on news.
TGI Solar Power Group, Inc. (OTC:TSPG) - posts disclosure update on Pink Sheet, shares outstanding unchanged at 183 million, retains investment banker, gapped up in morning open.
Relm Holdings, Inc. (OTC:RELM) - recent trading volume and performance indicates no dilution in the stock, trader fears were overblown. Could still be a move into the upper .00's on acquisition news, and financials.
Electric Car Company, Inc. (OTC:ELCR) - announced major deal to begin electric car production, with 12 month goal of 10 cars per day. Stock strong at $0.0008, and is currently attempting to break its 10 day moving average. This is one to watch into next week.
Hall of Fame Beverage, Inc. (OTC:HFBG) finding some resistance at the 50 day moving average at $0.001 per share. All hands on alert for announcement of distributer. Could move into to .00's pretty fast on news.
TGI Solar Power Group, Inc. (OTC:TSPG) - posts disclosure update on Pink Sheet, shares outstanding unchanged at 183 million, retains investment banker, gapped up in morning open.
Relm Holdings, Inc. (OTC:RELM) - recent trading volume and performance indicates no dilution in the stock, trader fears were overblown. Could still be a move into the upper .00's on acquisition news, and financials.
Wednesday, June 30, 2010
Ludlow Issues Research Opinion on Relm Holdings (RELM)
Ludlow Capital Issues Research Opinion on Relm Holdings, Inc.
Last Updated: June 30, 2010 - 8:50am EST
NEW YORK--Ludlow Capital issues research and traders opinion on Relm Holdings, Inc. (OTC:RELM), a developer of financial information service technology, with a 'speculative' price valuation target to $0.01 to $0.02 per share.
SUMMARY
Although a ‘speculative’ micro-cap play, the Company has shown increased interest based on current technical indicators within their trading pattern, current share structure, and pending new acquisitions for the company. Through their holding subsidiary, Access Versalign, Inc, the Company is expected to announce several new acquisitions within the financial information technology sector, which in turn could provide for increased revenues and cash-flow for the parent holding company.
As of March 31, 2010, the Company had around 650 million shares issued and outstanding. Based on pending acquisitions, and relative tight share-structure, we feel a fair-value for this start-up company to be in the range of $7 to $10 million for the time being. So, even if on a conservative bases we round the shares up to an even 700 million outstanding, then a price of $0.01 to $0.02 would still equate to only $7 to $14 million market cap.
On the short-term, we would watch for a break of the 200 day moving average at around $0.0023 for indication of true break-out trend for the stock, with additional resistance around the $0.004 to $0.0045 range for move up to our $0.01 target price. Technical indicators such as the MACD, and short-trend moving averages are pointing to a potential break upward something in the very near-future.
Risks Involved
As with most equities, dilution of common shares could reduce the valuation of the company, and thus effect and valuation targets, and price performance. Other risks range from inability to obtain proper financing, decrease of demand for financial servicing products, and under-performance of revenue expectations. The company is currently traded on the Pink Sheet exchange, and thus has limited public and audited information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions.
Last Updated: June 30, 2010 - 8:50am EST
NEW YORK--Ludlow Capital issues research and traders opinion on Relm Holdings, Inc. (OTC:RELM), a developer of financial information service technology, with a 'speculative' price valuation target to $0.01 to $0.02 per share.
SUMMARY
Although a ‘speculative’ micro-cap play, the Company has shown increased interest based on current technical indicators within their trading pattern, current share structure, and pending new acquisitions for the company. Through their holding subsidiary, Access Versalign, Inc, the Company is expected to announce several new acquisitions within the financial information technology sector, which in turn could provide for increased revenues and cash-flow for the parent holding company.
As of March 31, 2010, the Company had around 650 million shares issued and outstanding. Based on pending acquisitions, and relative tight share-structure, we feel a fair-value for this start-up company to be in the range of $7 to $10 million for the time being. So, even if on a conservative bases we round the shares up to an even 700 million outstanding, then a price of $0.01 to $0.02 would still equate to only $7 to $14 million market cap.
On the short-term, we would watch for a break of the 200 day moving average at around $0.0023 for indication of true break-out trend for the stock, with additional resistance around the $0.004 to $0.0045 range for move up to our $0.01 target price. Technical indicators such as the MACD, and short-trend moving averages are pointing to a potential break upward something in the very near-future.
Risks Involved
As with most equities, dilution of common shares could reduce the valuation of the company, and thus effect and valuation targets, and price performance. Other risks range from inability to obtain proper financing, decrease of demand for financial servicing products, and under-performance of revenue expectations. The company is currently traded on the Pink Sheet exchange, and thus has limited public and audited information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions.
The rest of this research opinion is available to Premium Members only. Register below to request full copy
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