| Back Issues Pages are sorted with the latest issue at the top. Dec 6-10, 2004 |
| December 10, 2004 Good Morning, All eyes continue to watch Oil and the dollar, which according to OPEC, are closely related. That is the reason being stated by many Oil ministers for their calls of a higher band for the price of oil. We saw a report yesterday that stated Oil could be as high as $35 a barrel in 2025. If it is too cheap now at $45, being almost twice as high as the lower end of their previous price target, and all this has occurred during a time of below average economic growth, we see a price in 2025 of around $350, that is, if there is any left. Who ever wrote this report should go back to teaching economics, leave us alone here in the real world, and maybe open up a gas station with $.95 per gallon gasoline, if this is really what you think. We are sorry to continue to harp on this Oil thing, we are just tired of being spoon fed the same garbage over and over while they continue to line their pockets. We appear to be on track to be fighting for the last little bit of Oil, probably somewhere in Siberia in 2025. The Oil pipeline we are building in the middle east may stave this off for a few extra years as well as destroying all of our national parks. Just think of what all these billions of dollars could do for alternative energy, and you will quickly realize why we continue to be absolutely sick to our stomachs day after day. With the exception of plastic products, we here at Penny Stocks Daily, and our families plan on becoming as independent from Oil as possible within the next few years, and perhaps the only way to fix the problem is to boycott it. Stocks will likely trade lower today on inflation concerns. Micro Cap View The OTC BB continues to trade with plenty of activity, and with the major indices looking weak today, we could easily see a host of new buyers step up to the plate today. New Initiatives and Recent Developments We continue to keep an eye on the issues we have been stopped out of recently, MSSI, MOBL etc., not to see what might have been, but to look for a brand new opportunity. Yesterday, we discussed purchasing shares of IVGA if and only if the ask fell to $.02. We will continue to pursue this issue, but have judging from yesterdays activity, we have adjusted that buy point upward, as we feel $.02 could provide some support. The acquisition of a huge email database should do wonders for sales, and we would expect month over month increases. We would like to wait for a pull back to around $.02, however, and will begin looking to add around 6% of the portfolio if and when the ask falls to $.021. We will be a little bit patient with this one, as we do not want to chase this kind of high percentage flier. We like the float, the cost of revenue, as well as the increase in sales we have been seeing. We believe the current price may represent value, because their balance sheet seems to be the only thing keeping them down. We have seen expenses remain in line as their sales have grown, and we would expect the balance sheet to quickly improve. We believe this company could stand a little bit of equity based financing, but we certainly do not want to see a lot. We will hold on to our remaining positions today as well. |
| The Portfolio |
| MBA Holdings Inc (MBAH) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.21 Portfolio %: 8.4% Portfolio % Range: 6.9-8.5% Next Buy: $.16 Next Sell: $.33 Quick Glance PSD Rating: 6 (1= close to next buy, 10= close to next sell) |
| www.mbadirect.com Closing Price: $.25 Quick Profile MBA's founding members have been actively involved in the insurance business since 1960 and the warranty business since 1974. Their company markets Mechanical Breakdown protection for the Fireman's Fund Insurance Company, which has been in business since 1863. MBA also adjudicates and pays all claims associated with these policies. They are also a marketer and administrator for: American Bankers Insurance Company of Miami, Florida Kemper Insurance Company of Long Grove, Illinois Heritage Warranty Mutual Insurance Company of Lincoln, Nebraska Standard Guarantee Insurance Company of St. Petersburg, Florida American Security Insurance Company of Atlanta, Georgia Allstate Insurance Company of Chicago, Illinois Contact: MBA Holdings Inc., Scottsdale Gaylen Brotherson, 480-860-2288, ext. 317 |
The charts look good so far for a little bit of a turn around in the short term, right now, our buy looks good. We will keep a lose eye on volume, as we have seen the price move up on heavily traded days, and down on lightly traded days. If volume looks to be tailing off over the next session or two, we may adjust our profit target down to seal the deal, and then look to buy back at around the same place we did the first time. We will keep an eye out for press releases as well. |
| RS Group of Companies (RSGC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.61 Portfolio %: 6.9% Portfolio % Range: 6.7-7.1% Next Buy: $.49 Next Sell: $.88 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.rsgc.com Closing Price: $.58 Quick Profile RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Contact: RS Group of Companies, Inc. Patti Cooke, 416-391-4223, ext. 4084 info@rsgc.com |
Right now, this is the kind of stock you by and forget about for a while. As soon as any volume returns, we will pay a lot closer attention to this company. We believe this is the kind of stock that should be on the most active list, with positive earnings, and a price and float like this, their is not much else to say about them. |
| SoftNet Technology (STTC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.166 Portfolio %: 14% Portfolio % Range: 6.4-14.3% Next Buy: .091 Next Sell: $.25 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.softnettechnology.com Closing Price: $.165 Quick Profile Softnet Technology Corporation recently acquired WholesaleByUs, LLC. In the short existence of one year, WBU has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium. WBU designed a business model that allows the company to integrate with other Internet sellers programs as well as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest shipping time possible. Contact: SoftNet Technology James Farinella, 866-898-4842/908-204-9911 www.softnettechnology.com |
Yesterday's press release was interesting to say the least. We believe the current stock price is still a little bit undervalued for Wholesalebyus alone. This technology they hold could be a winner, but we hope they continue to focus on what is working, and generating sales right now. We also do not want to see their profits destroyed by this endeavor as well, but feel the CEO is quite competent, and judging from the open market purchases totaling approximately $120,000 of his own cash, when he says h has shareholder value in mind, we tend to agree with him. |
Daily Tip When trying to allocate your stock portfolios assets properly, try keeping separate sections for low, medium and high-risk vehicles. Penny stocks would obviously fall into the high-risk portion, and it is important not to take cash out of other sections simply because you need it, and do not want to sell anything that is there already. This is why we allocate a small portion for penny stocks, if you need more cash for an opportunity, break your current issues down until they are allocated properly. Also, be sure to shuffle all of your sections periodically to maintain a balanced portfolio. The best advice for adding money to the high risk portion is to do it when you don’t need it, rather than risking letting your emotions getting the better of you. Try and always have a good chunk of cash available to take advantage of the major market swings, by way of the QQQQ or other highly liquid ETF’s. This will allow you hedge your bets considerably, should things not go quite as planned. Enjoy Your Trading Day, Penny Stocks Daily |
| December 9, 2004 Good Morning, It appears that OPEC likes $55 dollar oil, why else would they be rushing to stem production when crude futures haven't even fallen back into their magic range. Does this mean they will be increasing their target price band into the $40 range. The fact is they may already have, and an appropriate range may be well into the $60's. Where was the rush to stop high prices by raising production? When they did try and add output, they could only seem to find the lowest quality oil. The world is quickly running out of Oil, and they are now rushing to build up as much of a reserve as possible. Through the ages, as humans have evolved, we have always discovered a new resource just as the old one is running out, and another turning point may be upon us. Right now this translates to the investment world, and w strongly encourage everyone to set aside a small portion of their portfolio, pick your favorite alternative energy stock, and hold onto some shares for the long haul. Futures point to a down day this morning, but we do not expect a repeat of the 100+ point decline in the DOW form earlier this week. Stocks will likely continue to be tugged in both directions by Oil and the Dollar, and investors have been waiting for a good buying opportunity since this rally began a month ago or so, as they have not been able to get back into this market, after taking profits. Micro Cap View Another strong day for Micro Caps keeps hope alive of an even more active year ahead. We have been seeing OTC BB leaders make pull back a bit each morning, and then finish positive into the close for the past few days. We are looking for a bigger pull back over the next few days, as we have seen a convergence between Blue Chips and pennies forming over this time period, the likes of which we have not seen for a month or so, right down to almost all of the specific sectors. For this reason, we feel that the stock market as a whole has a little bit more of a pullback ahead of it, and Micro Caps will likely lead the way back up, maybe some time early next week. New Initiatives and Recent Developments We were stopped out of MOBL yesterday, and are at least happy to have been able to preserve almost all of our investment. We now sit with a very disproportionate amount of cash in the portfolio, and have one new highly speculative buy planned for sometime today. We do have some conditions, however, and will only buy if the ask falls to where we want it. IVGA is our "Out. the Port" profile for today, and after a huge run up on Monday, we have seen it pull back almost right to where we want it. This is another Internet company similar to STTC, but we see a strong possibility of getting involved much earlier. The acquisition of a huge email database should do wonders for sales, and we would expect month over month increases. We would like to wit for a pull back under $.02, however, and will begin looking to add around 6% of the portfolio if and when the ask falls to $.02. We will be a little bit patient with this one, as we do not want to chase this kind of high percentage flier. We like the float, the cost of revenue, as well as the increase in sales we have been seeing. We believe the current price may represent value, because their balance sheet seems to be the only thing keeping them down. We have seen expenses remain in line as their sales have grown, and we would expect the balance sheet to quickly improve. We believe this company could stand a little bit of equity based financing, but we certainly do not want to see a lot. We will hold on to our remaining positions today as well. |
| The Portfolio |
| MBA Holdings Inc (MBAH) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.21 Portfolio %: 7.1% Portfolio % Range: 6.9-7.3% Next Buy: $.16 Next Sell: $.33 Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.mbadirect.com Closing Price: $.22 Quick Profile MBA's founding members have been actively involved in the insurance business since 1960 and the warranty business since 1974. Their company markets Mechanical Breakdown protection for the Fireman's Fund Insurance Company, which has been in business since 1863. MBA also adjudicates and pays all claims associated with these policies. They are also a marketer and administrator for: American Bankers Insurance Company of Miami, Florida Kemper Insurance Company of Long Grove, Illinois Heritage Warranty Mutual Insurance Company of Lincoln, Nebraska Standard Guarantee Insurance Company of St. Petersburg, Florida American Security Insurance Company of Atlanta, Georgia Allstate Insurance Company of Chicago, Illinois Contact: MBA Holdings Inc., Scottsdale Gaylen Brotherson, 480-860-2288, ext. 317 |
We were unable to get shares below $.20 yesterday, but we did want to add this stock to the portfolio as soon as possible, and got what we feel is a fair price. We will be averaging down once in the mid teens, if this stock falls a bit more, but yesterdays positive action, we feel, points to a possible short term turn around. We believe this stock could hit our target very quickly, and will only take half of the position off the table at that point, and look to add to the position on the first pull back. Should the stock drift into the mid to low teens, and stay there for a bit, we will likely look to step out completely, as right now we are betting on the high teens being a strong support area. |
| RS Group of Companies (RSGC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.61 Portfolio %: 6.9% Portfolio % Range: 6.7-7.1% Next Buy: $.49 Next Sell: $.88 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.rsgc.com Closing Price: $.58 Quick Profile RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Contact: RS Group of Companies, Inc. Patti Cooke, 416-391-4223, ext. 4084 info@rsgc.com |
Right now, this is the kind of stock you by and forget about for a while. As soon as any volume returns, we will pay a lot closer attention to this company. We believe this is the kind of stock that should be on the most active list, with positive earnings, and a price and float like this, their is not much else to say about them. |
| SoftNet Technology (STTC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.166 Portfolio %: 13.2% Portfolio % Range: 6.4-14.3% Next Buy: .091 Next Sell: $.25 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.softnettechnology.com Closing Price: $.155 Quick Profile Softnet Technology Corporation recently acquired WholesaleByUs, LLC. In the short existence of one year, WBU has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium. WBU designed a business model that allows the company to integrate with other Internet sellers programs as well as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest shipping time possible. Contact: SoftNet Technology James Farinella, 866-898-4842/908-204-9911 www.softnettechnology.com |
A little bit of a delayed reaction from investors and Market Makers yesterday after the announcement of more shares being purchased by the CEO in the open market. We believe he has the right idea, and were most impressed by the expansion into Europe and Canada sooner than expected. There have been some rumors flying about an unprofessional comment made on Ebay regarding a delinquent customer by Wholesalebyus. We are still waiting to here back from the company, but feel there is a very high chance that this is a fake. Overall, they have had very positive feedback, and the fact that they are running out of product faster than they can sell it is a great sign. We believe their sales growth forecasts are in line. |
Daily Tip If you think you have discovered short term momentum in a stock and feel that if you buy on the ask as it dwindles away you will get the chance to make a gain, chances are the momentum is already over. We look for longer term momentum and buy stocks that are in short term momentum deficits. A stock that has more and more pressure behind it each time it pops up has good long term momentum. We like to buy during periods of little or no short term momentum and we never buy a stock that is on the top ten daily gainers list. A stock that has been on the gainer list consistently but is down is a much better choice. Enjoy Your Trading Day, Penny Stocks Daily |
| December 8, 2004 Good Morning, Stocks may drift upward a little bit this morning as Oil continues to pull back. Yesterdays correction was a few days overdue in our opinion, and we would expect a negative bias at least until the end of this week. You can bet there will be plenty of bargain hunters that will keep these declines to a minimum, at least for the time being. Futures point to a possible mixed market today, which is common after such a big decline all around. The NASDAQ will likely outperform the DOW and others. We could see a rally today if the OPEC meeting plays out just right, and Oil falls below $40 a barrel. If they decide to cut production, traders would likely see that as a sign of more inventories than were thought. Fears of strikes seem to be calming, and you can bet every industrialized nation is strategically stocking up at these prices. Micro Cap View Volume was through the roof yesterday on the OTC BB, although price action was definitely on the weak side. As soon as blue chips pulled back, we began to see this volume come in to the unlisted world, as we believe that, although a very small percentage of wall street traders actually trade penny stocks, the ones that do took profits in their blue chips over to the OTC BB. We saw a whole host of issues doing over 1000 trades yesterday, as well as one in the 4000 range. We would expect this trend to continue, and would expect some gainers, as we saw price action begin to pick up towards the end of yesterdays trading session. New Initiatives and Recent Developments Well, we were stopped out of two of our positions yesterday for better or for worse. GZFX will need to see some improvement before we decide to get involved again. MSSI must be under some heavy shorting, and we still feel the stock price could easily be over a dime. We will probably come back to this issue soon. Obviously, we would have liked to get out of both of these positions at break even, but more importantly, we must attempt to preserve our capital. GZFX was a very manageable loss, and over all, after taking half profits a couple of times in MSSI, we made a nice percentage gain overall in that position. MOBL will likely be the next to go, but we will sit tight with our very tight conditions, as we are heavily invested. We have one new buy planned for today, MBAH, which has been beaten down lately, but on light volume. MBAH is definitely a turn around play. Revenues have been declining due to apparent competitive pressures over the past year. We believe the recent turn around in the stock price around April at a penny or so is being supported by their cost reduction, and a host of new deals. We are betting that momentum may be picking up after seeing some larger scale partnerships. We still think that the price before the dividend was announced in the high teens will provide solid support for this stock. This dividend was not anything spectacular, but it is a rarity among penny stocks, and may be a clue of more to come. We think that price action may continue to be lackluster for a few more days, but the low volume during this pullback is a good sign. As soon as trading activity returns, we would expect some more positive action. Should the stock dip into the mid to low teens and stay there for a while, we will probably look to get out on the first pop. We will be buying ASAP, and expect to get shares with 7% of the portfolio somewhere under $.20. |
| The Portfolio |
| www.mobileprocorp.com Closing Price: $.166 Quick Profile MobilePro Corp. is a wireless technology and broadband telecommunications company based in Bethesda, MD, with operations in Hurst, Houston, Dallas and Beaumont, TX; Coshocton, OH; Kansas City, KS; Janesville, WI; Detroit, MI; Shreveport, LA; Tucson, AZ and Stevensville, MD. The company is focused on creating shareholder value by developing innovative wireless technologies, acquiring and growing profitable telecommunications companies utilizing VoIP, broadband and wireless technology and forging strategic alliances with well- positioned companies in complementary product lines and industries. MobilePro has closed acquisitions with cumulative expected 2005 calendar revenue of more than $51 million and positive expected operating earnings. Contact: For more information, contact MobilePro CEO Jay Wright at (301) 315-9040. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 852-2383, e-mail: info@hawkassociates.com |
| MobilePro Corp. (MOBL) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.171 Portfolio %: 27.8% Portfolio % Range: 6.9-26% Next Buy: N/A Next Sell: $.179 (Stop Loss @ $.162) Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
We have tightened up our conditions for this issue yet again, in an attempt to save our capital. Yes, we should have sold at $.18, but sticking around will at least give us a slim chance of some good news or something to get this position going again. We just feel that one more dip towards $.15 may not hold up this time around. We will likely trade in and out of this position with a lot less cash the next time around. We believe our money could be used elsewhere at the moment, and unless we see volume pick back up, this stock seems to be losing momentum. We would definitely recommend holding at least a few shares for the long term, as we still think this could easily be a billion dollar company in a year or two. We would like to see some more acquisitions, however. |
| RS Group of Companies (RSGC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.61 Portfolio %: 6.9% Portfolio % Range: 6.7-7.1% Next Buy: $.49 Next Sell: $.88 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.rsgc.com Closing Price: $.58 Quick Profile RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Contact: RS Group of Companies, Inc. Patti Cooke, 416-391-4223, ext. 4084 info@rsgc.com |
The light volume in this stock does not have us too concerned at the moment. We expected a rather slow trader, and we will remain lightly invested, in case liquidity issues continue. We see this as a slow, but steady play. |
| SoftNet Technology (STTC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.166 Portfolio %: 12.9% Portfolio % Range: 6.4-14.3% Next Buy: .091 Next Sell: $.25 Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.softnettechnology.com Closing Price: $.145 Quick Profile Softnet Technology Corporation recently acquired WholesaleByUs, LLC. In the short existence of one year, WBU has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium. WBU designed a business model that allows the company to integrate with other Internet sellers programs as well as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest shipping time possible. Contact: SoftNet Technology James Farinella, 866-898-4842/908-204-9911 www.softnettechnology.com |
We will sit tight with this position for at least a little while. Without news for a while, another press release with yet another upward revision to their sales forecasts could see some buying. We believe that waiting a bit longer between these releases is a good idea. As we have said, the icing on the cake would be an upward revision to their product line as well. It is important to understand the numbers they are talking about, and growth rates. Making that kind of money online starting out is quite impressive. Their may be no limit to their potential as well, we will have to sit tight, and are currently invested about as heavily as we would like to be, and as our conditions indicate, will need to see a much bigger pullback before adding any new shares to the portfolio. |
Daily Tip Partial fills can be a frustrating part of trying to manage your own stock portfolio. The worst part is to see only 5000 shares of a much larger order being filled and watch the stock run away on you. If this happens do not pull the rest of you order and chase it. That is exactly what they want you to do. Sit tight and wait for it to come back down. If it doesn't you've still made a profit and if it does you get that price again with no extra commission. Try not to be to concerned about the extra cost, however, if the stock appears to be weaker than when you bought it. Be prepared to pull your order if you see the price barreling down quicker than the last time. Then you'll be happy you only got 5000 shares on your first try. Enjoy Your Trading Day, Penny Stocks Daily |
| December 7, 2004 Good Morning, Both Major exchanges finished the day near the unchanged mark yesterday after a little bit of choppy trading. Volume was on the light side, as traders have not had much news to go on over the past few days. Futures look slightly positive today and have been holding steady all morning. Productivity numbers were well below consensus, but for now, the markets have not reacted. We will be interested to see how Alan Greenspan and the FED react to this number, as productivity has been their saving grace as a reason to continue these rate hikes. We realize that they will probably need to see some more data over the next few months, but without productivity, they really have nothing else to go on. Right now the markets do not have much left to go on as well, other than seasonality, and a volatile oil price, which is now close to 50% below its all time inflation adjusted high. Given how the markets have behaved historically this time of year, and adding more weight to the last few years, one should expect stocks to continue this rally until late January, or early February. We have not seen the same kind of trading this time around, however, and would expect that stocks will be hard pressed to rally beyond the end of this year. We will be looking for a nice big pullback early next year, and will look to pick up shares of the QQQ or other ETF's as we would expect a substantial percentage swing. After we see how well the gold ETF does, we may consider that as well. Micro Cap View We saw huge volume on the OTC BB yet again, with three issues trading below $.50 did well over 1000 trades. Price action was weak, however, and after an early morning run, most of the more heavily traded stocks pulled back below where they started. 60 thousand trades over all for this market is pretty much new territory, as we have been stuck in the 40-50 thousand range for some time, although we did see a few days like this last year around this time. We will look for that number to hold steady going into next year and we could have a substantially more liquid market to trade in. New Initiatives and Recent Developments We are watching several issues to add to our portfolio, but first we have a few issues we are currently in that need some attention. We have tightened our conditions yet again for GZFX and would expect that issue to be gone from the portfolio sometime soon. We also are getting very close to disposing of MOBL for now, although will definitely come back at some point. We have adjusted our conditions for that issue as well. As for MSSI, we will look to get out completely on the next pop, perhaps as early as the low $.06's in the very near future, but for now, lets give this a little bit of time as we feel their is a substantially high probability of one more leg up. Our two lightly traded issues that we have been holding remain in tact, and we would expect to see the support for both of these issues continue. Neither of these issues has broken out yet on excessive volume, and we will need to remain patient, as we feel a little bit more momentum could easily send these stocks on a nice solid run, but we may have to stick around for a while. We are pleased with the performance of most of our outside the portfolio stocks, but are waiting for the right moment to add one or two, perhaps as early as this week. All of these picks from the last few weeks, we believe are still in play, and will be for some time to come. |
| The Portfolio |
| Gameznflix (GZFX) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.0223 Portfolio %: 13.3% Portfolio % Range: 6.6-14% Next Buy: N/A Next Sell: $.0225 (Stop Loss @ $.018) Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.pghi.biz www.gameznflix.com www.veegeez.com Closing Price: $.0205 Quick Profile GameZnFlix is a company that offers video games/DVD movies rentals or purchase on the Internet with access to over about 28,000 games and movie titles. Beginning at $17.25 a month subscribers can rent a combination of both video games and/or DVD movies with no late fees or due dates or members can purchase video games and/or DVD movie titles at a membership discount. Contact: GameZnFlix Inc. Corporate offices (888) 542-6817 |
We have tightened our buy and sell conditions up for this issue yet again, and expect to dispose of it very shortly. We would not mind getting out at a break even point, and those with lighter risk tolerances will be advised to act sooner rather than later. With such a large float, the lower the price gets, the harder and harder it will be for this position to get going again. From a business standpoint, and if they want to grow as a company for years to come, we would suggest a reverse split now, before they get to the sub penny land. We like their idea, and see no reason why they cannot compete with NetFlix in the coming years. This is definitely a stock we will keep an eye on. |
| MobilePro Corp. (MOBL) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.171 Portfolio %: 29.5% Portfolio % Range: 6.9-26% Next Buy: N/A Next Sell: $.189 (Stop Loss @ $.15) Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.mobileprocorp.com Closing Price: $.184 Quick Profile MobilePro Corp. is a wireless technology and broadband telecommunications company based in Bethesda, MD, with operations in Hurst, Houston, Dallas and Beaumont, TX; Coshocton, OH; Kansas City, KS; Janesville, WI; Detroit, MI; Shreveport, LA; Tucson, AZ and Stevensville, MD. The company is focused on creating shareholder value by developing innovative wireless technologies, acquiring and growing profitable telecommunications companies utilizing VoIP, broadband and wireless technology and forging strategic alliances with well- positioned companies in complementary product lines and industries. MobilePro has closed acquisitions with cumulative expected 2005 calendar revenue of more than $51 million and positive expected operating earnings. Contact: For more information, contact MobilePro CEO Jay Wright at (301) 315-9040. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 852-2383, e-mail: info@hawkassociates.com |
We have tightened our conditions for this position, although we do not believe they will be met today. They could be however, but we have not seen the volatility we are used to in this position for a week or so. Volume is tailing off considerably, and we simply believe that being as heavily invested as we are at the moment is wasting our resources, which we could spread around among a few other stocks at the moment. Ideally, we would like to get out completely soon with a tidy profit, and then buy back a little bit lower with only 7% of the portfolio, and go from there. |
| MSSI-TeleScience International, Inc. (MSSI) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.055 Portfolio %: 17% Portfolio % Range: 4-20% Next Buy: N/A Next Sell: $.08 (Stop Loss at $.05) Quick Glance PSD Rating: 6 (1= close to next buy, 10= close to next sell) |
| www.telescience.com Closing Price: $.057 Quick Profile In operation since 1992, MSSI-TeleScience International, Inc. is a provider of long-term medical personnel, homeland security and technology services to federal, state and local government agencies and to the private sector. The company's Medical Services Division has operations in 22 states servicing hospital and medical facilities with a complete range of medical staff, including doctors, nurses and technicians. The company holds multiple long-term contracts, including those with the U.S. Army, the U.S. Department of Health and Human Services and the state of California. The company's Technology Division provides systems integration and information technology services to the federal government, as well as emergency equipment, decontamination products, vehicles and supplies to state and local governments. The company has been named as a participant in a $1 billion IDIQ (Indefinite Delivery Indefinite Quantity) contract with the Commonwealth of Pennsylvania for homeland security equipment.MSSI-TeleScience International currently has over 200 employees and continues to grow its staff and contracts. Contact: 1-800-811-9499 x131 e-mail: investmentrelations@telescience.com |
We will likely hold on to this position for just a little bit longer, but have included as top loss very close to our current break even point, although we have already taken some nice profits along the way. We simply do not want to turn this stock into a losing position by keeping a tight grip, just because it has been good to us in the past. Nevertheless, we fell MSSi may have one more leg up, and perhaps a large contract under their sleeves. Right now it appears to valued rather low, and holding at least a few shares for the long term may be a wise idea. Our stop loss may be hit today, in which case we will look to possibly buy back at a lower price. If we continue to see this tail off in volume as the days wear on, we may not be as interested in the future. |
| RS Group of Companies (RSGC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.61 Portfolio %: 6.9% Portfolio % Range: 6.7-7.1% Next Buy: $.49 Next Sell: $.88 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.rsgc.com Closing Price: $.58 Quick Profile RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Contact: RS Group of Companies, Inc. Patti Cooke, 416-391-4223, ext. 4084 info@rsgc.com |
This stock remains solid, as do a lot of issues in this price range. The slow trading of this issue and solid price support allows us to keep more attention elsewhere. We are not expecting news anytime soon, although it would be nice, and are simply looking at a value play, and possible run up into another earnings positive quarter, and possible year end earnings which we believe will give us a very nice P/E basis. |
| SoftNet Technology (STTC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.166 Portfolio %: 12.9% Portfolio % Range: 6.4-14.3% Next Buy: .091 Next Sell: $.25 Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.softnettechnology.com Closing Price: $.151 Quick Profile Softnet Technology Corporation recently acquired WholesaleByUs, LLC. In the short existence of one year, WBU has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium. WBU designed a business model that allows the company to integrate with other Internet sellers programs as well as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest shipping time possible. Contact: SoftNet Technology James Farinella, 866-898-4842/908-204-9911 www.softnettechnology.com |
This stock is not quite as long term for us as RSGC, but we will look to hold through some more press releases, and see if we can decipher exactly what is happening. We expect this issue to jump to a quarter sometime soon, and we will look to perhaps take half of the position off the table. The recent action does not have us worried, and although obvious, the insider buying levels have provided support for each leg up, and the obviousness of this is what seems to be making it work. If we dip a little bit lower, for an extended period of time, we will likely discuss a stop loss. Right now we are weighted about as heavily as we would like to be. |
Daily Tip Remember that NASDAQ Market Makers like to keep a certain amount of shares of inventory as they legally manipulate stock prices. Try doing this for a week or so with OTC BB issues: Keep a running tally of which market makers where on the bid and ask when orders were filled at the bid or ask. Start with a very lightly traded issue to make it simple. Assume that all trade going through at the ask where bought from the market makers on the ask and split up evenly. Also assume trades going through on the bid were sold to the MM's equally on the bid. Discard trades going through in the middle. After a week or so you will begin to be able to determine which MM's are sitting on more shares than normal or are low and need to get more. Enjoy Your Trading Day, Penny Stocks Daily |
| December 6, 2004 Good Morning, Stocks may be stuck close to the top of this three year trading range, but one thing we have seen improve substantially in the past few weeks is volume. The NASDAQ has done over 2 billion shares during most of the last 20 or so sessions. NYSE and AMEX volume have been hot as well. After Fridays weak jobs report, subsequent decline on the S&P and Dow, and upbeat forecast from Intel, and subsequent rally in the NASDAQ, stocks converged mid morning to around the unchanged mark. Both of these plays are dead, so what is left? Although Oil has rallied a bit on fears that OPEC will slow production to stop the decline in Crude futures, this seems like a sign that Oil will continue lower. Call it reverse psychology, or whatever you want, but the fact is, OPEC will do whatever they can to save what ever respect remains for their acronym. The Dollar continues lower against all currencies, and the current administrations stance is that they do not need to do anything to curb this decline, because a weak dollar is good for our exports. We have discussed this before, but feel this position is extremely dangerous, even looking 6 months out. With Europe's economy falling into, not just a recession, but possible depression, Asia slowing dramatically, and our own economy faltering, our cheap exports will quickly get expensive, not only for everyone else, but for us to produce. Stop the rate hikes, buy back as many green backs as possible, look at alternative energy, take back the tax cuts, and maybe, just maybe we can see what this great countries assets are really worth. Futures remain mixed this morning. Micro Cap View Volume came back a little bit on Friday for the OTC BB, especially with respect to issues trading below a buck. Overall, gainers beat decliners, and we are happy to see that after the last couple of quarters, there are a lot less unlisted stocks with the privilege of be quoted on the OTC BB. All they have to do is file their reports on time with the SEC, they even get excessively long extensions. The good news is that this obviously weeds out the useless companies. With this drop off in securities quoted on the OTC BB, we have seen dollar volume fall back only modestly, the number of total transactions is up and the number of Market Makers per stock is up as well. This all bodes well for the future of the OTC BB becoming more of a junior NASDAQ, so to speak, as we have seen a dramatic improvement in liquidity, and the quality of these companies over the last six months. Right now, Steel & Iron, Personal Computers, Resorts & Casinos, Shipping, Meat Products, Home Improvement Stores, Security Software & Svcs, Oil & Gas Equipment Svcs, Oil & Gas Refining Mrktg, Building Matrls and Gold remain hot. New Initiatives and Recent Developments We have no new buys planned for today. We will let todays action determine which stock(S) in our "Outside the Portfolio" section we may add next. We would like to keep a close eye on the positions we are currently in, as we may get the chance to take profits in either MOBL or MSSI, may have to dispose of GZFX, and would like to see a little bit of volume come in to RGSC and STTC. |
| The Portfolio |
| Gameznflix (GZFX) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.0223 Portfolio %: 13.2% Portfolio % Range: 6.6-14% Next Buy: N/A Next Sell: $.023 (Stop Loss @ $.0175) Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.pghi.biz www.gameznflix.com www.veegeez.com Closing Price: $.02 Quick Profile GameZnFlix is a company that offers video games/DVD movies rentals or purchase on the Internet with access to over about 28,000 games and movie titles. Beginning at $17.25 a month subscribers can rent a combination of both video games and/or DVD movies with no late fees or due dates or members can purchase video games and/or DVD movie titles at a membership discount. Contact: GameZnFlix Inc. Corporate offices (888) 542-6817 |
We are still looking to possible dispose of this entire position today, as we feel the risk level of this stock is increasing daily, especially with so many shares outstanding. We have lowered our next sell point to where we feel there is a reasonable chance of getting out just above break even. |
| MobilePro Corp. (MOBL) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Chat Portfolio Overview Our Average Price: $.171 Portfolio %: 29% Portfolio % Range: 6.9-26% Next Buy: N/A Next Sell: $.194 (Stop Loss @ $.14) Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.mobileprocorp.com Closing Price: $.18 Quick Profile MobilePro Corp. is a wireless technology and broadband telecommunications company based in Bethesda, MD, with operations in Hurst, Houston, Dallas and Beaumont, TX; Coshocton, OH; Kansas City, KS; Janesville, WI; Detroit, MI; Shreveport, LA; Tucson, AZ and Stevensville, MD. The company is focused on creating shareholder value by developing innovative wireless technologies, acquiring and growing profitable telecommunications companies utilizing VoIP, broadband and wireless technology and forging strategic alliances with well- positioned companies in complementary product lines and industries. MobilePro has closed acquisitions with cumulative expected 2005 calendar revenue of more than $51 million and positive expected operating earnings. Contact: For more information, contact MobilePro CEO Jay Wright at (301) 315-9040. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 852-2383, e-mail: info@hawkassociates.com |
MOBL at east seems to have some positive bias behind it, and should this mini run up continue, we may meet our sell point today or later this week, where we will take the entire position off the table for a reasonable gain, given how heavily invested we are in this position at the moment. We still remain very interested in this company, and will probably come back to it quickly, perhaps somewhere in the $.15's, or even higher than where we sold should the right conditions exist, although probably not as heavily as we have been keeping this position weighted. |
| www.telescience.com Closing Price: $.061 Quick Profile In operation since 1992, MSSI-TeleScience International, Inc. is a provider of long-term medical personnel, homeland security and technology services to federal, state and local government agencies and to the private sector. The company's Medical Services Division has operations in 22 states servicing hospital and medical facilities with a complete range of medical staff, including doctors, nurses and technicians. The company holds multiple long-term contracts, including those with the U.S. Army, the U.S. Department of Health and Human Services and the state of California. The company's Technology Division provides systems integration and information technology services to the federal government, as well as emergency equipment, decontamination products, vehicles and supplies to state and local governments. The company has been named as a participant in a $1 billion IDIQ (Indefinite Delivery Indefinite Quantity) contract with the Commonwealth of Pennsylvania for homeland security equipment.MSSI-TeleScience International currently has over 200 employees and continues to grow its staff and contracts. Contact: 1-800-811-9499 x131 e-mail: investmentrelations@telescience.com |
| MSSI-TeleScience International, Inc. (MSSI) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.055 Portfolio %: 17.6% Portfolio % Range: 4-20% Next Buy: N/A Next Sell: $.098 Quick Glance PSD Rating: 6 (1= close to next buy, 10= close to next sell) |
Pretty decent news today may send this stock higher, although we are not getting two excited because an older intent to acquire has been squashed. Overall, this press release is good given the fact that they may now be able to enter the private health care arena, but we will have to see how they plan to finance these acquisitions. We have adjusted our profit target a little bit higher as we feel there is still a chance of this stock breaking above a dime sometime soon. |
| RS Group of Companies (RSGC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.61 Portfolio %: 6.9% Portfolio % Range: 6.7-7.1% Next Buy: $.49 Next Sell: $.88 Quick Glance PSD Rating: 4 (1= close to next buy, 10= close to next sell) |
| www.rsgc.com Closing Price: $.58 Quick Profile RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November 2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution, RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential property developers and is being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Contact: RS Group of Companies, Inc. Patti Cooke, 416-391-4223, ext. 4084 info@rsgc.com |
We plan on holding this position for a while, as things stand now. Although volume has been light, this stock remains in play, and we do not believe that the full potential for a rally has even come close to materializing. Once we see all of thier Market Makers get involved on a day with plenty of activity, we believe the sky is the limit for this lightly floated, earnings positive, sub dollar position. |
| SoftNet Technology (STTC) Links Quick Snapshot Volume and Price Studies Charts SEC Filings and Insider Transactions Time and Sales Delayed Level II (Enter Symbol) Press Releases and Coverage News Search Financials Portfolio Overview Our Average Price: $.166 Portfolio %: 14.1% Portfolio % Range: 6.4-14.3% Next Buy: .091 Next Sell: $.25 Quick Glance PSD Rating: 5 (1= close to next buy, 10= close to next sell) |
| www.softnettechnology.com Closing Price: $.168 Quick Profile Softnet Technology Corporation recently acquired WholesaleByUs, LLC. In the short existence of one year, WBU has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium. WBU designed a business model that allows the company to integrate with other Internet sellers programs as well as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest shipping time possible. Contact: SoftNet Technology James Farinella, 866-898-4842/908-204-9911 www.softnettechnology.com |
We will look for his stock to break out above $.18, and we will feel pretty good about the chart patterns that we have seen developing. You can also bet that fabulous press releases will be forthcoming. As we have been saying, we would love to here that they have increased their product line again, as that seems to be what is driving these sales. |
Daily Tip We have talked about the importance of diversification in investing how it relates to penny stocks before and would like to address a few interesting points. If you put all of your money into one penny stock, you have the chance of gaining 1000+% and an even bigger chance of losing 99+%. By investing in a diverse group of penny stocks, the volatility of your portfolio is reduced to an approximate 25% swing in either direction. Making the right moves will allow you to add gains over time, and may help your overall stock portfolio outperform the S&P by a substantial margin. If you are looking to make a million dollars for one hour of work, than we recommend playing the lottery. Enjoy Your Trading Day, Penny Stocks Daily |