Comerton Corp. (COCM)

[jimmybob]

SPHE (.06) Spearhead, Ltd., Inc. DD Compilation Post

READ BELOW TO FIND OUT WHAT ALL THE BUZZ IS ABOUT!!!

Make sure you mark the board: http://investorshub.advfn.com/boards/board.aspx?board_id=15628




I am sure you are wondering why SPHE was up 700% yesterday, and breakout volume today. Well below you will see why. This is not all the DD I have found, and I am sure there is more to be dug by others. But here is most of what I have found. There is nothing more exciting then digging up info on a Pink Sheets company, and continuing to find Gold Nuggets. And SPHE surely fits the bill.


In February 2009, SPHE began updating PinkSheets… this is how it was brought to my attention. I have never seen a pinksheets company with the amount of disclosure SPHE has. Just take a look for yourself.
http://pinksheets.com/pink/quote/quote.jsp?symbol=sphe#getFilings


Upon looking at the filings you will see that SPHE was trading on the London Stock Exchange under the Symbol SPHE.l at $10!( http://finance.yahoo.com/q?s=sphe.l) I am not a great currency conversion guy, but that isn’t .08! Heck that’s 125 bagger from the current SPHE.PK level!


As of Feb 2009, it decided to move from London to the Pinksheets, where I am sure it is trying to get more exposure: http://pinksheets.com/pink/quote/quote.jsp?symbol=sphe#getNews
The company continued to update it’s filings and achieved a fully-reporting status from Pinksheets in March. The process of getting it’s current audited filings up-to-date caused it to lose it’s status temporarily as we are awaiting updated financials for 2008: http://pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=20186

I am sure any updated of it’s financials will send this orbital(from wherever it may be)


Now for the Meat.

As of Year end 2007, the company has over $15 million in revenues. Pretty huge. If you look at the companies investor page you will see something that blows your mind:



Now one would normally be pretty skeptical when a PINKSHEET company claims to be aiming for 1 billion in revenues. And I was pretty skeptical myself, but thought $15 million in revenues is very good for any company trading under $1, and at .08 it’s a steal. I still thought SPHE was a great buy here. Then I started digging.

The Economy is tough, and our country is headed towards 10%+ in unemployment. Yet SPHE has Job openings for 55 Positions posted as of Jun 2nd and June 15 2009????!!! You got to be kidding me! This is no upstart company and has been around since 2004(to include some acquisitions). But 55 positions, and not the blue collar type. HR positions, IT Positions…ect. Below is the link to the job openings and the images:

http://www.spearheadlimited.ca/Careers/all_positions.asp



HUGE IMHO!!!!

So why is SPHE hiring on top of it’s staff that is already bringing in over $15 million in revenues a year. Well here is why… they have landed MILLIONS in contracts from the Canadian Govt for IT work and consulting. Now how many times have you seen a PR from a PinkSheet company saying they have landed a contract/govt contract for millions of dollars? I have seen it a few times. Well the difference here is we have FACT. Right on the Canadian Govt Website! HUGE IMHO!! And it’s 5 pages long!!!!
Link: http://www.disclosed.ca/?keyword=SPEARHEAD+MANAGEMENT+CANADA%3C%2Fb%3E


Over 5 million dollars in contracts ! And this is one of the companies clients…one!

There are many different ways to get a companies valuation and a value on the PPS. With SPHE, until they release the updated financials for 2008, I use the Market Cap.


As of todays close SPHE has a market cap of 2.48 million. Based on the revenues from 2007, SPHE should be at least at a $15 million market cap, which would give us a PPS of .40!. If you use some trends from Big Boards like Google it is MUCH HIGHER. Google did 16 billion in revenues for 2008, yet has a market cap of $128 Billion! That’s almost 8 times its revenues… Using the same formula one could give an estimate PPS of SPHE of $3.20!!!. And with these new contracts and SPHE’s goal of being a Billion Dollar company, one could only guess what the True PPS valuation should be… you can be sure it’s not anywhere near today’s close of .08…

SPHE trades very thin. It has 23 million shares in the float with a 41 million O/S. The Share structure has remained the same for at least 5 years, and there is zero dilution. PinkSheets Lists 140 shareholders, which leads me to believe there may be many stakeholders holding here. The true float may be much much smaller.

Insiders and institutions hold 28 million shares of the O/S! That’s more than Half!


Tight Share structure!

So SPHE was at .80 in 2005. I added all the trading volume since that time to get us to .01 and there has been only 2,421,382 shares traded. BUYS and SELLS. I would guess 200k gets us to .25. 300k get us to .50, and another 300k gets us to .80.
Based on the Monthly chart, there is really little resistance for .50-.80 test.




That is all I have to share so far. There is tons more DD out there, and I will continue to update what I have.
In Summary, we have a company that’s shares has laid dormant while it has continued to grow revenues and hire employees. The company has finally started to begin updating the investment community via the filings on pink sheets, and the PPS has started to reflect the it’s huge potential.
I really feel .50 comes here soon.

Some thoughts on Tuesday's trading:

OK, So we traded over 800k today, and one would think we should be at .25+ already... we'll that wasnt the case and we actually closed in the red.

How is that possible??? I am not quite sure. Obviously from trading Pinks for Many years, one would think dilution. But trading action was dormant for many years with sporadic trading. The company does not have any IR program...ect. Heck, they dont need it. And if you check the filings for as many years as they go back, you will see the float and O/S have remained relatively unchanged. So that rules out dilution.

Old shareholder? Pinksheets does show 140 shareholders from the update in February. Maybe a long shareholder woke up this morning to a 700% gain and told his broker to get out? It is quite possible.

MM's waking up? DOMS and HDSN did not participate much in the first day of the run... this allowed the ask to move up much higher then it would have had the other market makers been doing their jobs... making a market. Today they decided to walk the ask down on the immense buying pressure to accurately reflect the market?? Tough one, but could be a possibility based on the buys and Sells.

Just take a look at the numbers folks: 600k in buys 230k in sells. The numbers dont lie:




Now we closed red today even among the intense buying pressure... I think there is a silver lining.

Today allowed those who wouldnt have added here because they didnt want to chase, the opportunity to join the ride.

More people on the Bus equals more people to help spread this story.

More people spreading the story equals more buying pressure... so on and so forth...

Like I have said in the prior posts, I still feel this is one of the Monster plays... a possible life changer ...