Wee-Cig International Corp (WCIG)

[$toney]

DD from xtremepicks on LWSP

LWSP - the technicals and fundamentals of it all!

We alerted our members on LWSP last week as we saw mega potential of LWSP in the emerging wine consumption market of China. Penetrating the market of distribution Chine is challenging, however, LWSP solidified a 15 year distribution rights directly into China - that is a huge step to take advantage of the growing Chinese Market.



Before we get to the solid fundamentals of LWSP, we looks at the strong technical aspects as recent trading activity of higher volumes and higher prices alerted us that LWSP has something in the works and we expect we will know soon enough.

The wires have been quiet since January, but we believe LWSP continues to work full steam in the background.



We look towards the weekly chart of LWSP and some key indicators - overall the picture shows that we are emerging into a mega bullish trend as indicators show a shift from a low volume down trend.

1) Price appreciation over the last week of trading is quite obvious, after touching and bottoming out near $0.01, price made a strong bounce and closed daily higher where we are now at $0.0495. This is also the first time closing above the 50day moving average with clear skies ahead.

2) Volumes since June has been low, however what we now see is a renewed interest in absence of news Volumes are several times higher than the average over the last few days indicating that there's major accumulation and we believe it is because of some solid news on the horizon.

3) A key technical indicator we look at closely is the On Balance Vol and change in direction. You can see the sharp uptick on the bottom line of the graph after a long flat line preceding it. This is a very bullish indicator that the trend has reverse and is trending upward.

4) Another confirmation of a reverse trend is the parabolic SAR as represented as dots on the graph. When the dots drop below the current prices, this confirms the reversal to a bullish trend.


We can observe many different technical indicators to tell us the sentiment of investors direction, but looking at these key indicators can give us a strong picture that we are just starting on a major bullish run.

Technicals are just half of the equation, Fundamentals will provide additional confirmation and sustainability on the bullish trend.

LWSP already shows that fundamentals are strong - we look to an older press release that started adding significant value to LWSP:

Legacy Acquires License to Sell Wine and Spirits in China

"Legacy Wine and Spirits International Ltd. reports that it has signed an agreement with Legacy Wine and Spirits Merchants Ltd ("Legacy Merchants"), a Hong Kong-based Company, for the rights to a fifteen (15) year general license to import, bottle, blend, manufacture and distribute wine and spirits in China."

Cracking the Chinese Market is difficult on its own, but LWSP had already pass this hurdle

"Everyone looks hungrily at China with its growing economy and expanding consumer base. But it is hard to break in."

http://wineeconomist.com/2010/05/23/cracking-the-chinese-wine-market/

So we know LWSP has solid license rights to import into China, but what about the Chinese market? Is it big enough?

Apparently that is an understatement!

China is a large emerging country with an amazing potential of wine consumption. The influence of western eating, drinking habits and rising average incomes have been key factors in the fast development of wine market in China. China has stepped into one of the ten largest wine consumption market in the world. The value of the market has more than doubled over the last five years.

Starting in January 2005, tariffs on imported bottled wines fell from 43% to 14% bringing price down to more affordable levels.

The annual growth rate of imported wines in China is up to 13-15%.

Wine is now becoming the fashionable drink for the wealthy younger generations in China’s cities, and the "badge" drink for China’s wealthiest elite. With about 600 million young Chinese exploring new types of alcoholic drinks, the potential market for sales of wine in the future is so great without any doubt.

Growth Rate of Wine Consumption around the world



VINEXPO market study in 2006 shows that until 2010, the three countries with the strongest wine consumption growth momentum are: China (+35.91%), Russia (+29.97%), the United States (+18.69%). And according to latest study of VINEXPO/IWSR, China’s wine consumption is estimated to be up to at least 828,000,000 liters in 2011.

LWSP is in the right market at the right time with the building blocks ready to take advantage of this monster market in the emerging wine industry of China.

LWSP trading at $0.0495 is seriously undervalued with the potential this market has to offer - $0.20 to $0.30 near term price target is not out of the question.

With a super low float of 28M shares outstanding, these prices are a steal.

We continue to be on high news alert and expect an update very soon judging by the recent stock activity - stay tuned and act quickly - as news hits this will move fast and furious.

Legacy Wine & Spirits International Ltd.
Wine Merchants, Importers, Marketers, Distributors and Store Keepers

Legacy Wine and Spirits International Ltd. (Legacy) is a publicly listed company trading in the United States (OTCBB: LWSP). The Company is in the business of importing bottled wines from around the world for the purpose of wholesale and retail distribution throughout China, in particular through the Company's corporately owned stylish outlet showroom and wine tasting facility.

Legacy offers select wines and spirits from choice regions around the world, initially North America, Italy and France and at a later date, South Africa and South America. Each wine maker Legacy chooses to represent has a unique history, identity and style of their own, yet all are united in the pursuit of superior quality. The Company's selection of wines will help to build a diverse and balanced portfolio that is constantly being refined to offer the best possible products to our customers whether they're retail, wholesale or corporate clients.

The Legacy team is comprised of experienced and knowledgeable individuals from around the globe whom are responsible for:

1. Sourcing unique wineries to supply that special wine to be part of the Legacy collection.

2. Developing marketing channels and educating current and future consumers of our products.

3. The daily operations of the Company's outlet/showroom located in TEDA, Tianjin, a second tier city just outside of Beijing.

As always make sure you do your due diligence on alerts, tweets and stock picks.