Hot MOMO Plays and Trading Morsels

[Lone Wolf]

SD $10K Challenge Pick: PUBM

3000 Shares @ .16

Everyone loves a good company poised for growth correct? Isn’t that why recent popular plays like SMKY and BCCI did so well. Their stories are about developing a business in markets that others have done extremely well in. Now I for one would love to have grabbed some Smokey Markets when it was trading sub-penny….or some BCCI when the company just released news about their first Texas Franchise opening.

Well, I have what looks to be a similarly promising ‘unfolding’ growth story that I think will garner some good interest as awareness of this one spreads. Not to tease folks too long, but recall CoinStar and how no one expected their .99 cents DVD rentals to blow away their earnings. Blockbuster certainly didn’t…neither did Netflix. It was new model for delivering movies. The big studios also loved it was it provided some leverage in their dealings with the 800-pound gorilla (Netflix), if another viable competitor can survive and thrive in this niche market. Now, with Coin Star currently sporting a $1.3 bil market cap, wouldn’t it have been nice to grab some when they were just unfolding their DVD-rental Kiosk product? I say this as I recall a former supervisor saying ‘It’s okay to by a copy cat…just make sure you copy the right cat.’ So I'm hoping that I will be doing just that with this pick.

Public Media Works, Inc. Ticker: PUBM

About Public Media Works

Public Media Works, Inc. (OTCBB: PUBM) is in the process of rolling out a network of conveniently located self-service kiosks which vend Blu-Ray Discs and DVDs for rental in retail locations under the trade name "Spot. The difference™". Signifi Solutions, Inc. of Toronto, Canada, manufactures, operates, and maintains a network of kiosk "Stores" that feature the highest-quality, fastest, and most dependable access to home entertainment media.

Web-Site: www.spotrentals.com

The company is in the midst of shifting focus from developing film and media to DVD rental kiosks. It currently has 25 kiosks located near the Las Angeles area. These 25 were ‘test market’ kiosks set up with a beta version of it’s proprietary software / equipment. Well, seems like the company is ready to move forward. I’ll try not to get too into the details, but will defer you to recent news instead:
http://ih.advfn.com/p.php?pid=nmona&article=47729727
http://ih.advfn.com/p.php?pid=nmona&article=48510868

A few DD highlights:
* Expanding into new geographic areas

*Competitive advantages (same price DVD and Blue Ray rentals, lower pricing, no-wait return slot)

*Timing: Netflix just raised prices by 60% on rentals-by-mail packages; Blockbuster and CoinStar anticipating price hikes as well. PUBM’s pricing undercutting competition

*$20,236 in revs generated in between Mid-March and May 31st from kiosk operations

*company just retained a PR firm and has hired staff in anticipation of continued growth

*Tier recently upgraded to OTCQB (I believe in early July)

Share Structure:
AS just raised from 100mil to 125mil (raised last month- June).
OS= 35,165,294
Float= 21.89 mil (though may be higher currently due to financing efforts)

The volume may be the fruits of this event: http://ih.advfn.com/p.php?pid=nmona&article=47748193 . My guess is that deep pockets (i.e. funds) might be starting to buy as Thursday and Friday were met with a notable ratcheting up of volume. Not coincidental I’m sure, it follows Wednesday’s news of company entering new markets.

As you can see, there is certainly much to like here. What I’ll be keeping a ‘watchful eye’ on is how this trades with all the recent volume. Currently there’s strong interest in those 15’s. It looked like 15 was a triple bottom, but looks like 13's might be doable watching the tape today. I don't want to try and time a bottom perfectly as any news might cause this to get away from me. I can always average down a bit if needed, so I'm comfortable with a small entry here.

If I see pps can’t seem to gain good traction despite continued good volume, I’ll know it’s those warrants still working their way into the marketplace (convertible between .20 and .40).

Trade it well HMPers.