Sept.13:OTC-Journal:Plandai-Just The Facts Please
If nothing else, I hope you're learning by now the media attacks that have effected investor perception on Nuvilex and Plandai are nothing but rather transparent efforts to put doubt in your mind and scare you into selling to a short seller who is also scared he (or she) is going to lose money as the stock goes up. The more persistent the attacks, the shorter they are.
So, it was with great amusement that I read Alan Brochstein's Seeking Alpha hatchet job piece with his 13 red flags. Long on implication, short on conclusive fact.
#9 is my personal favorite- Paid Research- wherein yours truly is prominently mentioned as having received $10,000 and 100,000 restricted shares about 18 months ago for covering PLPL. Is that a negative? Consider I received the fee for 6 months of coverage- the obligation expired over a year ago. Today, I'm still holding the stock certificate- I could have filed to sell and made $80,000 if I had sold at the top- yet, I chose not to. I choose to continue to cover it with no obligation whatsoever. Negative or positive? You decide.
There are about 40,000 microcap companies all competing for the attention of about 20 million investors. The micro cap brokerage firms are gone, so there is no research available on these companies if they don't sponsor it in some way. Let's get real.
Make no mistake- Plandai (PLPL) is a risky stock. They all are. The company has not commenced sales, which is why it's $.50 and offers a lot of upside.
Now, let's go straight to the facts so you can make your own informed decision about this company.
Plandai (PLPL) is a unique combination of proprietary technology and opportunity. The proprietary technology is their ability to extract the most "bio-availble" anti-oxidant nutrients from live plant material.
The opportunity was the need of the South African government to create jobs. Hence, PLPL's low cost loan of $13 million from the South African land bank to build a farm with a processing facility for green tea. Those are facts.
The reason I stopped covering PLPL for a year was delays in getting the plantation and factory up and running. It took an extra 9 months beyond the anticipated funding date for the company to obtain the funding, but it's full steam ahead now.
The process of restoring the plantation required repair of internal roads and bridges, construction of housing for 300 workers, and stripping the original buildings of all plumbing and electrical.
As of September 1st, the construction part of the process was completed, and the processing equipment was on site and being moved into position.
The seasonally dormant period for tea in South Africa is near the end, and they can now start growing and harvesting every 30 days.
Over the next 3 months PLPL will producing its Phytophare Catechin Complex- this is the green tea extract created with their unique proprietary technology.
At the same time, PLPL is beginning clinical trials and human studies, commissioned to a 3rd party impartial study group, to prove Phtyophare is in fact a highly effective, highly potent, and bio available anti-oxidant that can be used to treat high blood pressure, high cholesterol, heart disease, obesity, and a myriad of other conditions. Studies to determine Phytophare efficacy as a potential therapy for malaria will get underway as well.
PLPL expects to start generating its first major revenue stream in January of 2014, which is only a few months away.
It's been my experience that stocks behave today based on where the market sees the company 6 months from now. Hence my coverage is picking up with their construction completed, equipment being installed, the first tea crop growing, and human clinical trials and studies starting.
Those are the facts. You are now positioned to make your own determination if you like this speculative situation.
I for one don't want to miss this stock when clinical results are announced, and perhaps they prove their compound is a highly effective natural treatment for obesity, malaria, or any of the aforementioned afflictions. I'm willing to take that risk.
Technically, the chart on PLPL looks just fine despite efforts to sabotage the uptrend.
When I look at this chart, I see a stock that appreciated from under $.10 in April to hit $.80 in August. That's a 900% gain in 6 months.
Since making the high, the stock has fallen back 37.5% in conjunction with the short media attack and settled back into its summer trading range. Again- this is pretty normal behavior for a stock in a long term uptrend.
PLPL continues trading well above the 200 DMA ($.2905) and just today broke back above its 50 DMA (about $.54). Both long term and short term uptrend are intact.
One last comment on Sponsored Research. Try to stay away from over hyped, over promoted stocks that come out of nowhere and start trading many millions of shares everyday. These types of campaigns tend to last about 30 days, and the stocks always crash to nearly zero.
You want to be in microcap situations where there's repeated coverage that goes on for many months. This is not a guarantee the company will be successful, but it does demonstrate a long term commitment towards a favorable outcome. Sponsored research is a reality of this time in the microcap sector.
Try to pick the ones that make sense. You can now make up your own mind on Plandai (PLPL).
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