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OT: You mean that Nas listed company with over $50 million in cash and 100 million less shares than FASC, military contracts, a proven salable product, and PR's that actually contain $$$$? LOL!
http://finance.yahoo.com/q/h?s=CPST
ctb, tell us who you don't like so we can pick on them and don't offend you. )
Doubloon, my wife reminded me yesterday, the French warned us about Vietnam and warned us about Iraq, maybe we should start listening! LOL!
I think next year is more reasonable for a listing, but they could surprise us if no news is good news!
TRCPA, I bet they wished they checked with me first before throwing any money away! But that's what they all do best! (except for HAL, I'm sure they are giggling at their Zeolite price!)
I doubt my comments affect the pps at all, remember, everyone knows I couldn't recognize "potential" if I stuck my finger in a light socket! LOL!
techisbest, no. But a new "contract" would certainly help in dumping the remaining shares. Do you think they will do the bonus thingy again this year?
Lonestar, CRDS looks like a good turnaround play. I may pick up a few garage-sale-money shares too.
Did MLTO ever complete the 10-SB filing?
"Such filing is to be made with the SEC by the end of June 2005. The Law Firm of Melissa K. Rice, P.A. concentrates in the areas of the representation of small to medium sized companies, and specializes in regulatory compliance with agencies, such as the SEC."
CPST: Federal Energy Bill Provides Significant Economic Benefits to Users of Microturbines
Monday August 8, 9:03 am ET
Is Expected to Boost Capstone Microturbine Sales, CEO Says
CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 8, 2005--The national energy bill passed by the U.S. Congress July 29 provides significant economic benefits for businesses that invest in clean distributed generation technologies -- including microturbines -- according to John R. Tucker, Chief Executive Officer of Capstone Turbine Corporation® (www.microturbine.com; Nasdaq:CPST - News), the world's leading manufacturer of microturbine energy systems.
"The bill contains a 10% tax incentive for businesses to buy and conserve energy with microturbine generators," Tucker said. "It also offers users of advanced microturbine energy systems direct payments from the U.S. Department of Energy for every kilowatt-hour they generate. This policy, and others in the energy bill, will create significant additional economic advantages for customers who invest in microturbines, beyond the every day savings and energy reliability inherent in microturbine technology."
Today at Sandia Laboratories in New Mexico, President Bush is expected to sign the bill into law in a room near the offices of the research center's Distributed Energy Technology Laboratory (DETL) where a Capstone C30 microturbine has been operating since 2002.
The company estimates that the return on investment of a typical Southern California installation of its microturbines would be as little as two years, net of applicable state and the new federal incentives. Payback would be about three years without the federal incentives. For microturbine installations in New York, the company estimates that the return on investment of a typical installation would be reduced from 3 years to 28 months, an improvement of 8 months.
"We are very pleased that the federal energy bill specifically recognizes microturbines as an important part of the nation's proposed policy to create cleaner, more fuel efficient energy," Tucker said. "Of all the alternate energy systems addressed by this bill, Capstone MicroTurbines, with nearly 10,000,000 total fleet runtime operating hours, are the lowest cost, most commercially viable technology available to the growing DG market. We expect the many provisions of the new energy policy to have a very positive impact on Capstone MicroTurbine® sales."
"The new energy bill also recognizes that on-site generation with microturbines is highly energy efficient, utilizing up to 80% of the total energy in natural gas, propane, and other fuels, with the added benefit of being able to utilize fuels that otherwise would simply go to waste and increase air pollution, such as landfill biogas and oilfield flare gases," Tucker said. "The environmental advantage is important because our C60 microturbines produce each kilowatt of energy with far fewer pollutants than competing technologies, including utility power plants, when comparing US EPA test reports."
Other aspects of the bill deemed favorable to the sale of microturbines include a 1.5 cent per kilowatt-hour renewable energy production credit for biogas fueled installations, a requirement that electric utilities offer grid interconnection based on a nationwide standard, as well as other incentive programs to accelerate distributed generation and combined heat and power (CHP).
About Capstone Turbine
Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST - News) is the world's leading producer of low-emission microturbine systems. In 1998, Capstone was the first to offer commercial energy products utilizing microturbine technology, the result of more than ten years of focused research. Capstone Turbine has shipped more than 3,000 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 9.3 million runtime hours of documented operation. An ISO 9001:2000 certified company, Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Milan and Tokyo.
"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
This press release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, with regard to, among other items, expectations of increased business based on proposed legislation. Forward-looking statements may be identified by words such as "expect," "believe" and similar phrases. These statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different. These statements speak only as of the date of this release. Capstone disclaims any obligation to revise these statements hereafter.
Editors:
The EPA emissions data mentioned above compares the 0.15 pounds of NOx emissions per megawatt-hour of a Capstone C60 operating at full output measured in this test report: www.epa.gov/etv/pdfs/vrvs/03_vr_capstone60.pdf with the 20 times higher utility power plant average of 3.0 pounds of NOx emissions per megawatt-hour reported by the EPA's Power Profiler: www.epa.gov/cleanenergy/powerprofiler.htm.
Spec sheets on Capstone MicroTurbine models are at: www.microturbine.com/technology/specsheets.asp
Example case studies are at: www.microturbine.com/onsite
--------------------------------------------------------------------------------
Contact:
Capstone Turbine Corporation
General Media:
Keith Field, 818-407-3615
Investor and Investment Media:
Alice Barsoomian 818-407-3643
China to have strategic oil reserve soon
By Felicia Loo | June 10, 2005
SINGAPORE (Reuters) - China is on track to complete building its first strategic oil reserve storage tanks by August, but Beijing has not indicated when it may start filling them in the face of high oil prices, an industry official said on Friday.
The world's second-largest oil consumer after the United States will finish the crude oil tank farm in Zhenhai, located in the port city of Ningbo in the booming east coast province of Zhejiang, on schedule with plans announced last year, he said.
The 5.2 million-cubic-meter (33 million-barrel) facility will hold about one-third of China's initial planned emergency reserves, the foundation of state efforts to bolster energy security as consumption soars and domestic output plateaued.
"The entire infrastructure in Zhenhai will be completed by August. But prices are so high right now and it is not clear when Beijing will kick off emergency stockpiling activities," the Chinese official told Reuters.
A top Chinese government official said last week that China would build up its emergency stockpile gradually, lessening the impact on global energy prices.
He did not say when Beijing could begin filling the tanks, a move being closely monitored by oil traders fearful that even a modest build will add stress to a taut global crude market that some fear may struggle to meet global demand later this year.
China's oil demand is forecast to rise by almost 8 percent this year to nearly 7 million barrels per day (bpd), half last year's explosive growth rate but still increasing its dependence on foreign crude.
It now imports 40 percent of its oil needs and the growing reliance on imports has moved energy up the political agenda, especially as prices cling above $50 a barrel.
CUSHION
China has also earmarked three other sites for strategic stocks along the eastern seaboard, aiming to build a total of 16.2 million cubic meters (101.9 million barrels) of reserves in the next five years, equivalent to 20 days of consumption.
This would augment the commercial stocks of the country's major refiners and importers, who typically hold 10 to 30 days worth of supplies, and give Beijing some cushion against any unexpected supply outages, particularly from the Middle East.
Industrialised nations highly dependent on crude oil imports, such as Japan and the United States, built up large emergency stockpiles in the mid-1970s, after the Arab oil embargo.
The United States is due to complete filling its Strategic Petroleum Reserve (SPR) to its 700-million-barrel capacity -- stored in salt rock caverns -- in August.
Top Chinese refiner Sinopec has been commissioned to build the tanks in Zhenhai, where its unit Zhenhai Refining & Chemical Co Ltd is based. The 400,000 barrel-per-day (bpd) refinery is the largest in China.
The United States also has a 2-million-barrel reserve of heating oil in its Northeast, but China has no intention of building product stocks as yet, the industry source said.
"Unlike the United States, China will concentrate on strategic crude stockpiling first. There are no plans for products reserves at this point," he said.
The other crude oil tanks will be in Aoshan in Zhejiang, Huangdao in Shandong and Dalian in Liaoning.
The capacity in Aoshan will be similar to Zhenhai, while the other two sites will each boost 30 tankers storing up to 3 million cubic meters of oil.
© Copyright 2005 Reuters. Reuters content is the intellectual property of Reuters or its third-party content providers. Any copying, republication, or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
http://www.boston.com/news/world/asia/articles/2005/06/10/china_to_have_strategic_oil_reserve_soon/
CPST $4.19, Capstone Turbine Corporation engages in the development, manufacture, marketing, and service of microturbine technology solutions for use in stationary distributed power generation applications, such as cogeneration and combined cooling heat and power, resource recovery, power reliability, and remote power. Its principal products include MicroTurbines that are used as generators for hybrid electric vehicle applications, as well as Model C60 integrated combined heat and power systems. The company offers its products to original equipment manufacturers through distributors. It also sells its products directly. The company markets its products in Americas, Asia, Europe, the Middle East, and Africa. Capstone Turbine was organized in 1988 and is headquartered in Chatsworth, California.
Little debt, lots of cash, check their PR's, making sales, a buy at a buck would have been nice! Military contracts:
http://finance.yahoo.com/q/ks?s=CPST
Dang! Have to cover my naked shorts, deliver the certs, and tell my MM buddies to load up! LOL!
Do you think it will be a good surprise or a bad one?
This comment is VERY important to us Tandem holders because we have in-house drilling capability and energy prices will remain strong (and Tandem gets their chit together!):
A Rigged Market
For those wondering about the challenges facing North American natural gas production, consider this:
In the past year, the number of rigs drilling for natural gas has nearly doubled.
In that same time period, year-over-year production has remained almost flat.
Some might argue that seems nearly impossible, but it seems more realistic when you note the nearly 30% decline rate from existing wells. In addition, many of those rigs have been added over the course of a year, and there is little doubt that over the course of the coming year more production will be added. However, with the decline rate continuing to accelerate, it isn't likely that a large step-up in natural gas production will materialize.
Some thoughts on energy:
The Season Is the Reason for Energy Patience
"Pick Your Spots
Again, there is a possibility energy stocks will take a pause as we near Labor Day. Commodity demand will slow seasonally in September and October and there isn't likely to be a lot of market-moving news between now and mid-September. Combined with the fact that stocks typically don't follow the "straight-line-up" pattern, it shouldn't be a surprise if energy names moderate a bit.
So while I remain constructive on the group, the next several weeks should provide opportunities for those who are patient, follow their discipline and use planned entry points to build positions. Investors that step in over time should see energy help power their portfolio higher."
By Christopher Edmonds
RealMoney.com Contributor
8/18/2005 8:27 AM EDT
This column was originally published on RealMoney on Aug. 17 at 10:32 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
With Labor Day in reach and the summer heat soon to end, it's easy to argue that energy prices are sure to moderate. With this seasonal adjustment in crude oil and natural gas prices almost a sure thing, some investors are concerned that energy stocks are likely to follow. Moreover, given the recent run in energy equities, some argue the fall could be hard.
I agree with the seasonal expectation, but disagree that it will be a hard fall. Any breather isn't likely to break the back of the positive longer-term tone of the energy markets.
A quick review of the fundamentals provides plenty of evidence to suggest energy will remain a place to invest in the months to come and well into 2006.
A Rigged Market
For those wondering about the challenges facing North American natural gas production, consider this:
In the past year, the number of rigs drilling for natural gas has nearly doubled.
In that same time period, year-over-year production has remained almost flat.
Some might argue that seems nearly impossible, but it seems more realistic when you note the nearly 30% decline rate from existing wells. In addition, many of those rigs have been added over the course of a year, and there is little doubt that over the course of the coming year more production will be added. However, with the decline rate continuing to accelerate, it isn't likely that a large step-up in natural gas production will materialize.
That means there will be increased demand for drilling rigs. Given that nearly every rig available to drill is drilling today, day rates for rigs should continue to increase. And with only modest cost creep for contract drillers (labor is the largest challenge), day-rate increases will largely drop to the bottom line, boosting profits.
Regular readers of this column know that I think Nabors Industries (NBR:Amex - commentary - research - Cramer's Take) is the elite among drillers. Not only does Nabors have solid exposure to natural gas drilling in the U.S., the company is the only domestic, land-focused driller with meaningful exposure to international markets. Plus, Nabors continues to grow its presence in Canada, where rigs are nearly as tight as in the U.S.
For those seeking smaller companies, a look at Pioneer Drilling (PDC:NYSE - commentary - research - Cramer's Take) and Grey Wolf (GW:Amex - commentary - research - Cramer's Take) makes sense. Both of these companies faced challenges as the cycle bottomed and turned but both have done a solid job of putting rigs back to work and pushing prices higher as demand accelerates.
All three companies are bringing older, cold-stacked rigs out of mothballs, refurbishing them and putting them back to work, as well as considering the construction of new rigs to meet growing demand. Regardless of rebuild or newbuild, rig capital equipment purchases will continue to benefit National Oilwell Varco (NOV:NYSE - commentary - research - Cramer's Take).
Again, readers will recognize this name, as National Oilwell commands over 50% of the global rig capital equipment market. With $1.2 billion in order backlog and growing, this company is a solid mid- to late-cycle play in the energy sector.
Under Pressure
One other area to watch among energy service companies is the stimulation and pressure pumping business. Like rigs, the demand for fracturing -- the process by which flow is stimulated in tight production formations -- jobs has also accelerated.
As a result, companies that provide stimulation services will also benefit from better pricing power and demand. The multidimensional service companies like Halliburton (HAL:NYSE - commentary - research - Cramer's Take), Schlumberger (SLB:NYSE - commentary - research - Cramer's Take) and Baker Hughes (BHI:NYSE - commentary - research - Cramer's Take) will benefit, as will the more focused pressure pumping companies like BJ Services (BJS:NYSE - commentary - research - Cramer's Take).
While not for the faint of heart due to a new management team and a full-blown internal audit and restatement (both of which should be good for the company when the audit is complete), patient investors with an understanding of the risks involved in such a turnaround may benefit by looking at Key Energy Services (KEGS:NYSE - commentary - research - Cramer's Take). CEO Richard Alerio has turned companies around before and, in the process, created solid value for shareholders.
Pick Your Spots
Again, there is a possibility energy stocks will take a pause as we near Labor Day. Commodity demand will slow seasonally in September and October and there isn't likely to be a lot of market-moving news between now and mid-September. Combined with the fact that stocks typically don't follow the "straight-line-up" pattern, it shouldn't be a surprise if energy names moderate a bit.
So while I remain constructive on the group, the next several weeks should provide opportunities for those who are patient, follow their discipline and use planned entry points to build positions. Investors that step in over time should see energy help power their portfolio higher.
http://www.thestreet.com/_yahoo/comment/chrisedmonds/10238535.html
Plus coal handling/crushing equipment has been around for over a hundred years and if moisture was a huge concern, they would cover the coal piles outside the power plants. Nice tape painting today and 33% spread? MM's getting ready to handle a dump?
I better tie down my inner tube.
palacian, NO MO'!!!!! LOL!!
Terry, "Now you say with a sealed deal and revenues on the horizon that BIPH is "smoke and mirrors." Market doesn't read it that way and insiders aren't loading up, maybe they can't see the horizon. Maybe if Weiner spent his fluffy funds on sales he wouldn't have to dilute for operating $$$. Too many red flags here for other than momo plays.
Terry, "Longtime investors have done rather well in Biophan, jagman. Too bad you are out looking in."
Appreciate your concern, but I'm doing quite well on some other stocks that keep a steady trend up. Did you lock in your profits yet on BIPH? Keep in mind, Momo is the Mojo for OTC Mofo's! This company is 100% hype and zero results.
SPSC for real? Going for better listing? Another "watcher".
Any opinions or followers?
http://finance.yahoo.com/q/ks?s=SPSC.OB
More info:
http://wallst.net/superstock/SPSC/spsc2.html
IHUB board:
http://www.investorshub.com/boards/board.asp?board_id=3113
SBI Brightline, funny business, not sure I understand it. OTC is all smoke and mirrors maybe Amex will understand it
))
Infinium Labs, Inc. - Waiting For A Phantom
Investigative Reports
February 19 2005
When a promoter calls an investment "the most incredible opportunity of 2005," we are inclined to be skeptical and usually with good reason. We have heard that song many times before. Promoters are paid to like their products and a recent fax sheet touting a company called Infinium Labs, Inc. (OTCBB: IFLB) was no exception. "Momentum Trades," the promoter out pounding the pavement for Infinium, predicted that the Company's shares would trade at $6 by March (presumably 2005) – a jump of more than 2000% from the current 29 cent market price.
As is often the case, it appears that Momentum Trades had been paid $4000 to issue its rosy report on Infinium. A disclaimer at the end of the report acknowledges that Momentum received $4000 from a "non-affiliated third party" for publishing and circulating the profile. Those wishing to challenge Momentum Trade's credibility will be hard put to find the people behind the promotion, or the identity of that non-affiliated third party. The report does not name any individuals connected to Momentum Trades or provide an address or telephone number for the tout. The report does contain a telephone number for those who wish to be removed from the Momentum Trades fax list. In the past, we have tried that route, only to find that we soon received even more unsolicited promotional faxes from other non-descript unidentifiable stock pickers.
The report does include one hint about the prior activities of Momentum Trades. The disclaimer at the end of the report notes that "an investment in DTEV is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment" – evidently a remnant of a prior tout sheet. DTEV is the symbol for Data Evolution Holdings, Inc. whose shares trade on the Pink Sheets.
For its part, Data Evolution has taken measures to distance itself from such promotional campaigns. On February 1, 2005, Data Evolution, which develops computer software and hardware for mobile computer applications, issued a press release insisting that it had not authorized and did not support promoters using "bulk facsimile transmissions and/or emails." In fact, Data Evolution asked potential investors "to consider all such information as inaccurate and unauthorized since the faxes contained "many instances of exaggeration, puffery, and blatant lies…that are designed to mislead unwary investors."
So far, however, Infinium Labs has not issued a similar disclaimer. Is it possible that Infinium shares Momentum Trades' enthusiasm, and endorses its price prediction? Is Infinium Labs truly "The Most Incredible Opportunity of 2005?"
We decided to take a look.
To Infinium and Beyond
Infinium became public on January 5, 2004 by virtue of a reverse-merger with Global Business Resources, Inc. At the time, Infinium had $42 in cash, no revenues, and a developing plan to become part of the burgeoning video game market. Infinium was betting on a Phantom. The Company hoped to enter the "'pervasive gaming/interactive entertainment' market by introducing, marketing and selling the first combination gaming console and broadband gaming network" - named, respectively, the "Phantom Gaming System" and PhantomNet VPGN. According to Infinium, once the products were introduced, they would allow users to purchase an extensive selection of interactive entertainment – video games – online.
First, however, the products would have to become operational, available and affordable – a process that could prove time consuming and costly. The Company's Form 10-K for the year ended December 31, 2003 (filed on March 30, 2004) offered a sobering view on those obstacles. Infinium claimed that its goal was "to commence selling our system and service in the fourth quarter of 2004 and to ramp up each successive month" in order to "launch our system and service in time for the 2004 holiday season."
The Company did not meet that target, instead deferring introduction of the product until 2005 because its "retail and marketing partners…want more time to plan merchandising activities for the new games-on-demand service. Infinium now says that it plans to launch the Phantom Game service in the second quarter of 2005.
If production development posed a formidable task, funding presented an even more daunting hurdle. Prior to the reverse-merger, Infinium had incurred almost $2.3 million in operating expenses – and that represented only a fraction of the anticipated costs. Infinium's December 31, 2003 Form 10-K projected that the Company would need approximately $35.5 million over the next twelve months, including approximately $13.3 million targeted for marketing and another $6.5 million earmarked for research and development. The largest portion of those funds – over $15.5 million – would be used to pay salaries, rent, and other operating expenses (including investor relations, attorneys and accountants).
How would Infinium raise the funds? Almost immediately after the reverse-merger was completed, the Company signaled that funds were on the way. On January 22, 2004, the Company entered into a pair of Stock Purchase Agreements with two California limited liability companies, SBI Brightline VI, LLC and Infinium Investment Partners, LLC. Each of those entities agreed to purchase 1,000,000 shares of Infinium common stock at a purchase price of $7.5 million – an aggregate of $15 million in all. Under the agreements, the Company could elect to sell the shares to the two purchasers at any time, provided that the shares already had been registered under the Securities Act of 1933, as amended.
It appeared that SBI Brightline and Infinium Investment Partners would be paying a reasonable price for their stock - $7 to $8 a share – that reflected the current stock price. On January 21, 2004, shortly after the reverse-merger, Infinium completed a 5 for 1 forward stock split and the Company's shares began to trade within an $8 to $9 range. On January 30, 2004, Infinium common stock closed at approximately $8.50 a share. By mid-February, however, the price of Infinium shares began to slide, falling below $6 a share by early May. Then, on May 11, 2004, the Company implemented a second forward stock split – this time at a 4 for 1 ratio – and closed at $1.56 a share. Since then, the Company's shares have continued to plummet, closing at 34 cents on February 11, 2004.
Did the declining stock price adversely affect the agreements with SBI Brightline and Infinium Investment Partners? Something seemed to alter the relationship. There is no indication that the funds were delivered to Infinium or that the shares to be issued to the two investors were registered. Absent registration, the two investors were not obligated to buy the stock.
There are other signs that the Infinium – SBI Brightline relationship has not flourished. On November 24, 2004, SBI-USA LLC, an affiliate of SBI Brightline, filed a lawsuit in California federal court against Infinium and its Chief Executive Officer, Timothy M. Roberts. The complaint, which charges fraud and breach of contact, apparently arises out of a March 2004 investment banking agreement between the two companies. SBI-USA claims that it was entitled to be paid a percentage of all financing received by Infinium over a twelve month period. So far, however, SBI-USA says it has not received any payment – although it claims that Infinium has raised $30 million in financing since last March.
On November 30, 2004, Infinium refuted the SBI-USA claims, responding to an SBI-USA press release even though it had not yet been served with the complaint. Infinium insisted that SBI-USA was only entitled to receive payment if investments in Infinium were made by parties with whom SBI-USA had a pre-existing relationship – and that SBI-USA had failed to raise any funding for the Company during the term of the agreement.
Infinium also noted that SBI-USA was misstating the amount actually raised by Infinium. In fact, the Company's financial reports indicate that no more than $10 million was raised from investors during the period in question. None of those funds appear to have come from SBI Brightline or Infinium Investment Partners
Promissories, Promissories
Still, Infinium managed to raise funds in the months following the reverse-merger, principally by issuing promissory notes. In February 2004, the Company authorized a private debt offering consisting of 12% and 15% promissory notes. According to the Company's Form 10-Q for the period ended March 31, 2004, the notes would became due either one year from the date of issuance, within sixty days after a Form SB-2 Registration Statement filed by the Company became effective, or upon the Company receiving an equity investment of at least $15,000,000. As an extra reward for their investments, the individuals or entities who extended loans also would receive shares of Infinium common stock.
How much did the Company actually raise by virtue of those promissory notes? The disclosure in Infinium's Form 10-Q for the quarter ended September 30, 2004 (taken together with information contained in its Forms 10-Q for the first and second quarters of the year), while somewhat cumbersome, appears to confirm that the Company issued promissory notes totaling approximately $8 million in the first nine months of 2004 – including about $7.2 million in promissory notes issued as part of the private debt offering authorized in February 2004. Approximately 2.5 million shares of Infinium common stock was distributed to holders of the notes.
As of September 30, 2004, Infinium's liabilities included promissory notes totaling $5,687,997.
It seems the Company received other financing in the first nine months of 2004 as well. According to the September 2004 Form 10-Q, Infinium received over $4.1 million from the sale of common shares between January and September 2004 – although only a portion of that amount (approximately $2.4 million) was identified as cash.
The money received by Infinium from its fund raising efforts apparently was used almost as quickly as it arrived. At the end of September 2004, Infinium had less than $21,000 in cash, having spent over $20 million during the first nine months pf the year on operating expenses – including more than $8 million for consultants, over $4.1 million in salaries, and $2 million in professional fees.
And still, the Company's product remained a Phantom.
The Company's modest cash position as of September 30, 2004 seems even more striking in light of the funding that had been anticipated – starting with the $15 million that was slated to come from SBI Brightline and Infinium Investment Partners. By the end of March 2004, the projected infusion of cash had more than tripled, with Infinium claiming that four entities - SBI-Brightline, Infinium Investment Partners, Hadavor Hanachan, LLC and Reich Capital – had agreed to provide $46 million of funding in exchange for 33.5 million shares of Infinium common stock (post 5 for 1 split).
As with the earlier commitment from SBI Brightline and Infinium Investment Partners, this financing was expressly contingent upon prior registration of the underlying shares. Again, however, we were not able to find any indication in the SEC's Edgar files that Infinium ever filed a Registration Statement for those shares – or that any of the money was delivered to the Company.
In any event, Infinium was pursuing other sources of cash. According to its Form 10-Q for the quarter ended June 30, 2004, the Company had retained SG Capital to raise $20,000,000 in equity financing and was negotiating to raise $3,000,000 from Cornell Capital Partners LP through Private Investment in Public Entity (PIPE) financing. In this case, the Company said that the first tranche of the PIPE funding – an unspecified amount – would be delivered at closing, while the second installment would be delivered only after the Company filed a Registration Statement for the shares to be issued to Cornell Capital. In addition, the Company said it was negotiating to obtain a $25 million Standby Equity Distribution Agreement from Cornell Capital – with shares to be issued and cash to become available upon effectiveness of a Registration Statement
There is no sign that the Company ever filed a Registration Statement relating to shares issued to Cornell Capital or SG Capital – or that those contemplated financing transactions have come to pass.
Go West Hastings, Young Man
Which is not to suggest that Infinium was finished trolling for dollars – or that the Company did not file any Registration Statements. Between August 6, 2004 and December 12, 2004, Infinium filed seven separate Form S-8 Registration Statements, registering 6 million shares to be issued to non-employee consultants, professionals and service providers under a "2004 Stock Incentive Plan;" 6 million shares to be issued to employees under a "2004 Employee Stock Incentive Plan;" and 1,140,000 shares to be issued to officers and directors under a 2004 "Executive Stock Compensation Plan,"
The Form S-8 filings did not identify the consultants and employees who would be receiving shares under the "2004 Stock Incentive Plan" and the "2004 Employee Stock Incentive Plan." They did indicate, however, that Timothy Roberts, the Company's Chairman and CEO; Kevin Bachus, its President and Chief Operating Officer; and Richard Angelotti, an Infinium director, each had been issued shares under the "2004 Executive Stock Compensation Plan."
As it turned out, the 13.14 million shares included on those Form S-8 Registration Statements would soon be dwarfed by another registration. On January 5, 2005, the Company filed a Form SB-2 to register 77,266,567 shares of common stock on behalf of a group of selling stockholders who had recently extended financing to the Company – although on a much smaller scale than had been contemplated. This new group loaned a total of $2,740,000 to Infinium – not the $46 million or $25 million previously anticipated - and, in return, received a generous helping of Infinium shares.
The first of these financings occurred on October 22, 2004, when Infinium borrowed $300,000 from Hazinu Ltd., a corporation located in Victoria, Australia. In consideration for this loan, Hazinu received a 10% promissory note, 500,000 shares of Infinium common stock, and warrants to purchase another 500,000 shares of common stock at 50 cents a share. Hazinu had the right to insist that the shares (including the shares underlying the warrants) be included on the Company's next Registration Statement.
In any event, Infinium would only have use of those funds for a short time. The promissory note was payable upon the earlier of (i) December 31, 2004; (ii) two trading days after the Company filed a Registration Statement; or (iii) upon the Company obtaining additional financing of at least $200,000. Payment of the promissory note was guaranteed by the pledge of three million shares of Infinium common stock owned by the Company's CEO Timothy Roberts.
This certainly looked to be a good deal for Hazinu. The lender would be repaid within two months, with 10% interest, and still be holding a stock kicker. At the time of the loan, Infinium common stock was trading at approximately 30 cents a share – giving the 500,000 shares a face value of $150,000, half the value of the loan. By January 6, 2005, the day the Form SB-2 Registration Statement was filed, Infinium stock was trading at $1.60 a share. Since then, the shares have declined considerably, dropping back to 28 cents on February 18, 2005.
A second short-term loan embodied virtually the same terms. On October 27, 2004, Infinium borrowed another $300,000, this time from four lenders - JM Investors LLC (located in Lakewood, NJ), Fenmore Holdings, LLC (located in New York City), Viscount Investments Ltd. (located in London, England), and Congregation Mishkan Sholom (located in Panorama City, CA) – in exchange for a 10% promissory note, 500,000 shares of common stock, and warrants to purchase another 500,000 shares of common stock. This loan was subject to the same payment terms, guarantee and registration rights as the loan from Hazinu.
What did these "bridge lenders" have in common? Each of the loans was procured by an entity identified as West Hastings Limited, which received $60,000 and warrants to purchase 120,000 Infinium common shares at 50 cents a share. And each of the lenders was represented by the New York law firm, Krieger & Prager LLP.
What is West Hastings Ltd? Could the entity have taken its name from West Hastings Street in Vancouver, Canada, a city that has been a haven for struggling over-the-counter companies and those involved with them? The documents we reviewed did not say where West Hastings is located or detail the nature of its business, although the Form SB-2 filed on January 5th –and amended February 14th - (which registered shares for West Hastings as well as the myriad investors) indicates that the company is managed by an individual named Bernard Korolnick.
How did the Company plan to repay those short term "bridge loans?" On December 16, 2004, Infinium borrowed a total of $1,160,000 from a group of investors (including Hazinu, JM Investors, Fenmore, Viscount and Congregation Mishkan Sholom) in exchange for (i) 8% convertible debentures totaling $1,160,000; and (ii) warrants to purchase 16,312,461 shares of Infinium common stock.
This time the investors had an opportunity to accumulate substantial positions in registered Infinium stock. The debentures were convertible into shares of common stock in accordance with a convoluted formula which, in essence, provided that they would have a maximum price of 10 cents. That price could drop further if the trading price for Infinium stock fell below 10 cents. The warrants could be exercised at prices ranging from 10 cents to $1.00.
It appeared that the investors seemed poised to profit quickly. On December 16, 2004, the day of the loan, Infinium shares closed at 24 cents – more than twice the likely conversion price. A day later, Infinium stock nearly doubled, closing at 47 cents. Assuming the debentures had been converted at that time, at 10 cents a share, the investors would have held 11,600,000 shares, which (based on the market price) would have been worth $5,452,000. If those debentures had instead been converted on January 5, 2005, when the stock price hit $1.60, the shares would have had a value of more than $18.5 million. Even after Infinium share prices dropped to 30 cents a share in mid-February, the stock would have been worth $3,480,000 – based upon the market price. That certainly would represent a generous return on a short-term investment.
And there was more. On December 28, 2005, these agreements were amended to award the investors an additional 500,000 shares.
A second set of debentures contained virtually the same terms. On December 28, 2004, Infinium borrowed $1,000,000 from another group of investors, in exchange for (i) 8% convertible debentures totaling $1,000,000 and (ii) warrants to purchase 4,687,485 shares of Infinium common stock. The debentures were convertible in accordance with similar terms to the December 16th debentures. Once again, the Company amended these agreements, awarding an additional 500,000 shares to the investors.
The documents filed by Infinium at the time of the loan, and the SB-2 Registration Statement filed on January 5, 2005 (and amended on February 14th) indicate that at least eighteen different entities and individuals were issued debentures, including Zenny Trading Limited; Zevi Wolmark; Jacob Friedman; JM Investors, LLC; David Zajac; Viscount Investments, Ltd.; More Intl Investments, Inc.; Yeshiva Gedolah Of Seagate; Liberty Supplies Corp.; Shalom Torah Centers; Solomon Lesin; Shimon Haber; Heza Holdings Inc.; Longview Special Finance, Inc.; Hazinu, Ltd.; BL Cubed LLC; Congregation Mishkan Sholom; and Fenmore Holdings LLC.
What did these investors have in common, if anything? Once again, West Hastings Ltd. is identified as the "finder" - and received $172,800 in cash and warrants to purchase 432,000 shares of Infinium stock at 50 cents a share. And, as was the case with the bridge lenders, each of the debenture holders apparently was represented by the law firm of Krieger & Prager. The shares allocated to West Hastings have been included in the Form SB-2 Registration Statement, as have 50,000 shares registered for Samuel Krieger and 500,000 shares issued to Darrin M. Ocasio, an attorney at Infinium's law firm, Sichenzia, Ross, Friedman, Ference LLP.
The Registration Statement also included 1.5 million shares owned by Infinium's President, Timothy M. Roberts. A series of Form 4 reports recently filed with the SEC indicate that Roberts sold 822,000 shares of Infinium common stock between January 24th and February 17th, for a total of approximately $330,000.
The Cost of Phantasia
Timothy Roberts wears a number of significant hats as Infinium's founder, Chairman, CEO and principal stockholder. Considering the obstacles faced by the Company, including financial pressures and marketing delays, he and his management team are faced with an imposing task. Investors may not be encouraged by the results at some of his prior businesses. In the year 2000, he reportedly founded a St. Louis-based company called Broadband Infrastructure Group, known as BIG. BIG planned to nurture tech companies and develop a range of telecommunications businesses. By early 2001, BIG was in big trouble, landing in bankruptcy after purportedly burning through $15 million of investors' money.
Prior to his tenure at BIG, Roberts served as Chairman and CEO of Intira Corporation from 1997 through 1999. Intira, which provided network-based computing and communications services on an outsourced basis, demonstrated a remarkable ability to raise funds (including approximately $140 million in 2000, the year after Roberts departed). Unfortunately, the Company also knew how to spend money liberally, losing $62.5 million in 1999 on revenues of $4 million – and ultimately winding up in bankruptcy.
Mr. Roberts' biography also notes that he was a co-founder of broadband communications provider, Savvis Communications (NASDAQ: SVVS), although it does not say when he departed from that Company. He was not listed as an officer, director, or principal shareholder at the time Savvis filed its initial Registration Statement with the SEC in November 1999.
Can Infinium clear its initial financial hurdles – and if it does, can it generate sufficient revenues to become profitable? The deluge of financing that Infinium anticipated has yet to appear, replaced by a costly drizzle. Recent debenture financings, which brought $2,160,000 into the Company ($600,000 of which may have been used to repay the bridge lenders) hardly satisfied the Company's needs for the long or short term.
Perhaps more importantly, that money came at a heavy price – significant dilution to existing shareholders. As of September 30, 2004, approximately 105 million shares of Infinium common stock had been issued. Over 73 million more shares may now be issued in connection with the convertible debentures and warrants held by Infinium's most recent bevy of investors. And the Company warns that more substantial dilution is likely to result from future financings – assuming Infinium can find the necessary investors.
Financing, however, is just one challenge that faces the Company. The fate of the Company appears to be tied to the success of a single product, its Phantom, whose marketability has yet to be tested. While Infinium insists that it has completed development and testing of its Phantom, and has entered into agreements with a number of service providers and marketing firms, Phantom is not yet available for sale and the Company lacks sufficient funds to bring the product to market.
Lack of money has been an ongoing problem for Infinium, and caused the Company's auditors to express substantial doubts about the Company's ability to continue as a going concern when they issued their report for the year ended December 31, 2003. Now the Company claims that it will need another $11,500,000 to launch the Phantom, and a total of $22,200,000 over the next twelve months. Over the next sixteen months Infinium expects to pay salaries and benefits of $7,600,000. These are heady numbers for a business which had less than $21,000 in the bank when it filed its last financial report – and which has been spending money at a rate of more than $2 million a month.
At that rate the proceeds from the December 2004 debenture sales would have lasted the Company about one month – or until sometime in January 2005.
In other words, the money raised by Infinium has been disappearing almost as quickly as it arrives. Sort of like a phantom.
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
IBD article was good on PLNI, but no details on fundamentals or even a stock symbol. They need to list on the OTC and probably do a reverse split. The article didn't generate much buying interest, IMO. That said, I'm sure they have a listing plan down the road IF sales do well with the new distributor. I'll keep that one on the watch list for future developments.
http://www.plasticonintl.com/manofrecycledplastic.pdf
I'm thinking Tandem should be raking in the dough with oil and gas prices so high. Maybe when they get a break from working so hard they'll let the shareholders know how things are going.
http://www.futuresource.com/markets/market.jsp?id=energy
Just have to see how the market views it, my guess is not favorably, especially since Weiner has been so positive on coming sales ready and waiting.
Oh my, I smell dilution in today's news! I thought Weiner had customers lined up at the front door?!? This adds years to any real sales, IMO. Maybe explains the recent drop in pps, see what tomorrow brings, GLTA.
The Company will fund the new Group's activities through resources to be made available from a financing facility of up to $30 million, to be provided by SBI Brightline XI, LLC recently established at a weighted average fixed price of $3 per share.
http://biz.yahoo.com/bw/050825/255554.html?.v=1
Doubloon, this link at the PLNI web site, may be my browser:
The "brochure" download.
http://www.plasticonintl.com/document_downloads.html
Maybe if I sell a 100 shares it will take off?????
About $5-$10 billion market cap in 18 months for PLNI? Would that be a record? Blue Linx ain't doing so hot if you check their chart and fundamentals even with the housing boom. Sorry, I'm having a negative day today, LOL!
I still think PLNI has too many shares out there to move much. But interested in how much the IBD article/ads do make it move. Tried to look at the PDF IR brochure at their site, but it froze up my 'puter, anyone had any luck with it?
IDWS, Sector Watch (see also "tracking Cramer" page)
a free service of www.positionplays.com
August 24, 2005
morning report
Big news from our profile pick IDWS!
Edmunds.com will provide live updated information on the car section of their www.995ad.com
IDWS announces 5,000,000 share buyback!
Company states that the buyback is equivalent to 50% of the total public stock float.
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Don't forget to check out our "Tracking Cramer" page, where we study Cramer's picks from
his highly followed Mad Money show on CNBC TV.
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Stocks We Are Watching
11:15 prices quoted
IDWS 0.18 - their www.995ad.com site is starting to get attention. (see profile below)
HW 39.16 - reversing pattern on the 3 month. with dmi+
JVA 10.50 - bullish uptrend, 11 resistance, gets interesting past that
CORT 5.50 - upgrades last week pushed this to $7, consolidated in mid 5's with uptrend starting
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Penny Players Trading Ideas
IDS-Worldwide Solutions Inc
symbol: IDWS (pk)
price: 0.19
website:
www.ids-worldwide.com
www.995ad.com
check out the profile at
www.positionplays.com
IDS Worldwide Solutions, Inc is a holding company with operations in Biometrics, Security Services and the primary focus of our report--a very fast-growing Internet portal, www.995ad.com
Recent Events
* August 17 they signed 70,000 Resorts & Hotels
* August 10 they entered into agreements with 12,900 auto dealers
* August 10 they received over 500,000 cars from the dealer agreement
Notes:
This stock just started trading July 13 and in this short time they have accomplished a lot.
Autotrader has 40,000 dealers and over 2.5 million listings and has been open since 1997.
IDWS has over 500,000 autos already in a short time.
IDS-Worldwide Solution's www.995ad.com sells ad space for $9.95 which is well under the competitions pricing.
They offer buying & selling in the following categories:
Auto's,Trucks,Boats,RV's,Real Estate (residential,commercial,rentals etc), Motorcycles,Travel, plus more!
(Autotrader is held by Cox Enterpises,Landmark Communications,ADP Inc,Kleiner Perkins Caufield & Byers.
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(IDWS, email promotion) IDS Worldwide Solutions, Inc. Signs Agreement With Auto Industry Leader and 5,000,000 Share Buyback Program
Wednesday August 24, 11:27 am ET
995ad.com Auto Section Signs Agreement With Auto Industry Leader Edmunds.com
ORLANDO, Fla.--(BUSINESS WIRE)--Aug. 24, 2005-- IDS Worldwide Solutions, Inc., (Pink Sheets:IDWS - News) announced today that 995ad.com., http://www.995ad.com, one of the fastest growing portals on the internet, has signed an agreement with automobile industry leader Edmunds.com. Edmunds.com is the most respected car site on the internet for consumers to get unbiased information and research before making their automobile purchase. Car Trends shows that over 70% of all car buyers start their search on the internet before making a buying decision.
ADVERTISEMENT
Under the signed agreement with Edmunds.com, http://www.edmunds.com, IDS portal 995ad.com, http://www.995ad.com, will join with Edmunds.com to provide live updated information on the Car Section of 995ad.com to include all research, editorials, consumer reviews and ratings, price comparisons, road tests and automobile rebate programs.
IDS CEO, Patrick Downs stated, "IDS is very pleased that our Portal 995ad.com has joined forces with an industry leader like Edmunds.com. IDS Portal 995ad.com in its 1st quarter of launching has already signed over 12,900 auto dealers and has surpassed over 550,000 cars on the site ranking 995ad.com the 2nd largest automobile site on the Internet. IDS http://www.ids-worldwide.com believes that this agreement with Edmunds.com is a significant validation of our business model by the most respected automobile research site for consumers considering an automobile purchase."
IDS reported that consumer traffic to the 995ad.com, http://www.995ad.com, site has increased over 5800% in the past quarter. 995ad.com Car Section continually ranks in the Top 3 auto sites searched on Google (http://www.google.com search "used cars"). The Car Section of 995ad.com has been able to achieve rapid penetration of the online automobile sales industry by providing equal or superior product of the leading online retailers such as eBay Motors, AutoTrader Online and Cars.com while giving consumers and auto dealers up to 500% in reduced ad costs.
The industry segment of the Internet consisting of large portals like 995ad.com such as Yahoo, MSN, Google and eBay are currently in an acquisition race for content. Earlier this year, eBay paid over $415 Million in cash to acquire Rent.com. Rent.com enables Apartment complexes to advertise their properties on their site in return for a $375 fee for every leased generated by visits to the Rent.com site. Rent.com claims over 12 Million Ads per month on the site. IDS Portal 995ad.com will allow apartment complexes to advertise their properties for only $9.95 per month and even enable apartment leasing offices live interaction consisting of chat, pushing applications and floorplans in real time to prospective tenants. IDS believes that because of the significant economic and customer service advantages of listing their properties in the Real Estate section of 995ad.com that many apartment complexes may pursue a dual listing on 995ad.com at the same time keeping their listing on some of the other online apartment sites.
In light of the current valuations being paid for online portal content and the rapid growth of 995ad.com the Board of Directors of IDS Worldwide Solutions, Inc. has approved a major stock buyback of the common stock of IDS (Pink Sheets:IDWS - News) of 5,000,000 shares. The company believes the stock is extremely undervalued based on the current value of 995ad.com, http://www.995ad.com, and the 2600% increase this quarter in our Homeland Security Division. This stock buyback is in addition to approximately 400,000 shares the company has bought in the open market in August. This buyback is the equivalent of 50% of the total public stock float of IDS. Patrick Downs, CEO of IDS stated, "IDS believes this buyback is a bargain at current price levels and it will add tremendous value for our shareholders." Online portals such as 995ad.com have the advantage over most companies by virtue of carrying no inventory and no warehouse costs. IDS has the further advantage that unlike most public companies IDS has no debt to service.
IDS plans for 995ad.com is to achieve the same market leading penetration of the boat, truck, motorcycle, real estate and apartment complex industry as it has in its 1st quarter of operation in the automobile and travel industry.
For further information: http://www.995ad.com
http://www.ids-worldwide.com
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels.
All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
--------------------------------------------------------------------------------
Contact:
IDS Worldwide Solutions, Inc., Orlando
William Scott, 407-478-4020, ext: 202
info@ids-worldwide.com
--------------------------------------------------------------------------------
Source: IDS Worldwide Solutions, Inc.
Who will benefit when oil starts to fall?
(I'm sure oil will have its ups and downs, but personally I don't think these market analysts are taking into account that daily world production is close to max and India and China will continue to demand more oil. I doubt the USA requirements will ever drop off much if any and ONLY if we have lines at the gas pumps......am I FOS????)
Wednesday August 24, 10:24 am ET
By David Nassar
Commentary: Techs and brokers look to benefit
BOULDER, Colo. (MarketWatch) -- The oil market is starting to respond to every piece of news the market can muster -- a tell tale sign of deep speculation within the sector.
Not unlike the jittery low conviction speculators of the dot-com era, once traders begin to exit positions on light news and inelastic tops, the turn is usually not far away.
Are these jitters of recent weakness caused by anticipation to this week's U.S. petroleum inventory report? Downgraded storms in the Gulf, on again -- off again sabotage reports from Iraq, blow by blow updates on Iran's nuclear agenda, and even Venezuelan instability? No one knows for sure, but what is known from the market is the psychology of speculation.
Speculators are the most short-term participants in the market, and once this group feels the risk of driving prices higher outweighs any potential reward, fundamentals will dictate long-term price levels.
This includes airlines who are buying hourly futures contracts on fuel because they won't commit to long-term contracts that could be much lower. It is these kinds of fundamentals which tell the market that energy dependent industries are not willing to accept that the long-term trend in oil will be higher.
I don't claim to be an expert in international affairs or the politics of oil, and rest assured the equation is not simple -- likely too dynamic for any one opinion. What is more clear although is what history teaches us in the market. Or, as John Maynard Keynes stated:
"Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes a bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill done."
Many would agree that oil traders on the NYMEX are more driven by the game of speculation than actual geo-political and supply concerns. As bubbles go, trying to pick their top can be a very dangerous game, but seeking stocks less influenced by these bubbles can provide tremendous opportunity -- allowing room for these shares to rise rapidly once the market corrects itself.
As crude retraces on each report that hinders higher prices, we begin to sense the market better suggesting the fear premium priced into oil is "priced to perfection" -- meaning that in the absence of sensational news, oil's correction seems ever closer.
Certainly unfortunate and substantial news could move prices higher, but fear is factored into the market and this leaves room for the oil bears to step in.
If this weakness persists, then we stand to benefit nicely in the equity markets, namely the S&P 500 (Vancouver:SPX.V - News). Last week I noted that any breach of the 1219 level would warrant a move to cash. Cash is not a bearish position -- cash is a position of strength, anticipating when one will strike. My viewpoint on this remains. Cash at hand while this market defines itself is a good move, allowing one the ability to strike once the picture develops further. Therefore, which sectors look poised to move once the bulls reclaim lost ground is a fair question.
Two sectors looking primed for a move include, but are not limited to technology and financials. These are broad subjects, so let's look deeper and focus on Internet commerce for technology and the broker/dealers for financials.
The Dow Jones internet commerce sector has pulled back with the market and this is expected, but has pulled back into healthier levels than the S&P's (which is a display of relative strength). As of this writing on Tuesday afternoon, the index was showing strength at the 126.50 level and still well above its 50-day moving average which is the 123 level. I see this level as strong support beyond the obvious 50-day moving average. I also like this level because it approximates new higher ground for the year as well as maintaining a healthy pullback within a much more significant bullish trend. Therefore, if the broad market can find support, the Dow Jones Internet Commerce sector looks prone for a strong bounce -- with highlight stocks of particular interest.
They include: E-Trade (NYSE:ET - News) and Ameritrade (NasdaqNM:AMTD - News) which would also be fitted into the financial sector. These issues have shown resilience in spite of broad market weakness. As far as E-Trade, I would look as this duration a bit longer term (3 to 6 months) and expect protective stops to be set $15.12 with upside objectives to be north of $21. Ameritrade looks good until it breaches $19.20 and could easily see a target of $25 within the next 3 to 6 months or sooner.
Other issues shining bright within the group include Apollo Group (NasdaqNM:APOL - News) and Monster Worldwide (NasdaqNM:MNST - News), both of which look poised for higher ground. Keep in mind these two issues would be considered more risky, therefore Apollo is not a stock I would give much room, meaning that if it breaks the $73.30 level, I would call it quits. Otherwise, I consider $79 or better a reasonable price target. As for Monster, $31 or less takes me out of the trade with objectives set around $34 or better (new yearly highs).
These sectors and stocks represent an idea that makes sense if we see a weaker energy market, helping to drive cash back into the market, with technology being a large recipient. As cash moves back into the market, we can take advantage of this underappreciated economy and restore "investor confidence."
Many believe the recent bull market is a trap, but I don't.
I feel we have some near-term levels to overcome, but in the absence of any extreme events, we will see a higher confidence levels in the market supported by an already stronger economy. In other words, many consumers have benefited from rising real estate values (late trade in my opinion in terms of buying the home builders), job security, and disposable income. Yet, this money has yet to be put back into the market as a result of energy prices and shaken confidence.
Yes, some have taken advantage of the energy sector as a whole, but from the broad market perspective, the overall equity market psychology is timid due to energy prices. Many investors also haven't regained trust in stocks since the vicious bear market started in March 2000.
But once we remove the energy fears, I believe there is pent up confidence ready to finally emerge. The charts support this view as well, and as we like to say, the chart tells the story long before the headlines. I'm giving a perspective of what those headlines may look like as a result of the message the charts provide.
There are no certainties and this is why we use stops, but if we do lose, we lose small -- the high velocity rallies I am forecasting can erase small loses in the course of days. Therefore, don't expect perfect timing -- no one has that on a consistent basis. Instead, the larger picture is where our attention belongs, and while oil may not drop significantly Wednesday or next week, those willing to be in cash or even early in the market with stops, will catch the most exciting moves.
If I am wrong, and I very well could be, stops are there to ensure none of us "drink our own Kool-Aid."
Ultimately, trading is not about picking the tops and bottoms, it is about either having cash available when ready to strike or having anticipated the market by already being in it. The approach an individual takes is up to them and based on individual risk elasticity, but I certainly would prefer to be in cash or long the market over being short in the current environment.
Explore new ways of making money with MarketWatch Options Trader, edited by David Nassar and Larry McMillan.
TRCPA, a day or two ago you said oil companies and GE were involved in alternative energy just for public opinion/relations reasons. I agreed somewhat stating BP was running ads on TV. That said, as 4tj stated, if there is money in it and it's the future, the big boys will be involved. Note most are doing their own R&D and not making acquistions of alternative energy companies (that I have noticed).
PLNI retiring 200 million shares? But they have 1,440,486,371 as of 2004-11-15!!!! BFD!! LOL!
4tj, I didn't say that, TRCPA did. I repeated it
tongue-in-cheek, I agree with you completely.
TRCPA, we know those big boys aren't serious about the future, just public relations, so they probably aren't interested in a real green energy company like FASC.
So, the final hope here is a buy out by one of the big boys? Well, if so, it will be nice to know that Hell froze over (just in case! LOL!).
There have been many "perfect times to buy", I finally ran out of money! LOL!
There's that GE company again,
"GE's "Ecomagination" initiative highlights how that company views climate-friendly technologies, among others, as a major business opportunity (and commercial battleground) in the years ahead."