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Re: ffighter71 post# 22

Tuesday, 03/07/2006 10:12:34 PM

Tuesday, March 07, 2006 10:12:34 PM

Post# of 2821
Ffighter,

1. "i got in igai a few weeks ago at .o24, how high do you see this going, its a low float. "

Nobody really can predict with any certaintly. One thing for sure though. With a Price/Sales ratio of around 0.01, this is way undervalued.

IMO, before the 10-Q (which is due early April) I believe (based on already known data), this should go to at least to 0.05, which is not too much to ask, because of: (i) the low P/S, (ii) the explosive revenue growth tendency, (iii) with a nice patern of reducing the costs, (iv) the low OS (about 20M), and much lower float, (v) the majority of shares being hold by the insiders (that never sold, nor intended to sell any), (vi) the company never had (and have no reason to have) a R/S in the past, etc. If the 10-Q will show the same growth patern as over the past last year, and the company has a clear plan for becoming EPS positive in the near future, I believe this should easy go to at least over 0.1 shortly thereafter. In not anything else, just look at the graph, and you'll see that the recent drop in PPS does not corelate with the advances in the overall financial picture.

2. "i been reading your posts and your a pretty respectable poster. i wish i would have been more careful. i bought a stock last year gryf.pk, it was suspended by sec and then reopened for trading but has not traded since last july, but it seems like some "ghost trades" happen, it affects my account but the bid ask have stayed the same and i can not trade it, any thoughts. and how about swkj, i purchased some a few weeks ago."

If you are reading my posts, you'll discover that I only put alerts on stocks that I believe (as a result of quite of bit of DD) are heavily undervalued. Most of the time my own valuation is right:

Recent examples:

Alerted CIRT @ mid 0.02's, and it went to upper 0.06's.
Alerted VFIN @ 0.16's (although my first buy was @ 0.41, more that a year ago), and it ended today @ 0.25 (and I believe it will go much higher, after the 10-K which is due by the end of this month
Alerted CNCN @ around 0.03, and it reached mid 0.3's shortly thereafter.
Alerted on GDVI when the price has riched whaT i the 0.055 bottom, now it ended up @ 0.078. Next week, the best ever 10-Q is expected, and then this should move quite nicely.
Alerted PMED @ 0.004, and it went to 0.032 shortly thereafter.
Alerted IGAI @ 0.018, and it went at first down a bit, then at 0.045 shortly thereafter
Alerted GTEC when it reached its 0.05's bottom, and it reached today over 0.45. Sold 2/3 of it on Frioday, and the rest today @ 0.45, after I realized the Price/Sales have reached an unsustainable ratio of close to 500 (compare it to 0.01, or so, for IGAI).
Alerted ICO @ 8.4, and it's now at ~8.8. If the 10-Q (tomorrow after the close) are as good as I expect it to be, this is a good long-term (2 to 3 years) Energy (coal) company to have, IMO
Alerted SEVI @ low 0.01's late last week, and it riched 0.039 today. I sold 1/2 of my shares @ 0.038 today, and will keep the others.

No matter how well one does the DD, in the penny land anything can happen. My two recent bad choices: (i) SSTY (sold it at a loss), after I learned about their true plans, and (ii) DRDF, where I sold (fortunatelly at a small gain), immediately after I learned about their intention to do a 1:100 R/S.

The only secret is a lot of late nights in doing a good DD.

3. "i waiting for some of these to run so i can cash some in, i like some of your picks and will look to put some cash to work. thanks for your knowledge."

One thing you might have learned reading my posts. I'm never alerting on any stock that I don't believe it doesn't have a good chance for a move in the near future. Sometimes, as you see from the two examples above, I'm wrong. So, one thing you should learn. Never, ever buy any stock just because somebody said it will "go to the moon." Before you decide to buy anything, you have to do your own DD, and do it well. No pain, no gain I always say.

Hope this helps,

Mike






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