Wall St PR 22.6.8
The summer trading season is officially here and I do not have one recommendation for you, I have two. The summer usually sees slow volume, but with everything going on, I think this week should see some great activity.
We’re going to revisit American Capital Partners, Inc. (OTC: APRJ), our bread and butter pick, and also introduce you to The Fight Zone, Inc. (OTC: TFZI), our bread and circus pick.
I first introduced my subscribers to American Capital Partners a little over a month ago. This premier holding company almost tripled and made a small fortune for my subscribers who acted on the original alert. Since then, it returned to pre-alert levels.
I see APRJ shooting back up and a triple from here . As was the case on the original alert, my subscribers who act quickest should do the best, so be ready Monday morning. For the investors who got in at the top, this is a great chance to average down and walk away with some healthy profits.
In case you’re not familiar with the facts surrounding this situation, APRJ is way undervalued. It's trading under 50 cents, but its Book Value is Est. $2.40, so the pull back is really a fantastic opportunity, especially when you consider the last couple of company press releases and the recent all-time highs in the price of oil. This thing should be trading way over book value.
American Capital Partners has an interest in two petroleum exploration and production companies, Upstream Petroleum Corporation and PetroMed Corporation, that are moving forward with major projects. Upstream has been conducting high level strategic discussions with the Ministry of Natural Resources, in Belize, to acquire up to 10 offshore leases in the Caribbean. Studies indicate that the area of interest holds vast hydrocarbon reserves and should be an impressive addition to its producing properties in Louisiana.
APRJ's follow up release concerned PetroMed's applications for 2 Drilling Licenses and an Exclusive Exploratory Permit, off the coast of Israel. PetroMed believes that the recovery from those 2 drilling locations have the potential to exceed the equivalent of 2 billion barrels of oil.
Face it; oil is likely to hit $200, per barrel, before it returns to $100, if it ever returns to $100. Yet even at $100 per barrel, PetroMed's project could easily be worth $200 billion.
The Fight Zone, Inc.
The Fight Zone, Inc. is uniquely positioned as the only publically traded Mixed Martial Arts "MMA" company that isn’t competing against the UFC. In case you haven’t been reading the financial journals, MMA has become a huge industry.
In fact, just last week Lorenzo Fertitta stepped down as president of The Station Casinos and his $114 million a year salary, to become CEO of the UFC.
Fertitta is just one of many and I only mentioned it to give you an idea of what kind of money can be made in MMA, the world’s fastest growing sport and to let you know that you can’t afford to procrastinate on TFZI. No, there’s way too much going with this sport and this company.
See, the UFC has overtaken most professional sports and is projected to be bigger than the NFL in 5 short years. In addition to its tiny float, I like that TFZI has vertical and horizontal growth opportunities. Plus, instead of trying to compete with the UFC, they have, quite wisely, chosen to implement a business model that compliments the UFC, as well as the other major MMA leagues.
George Soros was the latest to basically state that speculators are the sole cause for the sudden rise in the price of oil, but in reality there’s a laundry list of reasons for the climb, despite the fact that consumption growth is contracting.
On June 6, the barrel price of oil rose by $10.75, which was the same as the barrel price in late 1998.
The biggest problem is that the things taking place in the oil market, are either taking place, or going to take place, in all commodities markets, ranging from uranium to precious metals and even food. Keep in mind that APRJ has other holdings like SovrenQuest, which is focused on precious metal ores, and Harvest Quest, which has a unique technology to rehab and reclaim lands for agricultural, and other, uses. APRJ is in a great position going forward.
While I would never want you to invest in any company out of fear, I am not above using every means necessary to motivate you to purchase a real supply of stored foods. This is something I’ve been urging my subscribers to do, well before food supplies and prices made it into the "news".
Recently, Larry Matlack, President of the American Agriculture Movement voiced his concerns over the sale of 18.37 million bushels of wheat from USDA’s Commodity Credit Corporation Bill Emerson Humanitarian Trust.
Matlack was quoted as saying, "According to the May 1, 2008 CCC inventory report there are only 24.1 million bushels of wheat in inventory, so after this sale there will be only 2.7 million bushels of wheat left the entire CCC inventory. Our concern is not that we are using the remainder of our strategic grain reserves for humanitarian relief. AAM fully supports the action and all humanitarian food relief. Our concern is that the U.S. has nothing else in our emergency food pantry. There is no cheese, no butter, no dry milk powder, no grains or anything else left in reserve. The only thing left in the entire CCC inventory will be 2.7 million bushels of wheat which is about enough wheat to make ½ of a loaf of bread for each of the 300 million people in America."
"This lack of emergency preparedness is the fault of the 1996 farm bill which eliminated the government’s grain reserves as well as the Farmer Owned Reserve (FOR). We had hoped to reinstate the FOR and a Strategic Energy Grain Reserve in the new farm bill, but the politics of food defeated our efforts. As farmers it is our calling and purpose in life to feed our families, our communities, our nation and a good part of the world, but we need better planning and coordination if we are to meet that purpose. AAM pledges to continue our work for better farm policy which includes an FOR and a Strategic Energy Grain Reserve."
The perfect storm has the Commodity Futures Trading Commission posturing, but don’t expect any real resolutions to take place. As recently as this year, some CFTC commissioners said they doubted that the record food prices were driven by speculation. The CFTC has even pursued plans to allow even more fund money to pour into soft commodities.
Unlike the other markets, the precious metals markets seem to be artificially too low, but just wait until the pension funds, which helped pump up the price of crude, get into the precious metals market. I think it may be the biggest of all the bull runs, because it’s the one real area that will be affected by the "rising demand from China and India.
So, if haven't gotten in yet, don't wait, because American Capital Partners and The Fight Zone are just getting started.
I'll keep you up to date as the developments happen and I urge you to act on APRJ and TFZI now.