Thresher Industries, Inc. (THRR)

[Frankiebones]

Thresher Industries Inc.
(Public, PINK:THRR)
Thresher Industries has become the center of controversy the last couple of weeks, given its recent announcement of selling the company at nearly 5x current market prices by April 10th, 2010. Many question the truth behind the news, however, amongst uncertainty lies opportunity. As The Oracle of Omaha once said, “Be fearful when others are greedy, and greedy when others are fearful.” This principle perhaps best encapsulates the whirlwind of activity surrounding this company. Most certainly, it is not for the faint of heart, however if you’re looking for a short-term play that is bound to stir up headlines, you’ve come to the right place. Look for this stock to reach a minimum of $0.005 per share according to expert technical analysis as we march closer to the deadline.
Grass Roots Research also gave THRR a buy rating with a target price of $0.09 in their latest May report found here: http://www.thesubway.com/research-reports/thrr-report.pdf
The company also held a highly successful conference call on March 24, 2010, providing further details to the investment community on the specifics of the buyout.
Right off the bat, this company exemplifies naked short selling at its finest. On the daily average, THRR sees more than 3x of regular volume going to the short sellers. As per RegSHO data, during the last trading session on Friday there was  485,511,524 shares short versus 1,386,053,405 total volume. Look for a potential massive short squeeze to initiate prior to the full announcement and disclosure of the company that is purchasing Thresher Industries.
Recent Buyout News
Thresher CEO Tom Flessner was happy to announce that “as of March 16, 2010 the Board decided to initiate procedures to finalize the sale of the company in an accelerated manner.” On March 9, 2010, Thresher Industries received a proposal to purchase their company. The proposition was later approved and disclosed preceding the Board of Directors of Thresher – Industries special meeting. The Board of Directors opinion is that this offer is exorbitantly admirable with a proposed settlement that exceeds the current market price range. Thresher Industries has been advised by their Corporate Attorneys that the approval to act is not necessary by shareholders and that the Board of Directors has in fact been in contact with the majority shareholders and party’s have agreed to the offer price of $0.01 for any and all outstanding shares. Thresher would like completion and closing of the deal before April 10, 2010. Source: http://finance.yahoo.com/news/Thresher-Industries-Inc-prnews-2819918685.html?x=0&.v=1
A second Press Release was issued in order to confirm the information for parties who have been doubting or placing hot debate over the truth behind the company’s statements.
Thresher Industries, Inc.  issued a statement today from CFO Roger Rowell to clarify numerous inquiries regarding the sale of the company as discussed in its March 24, 2010 conference call.
“I would like to thank everyone who attended the call, and for your positive feedback and continued support. We believe our decision to move forward with the sale of Thresher is in the best interests of our shareholders,” said Mr. Rowell. “After the call, we received numerous inquiries regarding the use of term ‘mini-tender offer.’ I apologize for any confusion this has caused and would like to clarify that the offer we received was unequivocally to buy 100% of the issued and outstanding shares of Thresher Industries for $0.01 per share.  We are now starting the due diligence phase of the process and once that is complete the next phase will be the finalizing of all documents necessary to close this transaction; which could be as soon as April 10, 2010. We will continue to update everyone on the process.” Source: http://finance.yahoo.com/news/Thresher-Industries-Confirms-prnews-2470521120.html?x=0&.v=1
Technical Chart Analysis

THRR has seen an excessive increase in volume the last couple of weeks, with shares trading hands between buyers and sellers at a pace never seen before. However, this flurry of activity is not without just cause, as the company’s announcement of a sale at more than 5x current market prices was bound to ring the bells of stock market scanners and daily traders around the world. So what can we expect from this little bundle of joy?
Firstly, the all important Relative Strength Index (RSI) lies at a perfect level which is neither overbought nor oversold at current market conditions. It is important to note that the stock has been in a constant uptrend (marked by the black trend line) ever since the beginning of March leading to the recent buyout news. This shows confidence in long-term investors awaiting for that higher jump representing prices that are closer to the $0.01 level.
MACD divergence being positive above the 0 level also further reiterates the upward reversal which took place in the beginning of March. Full Stochastics should perhaps give the most clear indication of how undervalued the company’s shares truly are at current levels. Currently lying around the 24 mark, you can expect it to rise from here as it did numerous times during prior trading sessions.
Strong support is now seen at the current $0.002 price per share, which was strong resistance that was broken during today’s session. In the coming days, THRR should retest the $0.003 resistance which was tested twice before and failed to be broken thus represents a significant climax should it be broken. The coveted “Blue Skies” breakout scenario could be in full effect should buying volume continue to pour into the stock as coverage and transparency increases on this emerging story.

The Money Flow Index is a stock market technical indicator used to show the flow of money from buyers to sellers. Being at the 40 level and rising represents a tremendous opportunity for buyers to get in as the bulls begin to take hold of the momentum in price activity. The Chaikin Money Flow is another measure of similar proportions which again indicates that it is overturning and making its way past the 0 level.

Lastly is the FORCE index which shows either buying pressure or selling pressure on the company’s stock. The past few days has shown selling pressure due to profit takers, however, that all seems to be turning around as a strong reversal into bullish territory is taking place.