BLING KINGS

[BeachBum]

TITL for week of 09-27 imo.

Good company with a 25 million float.

Research Report: .08 to .10 target

Ludlow Capital Upgrades its Research Opinion on Title Consulting Services (TITL), Price Target of $0.08 to $0.10 per share
Last Updated: August 17, 2010 - 12:30pm EST

(NEW YORK)--Ludlow Capital upgrades its research opinion on Title Consulting Services, Inc. (OTC:TITL), an independent title insurance agency based in Florida, with an adjusted price target of $0.08 to $0.10 per share.

Summary

TITL is an operating title insurance company based in St. Petersburg Florida. Based on recent discussions with the Company, TITL provides a unique opportunity for large upside potential from these levels. With only 115 million outstanding, and a very tight public float, the company has the potential for fast moves upward based on valuation. Based on this, and other factors, we have upgraded our price target on TITL to the $0.08 to $0.10 range.

Earnings and Operations

On August 18, 2010, the Company filed its fiscal year-end earnings. For the year ending July 31, 2010, total revenues rose 17% to $1,431,971, compared to $1,221,156 for the same period in 2009. Gross profits rose 34% to $921,911, compared to $683,850 for the same period 2009. After operational expenses, the company reported a net loss for fiscal year ending July 31, 2010 of just ($30,700), compared to a net loss of ($418,845) for the same period 2009.

At the end of this period the Company reported total assets of around $1.2 million.

The current financials should bring the company 'current' with OTC markets.


Business Overview

When ever a house or condo exchanges hands, the new owner is required to have title insurance regardless of the home price. So, with record low mortgage rates, and sharply cheaper home prices, buyers have been finding discounts in the Florida housing market, which means more business for title insurance companies like TITL.

Title Consulting makes their money every time a house or condo exchanges hands, and low mortgage rates have resulted in a 45% increase in sales in Florida for Q2 2010. As long as mortgage rates and home prices remain low, the title insurance industry should see some exceptional growth for the remainder of 2010.

On August 12, 2010, we asked Dustin Secor, the CEO of Title Consulting, to commented if the recent realty numbers showing Florida home and condo sales up for the second quarter of 2010 were a positive for the company in which he responded, "Yes, they are! Over the last 2 years Title Consulting has switched its efforts on capturing the housing resale business. Our core business model used to be 80% refinance, and 20% on the purchase side, but over the last year we have switched and are now 80% on the purchase side."

"In October of 2008, I projected that Florida was at the bottom and beginning the recovery. Mind you, this is not specific to valuation as I feel prices should still decline, but more the fact that houses were starting to sell again. From that standpoint, we are commodity driven and as long as the commodity is changing hands, we are there to make our money. Couple this with the fact that an estimated 80% of our competition went out of business, and little or no new title agencies are being approved, you can begin to see why we have invested so much time and money keeping our doors open."

Sales of existing single-family homes in Florida rose 21 percent in second quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 51,564 existing homes sold statewide in 2Q 2010; during the same period the year before, a total of 42,604 existing homes sold. It marks the eighth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the second quarter rose 45 percent compared to the same time the previous year. This marks the seventh consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 2Q 2010 also increased over 1Q 2010's sales figure in both the existing home and existing condo markets, Florida Realtors' records show. For 2Q 2010, statewide sales of existing homes rose 32.7 percent over the 1Q 2010 figure; statewide existing condo sales in 2Q 2010 increased 24.2 percent over the 1Q 2010 level.

Title Consulting Services, Inc., through its wholly-owned subsidiary Accu Title Agency, operates a network of up to 20 independent title insurance agency locations strategically located across the state of Florida. The company is headquartered in St. Petersburg, and has been in operations since early 2001.

Share Structure

On August 10, 2010, the Company announced it was rescinding a resolution taken on July 29 whereby it raised the outstanding common shares by 400,000,000. This reversal will result in the outstanding common share count reverting back to 115 million common shares issued and outstanding. The float has not been affected by this transactions and remains at 28 million.

The move to reduce the shares outstanding was a smart move on the part of the CEO. The recent drop in the price had brought in a number of traders who may have taken a sizable portion of the public float out of the market. Level 2 shows very few shares available between here and .05 per share. Thus, with increased demand for public shares this has put the company on a potential 'float lock-up' watch.

* The Company transfer agent is un-gagged for full public transparency.

Merger and Acquisitions

The Company is currently in the process of seeking out an operating Property and Casualty Insurance Agency (PCIA) to bring under the Title Consulting holding umbrella. The acquisition of an operating and cash-flow positive PCIA will help diversify the Title Consulting portfolio, and provide the company the ability to present current title insurance clients with alternatives to their existing homeowners insurance.

An acquisition of a new insurance provider could push the company into the profitability range, while providing cash-flow for operations. News of first insurance acquisition is pending, and expected shortly

National Expansion

In addition to expanding their market reach and product offerings in the State of Florida, the company also anticipates expansion nationally through acquisition of property, title, and causality insurance targets. This will allow the company to expand their market breath, and begin marketing the company as a national insurance provider.

Technical Analysis

The RSI has turned upward and crossing 50 which indicates additional upside from these levels. The stock has broken and closed above the 5, 10, and 50 day moving averages, with next resistance seen at the $0.025 range. A break above the $0.025 to $0.027 range could confirm a breakout and make for a sharp run in the stock on volume. The TRIX remains in positive territory, and the MACD has now turned upward indicating near-term run in the stock.

Valuation

Based on a share structure of 115 million, and an every increasing tight float, TITL could see a near-term run up to the $0.08 to $0.10 range on a possible 'float lock-up'. A share price of $0.08 to $0.10 a share would only equate to a $9 to $11 million market cap. Watch for a move above $0.02, and increased volume, as a possible break-out alert.

Risks

The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisers before making and and all investment decisions regarding these kinds of securities.

http://www.wallstreetnewscast.com/news/2010/august/titl.html