I also recieved this one this morning,
Good Morning my fellow early bird Bargainers, yeah I know it's early, 10 more minutes in bed would just feel so awesome right now. Well the early bird catches the worm and Bargain Hunters never sleep, yeah and money doesn't either as my mentor Gordon Gecko says. Hey I think after you read this e-mail and 4:00PM comes around we all might sleep better tonight. Or if your like me, Friday Night is Party Night before the work and research starts again for next week. I always like finishing my weeks on a positive note, so here we go!
Yesterday things turned out pretty good, we didn't have an amazing 100%+ Day but with a $.62 cent stock it's not very common to experience those types of returns in one day. We did have a Green Day and my profiled company finished the day up 8%, created a new 52-Week High, and finished at the high of the day, so all in all I can say it has been a success so far.
As you know I usually only profile 1-2 companies per week, but today I decided to bring to you a Sub-Penny DAY-TRADE ONLY stock. These little critters have the tendency of moving really fast and what better way to start our weekend with a stock that could go into some high green grounds today.
One thing to remember with any company I profile is that if you see volume coming in and the stock not going up than there might be something wrong and it's best to stay away.... On the other hand if volume is pouring in and we see things up ticking green than strap on your belt and get ready for a RIDE.
So let me roll up my sleeves and dig into this Sub-Penny so I can give you a head start on your Research:
Today's Company is USOG- United States Oil and Gas
Now you might have an idea about what they do from their name but let me go ahead and explain a bit more:
United States Oil and Gas Corp is an oil and gas products, services and technology company headquartered in Austin, Texas. Through our subsidiaries, we market and distribute refined oil and gas (diesel, gasoline, propane, high octane racing fuels and lubricants) to wholesale and retail customers in the United States. We own all of the plant storage, transportation and maintenance equipment used at our locations in Plainville, Utica, and Palco, Kansas. We own and operate a gas station and convenience store in Belcourt, and hold approximately six acres of developable land in Bottineau, North Dakota. We are focused on acquiring and growing domestic mid size family-run oil and gas services businesses with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place. The company reported 2010 revenue of $24.7 million up from $9.4 million in 2009
Ahhh so we have a BLACK GOLD company. Oil is HOTTER than HOT right now.
Our Sweet Crude was at under $95 in February and now it's over $112, not bad right? It's crazy, but the world wants to find alternative energy sources yet we are still relying on Oil for our every day lives, no wonder prices keep raising. This is why those hedge fund managers are pouring their money into Oil and betting on Winning some crazy gains in the near future.
Now I know most of you are also thinking "Why aren't Big Oil Companies Sky Rocketing?" Well the truth is that some have experienced some nice growth in stock price this year. Others have such high expectations from investors than when they report HUGE earnings but just below what Investors expected than their stock falls. This makes these companies a little more volatile to Investors.
Time to tell you some more about USOG. Did I say this critter could move? Looking at the charts this one ran up 62% in the period of just 2 Days. This gets me excited because I always say "History tends to repeat itself".
Money Money Money!!! Hey it's all about the benjamins, and for me a company that reports positive earnings has them. In the case of USOG they released the following a couple of day's ago:
Subsidiary operations performed well. Earnings before income taxes, interest expense, depreciation, and amortization
(EBITDA) for the combined subsidiaries was $635,000 for the year ended December 31, 2010.
BIG DEAL!!! $635K? What's that? Yeah yeah, most of you might be thinking that as was I when I saw it. But just hold on for a minute before you throw me in the grinder. How many companies that are either trading on the OTC or Pink sheets actually report REAL earnings? You probably don't know, well I don't know either but I believe it's not as common as White on Rice.
Now they didn't only talk about their earnings but also about their expenses, they had the following to say:
Drastic cuts in corporate overhead costs were achieved. Corporate operating expense was cut by $353,000 (39%) for the 12
months ended December 31, 2010 over the same period in 2009.
USOG reported 2010 revenue of $24.7 million up from $9.4 million in 2009.
Real EBITDA earnings, 163% revenue growth in 1 year, and a 39% reduction in corporate operating expense?!
Did I just read 163% revenue growth in 1 year? A reduction of 39% in corporate operating expenses? Nahh they didn't do that, did they??? Ohhhh yes they DID!!!! Can we say AWESOME, AMAZING, INCREDIBLE? I am thinking all 3 into one and say it's an INSANE BARGAIN!!
They didn't stop there..... They also listed these highlights:
First full year of United Oil as a wholly owned subsidiary, as the acquisition became effective on January 1, 2010;
United States Patent Office approval of our eco-friendly fiber optic motion sensor technology for exploration and drilling in rugged environments to be possibly developed or licensed; and
An important contract for the supply of fuels to a private highway contractor. This may provide a foothold for future projects in what should be a trend in growing infrastructure spending.
Favorable re-negotiating of debt to Turnbull Oil
Now after an insanely fantastic 2010 what can this little critter have in store for 2011?
The most impressive, exciting, and potentially profitable thing I read in USOG's outlook for 2011 was that in the near future,
USOG plans to move to a more senior national exchange like the NYSE for even greater recognition and capital raising
opportunities.
Wow! Do you know what can happen to share prices when a company goes from a little exchange like the OTC all the way to the king of them all, the NYSE?? Even a move to NASDAQ or AMEX could be enough to cause a major commotion and massive increase in share price.
Besides that very sexy and profitable goal, they also listed these as milestones for 2011:
Consolidation on a tax basis of both of our subsidiaries in order to increase the bottom line;
Realization of internal growth opportunities and continued reduction in overhead expenses;
Identification of third acquisition target; and
Further significant reduction of debt.
It appears USOG is getting focused on improving their capital structure, which is good for investors. Long term investors being interested and active virtually ALWAYS creates a better, more stable, and more profitable situation for day-traders. They're reducing their debt, increasing their bottom line, and I'm intrigued to hear they're seeking a third acquisition target.
So USOG is looking very solid and very delicious, but how about the trading setup?
USOG is setup quite sweetly with a great support level just below us. Another one of those great trades where we get to enter as close as possible to the support level! .0016 has served as support for a while, although USOG did hit as low as .0015 yesterday. Nevertheless, there is a strong support level below us around .0016, just about 6% below the current price.
The 52 week high is about 1.2 cents, which was hit on volume well over 128 million...so that is a "for real" 52 week high.
That's about 605% above us, so there's plenty of upside here. There looks to be a little resistance around the .0022-.0023 area. If we gap up a bit today and then start to generate some serious positive momentum, we may be able to blow right through that and skyrocket to some really huge profits. After all, don't let all the strong corporate numbers fool you, this is a sub-penny we're talking about.
Last time strong volume hit USOG was March 11th, by the next day it flew as high as .0034. As Gary Busey would say, USOG - Up Side is Overly Gigantic.
Let's USOG - Unite, and Stock up On Gains. USOG - Unbelievably Strong Ongoing Growth. I could do this all day.
But let's stop, and get SERIOUS...and get ready to book some SERIOUS gains with USOG. This play has it all. I've been
getting requests out the yin yang for companies that profit from high oil prices, so here it is.
USOG is in a red hot industry, the hottest. Their fundamentals appear great, massive revenue growth on top of debt improvements, reduced operating costs, and an aggressive growth strategy including trying to make it to a huge national exchange like the NYSE. Wrap that package up into a compact little sub penny and you've got a "big bang" style explosion ready to ignite!
As always, Happy Hunting..... Remember DIG DEEP to find those Bargains!
----- Mr. Penny Bargains
AI
