Capitalsouth Bancorp fka CAPB

[ROSAY]

Good morning everyone.

If you're foaming at the mouth half as much as I am about this new pick, you probably want to get right to it. There's a heatwave, are you sure you don't want to talk about that first?

Okay then, let's get to it!

Today's alert is CAPB - CapitalSouth Bancorp.


Here is what they do:

CapitalSouth Bancorp. operates as the holding company for CapitalSouth Bank that offers various commercial banking services to small to medium-sized businesses in Alabama and Florida. Its deposit products include noninterest-bearing and interest-bearing accounts, money market deposit accounts, individual retirement accounts, demand and time deposits, savings deposits, and certificates of deposit. The company also offers loans secured by real estate; loans to individuals for household, family, and other personal expenditures; loans to foreign governments and official institutions; and commercial and industrial loans. In addition, it offers Internet banking services. As of March 10, 2009, the company operated 12 full-service banking offices in Birmingham, Huntsville, and Montgomery, Alabama; and Jacksonville, Florida. It was formerly known as Financial Investors of the South, Inc. and changed its name to CapitalSouth Bancorp. in September 2005. The company was incorporated in 1990 and is based in Birmingham, Alabama.

CAPB is a banking company serving businesses and consumers in Florida and Alabama.

First let me say, I've never found a more perfect company for this kind of alert. This one has a smaller market valuation and is more thinly traded than ANY of my prior alerts of this kind, which means it could possibly fly higher than ever before.

What has me especially excited is that most of my small float opening-bell alerts are strictly based on a hot chart combined with a company I think is able to make gains very quickly. This one actually seems to be GENUINELY undervalued due to being extremely under the radar. They even have fresh positive news that just came out Monday!

In the first quarter of 2010, CAPB had a net loss of nearly $47.9 million. In the first quarter of 2011, CAPB had a net income of $289 thousand.

CAPB went from a LOSS of $47.9 million to a net INCOME of $289 thousand!

Talk about a company that's turning it around and seems to be getting healthy. In a down economy for banks they've managed to successfully sell off some of their branches in order to strengthen their capital position in this market.

Then they dropped some brand new news just YESTERDAY...

http://www.capitolbancorp.com/press/release_2011_07_21.pdf

Basically CAPB has adopted a tax benefit preservation plan designed to preserve substantial tax assets.

CAPB has a very small market valuation. Having something as significant as a greatly improved tax situation could possibly be enough to send this tiny company's share price straight to outer space!

Not to mention the Level 2 screen for CAPB. After the current ask price on the level 2, there is only ONE more price level to break through until CAPB goes...over $1!

If you're familiar with Level 2 trading, you know how amazing this is. If not, in a nutshell it means the runway is clear for CAPB to take off.

With positive news to light the fire, CAPB could be an unbelievable winner.

Most shocking of all is this...back around the time when CAPB was losing near $50 million dollars, it was trading at a much HIGHER price than where they are now...when CAPB is turning a profit!

What that means to me is that CAPB truly appears to be the definition of "undiscovered."


Not enough eyes on CAPB could have caused their incredible rise in profitability to go unnoticed...until now!


Let me once again say CAPB has high flying potential. PLLX gained 3400% in one day, and I like this one even better. Anything that can fly that fast, can crash just as quickly so this alert is suitable only for experienced traders who know how to handle volatile situations. Extra caution, tight stop, book profits quickly, etc. etc.

CAPB is currently trading at a similar price while bringing in a profit, to where they traded when they were losing well over $40 million. This is a one in a million situation! CAPB busted out with recent news about selling off banks to save their capital structure, and now great tax related news that JUST dropped Monday. CAPB has a microscopic market valuation and a level 2 thinner than a deli slice of pastrami. You match that kind of undervalued high potential situation, with a company that can make huge moves at light speed and you have all you need for a world class day-trade.

Word of CAPB is about to spread like wildfire!



PSA - Penny Psycho