CirTran Corporation (CIRX)

[mike306oh]

***CIRT - a brief review. Any comments (and I mean any) are most welcomed.

"I think CIRT is on the move after a big shakedown this week. Next week should be strong as well if management can throw some PR our way."

Speed, I agree. Sooner, rather than later this will move. And, IMO, the time for CIRT to start moving is already well overdue.

This is by far the most undervalued penny stock I know of.

1. Check out the explosive growth not only in gross revenue, but also in the net revenue (for the first time in Company's history, over the last 2 Q's the company reported positive net revenue):

http://finance.yahoo.com/q?s=CIRT.OB

CirTran Reports 123% Increase in Sales and 11% Net Profit in 10Q Filing

Monday August 15, 7:30 am ET

<<Iehab J. Hawatmeh, founder and president of CirTran, said continued growth in domestic and off-shore business helped the company achieve an 11% net profit of $466,229, its first profitable quarter since becoming a public company in 2000. The 10-Q, he said, reported an $828,193 improvement over the loss of $361,964 for the same period in 2004.

CirTran was also profitable for the six months ended June 30, reporting $264,501, an improvement of $1,210,087 over the loss of $945,586 for the same period a year ago.

CirTran also achieved record sales for the fifth straight quarter, reporting revenues of $4,309,184, an increase of 123% over the $1,924,242 for the same period a year ago. Net sales for the six months was also a company-best with $7,229,649 reported, an increase of 277% over $2,603,604 for the first half of 2004.

In addition, CirTran's total assets more than doubled to $9,513,156 from $4,293,429 for the same period in 2004, with Total Shareholder Equity growing dramatically to $2,151,136 from ($2,242033) a year ago.>>

2. The best news came on the June 11 PR:

<<"This is clearly our best start ever," said Mr. Hawatmeh. "Revenues are well up, with more than $80 million in new business backlog signed during the first half of 2005, while we've continued to reduce and control costs."

Mr. Hawatmeh said the company's growth has been "both at home in Salt Lake City, where we have added to our contracts, revenues and employee base, as well as at CirTran-Asia, where the company has continued to grow its business base in building products for the sold-on-TV marketplace.

"CirTran has emerged from a down period and is running full steam ahead," he said. "We look forward to rewarding our shareholders' trust and investments as we continue toward a profitable 2005.">>

3. Historically, the PPS was holded back, by the relatively small, but continuous dilution. Other companies have moved despite a larger that CIRT's dilution. Just two examples:

MOBL (with some higher revenue, but some 100MM debt to Cornell) has just proposed to increase the OS from 600MM to 1.5B, yet the PPS is still around 0.3.

GTEL (now GTE), prior to going into AMEX (using a 1:15 R/S), had an OS of over 1B shares. Yet the price (before the R/S) went from a low of 0.06 or so, to over 0.36.
The news on August 9, gives me hope that this major problem will start fading away soon. See below:

The good CIRT news:

<<CirTran recovers 38.2 million in shares from Cornell Capital
Deseret News (Salt Lake City), Aug 9, 2005

Salt Lake-based CirTran Corp. said Monday it has received back 38.2 million shares previously held in escrow by Cornell Capital Partners LP.

Iehab J. Hawatmeh, CirTran's founder and president, said the returned shares "significantly reduce the float of CirTran stock and marks the end of financial agreements with and obligations to Cornell," and added that those shares are being retired.

"Over the past year, CirTran has adhered to a plan to reduce and control obligations, including conversion of some debt to equity, while moving toward profitability," he said.>>

4. The latest problem that might explain why the stock price has not popped up after the good finances, is the counter law suit. If the CEO is right (read the August 15 release), this problem should be over with soon:

CirTran Calls Countersuit 'Frivolous, Fraudulent, Intentionally Inflammatory'

Monday August 15, 3:56 pm ET

SALT LAKE CITY--(BUSINESS WIRE)--Aug. 15, 2005--CirTran Corporation (OTCBB: CIRT - News), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today responded to a countersuit against the company and Charles Ho, head of its CirTran-Asia subsidiary.

"On May 11, CirTran filed suit in the U.S. Circuit Court for the District of Utah against Michael Casey and Michael Casey Enterprises, Inc.," said Iehab J. Hawatmeh, founder and president of CirTran.

"As a law-abiding and ethical company, CirTran sought to have its dispute resolved through the court system, choosing not to announce or publicize the suit prepared by the Salt Lake City firm of Durham Jones & Pinegar," he said.

"Even after Mr. Casey attempted to avoid and evade service, CirTran's posture remained professional." Then, on June 28, after some seven weeks of what Mr. Hawatmeh called "Mr. Casey's cat and rat games," service was finally achieved.

The CirTran suit alleges breach of contract and good faith, as well as interference with economic relations and contracts regarding an agreement for CirTran-Asia to be the exclusive manufacturer of the AB King Pro(TM) and any and all products Mr. Casey and his company developed or brought to market through June 2007. It charges Mr. Casey and his company, and others who were party to the Exclusive Manufacturing Agreement between Mr. Casey, Casey Enterprises and CirTran-Asia.

This past weekend, after CirTran filed its 10-QSB for the second quarter of 2005, reporting its best financial results ever as a public company including record sales and a first-time net profit of 11%, Mr. Casey and his company issued a press release announcing its countersuit which Mr. Hawatmeh called "frivolous, fraudulent and intentionally inflammatory."

"After weeks and weeks of calculated avoidance of the law, Mr. Casey filed his frivolous counter claim and then had the gall to publicly announce that he had done so with a press release on a Sunday," Mr. Hawatmeh said.

Mr. Hawatmeh said that "CirTran will continue its actions against Mr. Casey, Casey Enterprises and all associates involved to the full extent of the law."


5. Opinion:

Based on the above, I trust CIRT's PPS is due for a nice recovery soon. How soon, nobody knows. But IT SHOULD GO UP, SOON! I believe beginning September (with the general move up of most stocks, especially the undervalued ones - and CIRT is the best example) this should happen here with or w/o any additional news. Some good news (that one can expect at any time now), will definitevely help.

PS: Last week I saw some larger Buy's (few of which were mine), of up to 450K. Whomever did a good DD on CIRT, and knows anything about the fools months (August - the best month to accumulate) has accumulated over the last few weeks:

http://www.wallst.net/quote.asp

Mike