Replies to post #162 on Good Value Penny Bottoms (GVPB)

[TheRaveninexile]

CKEI has a lot going for it, business has doubled since last year. If March was as cold as we all think it was there is a good posibility that they may actually post a miniscule gross profit for the quarter which would be fantastic. If they miss the mark by a little it won't bother me much.

CKEI is a buyer and a keeper. There are a few things that will catalyze this stock higher. The first thing to make a push is going to be the release of the quarter numbers which should look pretty good. Next we're waiting to see what sort of customer acquisitions they're going to garner over the Spring and Summer months. The recent financing deal they just made for $1 million is most likely earmarked for buying up some smaller businesses. The finanacing this time was on far better terms than any they've been able to secure before. After that we'll be looking for the possibility that oil prices will go high enough that even more people will be forced to actually "shop" for their heating oil needs. Heating oil is a basic necessity and a lot of people out there will be forced to look for the most advantageous deal when their backs are against the wall. This is where the google advertising arrangement will really pay off. Additionally if oil prices rise enough it will eventually make biodiesel blend less expensive than conventional diesel heating oil. Right now the spot price of heating oil at NY Harbor is $1.9598 which is about .20 below the peak last September. http://www.wtrg.com/daily/oilandgasspot.html
It won't take much to make it surpass that level and go beyond, a little loose Iranian uranium, Nigerian civil war, a few more hurricanes or any number of other things that can happen in the oil industry. We're already starting early if you note that spot heating oil is already .30 higher than this time last year. I'd say there's a darned good possibility that we'll see far higher prices this September than last.

I wish I could say at what exact dollar amount biodiesel blend will become more economical for the consumer than regular heating oil but we can't be too far from it now. Hopefully someone out there has the answer to this question because I've been researching it but have yet to find the answer. Since there are only 2 companies in NY state that are licensed to haul it though, it's going to put CKEI way ahead of the curve if it becomes the more attractive of the two.

Another thing about high oil prices that will benefit CKEI is that it will put an even bigger squeeze on small delivery companies that extend credit to their customers. Companies that are already over-extended will be forced into selling out to someone and CKEI will reap the benefits by being able to acquire additional customer lists at a bargain. This is a volume business and the only thing necessary to make it profitable is more clients.

If CKEI is lucky enough to get a piece of the New York State biofuel initiative this year that news will rocket this stock. If that were to happen and coincide with the oil sector going up due to supply deficits ............... well you can imagine.

The business model is working. The company has been nothing but honest with the PR's. Everything that they have projected so far they've matched or exceeded. This is not another broken promise company.

In my opinion it's a steal at .024, heck it's probably a steal at quite a bit more. It's gotten a lot of good exposure over the past few months as evidenced by the tremendous amount of trading that's been done since February. When the right news is released there are a lot of ppl waiting in the wings to jump on board. Yes we've been suffering from the effects of dilution but shown a lot of resilliance by trading sideways for a full month now. You know the old adage.... the longer it trades sideways the bigger the breakout. I believe we may be seeing the end of dilution soon but that as everything else posted here is my own opinion.

happy hunting!
The Raven

[anytimetrader]

I was NOT at all bashing CKEI....if I was then I would have made up some kind of story...why would I bash a stock that I am holding...sorry it came across that way....I meant no harm at all with that post! Sorry Mike!