Nope. Just cheap. I think the big seller is gone. Just need some buying to spur interest. 3rd quarter report in a few weeks. That should help show how undervalued it is.
The 4th pick of the year is EACR. It has many positives and a few negatives. I will start with the negatives. First of all you can't buy it with some brokers and others you have to phone it in. 2nd of all they do not release pr's. 3rd, it is quite new and not many know about it. 4th, they did a 50 to 1 F/S and that left all early owners in the money and has resulted in a willingness to sell regardless of price. All of these negatives contribute to why it is so cheap which means opportunity.
Some of the negatives can be corrected. They have a blog on their website and I intend to bombard them with requests for pr's and to fix whatever is needed so that the other brokers can trade the stock without a phone in on the opening transaction. At the least they should release earnings pr's. Those of you that buy can join me on the blog and with enough demand maybe they will listen. If not, just an increase in awareness could help quuite a bit.
The positives - They sell cars on a rent to own basis in S Africa. It is very difficult to obtain financing there for people with bad credit. They charge very high interest rates and it is a very high margin, profitable business with seemingly endless demand. They have already expanded inventory once and are about to do so again. The cash flow is incredible for a .02/.03 stock and due to a change in accounting period it is difficult to put together a full years worth of results but that will change as they release the next 2 reports. When you look at the last 2 q's you will find a lot to like. Huge cash flow, large profits and a promise of no dilution due to the fact that they have a line of credit to buy more inventory. The cars are equiped with tracking devices so they don't have to worry about these low credit customers taking off with one. When you see the last 2 q reports and read about the expansion in inventory and their desire to further expand it, I think you will agree that it is incredibly cheap. They remind me of these payday loan businesses where they charge an arm and leg for an advance. Highly profitabe with little to no risk.
Why now? I was going to release this a while ago but a large seller showed up and I waited for him to sell. He had 1 1/2 mil shares and they have been absorbed. I have been watchin it for a couple of months and I am quite sure the bottom is in. The shares have been absorbed by longer term traders that I am convinced will hold for larger gains. We are also getting closer to the release of the next q report in a few weeks which can provide a further springboard to any momentum that is gained. The next two reports will give a full years worth of trailing results and should leave a trailing eps north of .01. Pretty good for a .02/.03 stock. Not to mention with the expansion in inventory that they were in the middle of completing during the last q and the promise of future expansion the next 2 q's could be much better than the last 2 and the eps could be even better. I think all of the pre F/S holders that are willing to sell regardless of price are out now.
I am so convinced that this will see .10 or better over the next 6 months that if it doesn't I will never do another alert like this. It is after all my intention to ensure that everyone profits. This one is a fully audited SEC filer for those that care about that. It is quite simply the cheapest stock around with promises of future growth and increases in revs and profits. If you like it buy some and help me tell others. Also a little help on their blog convincing them to start releasing pr's would be appreciated as well.
So why a South African company with no pr's and no following? Because it is cheap, and profitable, and growing, and with some increased awareness it should trade at a better pps and I am absolutely convinced future q's are going to show even better profits and if we can convince them to release pr's then the momentum could last for a good long while.
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