Small-Cap Focus: China Expert Tech, Littlefield, Deltagen, CirTran (CXTI, LTFD, DGEN, CIRT)

Includes: CXTI, DGEN, LTFD
by: Microcap Speculator

The Microcap Speculator submits:

  • China Expert Technology (OTC:CXTI) announced another $22 million in multi-year software contracts with Chinese city governments. The two contracts, valued at $10 million and $12 million respectively, are with Dehua City in the Fujian province of China, where CXTI does almost all of its business. This announcement comes on the heels of the $44 million contract with the city of Shishi. The Pink Sheets Blog has provided an excellent analysis of these contracts, and the CXTI 10-K. Bottom line: CXTI continues to show excellent prospects, but remain vigilant. There is a floorless convertible out there, so somebody has a big incentive to pressure shares downward. As a result, CXTI shares could see dramatic dips, even though the future looks increasingly bright.
  • Shares in Littlefield Corp. (OTCPK:LTFD) dropped after the South Carolina Supreme Court declined to reverse a $1.75 million judgment against the company. According to the company, "This matter relates to a period of time in the mid 1990s and no member of the current management of the Company was employed by the Company at that time nor was any involved in the circumstances which gave rise to this matter." Fine. Let's get back to making money instead of paying lawyers.
  • About two weeks ago, a reader suggested I look at Deltagen Inc. (OTC:DGEN) a biotech firm in the process of emerging from bankruptcy. The company breeds genetically-modified mice for use in particular experiments. Deltagen seems to have worked through most of its past troubles. More importantly, the company has a nice cash hoard and a potentially-lucrative supply contract with the National Institute of Health. I bought a small position at $.51 and will probably add more.
  • I also bought a small position in CirTran Inc. [CIRT] at $.04, based mostly on the positive newsflow coming out of this company. In February, it pre-announced that FY 05 was its first profitable year. Actual earnings should come out this week. Also, CirTran favorably settled pending litigation. The stock is fairly speculative by any measure but could be a real winner if the company continues to execute.
  • For the first time in my life, I experienced price improvement in a pink sheets transaction. I'm as shocked as you, but it actually happened this past Thursday in one of the accounts I keep at Ameritrade. Maybe it was a fluke, but I'll take it! Thanks Ameritrade.

DISCLOSURE: I am long CXTI.OB, LTFD.OB, DGEN.PK and CIRT.OB. I have no position in AMTD, although I maintain three accounts at Ameritrade. Not a recommendation to buy or sell any security. For informational and educational purposes only.