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I grew up in NW Ohio, joined the Marines and stayed in the Carolinas after I got out of the service. Love to find under valued stocks, digging for info on public companies that fancy-pants analysts don't have the presence of mind to spot, and spending time with my family. I recommend microcap... More
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  • Part 1 Of ?: Sub Penny Stock That Needs A Tiny Spark To Catch On Fire...

    I've recently found a stock that has potentially the biggest upside out of any stock I've ever seen trading under .01 per share.

    Most folks lovingly refer to these stocks as "Sub Pennies"...

    Or "Subbers"...

    What stock you ask? "Touchit Techonolgies".

    The ticker is TUCN.

    Take a look at some notes from my due diligence:

    1) They are up to date on otcmarkets.com and are a fully

    reporting company.

    2) Check out these 2 blurbs from a quarterly report earlier this year:

    We are a manufacturer (via 3 rd party contract manufacture) of touch based visual communication products for education and corporate worldwide marketplaces. Our mission is to design and manufacture high quality technology products. We manufacture a large range of touch screen and touch board products to suite all types of application from pen input wireless tablets, to large enameled steel touch-sensitive interactive whiteboards and large interactive Liquid Crystal Displays ("LCD"). Our products stand out from our competition in terms of our design, functionality and price offering. Our customers seek our products as they provide them with a different point of entry to the market in terms of price, quality of design and margin. Currently, demand for our products is exceeding our ability to supply.

    For the first three months of the year, quarter ended March 31, 2013, as compared to the three months ended March 31, 2012, NET income for the period has increased by $120,388 from $(84,958) to $35,430. This can be attributed to the Management's focus on reducing overhead costs to maximize profitability when revenues increase.

    3) They actually have a real product that you can actually buy:

    http://www.touchittechnologies.com/downloads/pdfs/TouchIT_Family_Brochure_August_2013_low.pdf

    I actually went as far as to call this company and found out that I could buy

    one of their products through Office Max...the Office Max rep actually called me

    back...(most sub penny "company" phone numbers are bogus call centers)

    4) The company has an active facebook page that they have been posting on:

    https://www.facebook.com/ Touchittechnologies

    (click to enlarge)

    The float on this stock is small, well under my preferred

    number of 500M shares (as I state in my sub penny assassin course).

    Not only that, but the stock has basically been overlooked

    by what looks to be the entire penny stock crowd...and they

    truly have overlooked one of the most "legit" companies

    that trades under a penny--in my opinion.

    If anyone can show me another company like this under .005 let me know...but I think you'll have a hard time finding one.

    Matt

    Microcapmillionaires.com

    *Disclaimer: I was not compensated in any way to mention this stock, nor do I own a position.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Aug 21 1:39 PM | Link | Comment!
  • Dario Seeks To Capitalize On New Technology For Diabetic Test Strips

    A new entrant into the diabetic blood glucose monitoring industry has recently gone public and is positioning itself to potentially revolutionize the industry. LabStyle Innovations Corp, trading under the symbol of DRIO and known by its name Dario, is a new public company planning on assisting glucose monitoring individuals to register and track their levels using their own smartphone. Using a new patent-pending technology the company has developed a monitoring interface with a smartphone. The device is the size of a pack of gum, which is smaller than other comparable devices, and requires no battery to operate as it is designed to work off the power of the interface with the smart phone.

    Here is a view of slides the company made that gives a presentation their product:

    Dario Presentation

    The company which is based in Newark, Delaware, has begun the long drawn out task of meeting regulatory approval. Under the current plan the company is seeking to have approval in Europe within the next few months of 2013 and intends to have US approval after Europe. Under the current business plan Dario will penetrate the Self-Monitoring Blood Glucose (SMBG) market once approval is achieved. The company intends to concentrate operations at first on people with Diabetes type I or insulin dependent diabetes, sometimes referred to as juvenile diabetes. Dario will be made available to those with type II diabetes, which is a larger market.

    The size and scope of the target markets are quite impressive. In Europe the amount of people who suffer from any of the various forms of diabetes is estimated at 52.6 million people. The US market size is estimated at 25.8 Million people. Of these two segments the number of people who suffer from type I diabetes is 10 % of the above referenced numbers. In terms of revenue generated in serving these two markets the European market has annual sales of $3.97 billion and the US market has annual sales of $3.9 billion. Both markets' largest operators are: Roche Diagnostics a subsidiary of Hoffman-LaRoche; LifeScan of J & J; Bayer Healthcare division; and Abbott Laboratories, in sum total these four companies control 90 % of the market.

    Dario's competitive advantage is in the concept of concentrating on the smaller market of type I diabetes. People who suffer from this form of the illness are required to monitor their blood glucose 4 to 10 times a day and on average use 120 to 300 test strips per month. While they are a smaller portion of the market size they represent a very significant portion of the daily user of the technology. The company plans to retail their test strips for their monitor (Dario) at $1 per test strip. If the company establishes a market of 100,000 people by the end of the first year of sales operations, it can expect to have annual revenues of about $240 Million. The secret to establish this following in the market is to seek out a younger more technological savvy customer who will see the effectiveness and simplicity of using their smartphone as a monitoring system, foregoing the more cumbersome monitoring units of the larger market holders.

    The other main advantage that Dario will be able to utilize is its creative and managerial team. From the Chairman of the board down to the Chief Technology Officer, the members have a track record that speaks for itself. Oren Fuerst, Chairman and CEO, has help found three other medical innovative companies. Shilo Ben Zeev, President and COO, has served at the executive level of operations for several medical technology companies in Europe and Israel. Dr. David Weintraub, a founding director, has a sustained history building companies that are the front leaders in medical technology; in 2008 one of his companies was purchased by GE for $40 Million. Tel Givoly, Chief Technology Officer, has moved to LabStyle from Amdocs Limited where he was the chief scientist; he has over 25 patents to his credit, with more in review. The evidence is strong that Dario, through LabStyle Innovations, has a creative team and managerial skills that can vault the company to the top of the market. This complements the stunning potential for revenue and profitability.

    In terms of investing LabStyle Innovations (Dario), has the prerequisites to soar its innovation to the top of the marketplace. If the company penetrates the market and receives just 100,000 clients within the first year of sales operations, the company would have revenue of about $24 per share; with revenue per market cap of $6.31. In this achievable scenario Dario's current market price, of $2.40, would have no choice but to increase by multiple folds.

    (click to enlarge)DRIO chart

    Note: for determining a revenue number, the author has taken an average number of tests strips at 200 per month per client; multiplying this number by 100,000 clients (A random number assigned by the author) the first year's revenue would be $240,000,000. This number is just a sample of what may be a potential outcome; neither the author nor the company suggests that DRIO will generate this or any revenue in the future.

    Table of current financial data derived from yahoo finance

    Market Cap

    39 Million

    Enterprise Value (NYSE:EV)

    2.69 Million

    EV/EBITDA

    -.68

    EBITDA (NYSE:TTM)

    -3.95 Million

    Net Income (TTM)

    -5.69 Million

    Diluted EPS

    -.46

    Shares outstanding

    15.15 Million

    Float

    9.44 Million

    Like any new startup company LabStyle Innovation, faces several financial obstacles to its success. The company has not received any regulatory approval for any of its devises; therefore, it has yet to earn or generate any revenue. To build and design its products the company has raised money through private placement of shares, as such its recent Initial Public Offering (NYSEARCA:IPO) has been used solely to pay back previous shareholders and none of the proceeds went to build capital for the company.

    Because it is still in the startup phase and it has no revenue, the company's auditor (Ernst and Young) has questioned it continued operation as a going concern. The company estimates that it has enough money to operate until the end of 2013; however, there is no guarantee that the company will receive positive regulatory approval before then and may not be able to generate any revenue, thus forced to close its doors. Once sales are approved the market may change drastically and sales may not match expectations, thus hampering any positive revenue generation. Finally, like any investment a position in LabStyle Innovation, Dario, involves significant risk of loss; any potential investment must be thought out properly to each individual investor's situation- an investor should seek out the guidance of their own personal investment adviser for how much risk they should accept in a stock position.

    All data and information was derived from the SEC fillings on LabStyle Innovations Corp website www.mydario.com and yahoo financial using the stock symbol DRIO.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: JNJ, ABT
    Apr 22 11:43 AM | Link | Comment!
  • Is 2013 The Time To Go Long ZNGA?

    After a dismal 2012 and the "red headed step child treatment" that comes from being associated with social media, ZNGA is poised to make some solid progress in 2013.

    Chief among reasons the online game maker could see some sunlight is the possibility of legalized online poker in the United States. The revenue windfall and subsequent growth is something that invest hunt for constantly. That alone is a good reason to put this stock on close watch as the early weeks of the new year pass us by.

    Secondly, Facebook shares (NASDAQ:FB) are behaving very well early on in the new year. That alone is a boon to Zynga, since the two upstart social media darlings (at least they were darlings at one point) are so closely knit. The thinking is that if Facebook is doing well, Zynga is as well.

    Thirdly, the technical analysis on the chart of ZNGA shows the stock hitting a strong level of support just above two dollars a share. The moving averages are slowly turning bullish also.

    All three of these factors combined make ZNGA a cheap stock to put on your watch list, and maybe even buy if you want a risky stock to own for your portfolio.

    I put together a pdf report on ZNGA here.

    You can also get other penny stock picks at my website, microcapmillionaires.com.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 09 3:44 PM | Link | Comment!
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