The Microcap Kitchen: Stocks 5¢ to $5 Message Board

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Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5¢ to $5

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To: GARY P GROBBEL who wrote (84034)	4/22/2009 3:31:49 PM
From: GARY P GROBBEL	Read Replies (2) of 120415

This is an analysis I have sent out to 100-125 CEOs and CFOs over past 10 days--I update this list accordingly each qtr and send out a qtrly report to all-they seem to appreciate it. BEAR IS BUSTED ADVISORY- FOLLOW UP TO JAN FORECAST For the last few days I have been informing CEOs and CFOs of companies I either own or informally consult for that based on my proprietary microcap index and the various metrics I watch down here relative to companies with mkt caps ranging from $1m to $50m that the 20 month long bear mkt in microcaps is over. Recall please that the micros were the first class of stocks to be hit and the continuous savaging of this equity class drove down the average price of a microcap 72% over that 20 month period. At present over 90% of microcaps have their 'bottom' in and the next move for these stocks will be up if they can get the attention of the retail investor. THAT is the key for microcaps now....get some eyeballs on your stock. There is a de-coupling taking place btw the mid and large caps and the microcaps. Although many look at the March 9th low in the major indexes and peg it as a low for equities 'period' I am not as sanguine ref that call. Therefore this de-coupling is very good news for our equity class ....especially those that are presently on life support. The challenge now for many microcaps is how to keep the wolves from breaking thru the door while while waiting for credit to loosen up OR how to bring enough retail investor attention to the company in such a manner as to improve their price enough to enable a small PP to get done. Fund raising right now (deals are still being done) for many microcaps would have to be done at such low price levels that the resulting erosion of the mkt price plus the resulting dilution would simply be too strong of a negative to overcome right now. For many companies that are still close to their 20 month lows the announcement or filing of a PP in some form or the taking on of add'l debt vehicles would engender a stiff negative response from stockholders. So...my advice concerning the above quandary would differ from company to company but some general comments will be applicable no matter where your company is priced in the market: -first, a pretty solid move in microcaps has already been underway for the past few weeks. Many of the companies I either own or consult for ref their outreach to the retail investor (the fact is that all microcap companies are hostage to that retail investor right now and if company does not connect with them now then it will be left on the side of the road) have put out positive news and have finally been rewarded for that positive news in the marketplace. -those companies that are simply waiting around for things to 'change' and their stock to begin recovering need to get more aggressive out here on the playing field. There are at least 25 diff ways to get news out. I have a scale that rates them all based on one to 5 stars as to which carry the most weight with the retail investor. -the microcap recovery will be erratic for a while until we get to a point where a rising tide will lift all boats. Your company is competing with 6-7000 other companies out here for the retail investor's dollar. Most of you have either the numbers, a technology or product, a wildcard or two that will put your company out front--otherwise I would not be contacting you. Just get in the game and see if this market will help pull your wagon far enough to at min allow your company to raise an amount of equity that will get you thru to better times. There WILL be funds for small business soon...either thru the stimulus bill or credit made avail for small companies that was not there before from your customary sources of credit.. As I said, stocks are moving out here and the RIGHT kind of news is finally getting the attn it deserves in almost all cases. So throw your hat into the ring and get moving....fact that the bear has been broken does not translate into a bull mkt beginning. It just means we have a shot now at getting to that point....which is a far far better place to be in than at anytime in the past 18-20 months. The most important thing to understand now is that this bear is over. Now all of you need to adopt a strategy that will bring the right kind of attention to your company from the retail investor. The funds and institutions will follow if you focus now on getting your message across. Put the buy proposition out there and then keep working until you close it. You have no other option unless your company gets blessed with manna from Heaven. And that CAN happen...I just would not rely too heavily on that approach. They (retail investor) are buying now...and gains are holding. So please get moving. You don't want to miss this recovery or get lost in the weeds while other companies are improving in price. As I said there are X amt of dollars out here that the retail investor has to invest--you have GOT TO get your company on the radar screen so that your company can reap some of benefits of this new beginning. That is the main purpose of this missive--to encourage you to get out there and push hard....if not now when?

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