Penny Paradise's Latest, PRCC, up 33% today!! (And past pick, PLRP, up even stronger).
Here's a copy of last nite's buy rec:
Pollution Research and Control Corp (PRCC)
Here's a quick note on a company that was discovered by a Penny Paradise member, "ERay, " who advised me to give the CEO a call, and I did so. (See post #145 on Silicon Investor's Patrick's Penny Players' Paradise thread for reference). I recently became a shareholder, and have been preparing some DD to share with you.
PRCC
Exchange: Nasdaq Small-Cap
Shares Outstanding: 2.4 million
Public Float: 1.6 million
Book Value: Approx. $1.00
Contact Info:
Pollution Research and Control Corp., Glendale
Albert E. Gosselin, Jr., 818/247-7601
or
Phoenix Alliance Inc.
Phil Huss (investor relations), 970/259-7241
Additional Sources of Info: Silicon Investor thread and Yahoo Message Board
The story: PRCC is a terribly beaten down company that is due for a reversal of fortunes. I won't try to explain the whole saga. . . if interested, viewing past press releases would be a good way to find out about the past. But in short, earlier this summer, PRCC signed a $5 million dollar Chinese contract. PRCC had a deal with Turbodyne to provide the funding necessary to implement the deal. Turbodyne then pulled out of a definitive agreement, causing the stock to tank.
However, here is the good stuff (per CEO Al Gosselin). PRCC has located alternative funding to carry out the $5 million contract. CEO is heading to New York this week, finalizing terms of the agreement. In addition to gaining the funding, it is likely that PRCC will be acquiring another pollution control company (profitable!). The funding will likely be announced sometime after October 5.
In addition, PRCC will be filing suit against Turbodyne. PRCC has all of the merits of the case, though it may drag on for months before PRCC actually sees the $$$ for damages. The lawsuit will likely be announced this week. The press release will likely add some life to this little company, spurring it upward, IMO.
Also, earnings are due (for 3rd quarter) around October 17. While PRCC suffered a .47 loss in the 2nd quarter, it is anticipated (by both Mr. Gosselin and Mr. Huss) that the 3rd Quarter will be very close to profitable, if not profitable in fact.
Furthermore, assuming the alternative funding works as planned, initial revenue from the $5 million China contract will be realized as early as the 4th quarter. The 4th quarter will then commence a definite return to profitability. Profitability will carry well into 1999.
Mr Gosselin also informed me that PRCC is in negotiations for a MUCH LARGER Chinese contract. . . in the realm of $30 million. On the $5 million China contract alone, the CEO expects PRCC could earn .30 in 1999. . . if the other contract is realized, the sky is the limit.
I urge you to take a look at PRCC, and call either the CEO or Phil Huss with any questions. I accumulated a little bit last week. . . because it is a Nasdaq stock, it is possible to enter orders at/or slightly above the bid, and have a reasonable chance of getting filled. I sat on the bid of 5/8 for a day and was able to accumulate some shares. I didn't expect today's uptick to come so quickly, but I think that it should continue to rise significantly.
The following release is from June 29:
"Pollution Research Signs Pact in China For Monitoring Units
GLENDALE, Calif. (Dow Jones)--Pollution Research & Control Corp.'s (PRCC)
Dasibi Environmental Corp. unit said Monday it signed a $5-million contract with the
Chinese Environmental Protection Agency, or SEPA, for its monitoring units.
In a press release Monday, Pollution Research said the effective date of the contract
is estimated at 20 to 30 days.
Pollution Research said the contract provides air pollution monitoring systems for 11
cities in China, and is scheduled for completion this year.
The company also noted that secondary contracts with larger values are likely to be
signed once phase I is complete. A company spokeswoman said Pollution Research
will bid on a second, "much larger" contract in August.
Pollution Research & Control makes air pollution measurement instruments and
medical instrumentation."
Additionally: I'd like to thank member ERay for supplying me with his DD on the company. I'd like to urge any and all members to let me know about any companies that they discover.
Good Luck, God Bless, and Take Care!!
Patrick, Editor of Penny Paradise
DISCLAIMER:
This is not a solicitation to buy or sell the aforementioned securities. The writer, Patrick Gundlach, is not a registered investment adviser. The writer may hold positions in the securities mentioned herein. Opinions are those of the writer and should not be used as a sole criteria for investing. Reviews of companies are not a complete analysis. All information used in Penny Paradise is from sources believed to be reliable, but cannot be guaranteed. Invest in stocks only after reviewing the financial reports of the company (if available) and as always, investors beware! Thank you, and best of wishes to all.
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