Subj: Penny Stock Gold Rush (May 14, 2000)
Date: 5/14/00 8:49:44 PM Eastern Daylight Time
From: Editor@pennystockgoldrush.com (Pennystockgoldrush.com)
Reply-to: Editor@pennystockgoldrush.com
To: Editor@pennystockgoldrush.com (Penny Stock Gold Rush)
PENNY STOCK GOLD RUSH REPORT
Reporting on Tiny Stocks with Huge Profit Potential
May 14, 2000
Contents:
1. Welcome
2. Bargain Hunters look for Good Deals in the Penny Stock Market
3. Could the next SuperStock be trading on the Pink Sheets?
4. CHPF
5. STWW
6. DGBI
7. Stocks to Watch: ECAR, EREX
8. Disclaimer
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A WELCOME TO ALL NEW MEMBERS!
We would like to extend a warm Penny Stock Gold Rush welcome to all of our subscribers from around the world. We believe you will find our publication one of the most informative, easy to read, easy to understand and, of course, profitable penny stock investment newsletters available today. We encourage you to PRINT OUT a copy of this newsletter so that it is easier to read. If you ever have any questions please don't hesitate to write us at editor@pennystockgoldrush.com. If we don't answer right away, please be patient, as we do receive a large amount of letters.
COMMENTARY:
BARGAIN HUNTERS LOOK FOR GOOD DEALS IN THE PENNY STOCK MARKET
The recent decline in the stock market has brought most of the high flyers back down to earth. Even the lowliest of penny stocks have been affected by the interest rate hikes that loom on the horizon. Over the past several weeks, speculators have been staying out of the penny stock market, causing low volume and lack of liquidity (not enough buyers for sellers). The OTCBB has suffered lower than usual volume and a wave of selling that has sent stocks that were previously poised for run ups to all time lows. The bottom line is this: bargain hunters are now looking for cheap stocks to buy. Will our penny market turn around? You better believe it. It is not a matter of if but of when. Smart investors and bargain hunters will position themselves early in anticipation of a recovery of many stocks. Fortunes will be made as many penny stocks surge. Will you be an early player? Or will you be part of the crowd who typically gets into a stock too late? It is up to you.
Some of you may need help getting motivated for penny stocks again. If so, here is a recap of some recent stocks I brought to the attention of my subscribers before the current market pullback: In January I told subscribers about CARH at .40. In the following several weeks it ran as high as $2.50. A $1,000 investment into CARH could have turned into $6,000 for a savvy investor. I told subscribers about VCSY in January when the stock was at $3. In the weeks that followed it ran to the $15 area. A forward stock split announced by the company caused the stock to surge even higher. In fact, after the split the stock looked like it might run into the teens again. It moved from .56 to the $6 area, a pre-split price equivalent of $120. Even now, after the market pullback, VCSY is priced at the .70 area. A pre split equivalent would be $14. An early VCSY investor could easily have turned $1,000 investment into twenty, thirty, or even forty thousand dollars. A $10,000 investment could have returned almost $400,000 in a few short weeks for the most savvy investor. A dummy that sold too early could have turned his $5,000 into $25,000, $35,000 or even $40,000. Another January stock is EISQ. We told people about it at .40. In the days that followed the stock ran as high as $7. A $1,000 investment could have become worth $17,000 for a savvy investor. A $5,000 investment could have become worth almost $90,000. Even the most amateur investor could have realized at least a double or triple.
These are the kinds of returns that we look for in the penny stock market. That is why we are here. Yes the risks are high, but so are the rewards when we find a good stock. If you want low risk, low investment returns you should head for the local bank and get 5%. Only the future will tell if the current stocks we are looking at will perform the same way as our past stocks. The question is, if they do, will you make money? Or will you stay on the sidelines? It is totally up to you.
THE NEW ELECTRONIC PINK SHEETS: COULD THE NEXT SUPERSTOCK BE TRADING HERE?
Due to new stringent listing requirements for the OTCBB, thousands of companies that were previously listed on the OTCBB have now been de-listed. The process, apparently designed to protect small investors, was simple: companies that could not meet new listing requirements for the OTCBB were given a short period of time to comply with the standards or be dropped. Those that could not comply had an ?E? added to their ticker symbol and then ultimately dropped off of the OTCBB. Many of these stocks are now trading on the infamous ?Pink Sheets.?
The ?Pink Sheets? have been around for many years as a hard copy quotation service run by a private organization called the National Quotation Bureau. Stocks prices were published on a delayed basis. But times have changed. The Pink Sheets now provide real time electronic quotes complete with a bid and ask. Unfortunately, these quotes are currently only available to brokers, market makers, and institutional investors for $149.95 per month. So where does the individual investor go to retrieve Pink Sheet quotes? Quotes are now available (no bid and ask) on a delayed basis on some quote servers, including the one listed at pennystockgoldrush.com.
The regular media and investment gurus would have you believe that the Pink Sheets contain only ?garbage? stocks. This is not necessarily true. For years, internationally-known map maker Rand McNally was listed on the Pink Sheets. Where the company is listed has little to do with its potential in terms of stock price. We have seen $50 companies listed on the New York Stock Exchange fall to zero. On the other hand, we have seen pink sheet stocks rise from the dust and run 1,000%. The pink sheets have a bad reputation simply because real time quotes aren?t available. It is human nature to be leery of something that we cannot see.
We think the time is coming when real time Pink Sheet quotes will be as widely available as the OTCBB. When this happens, all of the listing requirements and de-listing process that supposedly was designed to protect investors will have accomplished absolutely nothing. The bottom line is, investors must do their own research and are ultimately responsible for their own investment decisions. Just because a company is required to post SEC filings is certainly no guarantee that a stock price will perform. Fortunes have been made by investing in non-reporting companies. Let the investor decide whether a non-reporting company listed on the Pink Sheets is worth investing in. Could a SuperStock in the making be listed on the Pink Sheets? You better believe it. We have no doubt you will read about some of them right here in our publication.
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STOCK OF THE WEEK: CHPF
CHINA PREMIUM FOODS ANNOUNCES NEW ACQUISITION AND DEVELOPMENT OF NEW BUSINESS TO BUSINESS FOOD PORTAL FOR CHINA
China Premium Foods, Inc. (OTCBB: CHPF: .90) We recently purchased additional shares of CHPF. We now hold 25,000 shares. Here is a China stock that never experienced the kind of run up that other China stocks have enjoyed. Could it be because CHPF is not a high technology stock? Or is it because the stock is simply undiscovered? Here is the story that broke this past week.
Company Press Release
China Premium Unveils B2B Food Portal for China and Signs Definitive Agreement to Acquire Mandarin Fine Foods
NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--May 11, 2000--China Premium Food Corporation (OTCBB:CHPF - news) announced today the unveiling of a full-service B2B food portal for China. The portal will be in the demo and beta stages until the expected launch July 1, 2000. China Premium has been active in the food industry in China since 1993 and will combine the established food distribution business of Mandarin Fine Foods with its B2B e-commerce portal to provide a powerful food purchasing and sales tool for a wide range of commercial consumers and suppliers in the food industry. Simultaneous with this announcement, the Company has completed the finalization and execution of a definitive agreement to acquire Mandarin Fine Foods Co., one of the largest food distribution companies to four and five star hotels in China. These hotels include the Ritz Carlton, Sheraton, Holiday Inn, Westin, Hilton, Shangri-La and the other major international chains. This acquisition, coupled with the Company's wholly-owned Distribution Company subsidiary, gives the Company the bricks and mortar, old economy infrastructure necessary to efficiently service the B2B food portal.
Mr. Li Zhi Yun, Mandarin Fine Foods' founder and General Manager, will join China Premium in an Executive position Food Services and continue to oversee the operations of Mandarin Fine Foods, one of the most successful premium quality food distribution companies in China.
The B2B portal will be a complete food distribution channel from the origin supplier into China. Through the portal, Chinese institutions can procure Western quality products directly from the site. US food manufacturers can register to sell their products into China and can utilize China Premium's established infrastructure in China to offer a full service food platform. The Company's Chinese infrastructure includes its subsidiary, a distribution company in the Wai Gao Free Trade Zone in Shanghai, that facilitates import/export transactions, including tax and legal compliance, customs and foreign currency exchange and established distribution routes.
B2B e-commerce this year in Asia is expected to hit nearly $30 billion, according to The Gartner Group, and could top $1 trillion in 2004. China is the fastest growing economy in the world and one of its first markets that has been advancing is the quality and abundance of food items available, and this trend should only strengthen with WTO on the horizon. The e-marketplace will shorten the supply chain and more sellers can offer their products to China, through this ``efficient middleman.'' Additionally, although many Chinese consumers have yet to make their way to the Internet, most businesses in China are online and can easily access a B to B portal. food producers a clear-cut route and distribution system in China.''
Mr. Steve Langley, COO-China of China Premium, said, ``We will greatly improve the efficiencies of the food institutions in procuring products in China. The efficiencies gained by these food institutions will be significant as they are currently `heavy personnel and heavy paper' and will provide management the tools to better control costs. Both food institutions and the retail supermarkets will embrace our B2B platform.''
China Premium holds a 52% interest in the Hangzhou Meilijian Dairy in Hangzhou, China, the largest dairy in this urban area of 6 million people. The company is also in negotiations to structure licensing agreements with principal dairies in China's top ten cities to produce its proprietary Looney Tunes(TM) brand of flavored milks and drinkable yogurts. China Premium is importing private-labeled snack crackers manufactured by Lance, Inc. (NASDAQ:LNCE - news), which are branded with the Looney Tunes(TM) brand and characters. China Premium may additionally leverage its Looney Tunes(TM) license in China to brand additional products. The Company has several seasoned food industry executives and directors, both in the U.S. and China. The Western Chinese management have had tenures at IBP Inc., Hormel Foods, Cargill Inc., and Price Waterhouse Coopers, and in the U.S. past associations include Schering-Plough, Dean Foods, Farm Fresh, Cumberland Farms, etc.
For information on the company, visit www.chinapremiumfood.com.
Looney Tunes is a licensed trademark of Warner Bros. c 2000.
Safe Harbor Under the Private Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effects of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.
Although we view CHPF is an investment alternative to the high technology area, we eagerly anticipate the launching of the new business to business food portal. Our target range for this stock is the $2 to $3 area in the short term. For more information about CHPF visit pennystockgoldrush.com
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STAMPEDE WORLDWIDE, INC: TURNAROUND SITUATION CONFIRMED BY NEW SEC FILING
Stampede Worldwide, Inc. (OTCBB: STWW: .17) We profiled this stock in the last newsletter at .13. This past week it ran as high as .25. It is very difficult to find viable companies trading at this low price. We cannot understand why STWW is so cheap. The company was previously called Chronicle Communications. We bought 60,000 shares of this stock earlier this year in the .25 area. We still hold it. We think our patience will pay off, as time and time again we have seen penny stocks crash, trade sideways for months, and then take off when you least expect it. Last year this stock ran as high as the $3 area.
Here is some information taken from the most recent press release:
STWW's subsidiaries and their respective businesses are as follows: Chronicle Commercial Printing, Inc. - commercial web offset printing, Stampede Network.com, Inc.- web design and hosting, and proprietary database programming, Spiderscape.com, Inc.- internet and catalog based computer hardware and software retailing, Bartow Communications, Inc. - publisher of new homes real estate guides in Metropolitan Washington, DC, Americomp Computers, Inc. - full line computer sales and service business in Houston, Texas.
``The statement of financial position and the results of operations exceeded our expectations for the period reported,'' said President and Chief Executive Officer John V. Whitman, Jr. Highlights from the Management's Discussion and Analysis follow.
Net loss per common share decreased by $0.14 to $(0.01) for the quarter ended March 31, 2000 versus ($0.15) for the same quarter of 1999. The Company's working capital position is positive as of March 31, 2000 and has continued to remain in that position through the date of this filing. Working capital at March 31, 2000 was $293,101. This is an increase in working capital of $3,020,444 from the negative $2,727,343 working capital at March 31, 1999. The Company's current ratio at March 31, 2000 is a positive 1.3:1.0 ratio in sharp contrast to the negative current ratio of 0.1:1.0 at March 31, 1999. Stockholders' equity has increased by $3,567,876 from a deficit of $788,120 at March 31, 1999 to a balance of $2,779,756 at March 31, 2000. Overall, the balance sheet has increased by $1,451,386 from March 31, 1999 to March 31, 2000.
During the current quarter the Company's management has vigorously been eliminating and rectifying ongoing operational and administrative matters to more effectively continue with its ongoing efforts to strengthen and ultimately bring profitability to the Company and its shareholders. These efforts have included significant reduction of payables, resolution of litigation and employment contracts, and refocusing on core business objectives. To this end, in January 2000 the Company moved into a 32,000 square foot facility that can comfortably house all divisions with more than adequate room for growth. The new state of the art FAST-300 press (cost - $695,000) was installed in February 2000. In March the Company acquired the assets and talent of ETA Internet Solutions, Inc. to establish Stampede Network.com, Inc. Also, in March 2000 the Company redeployed the assets of our Houston based Americomp Computers to Tampa to begin the creation of Spiderscape.com, Inc. On April 5, 2000 the Company purchased its new Tampa facility for $2,250,000 with better than market seller financing and no mortgage payments required before the first quarter of our next fiscal year.
We will continue to hold our stock and look for STWW to return to the $1 area. Penny stocks are notorious for crashing down and then rebounding when you least expect it. Sometimes it can take months. We think the company has not done a very good job at public relations, as investors are probably confused as to what exactly the company does. A visit to the corporate website doesn?t reveal much information. When you do find the right link you get information that might help a ?techie.? But as for a layman, forget it. If the company can better address the shareholders through an effective investor relations campaign, the stock will have a much better chance. The good news is the financial recovery. It seems that management is making every attempt to bring profitability to the company and value to the shareholders. The effort is starting to show up in the bottom line. We urge you to read the STWW profile at pennystockgoldrush.com and spend some time reading information found at the various links. When the selling is over and the smoke clears we think the stock will return to much higher levels.
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DIGITAL BRIDGE LOOKING EVEN MORE ATTRACTIVE AT THIS LEVEL
Digital Bridge, Inc. (OTCBB: DGBI: $2.50). We put out a STOCK ALERT on this one at $3. It ran as high as $3.62 at one point, before pulling back. DGBI became a publicly traded company several weeks ago and was at the $8 level. Some selling brought it down to as low as the $2 area. The stock appears to be poised for a return to higher prices if it can attract more volume. Here is the story:
Digital Bridge Inc. provides integrated eBusiness strategy and technology implementation services to clients who are creating or expanding an Internet/eBusiness presence. Digital Bridge offers complete consulting and development services to small and mid-sized companies on a full-service basis. Digital Bridge's solutions include strategy consulting, online branding, marketing, Web site design, database support, Web hosting and maintenance, systems architecture and application and technology infrastructure development. Digital Bridge's services are designed to rapidly improve a client's competitive position in the crowded Internet market through the development of innovative business strategies powered by the integration of emerging and existing technologies.
Last Month, DGBI announced its first three business to business products. The first new product is the Digital Bridge Integration Server, an XML-based middle-ware server designed to ease the integration between Web applications and legacy applications for bricks and mortar clients moving onto the Internet. The server will allow for easier customization of integration products for Digital Bridge's B2B clients.
Also scheduled for beta release are two Web-based construction management tools. The first of these new tools, E-bid-docs, developed in conjunction with Playatec.com, which will allow developers, designers and construction managers to completely automate the construction bidding process through Web-based document delivery and payment. Pre-qualified contractors and sub-contractors will be able to pay for and download all of the bid documents and then submit their bids from a secure Web site. The product will be sold along with a service that manages the entire bidding process for each project.
The third product scheduled for beta release this quarter is Digital Bridge's first wireless application for the Palm (NASDAQ: PALM - news) platform, tentatively named ``CM Bridge,'' which allows for real-time monitoring of all ongoing construction activities on a project, including scheduling and progress monitoring. The product will allow for daily schedule and cost updates accessible through any Web browser, so that management always has the most timely and complete information.
``We are very excited about coming out with our first new products,'' said Digital Bridge CEO Charles Bronitsky. ``These products are keyed towards what potential clients have told us is really where their needs lie. We are moving most of our focus into the B2B area through these products and through the hiring of people, like Jon Winters, our new COO, who understand product development and sales. In fact, we have put some of our internal B2C projects on hold, so that we can devote our full resources to these important activities.''
We like DGBI for several reasons. M & A West (OTCBB: MAWI: $13: recently applied for NASDAQ listing), a profitable company, owns a large amount of stock in DGBI. Last fall, MAWI ran from the $4 area to as high as $27. Many investors got in MAWI early enough to capitalize on that run. DGBI management and board of directors consists of hard-hitters with years of experience in their prospective fields. We also like the fact that the volume is low. Low volume in a new publicly traded company is reliable confirmation that a stock is undiscovered. If the company is successful in executing its business plan and getting the message out to new investors, the stock price should rise accordingly. It is hard to put an exact target price on this one, but we wouldn't be surprised to see the $6 to $10 range in the short term. For more information about DGBI, we encourage you to read the profile at pennystockgoldrush.com. From here you will find additional links to the corporate website, news, quotes, chart, etc.
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STOCKS TO WATCH: ECAR, EREX,
Enova Systems, Inc. (OTCBB: ECAR: .38)
Enova Systems is the developer of advanced transportation and energy management systems. ECAR is attempting to be a global leader in proprietary electric drive train and component technologies for zero-emission, hybrid and fuel-cell powered vehicles, as well as applying the technology to non-automotive applications. Enova's engineering and manufacturing of proprietary technology involves total integration of advanced, energy efficient components into functioning systems. Earlier this year, ECAR announced a partnership with the Hyundai Group of Korea. This partnership has already produced numerous developments in advanced drive systems for electric and hybrid vehicle applications. For more information visit the website at enovasystems.com.
E-Rex, Inc. (OTCBB: EREX: .71)
E-REX, Inc. is a technology company which designs and produces stand-alone peripherals and direct Internet access products, both cellular and satellite. The Company's flagship product is the ``DragonFly,'' which is a portable, multi- function, color printer, copier, fax, E-mail, scanner and wireless Internet device. The company has recently announced the appointment of Donald A. Mitchell as the Chairman of the Board of the Company. Mr. Mitchell brings to E-REX an extensive background of organizing, structuring and growing public companies. His resume includes high-level executive positions with CBS, Banker's Life, and Universal Abbey. For more information about EREX visit the website at e-rex.net.
UNTIL NEXT WEEK
Well, that will do it for this week. Thanks for reading. Watch your email for informative updates. Have a great week and keep those letters coming in! Until next time......
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All statements and expressions are the opinion of PSGR and/or its affiliates, or the original authors of certain articles or Data, and are not an offer or solicitation to buy or sell the securities mentioned. PSGR IS NOT A BROKER/DEALER OR LICENSED/REGISTERED INVESTMENT ADVISOR. Investors should assure themselves that purchases and sales are in compliance with all Federal, State, and any other applicable regulatory jurisdiction. Use of Data, profiles/research reports may be subject to the applicable rules of certain self-regulatory organizations, and securities mentioned which are traded over-the-counter may not be cleared for sale in certain states.
PSGR in no way warrants or guarantees that any company featured will continue to trade on the exchange that they currently trade-on. Some securities may be subject to new SEC rules that will require them to be reporting or they will no longer trade on the OTCBB, thereby they will be "delisted" and will trade on the Pink Sheets. This could effect the value and liquidity of said securities. Further, Users agree that PSGR in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in Data.
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INVESTING IN SECURITIES IS HIGHLY SPECULATIVE AND CARRIES AN EXTREMELY HIGH DEGREE OF RISK. INVESTING IN SMALL CAP STOCKS, AND STOCKS TRADED ON THE OTCBB CAN BE MORE RISKY THAN INVESTING IN STOCKS ON OTHER EXCHANGES. INVESTORS SHOULD CONSULT WITH THEIR ACCOUNTANTS, FINANCIAL PLANNERS AND BUSINESS ADVISORS BEFORE INVESTING. IT IS POSSIBLE THAT AN INVESTOR'S ENTIRE INVESTMENT MAY BE LOST DUE TO THE SPECULATIVE NATURE OF THE STOCKS MENTIONED IN THIS DATA.
COMPENSATION SECTION:
PSGR has NOT received any compensation for coverage of DGBI. Nor has PSGR purchased any stock. PSGR reserves the right to purchase stock of DGBI at any time.
On or about October 13, 1999, Wall Street West Communications, LLC (The former WSW editor is now editor of Penny Stock Gold Rush, Inc.) entered into a Work Agreement with M & A West, Inc., to provide its marketing services for MAWI. Said agreement was for a duration of 90 days from the date the agreement signed. Wall Street West was compensated a total of $ 30,000 (thirty-thousand dollars cash) from MAWI. That contract has expired.
PSGR has NOT received any compensation for coverage of CHPF. PSGR has purchased 25,000 shares of CHPF on the open market at an average price of .90. At the time of this publication, the shares are still held.
PSGR has NOT received any compensation for coverage of STWW. PSGR recently purchased 60,000 shares of STWW on the open market at an average price of .25. At the time of this publication, the shares are still held.
PSGR has NOT received any compensation for coverage of ECAR. PSGR recently purchased 10,000 of ECAR shares on the open market at .60. PSGR reserves the right to purchase additional stock of ECAR at any time.
PSGR has NOT received any compensation for coverage of EREX. Nor has PSGR purchased any stock. PSGR reserves the right to purchase stock of EREX at any time.
Although PSGR is not currently featuring VCSY and has no current compensation contract with VCSY, we feel obligated to reprint the VCSY disclaimer taken from Wall Street West because the current editor of PSGR was with Wall Street West (WSW) at the time of feature.
?VCSY- On or about January 18, 2000, WSW entered into two separate Agreements regarding VCSY. (NOTE: POST FEB. 2000 SPLIT NUMBERS IN PARENTHESIS THROUGHOUT THIS SECTION) First, WSW entered into a Work Agreement with Vertical Computer Systems, Inc. Pursuant to Agreement, WSW will provide Investor Relations services for a duration of 90 days. WSW has been granted the option to purchase 30,000 (Post Split Equivalent of 600,000) restricted shares of VCSY for the price of $ .05 per share (Post Split .0025 per share). Said shares will be sold to WSW at a discount to the current value of the stock. However, restriction prevents the sale of securities for at least one year. The value of shares will fluctuate with the daily market fluctuations. Secondly, WSW has entered into an Agreement with Lakewood Development, Inc., a shareholder of VCSY. Said Agreement references Agreement between WSW and VCSY and shall act as further incentive for WSW to provide services under that Agreement. Pursuant to the Agreement, WSW has the option, but not the obligation to purchase 100,000 (Post Split equivalent of 2,000,000 shares) free-trading shares of VCSY at various prices as follows: 16,666 (Post Split of 333,320) shares at .30 (thirty-cents) per share (Post Split of $.0150 per share) immediately, at contract execution, 16,666 (Post Split of 333,320) shares at .30 per share(Post Split of $ .0150 per share) available 15 days from January 18, 2000, 33,334 (Post Split of 666,680) shares at .50 per share (Post Split of $.025 per share) available 30 days from January 18, 2000 and 33,334 (Post Split of 666,680) shares at .70 per share (Post Split of $.035 per share) available March 18, 2000. Said option allows for the purchase of shares at a discount to the market. The value of the shares will fluctuate with the market. Update: On or about January 18, 2000, WSW purchased 16,666 (Post Split of 333,320) free-trading shares from Lakewood Development, Inc., for a cost of $ 5,000. On or about February 4, 2000 WSW purchased an additional !
16,666 (Post Split of 333,320) free-trading shares for $ 5,000 from Lakewood Development, Inc. On or about February 4, 2000, WSW exercised its option to |
