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Warka Corp. has signed a letter of intent to buy Nevada Bob's Golf stores in Canada in a reverse takeover. Nevada Bob's in my opinion carries a very wide range of high quality brand name golfing equipment such as Callaway, Taylor Made etc and prices are very cheap.
In the fall Warka Corp (WKA - Alberta Stock Exchange) will change its name to Nevada Bob's Inc. The market has not fully priced in the value of this investment.
Using on balance volume analysis, the stock is being accumulated, and is trading in up field, meaning it will rise further. It only trades at 2.01 now, although the stock shows some investors accumulating it - on Friday, it popped up 0.61 from its opening price on 10 times normal trading volume. The first signs of accumulation were seen when the company first announced the news of the reverse takeover, when it popped from its halted price 0.40 to 1.25 after it resumed trading.
I have been to several communities in Canada and been out on the golf course, the changing demographics have been analyzed and it appears to me that there is a booming number of young university graduated professionals coming out on the course, with lots of money to spend on high quality golf clubs.
As such, in my opinion only, do I see this as a stock that has tremendous value. I have invested in several thousand shares @ 1.25, and see a target of $10 by year end, but will be willing to sell some units at $5.
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