Our "First Look" At Panache Beverages (WDKA):

Today's idea closed at $.56, and I believe this one could easly be $2.50 by year's end if not higher. That would equate to a 346% return on investment.

You are looking at a picture of Martha Stewart from a video you can find online. She's holding a bottle of Wodka Vodka. You might ask what she's doing. I'll tell you- she's slugging down a shot of Wodka on her TV show. The subject that day? Fashionable cocktail hour.

And, it's not just any Vodka. It's Wodka Vodka- the newest, hottest kid on the high end Vodka block. You can find the video at www.welovevodka.com.

What's so special out Wodka Vodka? It's premium- distilled in Poland at one of the oldest and most respected distilleries. Their competitive advantage? Glad you asked. Price. This high level, premium vodka sells for $11.99 in most stores. The equivalent quality brands are all over $20 a bottle.

The large cap beverage companies trade at multi billion dollar levels- with growth rates less than 10%, but sporting PE ratios close to 20. Why? Because these kinds of companies are viewed as recession proof- therefore, a good place to put capital in uncertain times.

Some up and coming beverage stories have been huge successes in the market- Hansen's comes to mind. I watched the stock run from $5 to $125 as the company evolved to a healthy product. Hansen's was bought out at a huge premium.

Panache Beverages (OTC: WDKA)

The first generation of Panache was a roaring success. Founder James Dale launched a premium vodka in November of 2004 under the brand "42 Below". A year later, the brand was in 19 strategically selected states and replacing Grey Goose at many locations.

In December of 2006, after 2 years of operations, Panache was bought out by Bacardi for $91 million.

Panache Beverages has now been reborn with James Dale still running the company and several other product offerings.

Panache went to Poland and found a dormant national distillery with a rich tradition. It re opened, and the Wodka Vodka brand was born. Check out www.welovevodka.com if you want to see some clever marketing.

Dale felt there was a huge, untapped demand for premium vodka at a reasonable price.

Tastings.com rated Wodka Vodka a "Best Buy" at $11.99, and Wodka won a Gold medal from the International Review of Spirits.

The company added a line of infused vodkas last year they named "Alchemia". They have 3 flavors- Chocolate, Wild Cherry, and Ginger. Visit www.alchemiainfusions.com to learn more about these products.

To round out the Panache Portfolio, in 2012 Panache added a good old fashioned American Whiskey the named "Alibi"- and used the very clever tag line "Everybody Needs and Alibi".

The brands grew nicely in the first half of 2012- with revenues up 68% over the same period in 2011. Q3 was softer as supply interruptions effected sales. WDKA moved to a new distillery in Poland to reduce costs. Gross margins will improve 11% going forward.

Panache Achievements (WDKA)

Here's a list of achievements the company has delivered to date:

• April '12- hit 1,000 locations in Florida- 700 bars and 300 retail stores
• June '12- Inked a distribution deal in Australia and New Zealand
• Nov '12- Featured in 6 major New York locations
• Nov '12- changed distilleries in Poland increasing gross margins by 11%
• Dec '12- Announced Domaine Selected as National Distributor of Alibi
• Dec '12- Announced a deal with LDV Hospitality to roll out in NY, Atlantic City, Miami, Beverly Hills, and Las Vegas

Guaranteed Success (Almost)

I'm not comfortable using the word "Guarantee" because nothing in the stock market is guaranteed. However, this is as close as you are going to find in the microcap world for growth in 2013.

There is one recent development that has me very comfortable with forecasting substantial growth in 2013.

Last week, WDKA added the lynch pin it needed- a substantial amount of capital was injected into WDKA. A private equity fund made WDKA a 3 year, simple interest loan of $3.5 million to fund operational needs and inventory growth.

As it that weren't enough- there's more. Their distribution agreement with Domaine Select requires the following:

• May 1 to April 30 2013- 144,000 9 liter cases sold
• May 1 to April 30 2014- 189,000 9 liter cases sold

Making the assumption there's 12 bottles in a case and each one will sell for about $5- that leads one to assume at least $8.6 million in revenues by April 30, 2013, and $11.4 million by April 30, 2014- and the distribution agreement with Domaine is not their only sales channel.

According the research I've done, here's a list of stores where you might be able to find their products; Publix, Bev Mo, Whole Foods, Gabriel's, and most specialty liquor stores. I'm trying to reach the company to get an updated list. It's likely they will have WDKA beverages in your local watering hole as well.

Don't do any due diligence and then drive home.

The Best Part- The Chart

As WDKA turns the corner into 2013, there's no shortage of upside in this story when you look at the chart.

This stock is down from $1.60 last May- closing today at $.56 and very near the all time low.

The company anticipates reporting a really strong Q4, and is going to get very active getting its message out over the next several months, and I want the OTC Journal members to own this stock ahead of others who will learn about in later.

If you're the type of investor who likes to accumulate low, and sell higher in a solid growth story- this stock is for you.

One research report I've read forecasts $9.4 million in revs this year- more than double last year's expected top line. The final report is not out for 2012 yet- it will likely be available at the end of March.

I believe this stock is definitely one to accumulate up to $.65. The market is showing me there could be some stock for sale in that range. I expect this one to move rather dramatically on very small volume until WDKA gets a bigger following over the coming weeks.

If it ends up being good for a trade- so be it. It could trade up to $.75 or $.80 very rapidly. If it doesn't I believe this one is a great long term hold.

By the end of 2013- I believe this stock could be trading at $2.50, which would only put the market cap at about $66 million- about 5x this year's potential sales.

A good SSL (suggested stop loss)- under $.50- if it trades at $.49 it would be a new low, and you might sell to preserve capital.

I plan lots of follow up editions on this one, so you can expect to remain informed.