Trading 101: Luxeyard (LUXR) Reviewed

Trading 101

Want to be smart about making a lot of money in low priced stocks? Actually, this philosophy works well for all stocks. The key is to be willing to invest when stocks are under followed, then be a seller when everyone is piling in.

Today’s trading 101 lesson is a perfect demonstration of how well this style can work. The recent example is our giant win with current idea Luxeyard (OTC BB: LUXR). On April 12th- just 16 days ago, I published my first edition on Flash Sale Site company Luxeyard- this is the future of retailing. I stated I believed the stock was 50% undervalued based on the recent valuations VCs have awarded to like companies through investments.

The market rapidly became aware of LUXR, and the stock has been trading just gang busters of late. Since it was $.80 at the time of introduction, if it was 50% undervalued at $.80, it would follow the stock would be fully valued at $1.20. The stock has since seen a high of $1.60.

After running to $1.25 in short order, I revealed I had been a seller of part of my position about that $1.20 level on the first run. After all- $1.20 was my fully valued number. When the stock pulled back as you can see in the chart, I suggested there was a “mulligan” for those who missed the first big move in my April 19th edition.

This past week has been huge for this stock, and I took advantage of the opportunity to further lighten up on my position. This is Trading 101. When you see big surging bars for both volume and price, it’s generally a good time to lock in some profits.

I was once again a seller of part of my position earlier this week when the stock traded up over $1.50. LUXR has so far been a good candidate for trading as it has been extremely volatile- both up and down. This past week there were a couple of huge spikes up accompanied by big volume. Those are the days you want to lighten up your position.

Note the stock fell back the last couple of days on much lighter volume, suggesting another volume surge would take it back up rather easily. There’s fewer sellers than buyers, but if the volume bars surge as the stock pulls back, my view could change.

At this point, I’m a buyer if it pulls back much farther, and a seller if it surges again with high volume bars.

That’s Trading 101 for today. Big Volume and Price bars on a chart like this should suggest to you to lighten up. Low volume retractions are a chance to add to your position. I remind the readers I am an investor in both free trading and restricted share of LUXR with my own capital.

One Step Ahead

So, if you’re going to be a successful penny stock investor, you have to be one step ahead of the market, and accumulate when no one is watching. You have to like the company, you have understand the chart, and it helps to be a little lucky timing wise.

There are two stocks in my coverage universe that I believe are likely to deliver major fundamental developments- the kind that sends the stocks running up the charts.

Those two stocks are Plandai Biotech (PLPL- March 26th Edition) , and Nuvilex (NVLX- March 19th Edition). I’m committed to covering both of those companies for six months as I see both of them having very significant upside in those time frames, and want to give everyone the maximum opportunity to profit handsomely from both of these ideas if they work out.

In my last edition on April 24th, I suggested PLPL had gotten quiet enough to jump in- sure enough, this past week the stock surged from $.20 to $.29 before giving ground of only 1 crummy penny. See how this works? I’m expecting PLPL to deliver in a much bigger way when it completes the promised $13 million financing from the South African government to begin the process of delivering it’s miraculous version of Green Tea Extract.

My other longer term following is Nuvilex (NVLX)- the company that has Encapsulation Technology for drug therapies proven to enhance the ability of drug therapies. Clinical trials done in Germany about 5 years ago on Pancreatic Cancer patients yielded remarkable results.

NVLX is now gearing up to take it’s unique therapy systems back into a clinical environment and move the process of eventual commercialization one more step. Capital is needed. Stand by for developments and more upside on the stock.

This little $.07 stock offers a ton of upside from this super cheap level. It popped from $.05 this past week, and it’s just a development or two from finding $.25 in my view.

I plan to be talking about NVLX Monday morning on the BigBizShow at about 12:30 Eastern, 9:30 Pacific. Tune in if you want to learn more about the company. Here’s how you can view the show:

Catch Me Live

Catch me LIVE!! on TV every Monday from 12 to 2PM eastern on the BigBizShow. The show broadcasts on several hundred radio shows live, is syndicated to over 30 milion cable homes, and is broadcast on the Armed Forces Radio Network in 79 countries.

Simply go to www.bigbizshow.com, and click on the Watch Us Livebutton. I’m the guest host on the show every Monday.

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Plandai (PLPL) Poised: One For Two On Bounces

One For Two

In the last week I’ve made the call on two different stocks that were streaking, and corrected to provide a better entry point for those who either missed the first run, or traded out for a profit.

One gigantic win, and one fizzled. In Major League Baseball with a bat in your hand, that will get you millions. In small stocks, it’s still pretty darn good- after all, stocks go only go to zero- there’s no ceiling as to how high they can go.

My win- calling the bounce in Luxeyard (LUXR)- which looks like it could make a new all time high today or tomorrow. As I disclosed in a previous edition, I sold some of the shares I own the last time the stock was close to the $1.20 level- I still own most of it- not this time- I believe the stock is destined to surpass $1.50 and might even find $2. Putting all the ups and downs aside, I picked it at $.80 on April 12th- $1.15 today for a 44% gain.

Yesterday call for a bounce on American Liberty (OREO) was premature- it appears I missed it by a day. If you pick it up on the open, you’re in at $1.40- now $1.30, but below my SSL of $1.30, so you might be out. The stock could still set up for a rally, and the volume is coming in nicely.

Perhaps unnoticed in yesterday’s trading was the big bounce in Nuvilex (NVLX)- which I called at $.06 back on March 18th. I’m sticking with this one for six months. I love the technology they’re working on. The stock has been quiet of late, but hit $.077 yesterday on huge volume- interest in surfacing. Net gain on that one 28% from day 1.

The Next Bounce: Plandai Biotech (OTC BB: PLPL)

I’m calling it - right here, right now. It’s sometimes tough to call the streaking stocks- up and down. Sometimes you just don’t hit the number perfectly. So, if you want to make money, and want to get in ahead of the crowd, perhaps it makes sense to look at one that is quiet, down, under followed, and no one wants. Then, when the market goes nuts for the stock, you can be a seller and notch some significant gains when everyone else is piling in.

I’d ask you to look back at my presentation on Plandai Biotech (PLPL)- back on March 26th. If you want to read the original presentation, simply go back and click on the date. At the time, the stock was $.25, and it’s quietly hovering just above my SSL of $.18- $.20 bid- but offered at $.245- we started at $.25, so no damage done on this one- still plenty of upside.

If you read the original presentation, this company is a combination Ag/Technology story that has developed a revolutionary new method for processing Green Tea Extract- a substance that is in high demand. This company is making the stuff 10 times more powerful than anyone else on Earth.

The company will be commercializing its product in South Africa with a debt financing of $13 million from the South African government, but the loan has not closed yet. When it does, I suspect the stock will go bonkers. It’s impossible to predict how high it will go, but the stock hit $.75 when the agreement was announced.

Today- in quiet trading, it’s about $.25.

I can’t guarantee it will head back to $.75- but I suspect the company is getting very close to closing this transaction, and once announced the stock will have a new life.

So, it you’re tired of chasing these stocks up and down the charts and trying to get on the right side of a trade, you want to own this one ahead of the closing, which I believe is imminent. If just makes too much sense from an economic development stand point.

Accumulate PLPL today while no one is paying attention. Look what happened with NVLX yesterday. Others have surged out of nowhere. Have a 2 to 4 week window in time, but don’t be surprised if the fireworks happen in short order. It simply makes too much sense- the South African government needs employers in these ag regions, and this company is perfectly positioned to put a mere $13 million to work- that’s chump change on a government scale, but huge for PLPL shareholders.

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Catch Me Live

Catch me LIVE!! on TV every Monday from 12 to 2PM eastern on the BigBizShow. The show broadcasts on several hundred radio shows live, is syndicated to over 30 milion cable homes, and is broadcast on the Armed Forces Radio Network in 79 countries.

Simply go to www.bigbizshow.com, and click on the Watch Us Livebutton. I’m the guest host on the show every Monday.

 

 

All The Tea In China: Plandia Bio (PLPL)

All The Tea In China

All the Tea in China is no longer All the Tea in China. I’m sure you’re wondering what the heck I’m talking about.

China is where they invented the stuff, and it’s been consumed as an enjoyable beverage with some perceived positive side effects for 5,000 years. In the last 20 years, scientists have started to understand the very powerful healthy side effects Green Tea extract delivers to the body- therefore, while the euphemism“All The Tea in China” used to mean a whole bunch of tea- about all there was in the world, it’s no longer the case. Tea- more importantly tea extracts- have spread globally, and all the Tea is no longer In China.

There is more tea consumed globally than any other individual beverage. The only liquid with higher human consumption is water. Only about 2.9 million tons of tea are grown annually around the world. The beverage was discovered about 5,000 years ago by Shan Nong, a Chinese Emperor, in 2737 BC. Like many of the world’s great discoveries, it happened by accident. A few leaves fell into his drinking water as it was being boiled, and he is said to have enjoyed the alluring aroma and taste.

Western cultures have only consumed tea for the last 500 years as trade expanded between East and West.

Tea has taken on a whole new persona in the last 10 years as research has proven the therapeutic value of tea has long been underestimated. Tea extracts, through multiple clinical trials, have now been proven to extend life, reduce medical costs, decrease weight, increase metabolism, decrease stress, and increase anti oxidants.

The demand for healthier alternatives is proven out by two outstanding companies in this sector:

  • GNC (NYSE: GNC): This retail chain has grown to 5849 US stores, and 504 International stores generating about $1.2 billon in annual revenues.
  • Royal DSM (NYSE Euronext N.V) is a global science based has 22,000 employees and annual sales of $11.8 billion. Royal DSM manufactures a Green Tea Extract that is used in many US based products.

Green tea extracts have become a prominent part of the businesses of many of these health product companies. There are six major manufacturers of Green Tea Extract globally, and the stuff sells for anywhere from $80 per kilo to $540 per kilo.

Today’s new idea has the most exciting new technology to ever come along in this sector. Plandia Biotechnology (PLPL) has developed an extraction process for Green Tea Extracts that delivers many times the health benefits of the status quo.

Read on McDuff………

Enter Plandia Biotechnology Inc (OTC BB: PLPL): Superior Technology

PLPL is a complicated story. However, the way you can make money in the short term is very simple.

Here’s the 30,000 ft overview. A couple of pHd scientists spent the last 10 years developing new extraction technology that creates by far the best green tea extract known to man. In several studies it has proven to be far and away the most “Bioavailble” green tea extract. About 2 ounces of their extract provides the same benefit you would expect from a gallon of the other guy’s stuff.

In order to begin commercialization using this revolutionary new technology, the company ventured to one of the best places on Planet Earth to grow green tea. It also happens to have a very favorable political climate- money is available from the government.

The tea growing region of South Africa has a 70% unemployment rate and tea plantations have grown fallow since Apartheid. Native South Africans took back their plantations, but they didn’t have the skills or resources to operate them.

At the end of January PLPL received a formal commitment from the Land and Agricultural Development Bank of South Africa for a 100 Million Rand debt financing (about $13 million).

The capital will be used to restore 300 hectares of prime green tea farm land in South Africa. This land is absolutely ideal for this crop. Nine months of the year green tea can be grown and harvested every 19 days.

A smaller portion of the funds will be used to restore the tea growth. The larger portion of the funds will be used to build and install PLPL’s proprietary Green Tea Extraction technology, which is patented and proven out in many scientific studies.

The loans have not closed as of this time. The Land Bank, which is a quasi government agency in South Africa assigned to task of making loans that will put people to work, has required the company to restructure the loans so they could be divided up equitably amongst the company’s subsidiaries. To read the SEC filing that describes the delay on funding and the subsequent completion of the requirements, simply click here.

140% Upside

Since I’m going to be covering this one for the next 6 months, I’m going to leave out a lot of information I’ll save for future editions.

I could write volumes on the revolutionary new Green Tea Extract method the company has devised and patented. When seen to fruition, this extract will be far more “Bioavailable” to the human body (meaning the body will absorb a far higher percentage), and be pharmaceutical quality. Lots more on this in future editions.

However, making money in the short term is a very simple matter, and the chart tells us exactly what’s likely to happen.

PLPL announced the signed commitment for the capital from the Land Bank at the end of January. As you can see from this chart, the stock traded up to $.60 on the news.

The closing of the financing has been delayed, and the stock is now $.25.

If you invest in this stock today at about $.25 while it’s at the very low end of it’s trading range, and wait until the company gets the funding closed, the stock is likely to head back to the $.60 level- where it was when the market expected the loan to close in the short term.

Hence- 140% on your money from today’s levels if and when it happens.

While no one can use the word “guarantee” with regard to the closing of the loan, I have interviewed CEO Roger Duffield extensively from South Africa, and reviewed last week’s SEC filing.

I believe it’s highly likely this loan will close, and the company will immediately begin the process of restoring these lands to productivity and assembling the required equipment for their amazing extraction process.

There you have it- $.25 today. Back to $.60 on the news, which could come any day. There’s not much technical downside as the stock is trading very close to its lowest historical level.

Once the funds have been secured, we can take a much harder look at the value of Green Tea Extract, and in particular PLPL’s proprietary technology that makes for the highest grade and most bioavailable Green Tea Extract in history.

I would suggest accumulating at around $.25 with a short term price target of $.60 and an SSL of $.15.

Take your position, then hold for the news, which will be just the beginning of this story, and the start of a highly profitable saga.

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