This past weekend’s edition on DexCom was just out in front of a quick burst to a new all time high. I continue to believe that the widely expected pending FDA Approval on their blood glucose monitoring device will create a much bigger spike in the stock.

As I pointed out in the weekend edition, the stock is hard to buy because there really aren’t any retracements of any note. Apparently, there is big demand and little supply. 

As you can see from the chart, this stock is hard to buy. My advice was to take a partial position or no position until there was a pullback.

If you took a parital position, you have to be happy today.  My guess is the stock will now flucuate between $17 and $19. As it bases, you will have another shot. This move leads me to believe the upside target with the FDA Approval will be more like $25.

Comments and questions are welcome.

Those who were ready to pile in on TLPE as it rocketed up the charts two weeks ago should take notice right now. At a mere $.30, the company’s entire market value is only $25 million. Enterprise value (market cap plus debt) is only $34 million. Yet the company is nearly a certainty to deliver north of $30 milion in sales in ’06, and be cash flow positive in the millions.

Since the stock’s meteoric rise north of $.40 earlier this month, a retracement process has been taking place. This is normal and natural. It is also normal and natural to want to get on board a streaking train when every other lemming is going off the cliff.

There is tons ahead of TLPE on the positive fundamental side to come in ’06. If the telecom pendulum swings back to telecom on Wall Street, this one will shine and get fully valued.

Recent press releases concern fairly high profile new hires. Ford lays of 25,000. TLPE is hiring. Which company do you think is expanding?

The stock has dropped a hair below its 61.8% retracement level. I told you to sell some or all at $.41. Now I’m suggesting it is time to accumulate. If you want to be in this stock, now is the time. $.30 to $.31- Accumulate now. You can be a seller on the next surge if you are a trader. For traders- a $.27 stop loss is recommended.

Questions and comments welcome.

Callisto was out with news after the close yesterday, and after doing a little digging I am more and more convinced this stock will be a huge win for long term investors. I’m talking at least a 3 bagger from current levels, and much more for very long term investors. When I say long term, I’m referring to investors willing to hold a stock long enough to qualify for long term capital gains- more than one year.

KAL has licensed a new cancer drug from the MD Anderson Cancer Research Center known as “ Degrasyns”. While in and of itself the market might not quite get the significance, I have done a little research to understand the full implications.

The drug was co developed by  Dr. Moshe Talpaz. Dr. Talpaz is credited with being on the team that developed Gleevec, a cancer drug which was estimated to generate $1.57 billion in sales in 2005. And while I haven’t confirmed it yet, I believe Talpaz was also credited with being a co-inventor of Interferon, a drug estimated to deliver $3 billion in sales worldwide in ’06.

If this 411 doesn’t get your speculative blood boiling, I don’t know what will. When Wall Street grasps the full significance, the stock could be a double from current levels.

On a very short term basis KAL has provided a perfect entry level at $1.50. Last week’s huge volume surge was followed with a pullback.  Good fortune for those who want to own this one.

Own, own, own this stock.

I am writing this at 8 pm, so I have no idea at this time how the stock will open. If you are fortunate enough to see an open somewhere near yesterday’s close, jump in. If the stock gaps big, have a little patience and wait for a pullback. Some sellers will not understand the significance of this news.

$1.70 is the most I would pay tomorrow. If you have to pay that much, just pick up 1/2 of what you want and hope for a more favorable entry level for the other half.

Many of you have been wondering what happened to the previously announced foray onto QVC for the baked goods/SHUGR package to be offered on Lori Grenier’s show.

Here’s the latest as I understand it. The special offer will still appear on QVC, but not on Lori’s show. I’m not sure how it will be offered, but it will be offered on QVC.

HESG is now awaiting the final content approval from QVC. Once received, a final launch date will be announced. I should have the 411 on the progress, and will let you know as soon as I do.

Comments and questions are welcome.

HDY put in a breathtaking performance an hour before the close on Friday. HDY traded about 75,000 shares in the last 10 minutes of Friday’s trading day, and closed at the lofty price of $3- a level not seen since May of ’05.

HDY has been keeping shareholders abreast of developments in Guinea. According to yesterday’s press release, CEO Kent Watts is in the Republic of Guinea right now meeting with government officials. If he comes away with the long sought after drilling permits, look for the stock to capitulate to the upside in a crescendo move.

company,

By now you should have read the weekend edition on big, steaky moves. With HDY, you are looking at a big streaky move as it is happening.

Is it a sell? In my view, not yet. However, this is shaping up as a “buy the rumor, sell the news” type situation. Here’s the pattern- news before the open, stock gaps up, sellers surface, stocks trades below previous day’s close, sellers really step in and drive it lower. The company has been telegraphing to investors that it is closing in on getting the offshore drilling permits from the Guinea gov’t. If they can pull it off in the next few days, I would expect this stock to streak higher and provide a great selling opportunity for traders. If they are delayed for some days, it will probably drift back down.

The streak will be over when the stock trades lower than yesterday’s closing price after gapping at the open. I am not selling any of my 20,000 shares, and I would advise to hold on as well for the time being. Stand by for future updates- a profit taking opportunity could be coming soon.

My comments are geared mainly to traders- if you are a long term investor lookng for $10 or more,  and don’t want to trade, just stay on the sidelines.

Your comments and questions are welcome.

VirTra Systems announced this morning it has entered into a definitive merger agreement with it’s target acquisition. After reviewing the 8k filing, here are my initial impressions.

First, if completed VTSI will end up with $30 million in annual sales. If they have reasonable cash flow, this will serve to take a lot of risk out of owning this stock.

However, there is a midly troubling element. Here’s an excerpt from the SEC filing:

“ If the merger is completed, the shares of our Company outstanding at the time of the merger (expected to be approximately 65 million shares) will be changed into 8,512,920 shares, and the shareholders of Virtra Merger Corporation will receive 7,803,795 shares of our common stock. In addition, holders of 141,841 shares of outstanding preferred stock of Virtra Merger Corporation will receive 141,841 shares of a newly created Series A Preferred Stock, with each share of the Preferred Stock convertible into 8.9 shares of our common stock. “

get this deal done on these terms, shares of VTSI will be rolled back or reverse split on about a 7.5 for 1 basis. Anotherwords, every 7.5 shares you own will become 1 one share.

The company will then purchase the acquisition target for 7.8 million shares of stock, or about $6.5 million worth of stock. For $30 million in revenues, this seems like a good deal to me for shareholders.

The one minor negative is the reverse split. 16 million shares at about $1, with $30 million in annual revs seems like it offers a lot of upside.

Shareholders will be asked to vote on this merger. Makes sense to me. I am voting in favor.

I hope a lot of you own TLPE. The stock has broken away, and looks to be trading up on short covering. When you see stocks run like this in such a short period of time, and then keep tearing up the chart, it’s usually because some one is forced to buy.

TLPE is no doubt going to be a multi year grower, and is probably still quite undervalued as measured against the $55 million in sales and $4 million in EBITDA profits the company feels in can deliver in ’06.

However, now might be a good time to exercise some discipline. If you are a shareholder from when I first introduced the company at $.23, you might consider locking in a partial or full profit. I don’t believe you should be out of the stock- this is far from over- if you sell you should be doing so with the idea of piling back in on a dip.

With this morning’s gap to the upside, the stock has eclipsed a high set many months ago. This is a major technical positive. The chart tells me a little common sense might be in order here. It can’t keep going up in a straight line like this forever.

At this point, I like $.37 (.382 retracement) as the first level to accumulate on a pullback, followed by $.335 (.618 retracement) if the gods smile on you and decide to give you another shot at this one.

Comments and questions are welcome. 

BrandPartners was out with a pretty darn piece of good news early this week, and the stock is beginning to firm up after being treated pretty roughly from Q3 numbers.

In fact, lots of microcap stocks seem to be heading in a northerly direction since we made the turn into 2006. It seems as if someone turned the microcap spigot back on. They are behaving much better.

Typically, BPTR announces $3 to $4 million in new contract signings on a somewhat regular basis. On Thursday morning BPTR announced $5.4 million in new signings. Could Graffico be starting to justify its existence? The press release specifically mentions Graffico landed some of this new business, but wasn’t specific as to how much.

BPTR will restor investor confidence when there is demonstratable evidence that Graffico (their new subsidiary for the sub prime lending space) and BrandPartners Europe are beginning to get some sales momentum. I know the company is very excited about the prospects for Graffico. They also believe BPTR Europe is just a matter of time.

The two new subsidiaries are costing them about $400k per quarter- $125K per month. If their investment pays off revenues could grow as much as 50%. In the interim, BPTR is financing these subsidiaries out of cash flow- no capital required- at the expense of earnings. If their bet pays off, earnings will come back better than ever.

This past week the stock broke a pretty short term downtrend line. I’d like to see some longer term downtrend lines broken to be convinced this one is going to trade back up. The action suggests there are no sellers left. A little more volume would probably help the cause.

I am casting my vote through ownership in them getting these two new subs going. I have $60,000 of personal money investing in this stock- 100,000 shares at $.60, and I’m down about $15k after 15 months.

A quick read of the press release is worth your time. Click here. You comments and questions are welcome. 

HyperDynamics is poised to break out in my view. I believe the market is very subtly telling us the company is close to achieving its goal of obtaining permits to drill off the coast of Guinea.

At the end of ’05, HDY telegraphed through press releases that they were very close to solving the political mess in Guinea, and expected to obtain drilling permits in the near future.

If the company were to achieve this milestone, I believe the stock would break out of it’s currently forming “ascending wedge”.

The stock is grinding towards the apex of a sideways triangle where it will either break out to the upside or collapse.

Moreover, this stock has a history of responding to positive news with a very favorable move to the upside.

If you don’t own at least a few shares of HDY for the hoped for breakout out, I would be a buyer right now. I own 20,000 in my personal account at $1.76. I intend to sell all or part if the stock makes a dramatic move up on news. If the stock gaps up,  my strategy would be to sell at least half on the gap.

Comments and questions are welcome.

Wow, what a nice day for TLPE. Amazing what a little breakout can do for the volume. Now that the stock is getting a little steam, investors are piling in. The $.28 level had been a ceiling for this little stock. Breakout confirmed.

Apparently, the market likes the announcement of the Liberty Wireless acquisition. The stock broke out to a multi month high of $.33 today, and closed on the high of the day.

In addition, the stock traded over 1 million shares, which is a big volume day for this one.

I hope and believe this stock is going much higher. Remember, on a valuation model, one analyst has this stock pegged at $2.10 in 12 months.

It was nice that it took the stock a day or two to breakout after the Tuesday post close announcement. It gave you a chance to accumulate at lower levels.

Now that the stock has broken out, it’s time to exercise some discipline if you want to accumulate more. Wait for the Fibonacci retracement levels to play out.  Your first line of support would be $.30 where you should pick up a partial position. The second level would be $.28 for the remainder. If the stock continues higher those numbers will go up.

Remember, you are investing in a company that should report about $55 million in ’06 and deliver $4 million in earnings. It’s hard to find that kind of corporate performance in a $.30+ stock.

Comments and questions are welcome.