Archive for March, 2008

Going Green Could Help Economy Out of the Red

Monday, March 31st, 2008

Even in today’s rough and tumble economic environment in which nickels are being used to cover manholes in record fashion, many experts believe that shelling out dough to facilitate a “greener” and “less fossil fuel-dependent economy” is positive financially for our country because many efforts actually pay for themselves over time.

A group of economists at Yale University agree and have created a very interesting interactive site that takes into account, according to them, 27 related, specific economic models that have been created in recent years. The model basically drives home the point that investing in efforts that help reduce carbon emissions, is positive for the U.S. economy, no matter how bad or good things are over the next few years.

Check it out: http://www.climate.yale.edu/seeforyourself/

Are Solar Panels LGYH’s Legacy?

With a distinct and proven value proposition to the semiconductor space, Legacy Holdings (OTCPK: LGYH) appears to be very well-positioned to cash in on the upcoming solar boom in its home state.

Representing the massive opportunity that the company is now exposed to, the article linked to below notes Southern California Edison Co.’s $875 million plan to build the nation’s largest solar energy installation. If you didn’t know, a key component of most solar cells is the photovoltaic panel or more commonly referred to as the solar panel. They are composed of semiconductor materials and now drive a great deal of demand for semiconductor wafers worldwide.

Given the proven value proposition that Legacy’s patented, Green Chemistry technology presents to the industry, growing solar panel demand is great news for the company. For the record, the technology is proven to provide immense benefits in four key ways:

1. Improving wafer processing time by 200%;
2. enhancing oxide removal control by 92%;

3. decreasing costs by 22% by reducing the amount of consumable materials used in wafer cleaning; and

4. reducing particles left on the wafer after cleaning by 76%.


Plug In Or Pump?

With consumers “driving” changes in the auto industry more so than just about any other, Electric Moto Corporation (OTCPK:EMOT) appears to be playing in a very hot market as battery-power demand heats up.

According to an article that I came across today, hosts of the upcoming Vancouver International Auto Show have been floored by the increase in consumer demand for and interest in battery-powered vehicles. With gasoline now being increasingly phased out of the equation, EMOT’s Blade XT4 motorbike and other products should be facing a favorable sales environment going forward.

The End of Salmonella, Listeria and E.coli?

Proton Laboratories (OTCBB: PLBI) may just hold the key to a green solution for the world’s water contamination problem. We will bring you introductory profile coverage on PLBI very soon, but for now I’ll tell you this: they are an Alameda California-based bio tech firm that specializes in altering the properties of water via electrolysis with electrolyte separation and developing new practical applications for electrolyzed water.

PLBI has been studying water and its restructured properties after its exposure to the process of electrolytic ion separation. According to PLBI, water that goes through an electrolytic ion separation process gains properties that bring functionality to itself and can be used in a number of applications including: eliminating various strains of bacteria, virus, fungi, spores or communicable disease including: salmonella, listeria and E.coli; and as an optional growth medium for organic agriculture and as an option to fungicides.

Given the recent large-scale salmonella breakout and other water-quality problems in the press, I think that PLBI has a very timely offering and a massive potential target market.

With record oil prices a harsh reality in today’s world and the economic benefits of going green becoming widely accepted, these three portfolio companies are well-positioned to capitalize on growing demand for eco-friendly products possessing a bullet proof ROI case.

Why Savvy, Patient Small Cap Investors Should Eventually Cash in On a Jittery Market

Thursday, March 20th, 2008

Sure, there is no money back guarantee to ensure you that small cap stocks will rebound and continue to outpace the growth of larger stocks as they have throughout the majority of the past 7 or 8 years. However, since the small cap market is absolutely more volatile than the large cap space, after the recent run of up-and-down market conditions, investors worldwide may be growing more accustomed to and tolerable of the choppy land of emerging growth stocks.

One valuable metric, the Russell 2000 index of smaller companies is down 11 percent for the year, while the Standard & Poor’s 500 index, a large-cap company index, is off about 9.4 percent. So, clearly the little stocks already have some ground to gain if they do in fact resume outshining their larger counterparts.

On the other hand, the small-cap market traditionally performs at its peak during times of economic improvement. Although we are not there quite yet most likely, recent moves by the Fed, the Visa IPO today, and my personal belief that our country will in time get to the root of our recent economic breakdown and more strictly regulate both mortgage lending and consumer credit lending policies, thing may begin improving faster, sooner than we all may think.

With investor sentiment improving, seemingly by the day as reflected in one regard by the Dow’s massive move on Tuesday, do not be surprised to see some of the more well-run small caps with stronger balance sheets doubling and tripling, while some of the big boys continue to suffer from a tough credit market that hinders their ability to engage in the type of M&A activity necessary to facilitate such big moves.

In my opinion, small cap investors possessing the nads to stick it out, trust their guts, and even at times scoop up some cheap shares – in the right deals – should likely cash in on the impatience of others dumping their shares of emerging growth stocks that may be performing well operationally, but spooking many in the market with their declining price.

One stock to watch is Legacy Holdings Inc. (OTCPK: LGYH). Shares are down nearly 75% off of their high a few weeks back despite the company’s tremendous potential. Check back through the Blog and take a peek at our corporate profile for more insight into why we like the deal so much.

Here’s a good read on the topic of small cap stocks in today’s market: http://www.mercurynews.com/markets/ci_8616929

One Step Closer to Iron Ore Sucess!

Tuesday, March 18th, 2008

When we brought you coverage on U Mining Resources Inc. (OTCPK: UMNG) and their potential $5 Billion Iron Ore deal in West Africa on 2/21, we said to look for the signing ceremony as a key indicator of what the future holds for the company. Well, UMNG was back in the news last week. And the date for the ceremony is set for today.

According to today’s release, CEO Michel de Montigny is about to make a three-day trip to Conakry, West Africa to finalize the Agreement at the official ratification ceremony, which is pegged for March 18 (today). While the $5B price tag has yet to be proven, the deal appears to be a go.

My, That’s a Nice BOOT!

In case you didn’t know, UMNG has been pursuing an Iron Ore infrastructure development project,referred to as a BOOT (Build-Own-Operate-Transfer) Agreement, in the Republic of Guinea. If things go as planned, UMNG foresees itself producing 15 million tons of pallets or nuggets in addition to 35 million tons of iron ore, annually.

With iron ore recently fetching nearly $85.00 per ton and Iron Pellets an even more impressive $115.00 per ton, if these reserves are in fact what they are claimed to be (a world class source) and UMNG succeeds in its role of quarterbacking the infrastructure development project required to begin prospecting, this agreement will essentially make the company.

3 billion tons of coal could go a long way

According to U Mining, “The State guarantees the Investor (UMNG’s Comitrag subsidiary) an iron ore reserve of at least three (3) billion tons for the whole duration (i.e. 60-years) of this Agreement”. So, presumably, as long as nobody gets offended at the ceremony and the deal gets inked, UMNG is one step closer to cashing in on the trend towards more expensive Iron Ore.

UMNG has also recently received a financing term sheet from a reputable New-York-based Merchant bank. If approved, the sheet would provide $7.5M to support phase 1 of the project. The company has also publicly mentioned potentially being awarded a $15M retainer for the project. I’ll be on the lookout for developments here directly after the ceremony on the 18th.

If you haven’t been watching, the industry is simply booming. Prices have tripled over the past 4 years as emerging economies including China and India embark on new construction projects, seemingly by the day. Industry pros, including Goldman Sachs (NYSE: GS) analyst Oscar Cabrera, are raising iron ore price forecasts for fiscal years 2009 and 2010 and the search is on for viable new reserves. For the record, Cabrera recently increased his estimate to $142.78 per metric ton, from $118.97 per metric ton

While there are certainly a number of variables that need to come into play here to make this project a winner for UMNG, it appears that the company is giving its all to make this work. I’ll be on the lookout for news regarding the finalization of the agreement over the next few weeks. After that, the quarterback challenge should be on for UMNG. Let’s see what they’ve got!

Why Savvy, Patient Small Cap Investors Should Eventually Cash in On a Jittery Market

Tuesday, March 18th, 2008

Sure, there is no money back guarantee to ensure you that small cap stocks will rebound and continue to outpace the growth of larger stocks as they have throughout the majority of the past 7 or 8 years. However, since the small cap market is absolutely more volatile than the large cap space, after the recent run of up-and-down market conditions, investors worldwide may be growing more accustomed to and tolerable of the choppy land of emerging growth stocks.

One valuable metric, the Russell 2000 index of smaller companies is down 11 percent for the year, while the Standard & Poor’s 500 index, a large-cap company index, is off about 9.4 percent. So, clearly the little stocks already have some ground to gain if they do in fact resume outshining their larger counterparts.

On the other hand, the small-cap market traditionally performs at its peak during times of economic improvement. Although we are not there quite yet most likely, recent moves by the Fed, the Visa IPO today, and my personal belief that our country will in time get to the root of our recent economic breakdown and more strictly regulate both mortgage lending and consumer credit lending policies, thing may begin improving faster, sooner than we all may think.

With investor sentiment improving, seemingly by the day as reflected in one regard by the Dow’s massive move on Tuesday, do not be surprised to see some of the more well-run small caps with stronger balance sheets doubling and tripling, while some of the big boys continue to suffer from a tough credit market that hinders their ability to engage in the type of M&A activity necessary to facilitate such big moves.

In my opinion, small cap investors possessing the nads to stick it out, trust their guts, and even at times scoop up some cheap shares – in the right deals – should likely cash in on the impatience of others dumping their shares of emerging growth stocks that may be performing well operationally, but spooking many in the market with their declining price.

One stock to watch is Legacy Holdings Inc. (OTCPK: LGYH). Shares are down nearly 75% off of their high a few weeks back despite the company’s tremendous potential. Check back through the Blog and take a peek at our corporate profile for more insight into why we like the deal so much.

Here’s a good read on the topic of small cap stocks in today’s market: http://www.mercurynews.com/markets/ci_8616929

Fed Move Could Steer The Economy Straight

Tuesday, March 11th, 2008

Today could be the start of something beautiful…. The Federal Reserve announced a $200 billion plan to inject life back into the struggling US economy and its equity markets as well. The plan will essentially allow major banks to utilize super safe, Treasury-backed funds while at times using the risky mortgage-backed securities that got us into this mess in the first place as collateral.

I think the thought process here is to lessen the strain on the already bumming credit markets, which are now really feeling the pinch of billions of dollars worth of write-offs from bad mortgage loans.

The equity markets seem to love the idea as the dow had its biggest day point gain since 2002, the dollar advanced on every major international currency, and overall investor sentiment began looking rosy after months and weeks of ducking for cover.

Sure, today was in fact just one day. But with the Fed finally stepping in and making a move that should help out in a major way. Maybe, just maybe, the worst is behind us!

Challenger Moves Upstream

Monday, March 3rd, 2008

Challenger Powerboats Inc. (OTCBB: CPBI) announced an order last week from one of the biggest independent boat dealers in America.

http://biz.yahoo.com/prnews/080227/law115.html?.v=84

Developing relationships with tier-one boat dealers such as American Marine and Watersports, could have very positive implications for the company’s future if all goes well here.

After shipping a record 38 boats during the month of January, Challenger appears to be thriving, even in an a tough economy.

The stock was parked in the $.25 range during most of January before growing some legs recently and more than doubling. Now trading around $.50, I’ll be watching the action closely here as the time to purchase boats for the warmer months appears to be upon us.