New additions to Penny Stocks Blog

We're getting a significant amount of traffic at Penny Stocks Blog. A few of our contributors are deeply engaged in the penny stock game. High risk, high risk. We'll leave the rewards up to you.


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I'm Not Sure if Ethical Investments Turns Me On

Now, a friend calls me and says that I should make an investment in a company because they have a technology that will make the world a better place. No, they don't make guns that can only be used in self defense, they make a technology that can eliminate the greenhouse effect. Fast forward ............................ 1 full year. Stock is down 49%, am I happy. No. In fact, I'm actually a little ticked off.

Here's the other side of the argument. Ethical investments are really popular now.

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Please Don't Tell MY Wife

To all our readers, please don't tell my wife. First the checkbook, now the stock certificates. According to a compilation of surveys, my wife is a better investor? You Mr. Investor may be confident but we would suggest that the IRA and Keough should now be managed by your wife. In fact, if your broker is a guy, you're in double trouble. Now, not only do you have to waive all your rights to investment decisions to your wife, you need to fire your broker.

No discrimination allegations, it's all tongue in cheek.

Is it?

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New Shorting Technique - StockLemon.com or Squeeze Play

In the world of small cap stocks and penny stocks, it doesn't get better than this. Welcome to Citron Research, the group formerly known as StockLemon.com.

Apparently, the boys from StockLemon.com are now in the shorting business, fully compliant with Regulation FD. What has evolved from a community service is now a system which allows them to short a stock, then beat up a stock all in the same month with potentially large profits at the end of the rainbow. These guys may just be nominated in the category of overall creativity by 1800blogger.

According to one article, Citron creates an interesting formula for checks and balances on over-promotion.

You decide.


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Are Short Sellers Shorting Your Stock

Read the message boards any day and half the time when a stock price is down, it's the short sellers fault. I felt a long time ago and I feel today that shorts are smarter than longs. I know it's a controversial statement but wrong on the short side is financial suicide. Wrong on the long side is Planet Zero Job for the worst case scenario.

When Chief Executive Officers of public companies talk to much about their stock price, one must question their commitment to the business. When they talk to much about the shorts and that's the reason why the stock is down, it's time to remove that stock from your portfolio.

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I Stay Away from Roll-Up Strategies

I received a call from an executive of a company who is trying to raise money for a roll up strategy. He explained to me that he could role up companies in the trucking industry and build to $100,000 million in revenues.

I replied that roll up strategies don't work and here's why. You are most likely using your stock as capital. Therefore, if a good deal is presented to you and your stock price is depressed, it can't be a good deal. In other words, a good deal is not only dependent on the purchase price, it's dependent on your stock price because your stock is your currency.

Finally, you are buying the company because someone is looking to cash out. Therefore, that will place a constant pressure on the stock price because as soon as they can sell, they will. In other words, it will be difficult to maintain a fair valuation for your stock.

I would stay away from roll-up strategies. Roll the other way.

Knobias ClipReport (6-28-2007)

Submitted from Knobias ClipReport

Summer trading has begun as has the summer media menu. With elections still some time away and no one missing or on trial at the moment, the slow season has taken hold of both arenas. Trading has become extremely thin with traders piling into the latest low float, hot name. News headlines have begun to scratch and grasp at anything that could possibly grab national attention.

The latest headlines, whether you like it or not, has been the Paris Hilton saga which will undoubtedly come to a head with a Larry King live interview Wednesday night. With the first interview since being released from jail, though being completely absurd, will make national headlines and be the talk of many in media during Thursday.

This aspect gives way to the latest theory of celebrity trading. Hilton has been firmly entrenched as spokesman and marketer of Parlux Fragrances Inc. (PARL). The Company is engaged in the creation, design, manufacture, distribution and sale of prestige fragrances and beauty related products marketed primarily through specialty stores, national department stores and perfumeries on a worldwide basis.

Hilton, who has a signature line of fragrances, lotions, and watches marketed by the Company, could cause a movement in the stock if there is mention of the Company’s products.

Parlux shares on Wednesday saw an increase in interest on news that the Company had signed a global licensing agreement with Jessica Simpson to launch her signature fragrance which will debut in July 2008. Shares were up 7.5% on the news and were possibly helped by early entrants hoping for price spikes due to the Hilton interview.

Another public company was also in the news which could have an effect on its share value. World Wrestling Entertainment (WWE) which last week staged the death of founder/chairman, Vince McMahon, was struck by tragedy when former wrestling champion, Chris Benoit, was involved in the murder and subsequent suicide of his family.

The Company, which came under fire from the staged death of Vince, was now under even more scrutiny following the latest wrestler’s death. The athletes involved in the sport have long been suspected of illegal steroid use and painkillers to help them look and perform their best on one of the most grueling schedules in all of sports and entertainment.

More scrutiny could come about if the toxicology reports on Benoit show steroids were in his system at the time of the tragedy. Ratings could suffer while advertisers move their business from WWE to other time slots or television stations all together. Congressional hearings could also come about, which in itself is incredible they haven’t happened already with the number of wrestler deaths related to the performance enhancer especially considering Major League Baseball’s recent cleanup.

Donald Trump’s name has also been in the limelight. The reality television star and real estate mogul’s company Trump Entertainment Resorts (TRMP) has been reportedly put up for sale. Dennis Gomes and Morris Bailey are bidding on the Company and have noted that the talks are progressing.

Trump has been noted as saying that he will not accept anything lower than the low $20’s for the Company which owns and operates three casino hotel properties in Atlantic City, New Jersey: Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino. Morgan Stanley, the largest shareholder, noted that it would not consider anything below $17 a share.

Gomes and Bailey along with Bear Stearns have noted that $11 a share was a reasonable offer considering the circumstances hampering the casino’s profitability. The valuation could impede the sale which is already seen as a having a remote chance by many investors.

In any event, the latest media headlines have given traders opportunities to capitalize. With Hilton’s interview, shares of Parlux have a considerable chance to build on Wednesday’s move. WWE shares could continue to come under pressure with further information regarding the recent tragedy and possible reform, while Trump’s latest casino sale might cause someone to get fired. These headlines are certainly some that investors would be wise to watch.

Small Cap Stocks Blog Laugh of the Day

About 3 weeks ago, we interviewed a person at 1800blogger who was obviously desperate for a job. After sitting down for about 5 minutes to chat, the candidate asked me, "If I get the job, how quickly do I get paid?" It would have been cute for a 19 year old but depressing and definitive for a man pushing 35. You can guess that he didn't get the job.

This poster on Investors Hub gets the award for best job pitch.

Knobias ClipReport (6-27-2007)

Submitted from Knobias ClipReport.

Additional home price data was released that displayed what has come to be expected: home prices were falling. The surprise was that prices fell at their fastest rate in 16 years.

Another large piece of news was Apple’s pricing plans with AT&T regarding their iPhone set for release this month. Shares fell sharply after the announcement which was seen as being a bit high when adding the already high price of the phone itself.

In the small cap arena, solar plays were the highlight of the day, once again, with Hoku Scientific and Daystar Technologies being on the radar of many traders. The names saw large gains on heavy volume days though volume seemed to dry up after the noon hours which could be reason to believe their rallies could be decelerating.

Another name which caught some eyes was Tubearoo Inc. (TUBR). The shares were up over 30c, before falling 86c in intraday trade. Much of the volatility was speculated as being caused by a promotional email campaign which was halted. The name is a textbook example of the infamous pump and dump scam.

The Company, which doesn’t file with the SEC, has a YouTube like site with video content and a Digg.com like site with viewer rated worldwide news. Though the sites seem to be knockoffs of the originals, the Company does claim to have launched a mobile video providing service which it noted was in beta version.

An additional name which caught the eye was Orexigen Therapeutics Inc. (OREX). The Company is a biopharmaceutical focused on the development and commercialization of pharmaceutical products for the treatment of central nervous system disorders, with an initial focus on obesity.

The Company’s lead combination product candidates targeted for obesity are Contrave, which is in a Phase III clinical trial, and Empatic (formerly Excalia), which is in a Phase IIb clinical trial.

Orexigen has focused its clinical development programs on drug combinations that it expects will generate weight loss and attenuate, or limit the effect of, the pathways in the brain that prevent extended weight loss. The Company’s combination approach contrasts with most currently approved weight loss drug therapies, which utilize a single active ingredient and have typically shown early weight loss followed by a plateau after several months of treatment.

On Monday, the Company announced inclusion into the Russell 2000 Index which could give it a wider investor base which includes institutions as many have Russell 2000 inclusion as a requirement of potential investments.

With the recent news regarding data from a sub-study of its Phase IIb multi- center clinical trial of Contrave, the name could see some increased action over coming days. The data demonstrated robust improvements in both visceral fat and insulin resistance which was a major worry from some investors as the FDA’s heightened requirements are for a loss of visceral fat and not lean body mass. With more information expected on the candidates in the third quarter, the young name could be one to follow over the coming months. Investors would be wise to watch.

Small Cap Stock Promotions (6-26-2007)

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Wise Alerts received $10,000 to promote WRNW.PK

Twin Trader received $4,000 to promote BQTG.PK

HotShotStocks.com received $6,800 to promote EPCG.OB

Bridge IR received $18,000 to promote MGRA.PK

The SUBWAY.com received $15,000 to promote BQTG.PK

Wall Street Savant received $40,000 to promote MNCL.PK

OTC Picks received a maximum of $9,000 to promote BQTG.PK

The Bull Report expects to receive $25,000 to promote BQTG.PK

Wall Street Corner received $500 to promote IGTP.PK

Wall Street News Alert received $14,000 to promote BQTG.PK

Hot Stock Chat received $25,000 to promote BQTG.PK

The Green Baron received 15,000 restricted shares and $5,000 to promote NCNC.OB

OTC Journal received $30,000 to promote PNWIF.OB

Small Cap Market Watch is promoting MNAP.OB. Editors own the stock at $1.00 through a private placement and also have purchased some stock in the open market at an average price of $3.60

Herd on the Street was paid $500 in cash and $6,000 in shares to promote EDFY.OB

Right Side Advisors was compensated $8025 to promote SHTP.PK

Knobias was paid up to $1800 per month to promote AERO, AFOP, APRO, DSTI, IXYS, NTCT, OREX, and SJCK

Boon Market was compensated $5,000 to promote DRGV.PK

Real Pennies was compensated $10,000 to promote DRGV.PK

Inside Wallstreet was compensated 1,000,000 free trading shares to promote BQTG.PK

Global Market Hits was compensated $6,000 to promote BQTG.PK

Dhanoa - Small Cap, Penny Stock or Zero Job

As many readers of this blog know, we beat up the Dhanoa Minerals story pretty well on this blog over the past few weeks. Mr. Balak, Company's CEO made this statement back in 2004 after resigning as CEO of Power Technology Inc.

Click Image to Enlarge
For those of you who may unfortunately not be able to read the image, Mr. Balak said:

It is time for the company to be led by a CEO with the experience to profitably commercialize

Today, Power Technology trades at $0.015. From a man who in his own words did not have the experience to profitably commercialize, look at how much progress we made:

Dhanoa Minerals Announces Expansion Plans to Acquire Adjoining Gold Producing Properties

Dhanoa Minerals President and CEO Increases Personal Investment in Company's Latest Round of Financing

Dhanoa Minerals Modernization Effort Producing Additional Revenues of $5,500,000 From ''Tailings''

Modernization Project for Dhanoa Minerals Shows Immediate Results

and it goes on and on and on. My, what progress Mr. Balak has made in just 3 short years.

Knobias ClipReport (6-26-2007)

Submitted from Knobias ClipReport.

Monday’s session saw home sales numbers reach four year lows and inventory numbers of previously owned homes reach their highest levels in 15 years. The summation was a bleak look for housing over the coming months.

The morning hours of trading saw the market begin the week in a green fashion before abruptly turning about face in the noon hours and ending the day moderately in the red. Much of the losses were attributed to market data which was set to be released during Tuesday’s session. Also contributing was continued unrest from the brokers stemming from subprime losses.

In the small cap arena, solar names were the focus of many traders with one name in particular displaying strong momentum over the weekend. Hoku Scientific Inc. (HOKU) shares gained over 27% on over 32M shares traded.

Another name in the sector also had a fairly heavy day in trading though not near the volume. Daystar Technologies (DSTI) shares gained 31% on only 1.6M shares.

On Thursday, the Company released an 8-K detailing a bridge loan financing agreement in which it secured $4 million to continue operations while it searched for an additional $25 million to ramp up production.

The $25 million financing was noted as possibly being equity derived which would seem to be a negative to investors looking for possible investments in the solar arena.

The Company, which makes thin film solar cells, was planning on moving their headquarters to California from New York. Some of the money expected to be raised in the equity deal was noted as to be used in the move.

Even though the raising of equity financing could be considered a positive for the name, terms would have to be good with the number of shares being issued as low as possible to limit the amount of dilution.

But the large amount of financing could be a fairly tall order since the Company lost $20 million last year, and even in its initial public offering only raised around $8 million. Also of note was that the Company was currently able to use $1.5 million of the bridge financing loan proceeds. If there is no continuing event of default the Company would be able to use another $1.2 million 30 days after June 15, 2007.

Speculation suggested that if the Company wasn’t close to securing the $25 million in equity financing that the remaining $2.5 million in bridge financing wouldn’t be available for use.

Add to the fact that the Senate Finance committee recently proposed an Energy Incentive Bill that was considered by many to be a bit modest, and one can see the uphill battle this name could face in the coming months.

With a positive outcome to the equity financing deal as well as a successful transition into the new headquarters along with the construction of the new 25 megawatt production line in California, and the name could become one to watch in this highly speculative solar arena. Investors would be wise to watch.

You Deserve an Honest Execution on Your Small Cap Stocks

Read this and don't forget it. When a you place a buy order at the offer price or a sell order at the bid price, the trader who receives that order is obligated to execute your order on a timely basis until that bid or offer no longer exists. That doesn't mean that you deserve an execution in a fast moving market for small caps or especially penny stocks. However, it does mean that the market maker is obligated to attempt to execute your order if you are selling at the bid price or buying at the offer price. Many times, you will have a stock that is quoted at, for example, $0.75 - $0.80. The stock may be thin (in trader's language, it doesn't have much volume) and if you are trying to sell the stock, you may see the quote move to $0.75 - $0.77 as soon as you place a sell order at $0.75. (The key is that your order is at the bid or if it was a buy the offer) There is a very good chance that the trader is now trying to work the order and so if someone buys 10,000 shares at $0.77, he makes $200 at your risk and you will probably get the execution at $0.75. The problem is that if that bid disappears when the offer is lowered and in many cases it does, his working the order hurt your ability to get a fair execution. If you hear "Working the Order", you are probably getting screwed and it's illegal. Let me repeat, it's illegal. Below is a snapshot of a Level II Screen. It's for a large cap screen but the example and the explanation will still hold true.



I'll explain based on a sell. The Level II screen is for CSCO. In the above example, Prudential is actually the bid on the stock. So for that moment in time, the quote that you should receive from your broker is 110 5/16 - 110 3/8.

Here's the problem. In the small cap and penny stock world, many traders will receive a sell order to sell the stock at 110 5/16 and he will actually try to sell your stock at 110 3/8. This is why you will have a delay in the execution of many small caps and many penny stocks. Here's what the trader is legally entitled to do.

He has the option to try to execute you on a timely basis at 110 5/16 and then try to sell the stock at 110 3/8 or higher and it is perfectly legal and it should be because he and his firm are taking the risk. However, it is illegal if a trader takes your order in and in this case to sell at the bid and offers the stock out at 110 3/8 (in trader language that means trying to sell at 110 3/8) without giving you the execution. It is illegal. If you complain, you will hear that "They were trying to work the order". Take a snapshot of a level II screen after you submit your order and watch what happens. This post is specifically targeted for investors that trade penny stocks. Take a snapshot of the Level II screen and if you have to, fax it in to a firm's compliance department. This practice described in this post is prevalent among many discount firms because margins are so thin. Trade successfully; don't get ripped off.

Knobias ClipReport (6-25-2007)

Submitted from Knobias ClipReport.

Friday’s action saw the market fall amid worries of rising global interest rates, hedge fund worries regarding their subprime exposure, and rising crude oil prices. The volatility was a bit disconcerting considering the volume.

Much of the worries over the credit market were due to the collapse of Bear Stearns hedge funds that heavily invested in subprime mortgages.

But the main focus of the day was put on the Blackstone Group (BX) IPO. The private equity firm’s offering raised some $4.1B making it one of the richest in US history.

The IPO was noted as being over subscribed by 10 times the amount offered. With so many institutions wanting the shares, one would think the offering would gain throughout the day. Though the shares did have a large spike during the morning hours, shares fell off throughout the rest of the day.

Another name has recently seen an increase in institutional buying. Industrial Enterprises of America (IEAM) is a holding company with four wholly owned subsidiaries, EMC Packaging, Inc, Unifide Industries, Todays Way Manufacturing, LLC, and Spinwell Holding Company, LLC.

EMC’s business consists of converting hydrofluorocarbon gases (“HFC”) R134a and R152a into branded private label refrigerant and propellant products. Unifide is a leading marketer and seller of automotive chemicals and additives, and Todays Way manufactures and packages the products sold by Unifide.

Spinwell, through its wholly owned subsidiary Pitt Penn Oil Co., LLC, is a leading manufacturer, marketer and seller of automotive chemicals and additives.

Shares of the Company were recently accumulated by Pike Capital which had amassed over 24% of the total shares. The large stake could be a sign of some interesting quarters ahead. As are the buys by CEO, John Mazzuto, which have totaled over 600 thousand shares in the last 9 months.

One reason for the buys could be the recent earnings reports that have showed some improving conditions. Revenue for the third quarter was $17.6 million as compared with $9.0 million for the same period in fiscal 2006, a 95% increase. The increase in revenue over last year was partially due to the inclusion of the Pitt Penn Group, acquired January, 2006, and more importantly due to increased production capabilities.

The GAAP bottom line numbers were somewhat misleading though. Earnings were for a loss of 47c per share versus a loss of $1.60 per share the year before. The numbers included an accounting change from their recent acquisition of Pitt Penn. The inventory accounting method was corrected from average cost accounting to FIFO (First In, First Out).

Absent the accounting correction, results for the third quarter would have been a gross profit of $4.8 million, representing a gross margin of 27.3%, and EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.7 million, or $0.29 per share, calculated using the treasury method, or 13 million shares as of March 31, 2007.

When taking the non GAAP numbers into consideration, the name could be grossly undervalued which would explain the investments from Pike and others. Add to the fact that the company increased unit through-put by approximately 30% through improved operating efficiencies and additional manufacturing shifts even though orders continued to outpace shipments, and the name becomes one to track over the coming quarters. Investors would be wise to watch.

Are You a Fan of Small Cap Stocks?

I am but I recently found one that isn't. Here's a guy who's a big fan of buying small cap stocks with value. Here's the article about small cap stocks at the Motley Fool.

You Can't Fight City Hall but What About the SEC?

You can't fight city hall but in the case of the SEC, you have a better chance. Take the case of Universal Express, a company's whose CEO is on a first name basis with the Securities and Exchange Commission. Greenpagan writes all about the tale of Universal Express.

Warning The referred blog is difficult to read.

Who's Really a Stock Guru?

Every time I watch CNBC, I tell many of my friend that I actually worked with several of the stock gurus that appear on CNBC and the other financial news channels. They're not geniuses folks. In fact, one stock guru who was one of the better people that I ever met on Wall Street told me, "I don't buy stocks, I buy mutual funds." This is the same guy that was on national tv advising us on which stocks to buy. That statement was also before all the full disclosure requirements, etc. True story, I swear!!. You don't have to be a guru to beat the pros.

Is the Dragon About to Slay the Bulls in China?

As professional and mom and pop money continues to make its way to Chinese companies, some smart money is predicting that the end may all be near. In fact, we received one email from a New York-based money manager who recently contacted us about his upcoming trip to China. In fact, the email boasted about some of the recent investments his fund made in China(penny stocks folks!). Alan Greenspan recently made headlines by saying, ""the rally in Chinese stocks is ‘clearly unsustainable'" and that "there's going to be a dramatic correction at some point."

Our response, we'll see. We think he's right.

Knobias ClipReport

Submitted from Knobias ClipReport.

The American economy has been labeled as one based on services. Agriculture and manufacturing have long been ushered to the back of the line in terms of total gross domestic product. The services that are provided have become so diverse and ranging that it’s almost too easy to make a living by specializing. Doctors, lawyers, accountants, and financial service representatives make up the bulk of the high income work force.

These sectors have been in a phase of evolution ever since their inception. In the old days, doctors, lawyers and accountants were all single person operations normally located on the main drag of their respective cities or towns. They have since evolved into consolidated groups of professionals housed under one firm’s umbrella. From HMO’s and hospitals to the big 3 accounting firms, these industries have gone through massive consolidations to capitalize from the economies of scale.

One related area that hasn’t gone through as large of a consolidation is the dental industry. Dental practices have historically been one or a small group of practitioners that compete against each other for patients. The solitude leaves the firms with higher costs for supplies and lower revenue from deals struck with insurers. The bargaining power they possess is minimal at best when the practice consists of such a small number of dentists.

One company has recognized the needs of these dentists and is attempting to make a name for itself in the niche while others have overlooked this huge market.

Dental Patient Care America, Inc (DPAT) provides multiple services to independent dental practitioners. The Group's principal activity is to organize dentists into a cooperative model of contractually networked practices. It owns two subsidiaries through which it conducts two separate lines of business.

The Group's benefits include programs to purchase supplies, laboratory and other operating services, insurance and employee benefits programs, and opportunities for profit sharing through the cooperative model. The Group also provides dental patient marketing programs, such as the organization of its member dentists into a network, which offers dental care plans to employers and other groups under the trade names "Intermountain Dental Plans" and "Dentist Direct".

Knobias spoke with Vice President, Andrew Eberhardt, about some of the products the Company offers and the unique business model they’re employing.

“The Co-op has two levels of membership. The Associate membership level costs $250 a month and provides practices with cost savings on supplies through our ability to order in bulk. The practices also benefit from their inclusion into the insurance program,” noted Eberhardt.

The Co-op also offers aging dentists the ability to retire at terms of their choosing and at prices that are acceptable by them. Practices that wish to enter this program are offered a price on a percentage basis of their net income on the front end. The practice will then become part of the Co-op and be run by the retiring dentist for a span of time normally ranging 5 years. At the end of the time span, the dentist is then paid the remainder of the price and is given an equity stake in the Company as part of the purchase price.

The practices then become wholly owned by the firm and either have a dentist placed into the practice to run the business on salary or could be sold to a new dentist that has recently entered the profession.

“We have 100 associate Co-op practices currently subscribed and we have two practices that are wholly owned,” noted Eberhardt. “In the next year, the goal is to have funded (bought or transitioned) 30 practices with a longer term goal of 300 within the next 5 years.”

With the number of relationships the Company can make through the Co-op model, the goals seem realistic and are very achievable.

“Practices are experiencing savings that are triple or quadruple direct Co-op dues,” finished Eberhard. “What practice wouldn’t want to experience that?”

With plans to expand their business outside the borders of Utah, the Company could quickly grow their asset base at leaps and bounds. With Arizona being the first target, funding for the expansion could be next on the menu.

“That’s being put in place now,” noted Eberhard on the funding. “We have a bank committed and will announce something publicly in the near future.”

With the barriers to entry being loaded with red tape and the Company supplying such a unique and valuable service to dental practitioners with absolutely no competition, the name is certainly one to track throughout their expansion progress into surrounding states. Investors would be wise to watch.

HealthSport Signs Deal with Schering Plough Corporation

HealthSport just signed a deal with Schering Plough. According to an 8-K filed with the SEC, On March 16, 2007, HealthSport, Inc. ("HealthSport" or the "Company") through its wholly owned subsidiary InnoZen, Inc. ("InnoZen") completed, by receipt of a $150,000 prepayment, an exclusive marketing and distribution agreement with Schering Plough, S.A. de C.V. of Xochimilco, Mexico ("Schering"), a subsidiary of Schering-Plough Corporation, for InnoZen's Suppress Cough strip products.

Congratulations to our favorite stock promoter from New Jersey for picking this one.

Spam Alert

Submission from the Spam Police

One of our Spam Informants received some spam on SREA.OB

Small Cap Stocks that Should be Discovered

Is there a small cap or a penny stocks that we should know about? If there is, please tell us about it. We want to hear about it..

Anatomy of a Stock Promotion (Part 7)

I haven't heard much from our favorite stock promoter from New Jersey. I'm in SMGY at $0.53 and haven't heard nothing since I bought the friggin stock on Monday after receiving 6 emails.

Now, I'm supposed to buy HSPO.OB. In fact, I supposed to call all my friends and family. Well, what the hell I supposed to do with my SMGY stock. Updates please?

One Fan of Xechem International Writes

One fan gives an explanation of the recent price drop in Xechem International. A look at the recent 30 day chart explains why some investors were seen recently with worried looks.

Stock Chart courtesy of Big Charts

The investor explains that major shareholders are dumping shares of Xechem.

EcoPlus: (ECPL:PK)

We have had a few inquiries from visitors at Pink Sheet Stocks Blog about EcoPlus. The following post was placed on Pink Sheet Stocks Blog on June 12th, 2007. Both Pink Sheet Stocks Blog and this blog are owned by a leading provider of blog directory service.

I would suggest that everyone that visits this blog who has an interest in pink sheet stocks should really take a look at EcoPlus. The stock trades on the Pink Sheets. One of our affiliates owns 500,000 shares in which they bought the stock in the open market. Fats, oils and grease (also known as FOG) are a major problem for many municipalities throughout the United States and this company may have a viable solution.

A Response from Someone Affiliated with Guangzho Telecom (GZGT:OB)

The catfight that's going on between the blogosphere and Guangzhou is getting entertaining. Some finally got a response from someone associated with Guangzho. We'll keep you posted. It seems that we may want to put these 2 guys in the Octagon.

Guangzhou Global Telecom (GZGT:OB) - Small Cap Gem?

The saga surrounding Guangzhou Telecom is continuing in the national press. It seems that people are trying to locate the company's CEO with no success. We have had several callers alert us to the rumors that he's living with Elvis ??

Stock Promotions (6-19-2007)

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

OTC Reporter has been compensated a monthly fee of $5,000 to promote UCOI.OB.

Wall Street Savant was compensated $34,500 to promote CVAS.OB.

Equity Stock Analysis was compensated $23,000 to promote TOOT.OB.

Shazam Stocks was compensated $16,000 to promote ORMP.OB.

Small Cap Review was compensated $7,000 to promote SHTP.PK.

Wall Street News Alert was compensated $12,000 to promote WPUR.OB.

Penny Review was compensated $7,000 to promote SHTP.PK.

Street Insider was compensated $4000 to promote PYTL.OB.

OTC Live was paid $250,000 to promote PLKT.OB

Beacon Equity Research was compensated $9,000 to promote IWWI.OB.

Agoracom was compensated $2,500 per month and 350,000 options with a strike price of $0.06 to promote EYII.OB.

Growth Report was compensated $7,000 to promote PLKT.OB.

Emerging Markets Consulting was compensated $10,000 per month in arrears and 15,580 Rule 144 shares per month to promote APTD.OB. In addition, they were compensated $60,000 and 200,000 rule 144 shares of IOPM.OB and 200,000 cashless warrants to purchase IOPM.OB at $1.00

Red Chip Companies was compensated $17,000 to promote CXIA.OB

Knobias was compensated up to $1800 per month to promote AMK:A, AVX:NYSE, EPIX:N, FGOVF:OB, MKTY:N, and THRM:N.

Small Cap Stock Alert received $35,000 to promote NCOA.OB.

Real Pennies was compensated $12,100 to promote EXPH.PK.

MOMO Plays was compensated $10,000 to promote NCSH.PK.

Try Stock Options was compensated $4,000 for a one month campaign to promote PFUO.PK.

Speculating Stocks was compensated $5,000 to promote PFUO.PK.

One Vote for Dr. PennyStock

We always search the internet for sites that we believe are worthy of penny stocks content to syndicate to our blogs. We just discovered a great site called Dr. PennyStock.

The site gives valuable information and is a really good site to catch the flavor of investing into the penny stock world.

Note that his disclaimer states:

Does not accept any compensation for stocks mentioned on the blog.

Is there a doctor in the house?

Dr. PennyStock

Knobias ClipReport (6-19-2007)

The Knobias ClipReport highlighted Freegold Ventures Limited (Yahoo Finance Page on FGOVF) today.

Stock Promotions - (6-18-2007)

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Lebed.biz has been compensated $25,000 to promote PLRS.OB. In addition, Lebed was paid $32,000 and 11,250 free trading shares to promote SMGY.OB.

OTC Reporter was compensated $15,000 to promote SGCP.PK.

Stock Guru was compensated 60 million free trading shares to promote IMJX.PK. In addition, Stock Guru was paid $10,000 and 78,000 free trading shares to promote MIOK.PK. Stock Guru also expects to be paid $10,000 to profile MIOK.PK.

Small Cap Review was compensated $7,500 to promote HMSO.OB

Penny Review was compensated $7,500 to promote HMSO.OB.

Hototc.com was compensated $15,000 to promote UDSG.PK.

The Green Baron was compensated 6,500 free trading shares of IWWI.PK to promote the stock.

Taglich Brothers was compensated $1750 for a total of $7,000 to promote HMNA, INXI, WMCO and PURE.OB.

Small Cap Network was paid $25,000 and 150,000 restricted shares to promote CVM:A and $50,000 in advertising and marketing services to promote SWEB.OB.

OTC Stock Review was compensated $10,000 to promote GORAF.PK.

Stock Head was compensated $15,000 to promote UDSG.PK.

Inside Move was compensated $15,000 to promote UDSG.PK.

StockEgg was compensated $15,000 to promote UDSG.PK.

Knobias was promoted up to $1800 per month to promote OCLS, PENN, SMDK.PK and SNR.A.

Micro Stock Profit received $70,000 and 5,000,000 restricted shares to promote NAWL.OB.

Newsletter Advisors has received $99,100 to promote KDKN.OB.

Work that Stock Promotion BOY !! (Part 6)

SMGY.OB has technology that works for boats too. According to Lebed.biz, SMGY will also have a huge blockbuster product in the boating community. In total, we received 7 emails from Lebed.biz today on this stock.

OK, OK, we bought the stock. What next?

The Promotion is Now in Full Force (Part 5)

The stock promotion is now in full force. One of the emails that we received says,

Sales of SMGY's Battery Brain are about to explode across the world. In fact for emphasis, Lebed.biz capitalizes EXPLODE and WORLD

I guess the capitalization is supposed to convince us to double up. We considered it but the stock is still $0.57.

And the New Huge Stock Pick is (Part 4)

SMGY.OB. Yes that's it folks, SMGY.OB. The pick crossed our email account at 9:30 AM Monday morning. The email tells us that it's only trading for $0.57. So we decided to take a plunge and buy some stock at $0.57 (57 cents) and see what happens next. In fact the email says they own the rights to what Lebed.biz believes is the best invention the world has seen in decades. That must mean it's better than the personal computer and the calculator. The company owns a patented technology to a problem that affects may car owners, a dead batter.

Conclusion, we're in at 57 cents.

Take Credit for the Promotion (Part 3)

On Saturday, June 16th at 10:45 PM, we received an email from Lebed.biz that boasted about some of their past picks. In fact regarding one of his past picks, Lebed.biz specifically states it was our pick.

So we'll make sure we credit him for this new big winner.

The Stock Promotion is About to Begin (Part 2)

On Saturday, June 16th at 9:48 AM we received an email that said that the HUGE NEW PICK by Lebed.biz would blow away our highest expectations.

The email says it is unbelievable how successful Lebed.biz has been.

Anatomy of a Stock Promotion (Part1)

We are following a new stock promotion by our favorite stock promoter from New Jersey. An affiliate of ours receives Lebed.biz emails so we have decided to follow this and see exactly what was going to happen.

We received an email on Friday at 5:48 PM that told us that Lebed.biz would be announcing a HUGE NEW PICK on Monday morning.

The Claims from Penny Stock Promoters

In the world of penny stock promoters, no claim is too ridiculous. Creating action (that means a sucker actually buying the bs) is the desired goal. 24/7 Wall Street recently ran a funny series on the claims of penny stock promoters. It's highly recommended entertainment.

Stocks to Watch from OTC Picks

This just in from OTC Picks. TSXT.PK, SMTR.OB, EBOF.OB, SHTP.PK, HOKU:NASDAQ, NMXC.OB. OTC Picks full disclaimer can be read here

Stock Promotions - (June 14, 2007)

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Twin Trader has received $1500 to promote IWWI.OM

Stock Guru has received $80000 and also expects to be compensated approximately 130,000 free trading shares to promote LXES.OB. In addition, Stock Guru received $30,000 to promote TRBD.OB

Quality Stocks has received $53,000 to promote PSUD.PK

OTC Picks has received $9,000 to promote IWWI.OB

Wall Street News Alert has received $20,000 to promote HSPO.OB

OTC Journal has received $30,000 and 300,000 restricted shares to promote NCNC.OB

Market-Pulse has received 675,000 free trading shares to promote HBSC.OB

Street Insider has received $4,000 tp promote SCEY.OB

InvestSource,us, Inc. has received $2,500 to promote TSSP.PK

Up Tick has received $2,500 to promote IWWI.OB

Micro Stock Profit has received 200,000 Rule 144 shares to promote SPCK.OB

Equities Magazine has received a fee for distributing a press release about NCNC.OB

Dhanoa Minerals Ltd. - (DHNA:OTCBB)

Dhanoa Minerals is still being pushed by many touts across the Internet. That's the positive. The negative is that the stock has taken a big hit recently. The company announced that the workforce increased to 180 miners to increase the production of gold and silver. Here's a 90 day chart to see how much this stock has fallen.


Stock Chart Courtesy of BigCharts.com

An Interview with the CFO of China Expert Technology, Inc.

Simon Fu, Chief Financial Officer of China Expert Technology, Inc. was interviewed at Seeking Alpha. For those of you that are interested in the stock, I would suggest reading the interview.

Guangzhou Global Telecom - It's Your Money Folks !!

Did you ever do something in life and want to take it back and it's too late. The recent advertising by Guangzhou is something I'm certain that they would want to take back. The fact is that the company is catching the attention of some pundits that are much smarter than the stock promoters around the stock.

Recently, Seeking Alpha posted a great article which was submitted by Davis Freeberg. It's a must read for the entertainment value alone. Congrats to Mr. Freeberg for this expose.

If you're considering investing in Guangzhou, read the article. If you are a shareholder, read the article. And if you just want to have a good laugh, read the article.

EcoPlus, Inc. - ECPL:PK

I would suggest that everyone that visits this blog who has an interest in pink sheet stocks should really take a look at EcoPlus. The stock trades on the Pink Sheets. One of our affiliates owns 500,000 shares in which they bought the stock in the open market. Fats, oils and grease (also known as FOG) are a major problem for many municipalities throughout the United States and this company may have a viable solution.

Spam Alert

Submission from the Spam Police

One of our Spam Informants received some spam on CAON.OB

Stock Promotions - (6-11-2007)

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Twin Trader has received $6,000 to promote BPMT.PK

OTC-Advisors has received $5,000 to promote GMXP.OB and and $10,000 to promote WTVI.PK

OTC Financial Network has received a monthly fee of $5,000 and or free tarding shares and an option to purchase an aggregate of 300,000 shares at $1.50 to promote CRFU.OB. In addition, OTC Financial Network received $20,000 and 250,000 restricted shares to promote NEXA.OB

Bridge IR has received $25,000 to promote NOVO.OB

Shazam Stocks has received $16,000 to promote IXOG.OB

Lebed.biz has received $20,000 to promote CBPC.OB

OTC Reporter has received 50,000 free trading shares to promote DHNA.OB

Wise Alerts has received $15,000 to promote IRBL.OB

Quality Stocks has received 12,000 shares to promote AFSE.PK

Wall Street News Alert has received $15,000 to promote CRFU.OB

Hototc.com has received $15,000 to promote LBTN.PK

Beacon Equity Research has received $9,000 to promote PCFG.OB

Stock Head has received $15,000 to promote LBTN.PK

Knobias is receiving $1,800 per month to promote CGSY.OB, CMHM.OB, LOOK:Nasdaq, PURE.OB, REX:A, TEXG.OB, WTLC.PK

Micro Stock Profit has received $49,500 and 150,000 Rule 144 shares to promote EAGB.OB

Will the Real President of Dhanoa Minerals Please Stand Up?

Let's play, 'Google your CEO', a game specifically targeted for investing adults throughout the world. It is the work of a braintrust that was created to assist lazy investors in doing the least amount of research possible to potentially avoid a disaster.

Using a public company that leads the league in stock promoters, we decided to play the inaugural game of 'Google your CEO', a new game brought to you by your friends at Small Cap Stocks Blog.

In this case, we visited Google and decided to Google (sorry, it's a noun and a verb) Lee Andrew Balak, President of Dhanoa Minerals. Here are the results.

We also Googled Lee Balak. Here are the results.

Lee Andrew Balak is not a common name so, "Would the Real Lee Andrew Balak Please Stand UP?"

Hint on Playing Google your CEO

When you Google your CEO and the biography states no specific job titles for 10-30 years although the research tells you that he was a wonderful businessman with high level positions in no named companies, YOU ARE WINNING

How to Make Money in a Penny Stock Promotion

Most people lose money when they invest in penny stock promotions. However, you can make a significant amount of money if you look at these stock promotions in the same way that a professional gambler views a blackjack table or a roulette table. There are promoters that move stocks on a regular basis. It’s important to realize that these moves are short lived. Each stock promoter has a limited amount of influence and therefore, you must play their wave of influence and nothing more. Your plan must be disciplined and specific. Please note that stock promoters will only promote you into the stock. They won’t promote you out of the stock because they’re not paid to do that.

Here’s a simplified evolution of a stock promotion. A new promoter or a multitude of stock promoters latch onto a new company. They send out thousands of emails telling everyone that the stock price is going higher. Typically, you’ll get first responders. These are the people that buy immediately based on a stock promotion regardless of the initial jump in price. The initial jump in price could be defined as the opening price when a promotion first begins. Then, they continue to pump a stock and they’ll attract secondary responders. These are the investors that take a ‘wait and see approach’ or ‘I’ll watch it’ approach. They buy and within 2-3 days, the move created by most of these promotions is dead. So the motto is, “Get out or you’re dead.” As the third day approaches, the promoter loses his influence power (this is his audience) and people begin to take profits. Then, some people that have been holding onto the stock decide to sell because they’ve been holding for a long time (probably with a loss). Now, the people that bought the stock with the anticipation of the stock doing what the promoter said and now they see the price decline panic and they sell. Add in some naked (very short term) shorts and some panic sellers and typically, a stock promotion will always cause a stock price to decline to a price lower than you bought in at.

Promoters such as THE CAPITAL REPORT.com typically cause stocks to move 20-40% on the first day. It may not be too late to buy because the stock moves could last 2-3 days and in most cases, that’s it. Therefore, you need to play a stock promotion like a professional gambler plays a blackjack table. If the world’s best blackjack player goes to the table with $100 with $20 minimum bets and stays at the table for 12 hours playing every hand, that player is almost guaranteed to go broke. If you buy a promoted stock with a buy and hold strategy, you’re almost guaranteed to lose most of your money. In the world of penny stocks, there are very few sole survivors.

Investing in penny stocks is incredibly risky and therefore, don't even think about it unless you can lose all your money.

Knobias ClipReport - (6-11-2007)

The Knobias ClipReport highlighted PURE Bioscience (Yahoo Finance Page on PURE) today.

Stock Promotions - June 8, 2007

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Quality Stocks has received $8500 to promote VOSC.OB.

Stock Guru has received $30,000 to promote BIOHF.OB.

Wall Street Grapevine has received $50,000 to promote NEXA.OB.

Willy Wizard owns 15,000 shares and is promoting PPBL.OB

Runon Ideas has received $8,000 per month to promote CSUH.OB

Money TV has received a range of $11,500 to $17,250 to promote ITRO.OB, PDPR.OB, PLNIQ.PK, USXP.OB


Knobias has received up to $1800 per month to promote DHNA.OB, NMGC, NRMX, SOLM.OB, TAOL.OB

Penny Stocks and the Little Guy

Don't ever underestimate the little guy ever again.

Take a look at this post that we found on a stock message board at Investors Hub, one of the leading message board communities for penny stocks.

This message is not very productive for the brand of Alphatrade, although the service that Alphatrade provides is actually good.

J.Scott writes:

Sure, when Alphatrade comes back. I'm having trouble with it. just blank L2s (the poster means Level II quotes) and the portfolio manager is missing all the pinks and the otcbb.

Amazing how an innocent message on a stock message board makes it's way around the world. Yes, the world has changed.

Knobias ClipReport (6-7-2007)

The Knobias ClipReport highlighted Command Center, Inc. (Yahoo Finance Page on CCNI) today.

Why I Don't Read Stock Message Boards

Every time I visit a stock message board, I see things being written which quickly confirm the reasons why I don't visit stock messageboards.

The fact is that most people that write on stock message boards have no clue about investing. It's always the market makers fault.

Take this recent post on an Investors Hub message board in which a poster by the name of WardOffMonkey writes this about the trading of Homeland Integrated Security Systems, Inc.:

The MM's know the potential of this company and see where it seems to be heading, so while they can still control the price I think they are holding it down and loading up or helping certain clients load up. Plus, because there is not yet enough momentum from news to overcome the MM's bid/ask setup, they are also able to flip if they so choose.

Message to WardoffMonkey

1. Market makers don't load up on penny stocks. They are in the business of trading off order flow.

2. There is no such thing as a market maker setup. Bids and asks are based on the market for the stock. For example, you will never see a company that trades $100,000 in stock a day trade with a 20% spread. In fact, the more active a stock, the tighter the spread is. Market Makers such as Nite, Herzog will not take a significant position in a penny stock, especially if they're wrong. Why, because it's financial suicide.

If they do take a big position (short or long), they are usually trading against a position.

Thank you

New Stock Promotions - June 7, 2007

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Stock Guru has received $26,000 to promote
CPNE.OB.

Cashcow Online has received 167,088 free trading shares to promote CGMI.PK.

Small Cap Bull has received $10,000 to promote CPNE.OB.

Quality Stocks has received $15,000 to promote HMSO.OB.

Stock Upticks has received $35,000 to promote CCBEF.

Emerging Markets Consulting has received $5,000 to promote CXZ

Stock Egg has received $10,000 to promote MPPC.PK.

Stock Promotions (Continued) - June 6, 2007

StockPromoters.com is also reporting:

OTC Stock Review received $2500 and 13,000 shares to promote DOIG.OB

Beacon Equity Research received $9,000 to promote NMCH.OB

Baby Bulls received 1 million restricted shares to promote LBWR.PK

StockEgg received $10,000 to promote DHNA.OB

Knobias received $1800 per month to promote CTEC, CTIC, DRL, FMDA, IMA, PAWEF, TELK

PennyStock Solutions received 300,000 free trading shares to promote CPLE.PK and $10,000 to promote RPDI.PK.

Vigilant Trader received $39,600 and also purchased 24,000 shares connected to a promotional program for NOVO.OB

Penny Stock Site received $10,000 to promote RPDI.PK

Inside Wallstreet received $5,000 to promote DHNA.OB

Speculating Stocks expects to be compensated $10,000 to promote NKYH.PK

Stock Promotions - June 6, 2007

It's being reported on StockPromoters.com, the best site on the Internet for following all the details about stock promotions the following new promotions:

Wall Street Savant, LLC has received $20,000 to promote LTDI.PK.

Small Cap Voice has received 25,000 shares to promote SPSV.PK.

The Bull Report has been contracted $25,000 to promote DHNA.OB.

HotShotStocks has received $9,000 in art to promote GZGT.OB

WallStreet Grapevine has received $50,000 to promote DHNA.OB

OTC Picks has received 25,000 restricted shares to promote NXPC

The Green Baron has received $25,000 and 50,000 restricted shares to promote BOCX.OB. Green Baron also received 2 million free trading shares from an unaffiliated party in addition to 1,000,000 Rule 144 shares to promote IFDG.OB.

Microcap Alliance received 65,000 free trading shares to promote POWN.PK

Taglich Brothers received $1,750 to promote RLGT.OB

Is Dhanoa Minerals Ltd. the Most Promoted Stock on the OTCBB

Well, this week it is. For the past week, our contacts across WALL Street have been getting promotional emails from at least 5 entities on Dhanoa Minerals Ltd.

After contacting one promoter and asking him why the stock is down 30% over the past week, we came to our own conclusion.

Maybe it's the mining laws in Ecuador.

One impoverished English major chimed in, "Dhanoa a thing." That's ....... Don't know a thing.

New Promotions - June 5, 2007

It's being reported on StockPromoters.com that 14 new promotions have begun. According to StockPromoters.com:

Stock Guru is receiving 350,000 free trading shares to promote Harvard Clearing Centers Inc..

Small Cap Bull expects to be compensated 104,000 free trading shares to promote Infe Human Resources.

OTC Financial Network is receiving a monthly fee of $5,000 to promote Dynamic Leisure Corp..

Unique Insights has received $5,000 to promote American United Gold Corporation.

Street Insider has received $4,000 to promote Oramed Pharmaceuticals.

Eric David has received 500,000 free trading shares to promote Marketing Concepts International.

Small Cap Network has received $25,000 and 1 million newly issued restricted shares to promote BioCurex Inc..

Up Tick has received $2500 and 1,750,000 shares of restricted stock to promote iVoice, Inc..

Growth Report has received $11,000 to promote i-level Media Group Inc..

Boon Market expects to be compensated $10,000 to promote International Oil & Gas Holdings Corporation.

Equities Magazine has received $14,000 to promote Dhanoa Minerals Ltd..

Real Pennies has received $14,000 to promote Raven Moon Entertainment Inc..

Micros Report has received $30,000 prepaid to produce a research report on HealthSport, Inc..

Stock Newscast has received compensation of $450 to promote Ka Wang Holding, Inc..

HealthSport Inc. (HSPO.OB) Rated Speculative Buy

HealthSport Inc. has been rated a Speculative Buy by Beacon Research with a target price of $4.00.

The complete report can be found by visiting Beacon's website.

Spam Alert

Submission from the Spam Police

One of our Spam Informants received some spam on MNAB.OB.

New Stock Promotions - June 4, 2007

It's being reported on StockPromoters.com that 3 new promotions have begun. According to StockPromoters.com, Wall St. Mailer received $420,000 in compensation to promote i-Level Media Group. Stock Guru received $10,000 to promote Assured Pharmacy and 104,000 free trading shares to promote.INfe Human Resources, Inc.. Lebed.biz was paid $20,000 to promote HealthSport, Inc.. Finally, Wall Street Savant received $26,500 to promote Pure H2O Inc.

Article from Motley Fool

Here is a great article about penny stock investing in the Motley Fool..

The article states:

If you're buying stocks without paying attention to the business you're buying, you might as well buy up every baseball card of a benchwarmer on the Akron Aeros AA baseball team and hope that he someday rises up, fulfills his potential, and becomes an all-star for the big-league Cleveland Indians.

Read this article. It's a must read.

Alphatrade (APTD:OTCBB) - Penny's Not So Perfect

CEO Penny Perfect may not be ecstatic when she learns that her company has landed in the Promoters to Avoid category at stockpromoters.com. Not considered the traditional stock promoter, Alphatrade sponsorship program as seen when a client logs on to their website clearly links them to the advertisement of penny stock companies.

Here's a 5 year stock chart on Alphatrade:



Stock Chart courtesy of BigCharts.com

When the Joneses Aren't Investing

Terry Keeenan wrote a cute but informative article in the New York Post on June 3rd, 2007. It's a recommended read for all stock market investors.


TERRY KEENAN is anchor of Cashin' In, an investing program that appears on Fox News Channel on Saturday mornings at 11:30. E-mail terry.keenan@foxnews.com.

Dhanoa Minerals Ltd. (DHNA:OTCBB)

There must be at least 5 companies pushing Dhanoa Minerals Ltd. Here's an interview at Small Cap Voice conducted by the CEO

Question of the Day

When I follow what a money manager, analyst or newsletter tells me to do, why can't I ever get the same return as the track record?

Knobias ClipReport

The Knobias ClipReport highlighted Chembio Diagnostic Systems, Inc. (Yahoo Finance Page on Chembio) today. Last year, an affiliate of ours visited Chembio and was very impresseed. They met with the CEO and this company is obviously attempting to build a real company. Like most small companies, financial resources are always a challenge.