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| Special
Situations |
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A special
situation, the vague Wall Street term for the stock of a company
where it's very much not business
as usual. The category can include a company in turnaround or one
undergoing restructuring to emerge from bankruptcy; companies about
to introduce a revolutionary new product -- one so important that it
will turn markets on their heads and completely change the company's
business -- are special situations, too. The two things that all
special situation stocks have in common are, (1) a price so low that
the company's stock is clearly undervalued, and (2) a big, catalytic
event looming on the near-term horizon that could send the stock
soaring as the market suddenly recognizes its intrinsic value. Special
situations don't last forever -- the catalytic event that sends a
stock moving upward can run out of gas. That's the tricky thing
about special situations. Go in too early and you can be sitting on
dead money for quite a while. Go in too late and you'll miss the big
run off the bottom. Here, however, we examine some special situation
stocks where the timing looks just about right.
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AMDL, Inc. (Amex:
ADL) offers investors access to the fastest growing pharmaceutical and consumer market in the world: China. Headquartered in Tustin, California, with operations in Shenzhen, Jiangxi and Jilin China through its wholly owned subsidiary Jade Pharmaceutical Inc., ADL is truly an international biopharma company. |
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| ADL management believes that it has the potential to build $100 million in annual sales of cancer-focused products within the next 5 years. In our opinion, ADL resembles one of our big winners, American Oriental Bioengineering (Amex:
AOB), in its earlier days. Our subscribers will recall we successfully called the move on AOB shares from $4.99 in August, 2006 before the stock traded to a high of over $14.00 in January, 2007. |
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Minco
Gold Corporation (AMEX:MGH)
(TSX:
MMM) (Frankfurt:MI5)
is a Canadian mining company involved in the
direct acquisition and development of high-grade, advanced
stage gold and base metals properties in China. |
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| Minco
Gold owns an exploration property portfolio covering more than
1,500 square kilometers (370,658 acres) of mineral rights in
China including the past producing Gold Bull Mountain mine. In
our opinion, Minco Gold represents the ever elusive 10-bagger,
an opportunity for an investor to make 10 times their money on
a stock. This is a classic example of a corporate
restructuring where the parts are worth substantially more
than the whole, waiting for a catalyst, or a series of
cataclysmic events, to bring the stock price more in line with
its true value.
Minco Gold recently announced they are spinning off a subsidiary, Minco Base Metals. In our opinion, this spin-off, more than anything, could bring awareness to the hidden value of Minco Gold's assets.
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Charys
Holding Company, Inc. (OTCBB:
CHYS) is growing fast by acquiring
restoration, reconstruction, and telecommunications infrastructure services
companies. |
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For the nine months ending January 31, 2007 CHYS posted an increase in net revenue of 73%. Revenues were $57 million, up from the $33 million it posted for the nine months ending January 31, 2006. |
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Kimberly
Gold Mines (Pink Sheets: KMGM) was
formed seven years ago by the same group that built Sterling
Mining Company (SRLM) and President, Kevin Shiell, is one of
the most respected mining men in the area. Obviously,
this is not your typical combination for a $0.20 gold stock, which is why we are featuring it on the OTC Stock
Review. |
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| KMGM controls the Rescue and Kimberly Gold Mines
in central Idaho, the Matthews and Compton properties in the
Wenatchee Gold Belt of central Washington, the Empire Creek
Project, and the Camacho Concession in Zacatecas, Mexico. KMGM
has a 43-101 Report covering Rescue, Kimberly and the
Wenatchee Gold Belt. |
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POWERLINX™,
Inc. (OTCBB:
PWNX)
develops, manufactures and markets, among other devices,
products and applications developed to transmit voice,
video,
audio, |
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and data either individually or any and all combinations
over power lines, twisted pair wires and coax in AC and DC
power environments, on any and all power grids. The Company
has also developed manufactured and marketed different kinds
of underwater video cameras, lights and accessories for the
marine, commercial and consumer retail markets. |
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Neah Power
Systems, Inc. (OTCBB:
NPWS) is developing the use of porous silicon matrix technology (a silicon application similar to microchips) to create miniature fuel cells (electric generated at normal temperatures directly by chemical combination). |
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| NPWS's
technology offers the possibility of replacing disposable and rechargeable batteries in portable electronic devices with fuel cells that only require replenishment of methane, allowing continuous use completely apart from the power grid, and without the weight and bulk of carrying spare batteries. Neah has obtained a series of patents and has patent applications pending to completely control this disruptive technology. Originally funded in 1999 by the large venture capital firms Intel Corp Venture Fund, West LP, Frazier, and Alta & Novellus to perfect the technology, the company is now entering the product development stage. |
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VuBotics,
Inc. (OTCBB:
VBTC) has developed a unique software
application, VuIT™, which alters the way content, and
particularly text, is delivered to the user on an electronic
display. |
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The VuIT™ product family uses an advanced
proprietary algorithm that dynamically delivers text
sequentially onto a viewing screen, word -by-word, rather than
as static text across a screen, as with a piece of paper. The
words are typically displayed one at a time, as large as
desired, and at a rate of speed optimized for the reader. This
approach is combined with a cadenced delivery that is designed
to mimic sub-vocalization, based on an in-depth understanding
of readers’ lexicons, including language and culture. This
is achieved by analyzing cadence values to the content,
thereby delivering content at very high speeds with high
comprehension and recognition characteristics. |
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Paxton Energy, Inc.
(OTCBB:
PXTE) drills for high quality sweet crude oil and high BTU natural gas on a large land position in the productive Cooke and Storey Ranches located in La Salle County, Texas. |
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With over 11,000 acres available, PXTE has accumulated a large amount of drilling and seismic data, and is now producing from several oil and gas wells on the properties in Texas.
PXTE explores for and produces oil and gas in the Cooke Ranch Field, located in La Salle County, Texas. This prolific field contains several dozen producing oil and gas wells from four shallow pay zones that have yielded over 18 billion cubic feet of natural gas and 1 million barrels of oil since 1959. PXTE also a has a 75% working interest in the Storey Ranch prospect, 2,268 acres of leases acquired within the Area of Mutual Interest in Q2 ‘06. |
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Positron Corporation
(OTCBB:
POSC) is a growth oriented player in the molecular imaging segment. POSC has sold twenty eight systems, of which eleven are in leading medical facilities in the United States and six are installed in international medical institutions. |
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However, the real key to POSC’s future success could be based on the technologically advanced solid state chip under development which can be oriented into an organ specific imaging devices as well as radiation detectors used in homeland security applications. |
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Sterling Mining
(OTCBB:
SRLM) offers investors an opportunity to own a piece of mining history. Founded in 1903 by John Presley in Wallace, Idaho, the Presley family maintained significant ownership for more than 70 years, and many family members remain as shareholders today. |
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One of America's oldest mining companies, SRLM's core projects are located in two of the world's most prolific and geologically prospective silver-mining regions: Idaho's renowned Coeur d'Alene (Silver Valley) district, and Mexico's historic Zacatecas silver-mining district.
SRLM joined the exclusive ranks of primary silver producers in 2005, when it began initial production at its Barones Tailings Project in the Zacatecas silver district of Mexico. The Company's exploration assets encompass 18,600 acres near the Sunshine Mine, 4,500 acres in Montana, and over 18,000 acres in the Zacatecas silver district of Mexico. |
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Avalon Oil & Gas
(OTCBB: AOGN)
is in the business of acquiring low risk, low cost oil and gas properties. |
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| Avalon Oil Inc. is an independent domestic oil and natural gas producer dedicated to seeking and implementing new innovative energy technologies and the development of oil and gas reserves for the benefit of its shareholders. |
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