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"Stocks in the Spotlight"
September 23, 2010
PAST "SPOTLIGHT" STOCKS WE DO NOT WANT TO OWN
Some
times
even yours truly makes a wrong choice. Sorry, and
I know you find that hard to believe, but it's true.
Even I mess up.
The
two
stocks you will find on this page are companies
I have changed my mind on because of new findings or
getting tired of waiting.
If
you own any of these stocks
you don't want to.
In-my-opinion - The
best bet is to be somewhere
else!
Stock Alert"SELL"
BRAND NEUE
CORPORATION
A "Killer Shark" hiding in a Dolphin's
body
Brand Neue
Corp. (OTCBB:
BRNZ) (52
week range 0.12 - 1.71), now at 0.43 X
0.54. Brand Neue was a recent "Spotlight" stock and it
moved from our buy at 0.70 to $1.10 before turning back down. Although
that was a 50% move, the stock fell like a brick. The Reason:
When I first introduced BRNZ
the president was a seasoned ex-employee of Wal-Mart, where he had
worked in marketing for 30 years. Recently, this important
addition to the management team jumped ship. So long! Adios!
Good Bye!
You
might say he left
(we will never know the real reason) before the ship sank.
Grabbed his Nike's, put them on and split. Didn't let the door
hit him in the back on the way out.
After
taking a much
closer look, we find a company that owns nothing, has nothing, sells nothing,
has zero revenues and none on the way. Of course, if they
finally sell something, something they have not been able to do in
a year, the company could become a good bet. You Can't Judge A Book By Its Cover
The above
saying could have been
written with this company in mind. Nice looking cover but when
we start reading
it we discover it's not a very good story.
The
LED lighting business will be big, but there
are big players in it already, such as GE and
Sylvania. The problem with Brand Neue is the company would have to
get a giant order, or several giant orders, to warrant a stock price over
a dime, making the current 0.60 level
very risky, and
the dime worth would only be because of a giant order. We
can bet on slim chances for this to happen,
but you never know. Heck! Mr. Ed
was a horse
that could talk so I guess anything can happen.
Idiscovered by the recent "quick" move up
that the stock was being "Spiked". Another
word for spike is "pump & dump.
The art of a strong
promotion designed to last a short period of time so "those in
the know" can sell into the higher price. Once done, no more promotion and down comes
baby, cradle and all. Don't get me wrong,
I totally believe in promoting a company long term but this
does not appear to be what is happening.
- If we don't own it already, we don't want to;
- If we already own it at a profit, grab those Nike's and run fast to the sell desk;
- If we own the stock too high, wait for
the next spike, if not too long from now, and get on those Nike's ;
- If we are the higher risk player and
want to catch the spike, good luck, because it will be hard
to pick the low price to get in, since the stock is already
so far over priced.
The recent news might be
looked at as "hogwash". One announcement talks about
leasing light bulbs. I chuckled on this one. Also, no one
is leasing any bulbs yet, or maybe they are. I haven't noticed
any news telling us this. A announcement that
gives a company 6 months to decide if it wants to buy
the company's spray can, but after 6 months, it's gone and the
company doesn't have to buy anything. Great deal, for the other
guy. There was
an announcement about having
its first distributor, Hawaii, with orders to be shipped
in 30 days, or by September 16, 2010. OOPS! That was last
week. Soon I hope, but it better be a big one. Another
announcement in the
last week
talks about a new partnership in lighting, but again, no orders. The company is either losing
products, or giving them up, in an attempt to concentrate
on the bulb business. Sort of a better idea (picture a small light bulb)! OOPS!
Ford will hate me for this. On August
27, 2010 , Mr. John J. Ryan III resigned as the
President of Brand Neue Corp. This is the guy with 30 years at
Wal-Mart. I guess he is not much of a believer in Brand
Neue's future. This is one of my main reasons to tell investors that avoiding
this stock is best and of course with no sales to
add, is another good reason to break away from this
company. Sure
,
I could be wrong, since there is always a possibility a company can finally
climb out of the gutter, but so far I have not
seen any signs this one will do so any time
soon. The
constant dilution
from the company selling stock is hurting current
shareholders, but this is the only way the management team can
get paid, since there are no orders to bring in
money. When I
first looked at this company it looked good, but after I
opened the book and started reading the pages I
found the best part of this story was the
cover
.
Right after I wrote about the company
it started a round of press releases that had no sales
in any one of their products, plus the President jumped
ship. I am guessing there
might be another "pump & dump" in the not too distant future, which
could bring the stock back up a bit, but nowhere near the previous
high. The next time down will probably see the 0.30 area. Each pump
& dump usually climbs less than the previous one, has less volume and
falls further each time the dump is completed.
Keep
in mind that this could be the greatest investment anywhere, its just
that I don't believe so and this is my opinion. I am sorry I got caught
in this one, but it just goes to show, the early bird sometimes bites
into the wrong worm. I truly believe, as investors, you should be
somewhere else.
Trading
near the $0.60 level. Any quick move higher will offer an opportunity to get out.
Sell here, or into any attempt to move higher!
Stock Alert"SELL"
MINERAL HILL
INDUSTRIES
!!!MOVING
NOW!!!
Mineral Hill Industries
Ltd. (MHI.V)
(52 week range 0.03 -
0.17), now at ¢ 0.05. Mineral Hill
Industries Ltd. is in the business of finding
& mining Lithium. Lithium is one
of the fastest growing of the rare minerals, but so far MHI
has been a total let down.
Other than the normal land plays
(acquiring extra land to do nothing with - until the
company has the money to do something with), Mineral Hill
Industries has nothing going on that will bring any bucks in
the door anytime soon.
Once the stock hit the 0.03
level the game was over. No news and nothing that looks to be
strong enough to make a difference is on the horizon that I am
aware of.
The
company is stuck at raising money while the stock price is
down and all this does is dilute the current shareholders more
and bury them deeper.
What to
do? That is exactly what the question should
be. The stock is screaming today (Thursday) with no news.
I am guessing a "pump & dump" is in progress and if we own
any shares, we want to be out of them when this dumping is
complete.
Poor
management for allowing the stock to fall so far and no money
and no revenue makes Mineral Hill Industries a very risky
investment. Sell into this ongoing (I hope) rally. If we are
lucky, we might have early on the coming week to get
out.
Again, I
could be wrong, after-all I was wrong in choosing this company
in the first place so why break the habit? In-my-opinion,
I don't see any reason to own any shares in this company.
There are many better places to be.
Best bet is to be somewhere
else!
Remember, if in the right stock, at the right price,
the market direction will mean little!
I am J.R. Budke and this is my opinion!
J.R. Budke became a stock broker in 1981, an options principle
in 1982 and a branch office manager in 1987. He is currently inactive as a stockbroker as of 12/31/99. J.R. writes
the articles and opinions for the Stocks in the Spotlight. The
stories and stocks found on this site, or any "Stocks in the Spotlight" written material, are the opinions
of J.R. Budke unless other wise stated, and should not be considered as advice. You should not purchase any stocks solely on the opinions found on the "Stocks in
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The "Stocks in the Spotlight" provides information only, this is not meant to be a recommendation to
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