Wednesday, 18 October 2017

Hot Chinese Stocks On The Rise: RCON and SPI

This morning we issued a trade alert on Recon Technology, Ltd. (RCON) which we think will increase in price over the next several days. We are also issuing an afternoon alert on SPI Energy Co., Ltd. (SPI) at 14 cents, which is up around 10% on increasing volume and looks like it is going to revisit the 20 cent area. The company went up on October 12 on news of a massive investment stake into the company:

"HONG KONG, Oct. 12, 2017 (GLOBE NEWSWIRE) -- SPI Energy Co., Ltd. (“SPI Energy” or the “Company”) (SPI), a global clean energy market place for business, residential, government and utility customers and investors, today announced that it has entered into share purchase agreements with each of Qian Kun Prosperous Times Investment Limited and Alpha Assai fund SP of Sunrise SPC.  The share purchase agreements provide, among other things, that Qian Kun Prosperous Times Investment Limited and Alpha Assai fund SP of Sunrise SPC will purchase 80,000,000 and 240,000,000 ordinary shares of the Company respectively, for a total consideration of US$33,920,000, subject to the terms and conditions of the respective share purchase agreement, including a lock-up for 90 days from the closing date of the contemplated transactions, or such other time or on such other date that is agreed upon in writing by both parties. The consummation of these transactions are also subject to customary closing conditions."

The two investment firms are putting in a combined $34 million into the company. It's at an average of 10.6 cents but there is a lock up period for 90 days. So expect follow up news on the uses of that cash since that is a ridiculously high sum for a company with a $10 million market cap (excluding the new investment which won't be part of the float for a while).

Chinese nanocap stocks have been hot recently. Cleantech Solutions International, Inc. (CLNT) and LiNiu Technology Group (LINU) have moved up drastically over the past several sessions. Even though recent news events were interesting, they wouldn't usually justify such extreme price moves. RCON has also moved up a lot on a bit of light news, more than doubling on Monday after announcing a sewage treatment agreement in China. It pulled back 8.5% on Tuesday to close at $1.95.

Why do we think RCON is due for a push back up? There are several similarities between RCON, LINU and CLNT:

  • All three stocks have extremely small floats and have market caps of less than $20 million.
  • All three stocks are based in China or Hong Kong. 
  • All three have spiked on little or no news in October.

Have a look at the price history of CLNT:




And now the price history of LINU:



And here is RCON over the past couple of days:


On October 9, CLNT more than doubled to $6.52 on 16.6 million volume. The next day it dropped 25% on a little more than 1 million volume. Over the next few days it stabilized and hit as high as $5.80 on October 13.

LINU has fared a lot better. It more than doubled to $2.35 on nearly 40 million volume on October 6. The next trading day it dropped 35% to $1.54 on 4 million volume but went right back up again the next day, increasing 44% to close at $2.21 on 8.5 million volume.

RCON more than doubled to $2.13 on 22.3 million volume on October 16. Out of these three it actually has fared the best on Day 2 of the run, dropping only 8.5% on 4.6 million volume. RCON looks like a very strong candidate to bounce back based on Tuesday's strength even after a huge run and how those two very similar examples from the week prior recovered substantially from their Day 2 drops.

A quick note on DGLT, which was our pick from last week when it was trading at 30 cents. The company gave an update that the LOI between itself and Urban FT expired but that the two are still in talks looking to get a merger deal done. We continue to hold the stock.

If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 321 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Disclosure: We are long RCON and SPI

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Tuesday, 17 October 2017

Trade Alert: Recon Technology Looks Ready For Another Rise

We are issuing a trade alert on Recon Technology, Ltd. (RCON) which we think will increase in price over the next several days. Chinese nanocap stocks have been hot recently. Cleantech Solutions International, Inc. (CLNT) and LiNiu Technology Group (LINU) have moved up drastically over the past several sessions. Even though recent news events were interesting, they wouldn't usually justify such extreme price moves. RCON has also moved up a lot on a bit of light news, more than doubling on Monday after announcing a sewage treatment agreement in China. It pulled back 8.5% on Tuesday to close at $1.95.

Why do we think RCON is due for a push back up? There are several similarities between RCON, LINU and CLNT:

  • All three stocks have extremely small floats and have market caps of less than $20 million.
  • All three stocks are based in China or Hong Kong. 
  • All three have spiked on little or no news in October.

Have a look at the price history of CLNT:




And now the price history of LINU:



And here is RCON over the past couple of days:


On October 9, CLNT more than doubled to $6.52 on 16.6 million volume. The next day it dropped 25% on a little more than 1 million volume. Over the next few days it stabilized and hit as high as $5.80 on October 13.

LINU has fared a lot better. It more than doubled to $2.35 on nearly 40 million volume on October 6. The next trading day it dropped 35% to $1.54 on 4 million volume but went right back up again the next day, increasing 44% to close at $2.21 on 8.5 million volume.

RCON more than doubled to $2.13 on 22.3 million volume on October 16. Out of these three it actually has fared the best on Day 2 of the run, dropping only 8.5% on 4.6 million volume. RCON looks like a very strong candidate to bounce back based on Tuesday's strength even after a huge run and how those two very similar examples from the week prior recovered substantially from their Day 2 drops.

A quick note on DGLT, which was our pick from last week when it was trading at 30 cents. The company gave an update that the LOI between itself and Urban FT expired but that the two are still in talks looking to get a merger deal done. We continue to hold the stock.

If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 318 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Disclosure: We are long RCON

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Thursday, 12 October 2017

DGLT Up 47%, Still 100% Upside Based On Imminent M&A Transaction

On Monday we recommended a buy on Digiliti Money Group, Inc. (DGLT) when the stock was trading at 30 cents and reiterated that buy on Wednesday after it closed at 34 cents. Today the stock moved up 47% to 50 cents but was as high as 78 cents before it got downticked to 50 cents in the last few moments of trading. As we warned in our previous articles, a grey market stock will have very choppy and volatile trading. But today we witnessed a clear buying trend as people begin to understand the opportunity. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 313 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

We don't usually cover OTC-listed stocks, but in the case of DGLT the time to buy is now. We think the buying opportunity window is starting to close as a buy at 50 cents, if you can even get it, is at the top of our recommended range and is "only" a double from here. Someone buying higher than 50 cents either believes that the stock price will go beyond $1.00 or will accept the risk of a grey market stock for a good return, but something less than 100%. It's up to every reader to figure out what they want to do, we can only explain the opportunity. We certainly can't rule out an end outcome well over $1.00, but we can only confidently say around $1.00 looks like a very likely outcome and anything beyond that investors should consider to be gravy.

Why do we like DGLT so much? It's not a typical OTC stock because there is a serious buyout offer on the table from Urban FT. If you do your research on Urban FT you will see it is a reliable company that has done two acquisitions before courting DGLT so this is very much a legitimate story. Urban  FT has made mention on more than one occasion that an offer of about $1.05 per share is reasonable for DGLT (look at the quotes posted and linked from articles seen below). The president of Urban FT Kasey Kaplan said on Twitter on October 10th: "Update: UFT & $DGLT are continuing to negotiate definitive terms to a proposed merger. No agreement reached yet." So this is very much an active story and the deal could be announced at any time.

In mid-August DGLT was dying a quick death. The stock tanked from over $2 at the start of August to 20 cents. On August 16, the stock rose 435% to $1.05 before being halted on news that Urban FT  offered to buy the company out:

"The Minneapolis-based company, which sells mobile financial services app technology, has an offer on the table from Urban FT, a New York-based digital banking platform provider that wants to buy the company in an all-cash offer.

“We are looking to grow organically by expanding our base of users on our existing platform, which we think is exceptional, but we also want to grow acquisitively,” says CEO Richard Steggall.

Digiliti Money, which made a name for itself in the remote deposit capture space, is an attractive acquisition target for Urban FT because of is its “exceptional” client and strategic relationships, Steggall adds.

The two companies have similar targets – financial institutions or programme managers that need better mobile apps to engage their customers. But Steggall believes that Urban FT would be able to reduce operating costs significantly and offer existing Digiliti Money clients additional services, such as Urban FT’s lifestyle app features.

“This is a tremendous opportunity for both companies,” he tells Paybefore. “They currently have a cost of revenues and cost of sales in the order of 65%, and we can bring that down to around 40% almost immediately by putting their clients on our platform.”

A big contributor to Digiliti Money’s expenses are data costs, according to Steggall, who says Urban FT can reduce them by authenticating checks on the mobile app as opposed to in a data centre.

“Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies,” adds Urban FT chief operating officer Glen Fossella. “We believe that our cash offer – with the option for certain shareholders, at their discretion, to convert their Digiliti Money common stock to Urban FT common stock – represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money’s clients.”

The deal, if accepted, will be financed through Urban FT’s largest investor. Although Steggall declined to name the investor for confidentiality reasons, he says the investor was one of the first employees of Oracle and financed Urban FT’s previous acquisitions of Wipit in 2015 and, more recently, iParse, which closed last month within 90 days of first entering a terms sheet.

Urban FT has 76 financial institution clients in addition to four nonbank clients, representing national brands in telecommunications, insurance and travel.

In April, the company announced a partnership with Sunrise Banks to offer clients a bank-issued prepaid card and accompanying mobile app.

Digiliti Money has until 21 August to respond to the bid, which is subject to a financial audit as well as other due diligence and regulatory approvals."

As you can see, Urban FT spoke very highly of the synergies it believes it can bring to DGLT's business. Why do we think DGLT is going to go back over a buck? DGLT management rejected Urban FT's first offer to buy the company out for $10.5 million on a net equity basis, equating to over $1.00 per share as there are around 10 million shares outstanding:

"Following Urban FTs initial offer to the Board of DGLT on August 15 and subsequent to initial due diligence revealing DGLTs actual financial position, Urban FT submitted a new offer which, if accepted by DGLT, would have been binding on Urban FT. The binding term sheet and the accompanying loan instruments delivered by Urban FT valued DGLT at $10,500,000 on a net equity basis. The offer provided that Urban FT would deliver DGLT and its subsidiary with an immediate line of credit that would enable DGLT to meet all current and ongoing working capital requirements, including its upcoming payroll obligations due at the end of the month. It would also have seen all customer services maintained without service interruption, all remaining employees retained and all creditors receiving 100 cents in the dollar.

For reasons not clear to Urban FT, DGLT, via its advisors at Lake Street Capital Markets, proposed alternate terms and stood firm on those terms, which Urban FT and its attorney considered unreasonable and unacceptable under the circumstances. The Board of DGLT said DGLT was not willing to negotiate its position and, in an email, noted that we are too far off at this point for a deal to be concluded in the time frame DGLT is working toward.

Kasey Kaplan, Urban FT president, said The Digiliti business is fundamentally good one, with good staff, good technology and good clients. He added: We will leave our offer on the table for acceptance by Digiliti until close of business on August 31. We ensured that our offer took into consideration all SEC and NASDAQ requirements for a transaction like this, and I hope the Digiliti Board concludes that our offer is the most fair, equitable and reasonable option for the various stakeholder groups, whom they as directors are meant to adequately and diligently represent as part of their fiduciary duty.

Placing Digiliti into bankruptcy, if that's what the Board is considering, continued Kaplan, would be a great loss to all of those stakeholders and would truly disrupt so many organizations that rely on Digilitis services every day."

Even though Urban FT came off as sad and desperate at the original rejection, happy endings eventually came because on September 1, DGLT announced that it entered into an agreement with Urban FT, formally starting the merger process. The company issued a secured promissionary note to UFT equities that allows DGLT to draw down money and keep operations steady while the two companies negotiate a deal. While Urban FT was the aggressor, DGLT has seemingly accepted an offer with open arms with the following being written on its website:

"We are pleased to announce that Digiliti Money has signed a Letter of Intent to merge with Urban FT, an industry leading fintech digital banking provider. The companies have agreed to preliminary terms and expect to close the transaction in short order, subject to respective required approvals."

Urban FT isn't being coy about this deal either, with the company's website littered with numerous articles about the pursuit of DGLT. The last one on September 13 re-confirms that $1.05 is a fair market value for the company according to Urban FT's CEO (even considering the value of the promissionary note). He also stated that he expected a transaction to close by September 29 and that DGLT should start trading once a new audit is complete:

"After Urban FT’s initial proposal to buy the company was rejected, DGLT’s latest SEC filing reveals a credit facility from UFT Equities—Urban FT’s associated investment arm—of up to $8 million for the mobile technology provider. The bulk of the funds ($6.5 million) would only be available upon a successful merger with Urban FT.

We anticipate closing a transaction involving Digiliti on or around the 29th of this month,” Urban FT CEO Richard Steggall tells Paybefore. “Concurrently the two businesses are working towards an integration plan that will allow for a seamless merger of the two, provided closing takes place.”

Although Steggall says he’s not at liberty to discuss the values being applied to DGLT or UFT for the proposed merger, he says DGLT’s last stock trading price prior to its Nasdaq suspension ($1.05) represents a fair market value for the company.

The Nasdaq suspended trading after DGLT postponed its Q2 earnings report following an internal investigation related to concerns raised by its former auditing firm.

The most recent 8K filing with the SEC says that DGLT issued a secured promissory note to UFT for a principal sum of up to $1.5 million. Steggall confirmed that $450,000 has been advanced to the company so far under the terms of the note. Subsequent draws may be made in equal portions of $350,000 each over a 90-day period subject to certain conditions. The proceeds will be used to pay mutually agreed upon expenses, according to the filing.

The promissory note also gives UFT Equities the ability to name an executive to the DGLT board. Steggall says the company has selected Urban FT’s own chairman Cliff Mason for the role.

Once DGLT appoints new auditors and they complete an audit review of 2016 and 2017 earnings to date, Steggall anticipates that the stock will resume trading. He expects a new firm will be appointed later this week."

It's been two weeks since the September 29th target date has passed and given the statements made by both companies that a deal will happen, a formal announcement could be made at any time. An audit which is currently in process will help DGLT move up from the grey market to the more reliable OTCQB which in itself should move the stock price back up close to $1.00 if a deal is not formally announced by then.

Urban FT originally offered an all-cash deal but there is speculation out there that it may also be interested in a reverse merger. Urban FT would take over the DGLT stock symbol and own most of the float and in exchange existing DGLT shareholders would become ownership in the new combined entity. Reverse merger stocks have done very well recently. One example, Stemcells (STEM), which is now Microbot Medical (MBOT), rose 600% in one day when those two companies announced a reverse merger.

So whether an all-cash deal around $1.00 or a reverse merger, we think DGLT is a very strong candidate to imminently increase to around the $1.00 mark. It hit a high of 78 cents on Thursday, so it is getting close.

Disclosure: We are long DGLT

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Wednesday, 11 October 2017

DGLT M&A Transaction Imminent With 200%+ Upside

On Monday we recommended a buy on Digiliti Money Group, Inc. (DGLT) when the stock was trading at 30 cents. Not surprisingly for a grey market stock it has bounced around from 25 to 50 cents over the past couple of days but has closed up slightly from our call to 34 cents. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 306 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses. The trading resources listed on the bottom of the article are paid, but they are good, and part of the reason why we can do what we do for free since we get commission on any sales. The other reason is that we participate in our picks and have made money more often than not. Over the last several months we have recommended AAOI, OCN, C.ISOL, FSNN and APVO while they were cheap and they all did very well in a short time frame (and a couple that so far didn't work out like STAF and DPW). Right now DGLT is in the same position as it is cheap and might be the best opportunity of the lot. We have also made a bit of money on shorts, though those tend to be very short term and only scalps of around 10%.

We don't usually cover OTC-listed stocks, but in the case of DGLT the time to buy is now with an opportunity to at least triple our money. It's not a typical OTC stock because there is a serious buyout offer on the table from Urban FT. If you do your research on Urban FT you will see it is a reliable company that has done two acquisitions before courting DGLT so this is very much a legitimate story. Urban  FT has made mention on more than one occasion that an offer of about $1.05 per share is reasonable for DGLT (look at the quotes posted and linked from articles seen below). The president of Urban FT Kasey Kaplan said on Twitter on October 10th: "Update: UFT & $DGLT are continuing to negotiate definitive terms to a proposed merger. No agreement reached yet." So this is very much an active story and the deal could be announced at any time.

In mid-August DGLT was dying a quick death. The stock tanked from over $2 at the start of August to 20 cents. On August 16, the stock rose 435% to $1.05 before being halted on news that Urban FT  offered to buy the company out:

"The Minneapolis-based company, which sells mobile financial services app technology, has an offer on the table from Urban FT, a New York-based digital banking platform provider that wants to buy the company in an all-cash offer.

“We are looking to grow organically by expanding our base of users on our existing platform, which we think is exceptional, but we also want to grow acquisitively,” says CEO Richard Steggall.

Digiliti Money, which made a name for itself in the remote deposit capture space, is an attractive acquisition target for Urban FT because of is its “exceptional” client and strategic relationships, Steggall adds.

The two companies have similar targets – financial institutions or programme managers that need better mobile apps to engage their customers. But Steggall believes that Urban FT would be able to reduce operating costs significantly and offer existing Digiliti Money clients additional services, such as Urban FT’s lifestyle app features.

“This is a tremendous opportunity for both companies,” he tells Paybefore. “They currently have a cost of revenues and cost of sales in the order of 65%, and we can bring that down to around 40% almost immediately by putting their clients on our platform.”

A big contributor to Digiliti Money’s expenses are data costs, according to Steggall, who says Urban FT can reduce them by authenticating checks on the mobile app as opposed to in a data centre.

“Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies,” adds Urban FT chief operating officer Glen Fossella. “We believe that our cash offer – with the option for certain shareholders, at their discretion, to convert their Digiliti Money common stock to Urban FT common stock – represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money’s clients.”

The deal, if accepted, will be financed through Urban FT’s largest investor. Although Steggall declined to name the investor for confidentiality reasons, he says the investor was one of the first employees of Oracle and financed Urban FT’s previous acquisitions of Wipit in 2015 and, more recently, iParse, which closed last month within 90 days of first entering a terms sheet.

Urban FT has 76 financial institution clients in addition to four nonbank clients, representing national brands in telecommunications, insurance and travel.

In April, the company announced a partnership with Sunrise Banks to offer clients a bank-issued prepaid card and accompanying mobile app.

Digiliti Money has until 21 August to respond to the bid, which is subject to a financial audit as well as other due diligence and regulatory approvals."

As you can see, Urban FT spoke very highly of the synergies it believes it can bring to DGLT's business. Why do we think DGLT is going to go back over a buck? DGLT management rejected Urban FT's first offer to buy the company out for $10.5 million on a net equity basis, equating to over $1.00 per share as there are around 10 million shares outstanding:

"Following Urban FTs initial offer to the Board of DGLT on August 15 and subsequent to initial due diligence revealing DGLTs actual financial position, Urban FT submitted a new offer which, if accepted by DGLT, would have been binding on Urban FT. The binding term sheet and the accompanying loan instruments delivered by Urban FT valued DGLT at $10,500,000 on a net equity basis. The offer provided that Urban FT would deliver DGLT and its subsidiary with an immediate line of credit that would enable DGLT to meet all current and ongoing working capital requirements, including its upcoming payroll obligations due at the end of the month. It would also have seen all customer services maintained without service interruption, all remaining employees retained and all creditors receiving 100 cents in the dollar.

For reasons not clear to Urban FT, DGLT, via its advisors at Lake Street Capital Markets, proposed alternate terms and stood firm on those terms, which Urban FT and its attorney considered unreasonable and unacceptable under the circumstances. The Board of DGLT said DGLT was not willing to negotiate its position and, in an email, noted that we are too far off at this point for a deal to be concluded in the time frame DGLT is working toward.

Kasey Kaplan, Urban FT president, said The Digiliti business is fundamentally good one, with good staff, good technology and good clients. He added: We will leave our offer on the table for acceptance by Digiliti until close of business on August 31. We ensured that our offer took into consideration all SEC and NASDAQ requirements for a transaction like this, and I hope the Digiliti Board concludes that our offer is the most fair, equitable and reasonable option for the various stakeholder groups, whom they as directors are meant to adequately and diligently represent as part of their fiduciary duty.

Placing Digiliti into bankruptcy, if that's what the Board is considering, continued Kaplan, would be a great loss to all of those stakeholders and would truly disrupt so many organizations that rely on Digilitis services every day."

Even though Urban FT came off as sad and desperate at the original rejection, happy endings eventually came because on September 1, DGLT announced that it entered into an agreement with Urban FT, formally starting the merger process. The company issued a secured promissionary note to UFT equities that allows DGLT to draw down money and keep operations steady while the two companies negotiate a deal. While Urban FT was the aggressor, DGLT has seemingly accepted an offer with open arms with the following being written on its website:

"We are pleased to announce that Digiliti Money has signed a Letter of Intent to merge with Urban FT, an industry leading fintech digital banking provider. The companies have agreed to preliminary terms and expect to close the transaction in short order, subject to respective required approvals."

Urban FT isn't being coy about this deal either, with the company's website littered with numerous articles about the pursuit of DGLT. The last one on September 13 re-confirms that $1.05 is a fair market value for the company according to Urban FT's CEO (even considering the value of the promissionary note). He also stated that he expected a transaction to close by September 29 and that DGLT should start trading once a new audit is complete:

"After Urban FT’s initial proposal to buy the company was rejected, DGLT’s latest SEC filing reveals a credit facility from UFT Equities—Urban FT’s associated investment arm—of up to $8 million for the mobile technology provider. The bulk of the funds ($6.5 million) would only be available upon a successful merger with Urban FT.

We anticipate closing a transaction involving Digiliti on or around the 29th of this month,” Urban FT CEO Richard Steggall tells Paybefore. “Concurrently the two businesses are working towards an integration plan that will allow for a seamless merger of the two, provided closing takes place.”

Although Steggall says he’s not at liberty to discuss the values being applied to DGLT or UFT for the proposed merger, he says DGLT’s last stock trading price prior to its Nasdaq suspension ($1.05) represents a fair market value for the company.

The Nasdaq suspended trading after DGLT postponed its Q2 earnings report following an internal investigation related to concerns raised by its former auditing firm.

The most recent 8K filing with the SEC says that DGLT issued a secured promissory note to UFT for a principal sum of up to $1.5 million. Steggall confirmed that $450,000 has been advanced to the company so far under the terms of the note. Subsequent draws may be made in equal portions of $350,000 each over a 90-day period subject to certain conditions. The proceeds will be used to pay mutually agreed upon expenses, according to the filing.

The promissory note also gives UFT Equities the ability to name an executive to the DGLT board. Steggall says the company has selected Urban FT’s own chairman Cliff Mason for the role.

Once DGLT appoints new auditors and they complete an audit review of 2016 and 2017 earnings to date, Steggall anticipates that the stock will resume trading. He expects a new firm will be appointed later this week."

It's been two weeks since the September 29th target date has passed and given the statements made by both companies that a deal will happen, a formal announcement could be made at any time. An audit which is currently in process will help DGLT move up from the grey market to the more reliable OTCQB which in itself should move the stock price back up close to $1.00 if a deal is not formally announced by then.

Urban FT originally offered an all-cash deal but there is speculation out there that it may also be interested in a reverse merger. Urban FT would take over the DGLT stock symbol and own most of the float and in exchange existing DGLT shareholders would become ownership in the new combined entity. Reverse merger stocks have done very well recently. One example, Stemcells (STEM), which is now Microbot Medical (MBOT), rose 600% in one day when those two companies announced a reverse merger.

So whether an all-cash deal around $1.00 or a reverse merger, we think DGLT is a very strong candidate to imminently run wild like it did on August 16th.

Disclosure: We are long DGLT

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Monday, 9 October 2017

DGLT: M&A Transaction Imminent With 200%+ Upside

We don't usually cover OTC-listed stocks, but in the case of Digiliti Money Group, Inc. (DGLT) we are willing to make an exception. DGLT was listed on the NASDAQ before being halted for several weeks and getting kicked to the grey market. It promptly lost 70% on Friday as it closed at $0.30. With this extreme drop comes extreme opportunity as there is a merger deal on the table with Urban FT. Because of the lack of liquidity and bid-ask visibility on the grey market, don't expect to get an order filled at $0.30 easily. But even a fill at $0.50 would be a very profitable investment in our opinion.

In mid-August DGLT was dying a quick death. The stock tanked from over $2 at the start of August to 20 cents. On August 16, the stock rose 435% to $1.05 before being halted on news that Urban FT  offered to buy the company out:

"The Minneapolis-based company, which sells mobile financial services app technology, has an offer on the table from Urban FT, a New York-based digital banking platform provider that wants to buy the company in an all-cash offer.

“We are looking to grow organically by expanding our base of users on our existing platform, which we think is exceptional, but we also want to grow acquisitively,” says CEO Richard Steggall.

Digiliti Money, which made a name for itself in the remote deposit capture space, is an attractive acquisition target for Urban FT because of is its “exceptional” client and strategic relationships, Steggall adds.

The two companies have similar targets – financial institutions or programme managers that need better mobile apps to engage their customers. But Steggall believes that Urban FT would be able to reduce operating costs significantly and offer existing Digiliti Money clients additional services, such as Urban FT’s lifestyle app features.

“This is a tremendous opportunity for both companies,” he tells Paybefore. “They currently have a cost of revenues and cost of sales in the order of 65%, and we can bring that down to around 40% almost immediately by putting their clients on our platform.”

A big contributor to Digiliti Money’s expenses are data costs, according to Steggall, who says Urban FT can reduce them by authenticating checks on the mobile app as opposed to in a data centre.

“Our goal in approaching Digiliti Money with an attractive and timely offer is to keep the business operating and viable as we consolidate the entities to leverage the savings from operational synergies,” adds Urban FT chief operating officer Glen Fossella. “We believe that our cash offer – with the option for certain shareholders, at their discretion, to convert their Digiliti Money common stock to Urban FT common stock – represents the best benefit to all parties involved, most particularly the consumers who rely on the services of Digiliti Money’s clients.”

The deal, if accepted, will be financed through Urban FT’s largest investor. Although Steggall declined to name the investor for confidentiality reasons, he says the investor was one of the first employees of Oracle and financed Urban FT’s previous acquisitions of Wipit in 2015 and, more recently, iParse, which closed last month within 90 days of first entering a terms sheet.

Urban FT has 76 financial institution clients in addition to four nonbank clients, representing national brands in telecommunications, insurance and travel.

In April, the company announced a partnership with Sunrise Banks to offer clients a bank-issued prepaid card and accompanying mobile app.

Digiliti Money has until 21 August to respond to the bid, which is subject to a financial audit as well as other due diligence and regulatory approvals."

As you can see, Urban FT spoke very highly of the synergies it believes it can bring to DGLT's business. Why do we think DGLT is going to go back over a buck? DGLT management rejected Urban FT's first offer to buy the company out for $10.5 million on a net equity basis, equating to over $1.00 per share as there are around 10 million shares outstanding:

"Following Urban FTs initial offer to the Board of DGLT on August 15 and subsequent to initial due diligence revealing DGLTs actual financial position, Urban FT submitted a new offer which, if accepted by DGLT, would have been binding on Urban FT. The binding term sheet and the accompanying loan instruments delivered by Urban FT valued DGLT at $10,500,000 on a net equity basis. The offer provided that Urban FT would deliver DGLT and its subsidiary with an immediate line of credit that would enable DGLT to meet all current and ongoing working capital requirements, including its upcoming payroll obligations due at the end of the month. It would also have seen all customer services maintained without service interruption, all remaining employees retained and all creditors receiving 100 cents in the dollar.

For reasons not clear to Urban FT, DGLT, via its advisors at Lake Street Capital Markets, proposed alternate terms and stood firm on those terms, which Urban FT and its attorney considered unreasonable and unacceptable under the circumstances. The Board of DGLT said DGLT was not willing to negotiate its position and, in an email, noted that we are too far off at this point for a deal to be concluded in the time frame DGLT is working toward.

Kasey Kaplan, Urban FT president, said The Digiliti business is fundamentally good one, with good staff, good technology and good clients. He added: We will leave our offer on the table for acceptance by Digiliti until close of business on August 31. We ensured that our offer took into consideration all SEC and NASDAQ requirements for a transaction like this, and I hope the Digiliti Board concludes that our offer is the most fair, equitable and reasonable option for the various stakeholder groups, whom they as directors are meant to adequately and diligently represent as part of their fiduciary duty.

Placing Digiliti into bankruptcy, if that's what the Board is considering, continued Kaplan, would be a great loss to all of those stakeholders and would truly disrupt so many organizations that rely on Digilitis services every day."

Even though Urban FT came off as sad and desperate at the original rejection, happy endings eventually came because on September 1, DGLT announced that it entered into an agreement with Urban FT, formally starting the merger process. The company issued a secured promissionary note to UFT equities that allows DGLT to draw down money and keep operations steady while the two companies negotiate a deal. While Urban FT was the aggressor, DGLT has seemingly accepted an offer with open arms with the following being written on its website:

"We are pleased to announce that Digiliti Money has signed a Letter of Intent to merge with Urban FT, an industry leading fintech digital banking provider. The companies have agreed to preliminary terms and expect to close the transaction in short order, subject to respective required approvals."

Urban FT isn't being coy about this deal either, with the company's website littered with numerous articles about the pursuit of DGLT. The last one on September 13 re-confirms that $1.05 is a fair market value for the company according to Urban FT's CEO (even considering the value of the promissionary note). He also stated that he expected a transaction to close by September 29 and that DGLT should start trading once a new audit is complete:

"After Urban FT’s initial proposal to buy the company was rejected, DGLT’s latest SEC filing reveals a credit facility from UFT Equities—Urban FT’s associated investment arm—of up to $8 million for the mobile technology provider. The bulk of the funds ($6.5 million) would only be available upon a successful merger with Urban FT.

We anticipate closing a transaction involving Digiliti on or around the 29th of this month,” Urban FT CEO Richard Steggall tells Paybefore. “Concurrently the two businesses are working towards an integration plan that will allow for a seamless merger of the two, provided closing takes place.”

Although Steggall says he’s not at liberty to discuss the values being applied to DGLT or UFT for the proposed merger, he says DGLT’s last stock trading price prior to its Nasdaq suspension ($1.05) represents a fair market value for the company.

The Nasdaq suspended trading after DGLT postponed its Q2 earnings report following an internal investigation related to concerns raised by its former auditing firm.

The most recent 8K filing with the SEC says that DGLT issued a secured promissory note to UFT for a principal sum of up to $1.5 million. Steggall confirmed that $450,000 has been advanced to the company so far under the terms of the note. Subsequent draws may be made in equal portions of $350,000 each over a 90-day period subject to certain conditions. The proceeds will be used to pay mutually agreed upon expenses, according to the filing.

The promissory note also gives UFT Equities the ability to name an executive to the DGLT board. Steggall says the company has selected Urban FT’s own chairman Cliff Mason for the role.

Once DGLT appoints new auditors and they complete an audit review of 2016 and 2017 earnings to date, Steggall anticipates that the stock will resume trading. He expects a new firm will be appointed later this week."

It's been nearly two weeks since the September 29th target date has passed and given the statements made by both companies that a deal will happen, a formal announcement could be made at any time. An audit which is currently in process will help DGLT move up from the grey market to the more reliable OTCQB which in itself should move the stock price back up close to $1.00 if a deal is not formally announced by then.

Urban FT originally offered an all-cash deal but there is speculation out there that it may also be interested in a reverse merger. Urban FT would take over the DGLT stock symbol and own most of the float and in exchange existing DGLT shareholders would become ownership in the new combined entity. Reverse merger stocks have done very well recently. One example, Stemcells (STEM), which is now Microbot Medical (MBOT), rose 600% in one day when those two companies announced a reverse merger.

So whether an all-cash deal around $1.00 or a reverse merger, we think DGLT is a very strong candidate to imminently run wild like it did on August 16th. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 302 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Disclosure: We are long DGLT

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.




Thursday, 5 October 2017

Trade Alert: Long AAOI, Short ZGNX

On Tuesday, we sent out an alert to short Zogenix, Inc. (ZGNX) at around $40. The trade has been a marginal win so far with the stock trading around the $39 mark. But we think it is on a verge of a drop in the 10% range to $35. The company announced a public offering of 6.7 million shares at the price of $37.50. If you look at the chart and recent news, it very strongly resembles Insmed Incorporated (INSM) which had a similar spike and an offering last month.

INSM announced a public offering of 14 million shares priced at $28.50 on September 6, which closed on September 11. Have a look at the price history around that time:


Just like ZGNX, INSM had a temporary spike above the $28.50 offering price. As soon as it closed on September 11, the participants dumped their shares and it tanked 11% in two days. ZGNX's offering is expected to close today, so we believe that there is a good chance that it will tank in a similar fashion to the $35 range over the next few days.

There are many examples of biotechs dropping after a secondary, but rarely do you ever get such a perfect twin example just a month prior:
  • Both INSM and ZGNX moved in excess of 100% on day one of their positive late-stage trial results
  • Both had approximately 25% dilution in a secondary announced a day or two after the big move
  • Both offerings were led Leerink Partners, and not surprisingly, are accompanied by price upgrades a day after the offering is announced
  • Both have had short term spikes immediately following the offering.

So ZGNX longs can choose to have their heads in the sand if they wish. INSM is trading over $30 again so it did recover from the mid-September tank after the offering was closed. The same could happen to ZGNX, eventually. But in the short term this is an obvious short for the rest of the week as Wall Street plays its usual games.

Applied Optoelectronics (AAOI) has had a bad week and it has dropped under $59. Our article on July 5th called "Unlocking The Secret To Trading AAOI: Buy Before The Friday Short Covering" outlined a pattern that we saw in AAOI where if you bought the morning dip on Thursday, we thought there is a very good chance you will make profits on call options or stock by Friday. That week was a particularly lucrative week as AAOI rose from a close of $60.62 on Wednesday, July 5th to $67.30 on Friday, July 7th. We think a similar pattern is forming for this week and AAOI will close above $60 by Friday.

If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 302 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Disclosure: We are short ZGNX, long AAOI

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.