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Tuesday, June 05, 2007

Summer Market Woes

Have you ever wondered why CNBC, MSNBC and virtually all other financial programs refer to the investment community's most successful as the "smart money"? It's because they are buying when you, me, and the rest of the world are selling - and they are selling when the rest of us are buying.

Déjà vu? - It sure seems like it. With summer rapidly approaching, the market is showing some stark similarities to its behavior patterns of a year ago. Just like last summer, small/micro caps stocks are slumping to some extent with volume contracting.

So what's the upside here? Just when the sky looked the darkest for investors of all persuasions last summer - the market was setting up for some very sizeable, even record gains.

The way we see it, Siena Technologies (OTCBB: SIEN) and Tootie Pie Company (OTCBB: TOOT) could be a couple of the places where the "smart money" will be found this summer.

Both companies are very well-positioned and could become this year's big summertime bargains if properly played.

TOOT is growing like a company destined to build a thriving national brand. Will TOOT become the next Ben & Jerry's? - Too early to tell. What it's not too early to tell is thatTootie Pie Co. already has a leg up on many companies trading on the bulletin board today. With no debt, pipe financing, or off-balance sheet arrangements holding it back, Tootie Pie is growing like gang busters out of the massive Texan marketplace and into the national spotlight.

TOOT announced last week that it has expanded distribution into Oklahoma City as well as Kansas, Missouri, and Arkansas. The way that channel contacts like Ben E. Keith and SYCO have received their products thus far, I'd guess that more, even bigger announcements, are not far off.

Another very interesting tidbit touched on in the release is that Tootie Pie's are now featured deserts at Toby Keith's I Love This Bar & Grill. This may not mean too much to many of my fellow East Coaster's - but ask someone from the Mid-West about Toby and you will quickly see why this is so huge for TOOT's future. These guys have laid the foundation and have made quite a bit of progress since the stock began trading back in April. While some of us may grow a bit sluggish this summer, the people at Tootie Pie Company are pushing forward full steam ahead - exactly what we expect from our summertime bargains.

Do things seem dark at Sienna Technologies? Yes.
Is the stock slumping? Yes

But

Important fundamental questions: Has the company's focus changed? No.
Is the company taking a proactive approach to improving its current situation and growth potential? Yes

After taking a look at Monday's news regarding the initiation of a corporate restructuring - we like what we see from SIEN, particularly in the $.10 to $.20 range. The shakeup will essentially say arrivederci to a long-standing CEO and CFO and let the company's true management (the people at Kelley Technologies) shine in their own neighborhood while bringing on some seasoned and more qualified help.

The management over at Kelley Technologies has amassed decades of experience and seemingly impossible to develop local business connections in Las Vegas (ever tried doing business there?). SIEN has also patented and perfected one of the best, next-generation electronic sports books and is looking to make last year's multi-million dollar contract with Stations Red Rock Casino and Resort & Spa

So there you have it, two summertime small cap bargain ideas: One a newbie with enormous near- term potential and one a longtime player making moves to grow the way we always knew that it could.

As always, do your due diligence and happy trading!

Sincerely,

Micro Stock Profit


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