MicroStockProfit

I have known about Adaptec, Inc. for many years…even traded it once or twice.  It has mostly fallen off of my radar screen lately because it really hasn’t been that attractive.  I was doing screens on Stock Fetcher this morning and I was amazed to see that ADPT was on my screen for stocks that are down 8 days or more.  That speaks opportunity to me, but not in the way I normally speak about stocks.

Adaptec, Inc. provides hardware and software data center solutions globally.  Founded in 1981, it may not be around very much longer.

If you were going to put a company in your “back pocket” for awhile, this might be the one.  I am typically a short-term holder and after the most recent market meltdown, I am going to stick to that philosophy.  A long term trade to me is a month.  But, it might be a good strategy to put some Adaptec shares away in an account that is long-term.

Why?  Because of several simple reasons:

1. The company is for sale.  In December of ‘09, ADPT announced the engagement of Blackstone Advisory Partners to ” assist in the sale of the company’s assets and operations”;

2. The company is currently trading at less than its net cash position;

3. The company is trading for less than tangible book value

At $3.16 in cash at the latest Q, ADPT is clearly a “free stock”.  It is unclear what premium its operations and assets will command, but I don’t think I am going out on a limb by saying that ADPT will sell for more than cash.

Here is a chart that tells the tale of the once-mighty ADPT:

1.   Sellers are dominating clearly…very few up days over the past two months

2.   The MACD is strongly bearish, but the histogram indicates that the strength of the signal might be waning

3.   The stochastics are oversold (no surprise there)

Here is ADPT’s website so you can do your own due diligence.

ADPT may have some bounce in the near term, especially if the stochastics continue to show an oversold signal.  However, the pay day for traders in ADPT will be the sale.  I am very curious about how the company is valuing itself.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

P.S. - I am working out of the home today and I got one of those special stories that every work-at-home parent dreams of.  My absolutely adorable 4-yr. old Daughter, Teagan, needed to be in my lap while I wrote this blog.  Needless to say, I wasn’t very efficient.  Who cares?  I am reminded how blessed I am…by her and her three siblings.

Here is a picture so you can see just how blessed I am.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither Microstocprofit.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Winning Brands is currently a penny stock that has flirted with sub-penny stock  status very recently and then seemed like it was going to be  dollar stock…all in the space of a few weeks.

As you will see in the accompanying chart, Winning Brands, Inc. (WNDB) has been on a roller coaster ride of late.

I would look for some more confirmation that the stock is basing here at these levels.  It is highly volatile and appears to be under accumulation.

Winning Brands is one of those “take it on faith” stocks….because, there is not a great deal of  information available about them other than some PR, a website and a few filings.  They have made claims that they are going to be fully reporting.  I have talked to the company and they say that they are working aggressively towards that goal.

The company itself has a complete line of eco-friendly cleaning products that they are selling through retail outlets worldwide.  I have some experience in retail and while it is important for WNBD to get broad distribution, it is also important that they back up sales with ads, buzz, point-of-sale promotions….all stuff that costs money that WMBD doesn’t have yet.

They are on a fund raising campaign and will need every penny to make a splash in the market.  I did a very unscientific study and called my local paint store that carried WNBD’s products.  The counter person, at first, didn’t even know they carried it.  I insisted because I saw it on the site and she then located it.  I was hoping for a “gee whiz” testimonial about how this was the greatest product ever.  But, I didn’t get that.

That is, however, what WNBD needs to achieve….. A buzz that will carry the name of the company and its products to the four corners of the globe, literally.  Their “Extreme Home Makeover” tie-in is great, but where are the Billy Mays-type infomercials?  According to a December PR, they are working on a Direct Response ad program.  If that gets seen, it could be HUGE for the company.

WNBD might be a good little trader. It is building a following from what I read on the boards and it has a “story to tell”.  Any break below $.01 and the stock should be avoided.  But, if it can hold this level, then it might be a good entry point.  News and rumor are going to drive this company’s stock.

Be fast, be nimble with WNBD.

Good luck and good trading,

Jeffrey Dean

Note: Yahoo! Finance lists the name of WNBD as Global eTutor, Inc.  Google Finance and Pinksheets.com list it as Winning Brands, Inc.  This must be one of those corporate shells issues.

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I took Spanish in high school (Yo quiero muchas cervezas, por favor) so my French is pretty weak.  All I can figure out from the name of today’s Blog subject is that is means “Big bottle of Gold”.  Strange name for a tire recycling company…..unless it means big profits for the shareholders.

Magnum D’Or Resources, Inc. (MDOR) is quite simply a tire recycling company.  Until late last year, they were a development-stage company.   They recently made that all-important transition to a revenue-producing company (albeit small revenues).  I had a long talk with some people associated with the company and they had some big hopes for the company.  The company has, through a joint venture, patented technology that they believe will be a game changer.

Here is a short description from the company’s website:

“The Company is able to produce rubber nuggets, buffings, crumb rubber and ultra fine powders which are all used for various industrial applications. Magnum caters to two main markets, Rubber and Home & Garden. Magnum’s technology and processes optimize the grinding and purification and produces on a large scale the finest rubber powders in less than 0.250mm size. The process also is approximately 40% less expensive than available technologies. These features provide the Company with a competitive advantage.” (emphasis added)

I am recommending to my members and readers that they put MDOR on their radars.  There are a number of things happening with this company that might make for a higher price stock in the near term:  Buzz, news and chart.

Let’s talk buzz first - MDOR is supposedly putting the finishing touches on a promotional video/puff piece that is supposedly going to get national exposure.  Read even more buzz for yourself at this link.

News - MDOR has issued a steady stream of positive news.  What I like when I read it is that it seems to be factual rather than hype.  They still aren’t saying the magic words like “high revenues”, “multi-million dollar financing”, but the news gives the impression that they are moving forward.  Also, any positive news along the lines of what I just mentioned will send this stock FLYING.

Chart - My annotated chart below points out some of the positive indicators as I see it.

I had done a research report on MDOR back in September when it was a 50 cent stock.  You are welcome to read it….it goes into considerably more detail than this blog and most of the information is still relevant:  Click here for MDOR trade overview

One of the challenges for the company is to secure the financing so they can fulfill the enormous contracts they have landed.  MDOR is not out of the woods yet, but they can see the edge of the forest (IMO).

One of my readers (Chris B.) emailed me about MDOR when it was at $1.34.  I didn’t think it was a buy at that point (I thought it was extended and i was right), but it could be now.  If you or Chris trade it, make sure you bracket your trade properly.  I really like trailing stops…I always believe my picks are going up BIG.

Definitely a good radar stock.

Good luck and good trading

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

I wonder what is keeping ADPT from realizing its true value?  Here is a company that has ROCK SOLID financials, a preeminent position in its marketplace and is sitting on a treasure trove of cash.  In fact, ADPT has over $3.00 in cash for every share in the float.   They currently operate at a manageable loss (what company in this sector doesn’t), but I will be interested to see what happens if the data storage market comes back.

If your company has a data center, chances are you own ADPT’s equipment and software.  According to their website (www.adaptec.com), ADPT…

“has been a worldwide supplier of technologies and applications supported by major storage and system OEMs, system integrators, system builders, and value-added resellers that deliver enabling technology and products to address many of the most critical applications in data storage”

It is clear what they do as a company….they spend millions a Q on R&D to stay ahead of its competitors.  But, ADPT the stock remains a mystery.  In fact, they are factions in their institutional ownership that are trying to mount a coup based upon their belief that they have the proper leadership to make this company an attractive stock again.  Here is the latest PR that will give you a clearer understanding of what is going on at ADPT.  It appears that the action from an activist shareholder (largest single owner, by the way) will fail.  Where will that leave ADPT?

Clearly the pressure is on the current Board and management to create some kind of lift in the stock.  How quickly that can be accomplished is anyone’s guess.  What I do know is that ADPT is going NOWHERE right now.  I mean from a finanical strength standpoint.  They will have time to create the plan that can make ADPT a stock that matters…the question remains, “Can they?”

Here is the chart:  (it has been climbing incrementally, but nothing to get too excited about)

If I was to put on my rose-colored glasses and look at this chart, I could say the following:

• The stock is in accumulation
• The MACD is above the zero line and appears to be turning bullish
• The most recent run up hasn’t been volume or hype driven.  It has been a slow and steady accumulation.

What I don’t see are “hockey sticks”.  I will be interested to see what ADPT can do over the next weeks and months to get traders to pay attention again.

Time might be right to take a look at NVAX again.  The stock was a 30 cent penny stock in March of this year and hit a high of $7.79 on September 1st.  Right now it is trading at almost half that number ($3.96).  THE QUESTION IS, “DOES IT HAVE ANY MORE LEGS”.  I don’t believe that it will have a 2,500% gain like it did from 30 cents to almost $8, but I think it might have a nice gain or two in it.

Several factors could make NVAX a winner again, as follows:

News - What caused NVAX to jump in the first place?  News about Swine Flu and NVAX was lumped in with all of the swine flu stocks and took off! Now that we are approaching flu season….what is to say that we won’t get a fresh set of news about the epidemic that could set NVAX off again.

The Chart - People have been so busy selling shares that they haven’t realized that they might have set NVAX for a bounce.  Be careful, here, though - the unhappy people that bought into NVAX in its rise will be selling shares into any spike in price.  That may shorten or reduce the length and severity of any spike.

Let’s look at the chart:

Volume is still strong (daily average of over 8MM shares traded).  the MACD is still bearish, but the angle of the bearishness is slackening.  The stochastics indicate that the stock is in an oversold position.  The Accum/Dist is still showing distribution.

I suggest watching the key indicators to see if NVAX declares its intentions.  It may go down for a day or two more, but watch for the bounce.  Definitely put this one on your trading radar.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.