Your mattress is looking good!!

Looking at the stock market today it's hard to imagine having the conviction that stocks are going to rally any time soon.  Technicals look putrid and the economic environment sucks.  I don't like bonds either, and real estate looks like it could decline further, although there is probably less downside in real estate over the next few years than in equities. As for gold, if deflation does become reality, gold would lose value along with other commodity assets.  Perhaps the worse possible investment would be mutual funds.  They have proven far more risky than ever imagined and a sure way to lose more wealth.  That mattress is looking pretty good right now.

The end of the world ??

Admittedly I am not a bull on the long term prospects for the economy or the stock market.  However I have rarely, if ever, seen the dire forecasts being promoted now about how the end of the world is upon us.  Seems to me that some folks are going a little overboard. Hope the futures are right today and that we get an uptick in the market, because we sure can use one. 

Evergreen Energy – A New Milestone

Hey folks, I was right again.  The scam know as Evergreen Energy is now below $0.10!! I am being wiped out in this stock and my only wish is that those who have perpetuated this fraud and those that have profited by it get what they deserve.  I've been getting emails about possible lawsuits against EEE.  Wouldn't surprise me in the least.

Evergreen Energy Compensation Outrage

Evergreen Energy has no earnings and as far as I know currently has no revenue sources.  Yet according to Yahoo Finance the key executives of the company took $783,000 in compensation last year.  I get a particular kick out of the chief financial officer booking $176,000.  Nice work if you can get it! Don't know of any other penny stocks that pay their "key executives" so richly. Perhaps someone will question these creeps about this at the annual meeting next week.

Vote NO on EEE Reverse Split

I have a hunch that the scam artists at Evergreen Energy are worried about getting enough votes for their reverse stock split scheme.  Indeed, every shareholder who has a brain should vote NO.  I worked on the Street for more than 35 years and never remember an instance where a reverse split worked to the benefit of stockholders.  It's just another scheme on the part of management ( and Stoner is the worse yet) to prolong the taking of a salary with the bogus excuse of keeping a listing.  I am willing to bet that if successful in getting a reverse passed, within thirty days of the split the stock will on an adjusted basis be trading even lower than it is today.  Moreover, how can any long term holder of this stock vote for any proposal put forth by such a bunch of incompetent fools?

That Sinking Feeling

The tape doesn't lie and watching the market this week has left me wondering about that summer rally I was expecting.  The economy looks much weaker than I anticipated and that is not good for stocks.  The housing market is particularly troubling and without a housing recovery economic growth is doomed.  At the same time the employment situation remains horrid.  I wish Obama spent more time trying to devise plans to stimulate the economy as opposed to playing golf.  To be sure, strong second quarter earnings could still prompt a rally, but for now I'm thinking about returning to the bearish camp. 

Mariner’s Choice- A Bullish Update

I first mentioned Mariner's Choice International (MCII-Pink Sheets) in late March.  Back then I commented that notwithstanding its pink sheet listing and limited financial history I was impressed with the company's potential.  Since then I have done further research and have concluded that MCII could be a "mega" stock, offering high risk tolerant investors the opportunity for a huge potential return. My research has included "kicking the tires" so to speak by using some of the company's products. Specifically, I tried Rain-B-Gone, and the Auto Rim Cleaner, both of which worked very impressively.  Not to be lost on investors is unlike many pink sheet companies that only offer"vaporware" products, or potential products, MCII actually has products that work well, and most importantly in today's BP dominated atmosphere are environmentally friendly.

Rain-B-Gone (RBG) is a windshield treatment, water based, solvent free effective water-repellent.  Its advanced technology is designed for quick and convenient application.  It repels rain, sleet, mud, dirt and bugs. It also reduces glare. Unlike similar products on the market RBG is molecular and not chemical so it is much more ecologically friendly.
Auto Rim Cleaner is a biodegradable, non acid product that helps in the reduction of brake dust, road grime and salt stains that accumulate on wheel rims and hub caps. I used both products and they were great.

However, beyond these products (and the company has others as well) there are additional important reasons for liking this stock, one of which is a potential blockbuster.  First, the company is building -as per its business plan – a stronger and larger distribution network for its offerings.  In the past, MCII has utilized small distribution channels.  However, this is changing and management expects that larger distribution agreements will be forthcoming that will be able to accommodate bigger orders. Recently, another distribution agreement was announced.

Now for the potential icing on the cake.  Last week MCII announced that some of its products are being considered for cleaning up the BP Gulf mess.  If in fact, MCII products are selected as part of the clean-up solution look for the stock to explode on the upside. 

By way of disclaimer, I have a significant position in MCII and I obviously hope my observations are correct.  However, I have been in the business of stock selection for more than 30 years, much of which has been spent in analyzing small companies.  I firmly believe that MCII has the potential to be one of those stocks that can make a portfolio and create significant wealth for those willing to assume high risk.  Right now the company is still trading beneath the radar screen, but if the company's products for the Gulf clean up are selected it will get lots of attention.