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.
My ticker is constantly polluted by articles from Manyanville being negative about virtually everything on the planet. Wish I could figure out how to delete them. They must be professional shorters.
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.
There are those that are harping that Obama has not done enough in the Gulf. Really? What would they have him do in this unprecedented environmental disaster? However, what I blame the president for is not addressing the unemployment situation in the country which is still horrible. The spending stimulus package should have been larger, coupled with tax breaks for business so as to encourage hiring. The detachment of this president is really starting to bug me and at this time I cannot imagine a scenario in which I would vote for him again. Even Biden would be better!! Maybe Obama should turn the office over to him and go back to teaching law. Really, enough is enough Barry!!! I think you should be unemployed.
This is great analysis about the disaster which is EEE. Unlike most message board posts this one is informative and educated. Could not have said it any better!!
While the market soars today EEE is tanking again and likely headed below 10 cents. To all long suffering shareholders I recommend voting NO on any reverse split and against all nominees for directors. Won't get my money back but at least it's a small protest against these creeps who have the nerve to continue to take a salary while we all get hosed!!
In perusing the Yahoo message board for EEE there are actually some touting morons (and you have to wonder if the company is behind these posts) that are saying EEE can be bought out!! Really, this is a hoot. Just who would buy this bogus company that has no workable products? Needed a laugh and I got one. Desperation reigns.
For as long as I worked on the Street there have been those that have adhered to the summer rally theory. Supposedly stocks can do really well during the summer. Maybe it's wishful thinking but many believe that thin volume, while many traders are on vacation, can lead to higher prices. For my part, I really never bought this theory, but with summer officially beginning on June 21 I do believe that this year may feature a pop in stock prices during the hot days to come. Basically, this position is based on valuation analysis suggesting that many big name stocks are very moderately priced and should be commanding higher multiples. Will it happen? Who knows? Unexpected things happen that can influence the market negatively. However, on "fundamentals" I believe that on a short term basis stock prices with trend higher.
I'm a former smoker and nowadays really don't like being around smokers. Quite frankly it stinks and I find the odor repulsive. However, not as repulsive as the taxation being heaped upon smokes in New York State. The most incompetent governor in the history of the state has taken to raising the tax on cigarettes again in order to close the budget gap, which of course has been brought on by out of control government spending. Now, a pack of smokes in NYC will cost $13!!! When I first started smoking in 1965 a pack of cigarettes cost $0.25. Really, this is ridiculous. Why not just make cigarettes illegal? But the creeps who run things won't allow that. They just keep taxing.
I have long complained of Fox News and their overt mission of festering opposition to Obama in the most inflammatory of ways. They are not a news organization, they are a propaganda machine for right wing lunnies who are planning to over through the government. The attached column is a must read.