Wednesday, June 24, 2009

Update on MTMC's rollercoaster ride

My previous post about MTMC was sent out as a news alert only. As I wrote in it, it was neither a buy nor sell recommendation. The alert was published on my blog today at 11:31 AM http://tinyurl.com/lseqjq but due to some latency issues, it was sent out to most of the subscribers at 12:15 PM. When I published the newsletter, the stock price was at $4.30 but it then went back and forth between $3.60 and $4.20 and got settled at around $4.00 by the time you received the alert. Most of you might have experienced how violently micro float stocks behave on news if there is some stuff in it. I heard that a few of my subscribers bought it around $4.00 as soon as they received the alert and quickly got out of it while it was in mid $5s. Congrats to those guys!!! and I think it is too early to say sorry to the guys who came to the party late because as of now no one knows why the trading was halted (let's be optimistic and sleep well tonight :-). But The problem is their PR is not that clear. It looks like MTMC resells Mobile Armor's software products to its clients and it is also not clear how many third party vendors like MTMC do have relationship with Mobile Armor and if there are some other companies, the next question is, Is MTMC going to get the lion's share in the new $40 million contract. Some people tried to reach out to their investor relations department but their calls were not answered.

Here is my take on MTMC.....
  1. If today's news about their contract is a BS, then it will lead to SEC investigation, Law suits, bear attacks etc, which will obviously drive the stock price down to its pre-news levels.
  2. If the news is genuine, then hey you are lucky! It is currently a $5 million company and if the company releases a number that reveals their share in the new contract tomorrow and if market likes it then it will skyrocket again based on buyout rumors... (sounds ridiculous and too optimistic, right? but we never know...)
Tomorrow's opening will be very interesting. As I always write in my posts, its better not go to the party than being the last one to it. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

Disclaimer- I do not have any positions in MTMC as of today, 06-24-2009.

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Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!