Wednesday, January 20, 2010

Two new SPACs explored - AXG and NLX

1. AXG - Atlas Acquisition Holding Corp. Their target company is Select Staffing, a leading provider of temporary staffing services in the United States and is the largest provider of temporary staffing services in California. Through a network of company-owned and franchise agent offices, Select Staffing offers a wide range of temporary staffing solutions for over 200 job classifications across a range of service categories. Select Staffing provides its services in 45 states through 355 offices, of which 202 are company-owned and 153 are franchise agent offices.
Select Staffing has rapidly expanded its revenue and U.S. market share through numerous acquisitions and organic growth. Select Staffing has a proven track record of identifying and successfully integrating acquisitions, winning new clients and retaining existing clients. Select Staffing’s revenues have grown during the last four years at a compounded annual rate of 37%, from $411 million in 2004 to over $1.4 billion in 2008.

Here is what geoinvesting's contributor, who did warrant analysis on TMI (CCME) has to say about AXG Warrants.

At the special meeting of Atlas warrant holders, Atlas warrant holders will be asked to consider and vote upon the following proposals:

(1) *The Warrant Conversion Proposal* — a proposal (the “*Warrant Conversion Proposal*”) to:
  • approve an amendment to the Warrant Agreement, dated as of January 30, 2008 (the “*Warrant Agreement*”), between Atlas and American Stock Transfer & Trust Company, to provide for the conversion of all of Atlas’ outstanding warrants into an aggregate of 1,677,000 shares of Atlas common stock; and
  • terminate the Warrant Agreement in connection with such conversion, which Atlas believes will increase its strategic opportunities and attractiveness to future investors by eliminating potential equity dilution from the warrants;
(2) *The Warrantholder Adjournment Proposal* — a proposal to approve the adjournment or postponement of the special meeting of warrantholders to a later date or dates, if necessary, to permit further solicitation and voting of proxies (the “*Warrantholder Adjournment Proposal*”); and

(3) Such other procedural matters as may properly come before the special meeting of warrantholders or any adjournment or postponement thereof.

In connection with Atlas’ initial public offering, James N. Hauslein, Gaurav V. Burman, Sir Peter Burt, Michael T. Biddulph, Michael W. Burt and Promethean plc, purchased an aggregate of 5,800,000 warrants, and Messrs. Hauslein and Burman subsequently purchased an aggregate of approximately 1,100,000 warrants in open market purchases, for a total of approximately 6,900,000 warrants. As of the Record Date, these warrantholders owned an aggregate of approximately 27% of the outstanding warrants of Atlas. These warrantholders have agreed to vote their warrants in favor of the proposals to be presented at the special meeting of warrantholders.

"So that means there are like 25M or so warrants which will become 1.677M common. That means 1 common for every 14.9 warrants (probably an even 15, rounding error). AXG warrants at 0.26 right now, multiply by 15... Thats like buying the common at $3.9 *if* the acquisition goes through.

Seems to me like a double if the acquisition happens, nothing if it doesn't."

I bought AXG Warrants at an average price of .35


2. NLX - Overture Acquisition Corp

I bought NLX warrants at an average price of .21. More DD will be provided soon...

CIO's deal was closed succesfully today! The warrants touched $1.24 but I sold some at a dollar and my average price was .14. Keeping the complexity of the deal, it looks like lot of people took the profits and moved on but I think it will continue its uptrend once the excitement is over! Remember this is what happened with CCME and CHSQ..

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. 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 or speculating, 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!!!

Wednesday, January 13, 2010

CIO-WT Warrants up another 70 percent today!!!

With CIO it looks like it is a done deal after the company started the process to acquire some 7.5 million shares through Victory Park Capital Advisors this morning from investors who likely would have voted no on the proposed business combination. However the game changer is the news (read it here) that was released after hours about entering into agreements to purchase an aggregate of 2,821,857 ordinary shares in privately negotiated transactions for a purchase price of $28,218,570 from shareholders who otherwise intended to vote against the previously announced proposed acquisition of up to three insurance companies and $650.0 mln of assets of two unaffiliated families of hedge funds.

If the deals passes on Jan 19, 2010 without any wrinkles in structure of warrants, then the warrants will trade where they are supposed to be trading. As of today's close the intrinsic value is $2.10 (current price of $9.60 - Strike Price of $7.50) but they are trading at .68, which is way way undervalued. I do not think it is going to remain there for a while but will hit atleast $1.5 in the next few sessions (before Jan 19th)

Speculative play - I bought AEHI.OB at .17 today. I have had it on my watchlist since it was at .09 but never touched it since it was a Pink Sheet stock and also I was not that confident on it. Now that it just moved onto OTC exchange, which signals a positive trend and also based on the recent news releases, I see limited risk in this stock but if everything works out for this company then the upside is huge. My prediction is .34 to .40 in the near future.

About Alternate Energy Holdings, Inc. www.alternateenergyholdings.com develops and markets innovative clean energy sources. The company is the nation's only publicly traded independent nuclear power plant developer willing to build power plants in non-nuclear states. Other projects include Energy Neutral, which removes energy demands from homes and businesses www.energyneutralinc.com, Colorado Energy Park (nuclear and solar generation), and International Reactors, which assists developing countries with nuclear reactors for power generation, production of potable water and other suitable applications. AEHI China, headquartered in Beijing, develops joint ventures to produce nuclear plant components and consults on nuclear power. AEHI Korea is working to import the Korean advanced reactor to the US and find potential investors.

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. 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 or speculating, 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!!!

New Positions in the New Year - UPG, ADK-WT, COINZ

New Year started with a late Santa rally for me because I have added a ton of CIO-WT at .09 when the warrants dropped from .40 to .09. Like I expected the management is in the process of putting their money to work by trying to acquire two profitable specialty reinsurance companies engaged in the reinsurance of life insurance and property and casualty insurance and the business of investment management with total post transaction assets of approximately $1.5 billion; Read more here. The voting is going to take place on Jan 19th 2010 and IF the deal is successful, we will once again benefit big time like we did with CCMEW, CACAW, IDI etc. I am still long CIO-WT (Average price .14)

I bought the warrrants of COIN, the symbol is COINZ at .19. I dont know if any of you played COIN in the past but I did and made some quick buck on it. There has been a nice consolidation in the common stock price between .65 and .80 and started to trend higher with massive volume in the last few sessions (Crossed 50 DMA and tried to break 200 DMA but failed). Taking the recent developments like having a deal with Walmart and others, I think the common stock (COIN) will continue to show strength and will cross $1.25, which will reflect the trend in its warrants, which I expect to double from here.

I also bought some UPG shares at $3.80. Universal Power Group offers its batteries and related power accessories under manufacturer brands, private labels, and under its own proprietary brands. I just bought it as a low float momentum breakout play after they partnered with K2 Energy Solutions, Inc., a developer and manufacturer of rechargeable battery systems for electric vehicles and energy storage applications. K2 provides UPG with exposure to the emerging market for electric vehicles, and serves as another platform for future growth. Read more here. My short term target is $5.

There are lot of other stocks that I really like but some I already missed at a very low prices like SHE and SBAY.OB

Stocks that need to be added to your watchlist - SHE, TRT, CPEX, EVK, HKFI.PK, CNAM.OB, GURC.OB, CMDI.OB, CREG.OB, CIWT.OB). Out of this list, I would buy SHE when she pulls back! and also SBAY.OB

I sold HPJ and NVMI after they reached my targets. I am still holding CYAN, ADK, ADK-WT (recently added at 2.15), AMCG, CHSQ-WT (Symbol has been changed from HOL-WT - My average price was .40 and it closed at $1.06 today after hitting $1.50 a few weeks ago. I will continue to hold since it has got a lot of upside over a period of time...)

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. 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 or speculating, 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!!!

Friday, January 1, 2010

Happy New Year 2010!!!

I wish you all a Happy, Prosperous, and a 'Green Trading' New Year 2010!!!

BTW, I picked the following stocks in the last couple of days
  1. Bought ADK (Adcare Health Systems) at $3.80 (Pure Short Term Momentum + Breakout + Excellent IBD numbers (Composite Rating 93) Play. This stock had a nice turnaround and I think they will do well in the future. My short term target is $7), Read more here. It has warrants that expire in 2014, Read more here. There is huge opportunity to make money in warrants if the common stock goes up. Read more here

  2. Bought IDN last year 12/31! at $3.90. IDN Provides identity systems software for hand held devices. It came into the limelight after the recent terrorist attack on the Detroit bound plane, Read more here. I think there is still more room for this stock to go up based on the speculation that it will be upgraded by some analysts and also massive volume + Short squeeze should take this stock to somewhere around $6
A general Caution and Advise -As I always advise in my posts, Do not chase stocks. 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 or speculating, 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!!!

Who is Mr.Incredible?

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New Jersey, United States
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!!!