The Micro Cap Opportunity

Announcements & General Commentary:

Congratulations New York Giants!

Celebrating the underdog everywhere, we decided to take yesterday off and enjoy a great national sports tradition. Hope you enjoyed it as much as we did.

NOW...lets review the action in our ‘Featured Picks’ over the past week...and Monday’s session.

IMPORTANT REMINDER - Make sure that info@microcapopportunity.com has been added to your inbox or address book so you don't miss any of the action!

Featured Pick: Recap & Outlook
RED BRANCH TECHNOLOGIES INC (OTC: RBTI)

As you undoubtedly know at this point, we announced Red Branch Technologies as our newest ‘Featured Pick’ shortly after the market opened on Thursday, January 31st. If you haven’t already, we recomend you read our initial Company coverage as we believe in both the long-term potential for this company as well as the short-term profit potential from trading RBTI as the investing public “wakes up” to this new speculative opportunity.

As hoped, our most recent ‘Featured Pick’ is sitting 36% higher than our initial Alert Price, a mere three trading sessions after our primary alert. We believe, however, that this price action is just the beginning of a more significant short-term move to the $.60’s.

Do some due diligence on this one and we will update you in the event of any news over the next four trading days and in next weeks’ edition of ‘The Weekly’.

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.34
PRIMARY ALERT PRICE: $.25 (36% Return)
SHORT-TERM TARGET: $.60 (Potential 140% Return from Primary Alert Price)
LONG-TERM TARGET: $.60+ (Potential 140%+ Return)

Featured Pick: Recap & Outlook
REELTIME RENTALS INC (OTC: RLTR)

Okay...we admit it, our Reeltime Rentals pick has stumped us. Ultimately, any stock picker will tell you that just because a particular stock may be undervalued or may represent a compelling buy doesn’t mean the stock can’t go the other way on you.

After falling out of bed early in the week, hitting a low of $.025, RLTR staged a sizable rebound - thankfully - which has us sitting roughly 11% lower than our primary pick price of $.055. All in all, not horrible, just not even close to the upside price action we thought we would have seen by now what with the Sony announcement and all.

Fortunately, we did get some explanation for the price decline on Wednesday when the Company put out a press release clarifying that it is not affiliated with another company of a similar name that was being suspended from trading on the Australian Stock exchange. Clearly some investors thought they were and sold the stock off dramatically on Tuesday. As soon as the news was released Wednesday, RLTR recouped most of its losses almost immediately and recouped the rest during Friday's trading session, while Monday’s session was essentially flat.

Even more fortunately, we had some encouraging news on Thursday that the Company has signed agreements to redistribute content (with explicit agreements with content providers) by redistributing its IRDS technology through other online services. We think this announcement “fell on deaf ears” as people don’t understand the potential implications that a "white label" strategy could mean for the company. In short? Big-time revenues and big distribution from all those smaller “wannabe” on-demand sites that don’t have the security necessary to lock down a content provider of Sony’s caliber. There are plenty of them with money to spend, and Reeltime could be their ticket into the big game.

As for the “value vs risk” argument... right now you have a company that is arguably positioned to become one of the most powerful players in this emerging industry and is trading at an $8.25 Million market cap.

Keep on top of the action and we will update you with any news developments as they are released...

Read our initial coverage on Reeltime Rentals

OUR PICK: RLTR.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.049
PRIMARY ALERT PRICE: $.055 (11% Drawdown)
HIGH SINCE PRIMARY ALERT: $.08 (+45.4% Return)
SHORT-TERM TARGET: $.14 (Potential 154% Return)

Featured Pick: Recap & Outlook
LANTIS LASER INC (OTC: LLSR)

Lantis shares have been bouncing around a bit over the past week, trading as high as $.30, and closing Monday’s session at $.23 - a 17% haircut from our Secondary Alert Price of $.28 (which, as you remember, was suggested that “$.28 OR LOWER” was the call to arms). Volume has been trickling off, which is a bit disconcerting, but it actually may be a blessing in disguise that will allow the stock to gain some steam for the next run. Fortunately, we are betting pure profit at this point as we made at least 116% on the Primary Alert (some of you made more).

The Company’s joint venture partner, Laser Energetics, has been releasing information about the new Hygenilase joint venture recently, announcing initial orders for Laser Energetics’ Alexandrite Laser dental cleaning system. Good stuff. What we are really waiting for, however, is information on the joint venture becoming a publicly traded entity whereby we can take Lantis’ marked-to-market ownership value in the joint venture and apply it to Lantis’ shares. We it hits we believe it will help propel Lantis’ shares once again.

If you buy here to lower your average on the secondary trade, be patient and sit bid side. No chasing. There’s more than a decent chance you will be handsomely rewarded for it.

Read our initial coverage on Lantis Laser

OUR PICK: LLSR.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.23
PRIMARY ALERT PRICE: $.25
HIGH SINCE PRIMARY ALERT: $.54 (+116% Return)
PRIMARY SHORT-TERM TARGET: $.48 (Target Reached & Exceeded)
SECONDARY ALERT PRICE: $.28 (17% Drawdown)
HIGH SINCE SECONDARY ALERT: $.32 (+12.5% Return)
SECONDARY SHORT-TERM TARGET: $.63

NOTE: A recent ‘Featured Pick’, CornerWorld Corp (OTCBB: CWRL) released news about a pending acquisition of a Web 2.0 software company for $30 Million in cash and stock. We haven’t been able to look under the hood of this target company, but given Scott Beck’s background in tier 1 hard finance, we have to believe there is something behind this (beyond the strategic fit) that is commanding the announced price tag. Do some digging. You might be pleasantly surprised. We, for the record, are still LONG-N-STRONG on this one.

As always, do your due diligence (its a journey, not a destination), be smart when you trade these stocks, operate within your limits and LETS MAKE SOME MONEY!

Warm Wishes & Happy Trading,

~MCO Staff