The Micro Cap Opportunity

02/19/2008
The Micro Cap Opportunity 'Weekly' - Week of February 11th - February 15th, 2008 + Tuesday, February 19th, 2008

Announcements & General Commentary:

Wishing everyone a happy belated President’s Day.

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Featured Pick: Recap & Outlook
SARISSA RESOURCES INC (OTC: SRSR)

This past week, on Wednesday before the open, we announced Sarrisa Resources as our newest ‘Featured Pick’ with a “Speculative Buy” rating. Here is a company with a seasoned management team (with major mining experience, lineage and industry connections) and a potential “fairy tale” property (that may have $ BILLIONS of ore) that, if all goes off without a hitch, could deliver 10,000%+ returns to investors that take-a-chance now. The flip side is that if their “fairy tale” property turns out to NOT be a “fairy tale” property the stock would undoubtedly take a hit, but would mininmized by other property interests that the company is developing.

Trading volumes in shares of SRSR have been healthy as of late in lock-step with the price action since mid-November. SRSR trading 50% off is December high certainly looks like a good entry point to us in preparation for a re-test. Over the past week the stock has been consolidating in the $.007 to $.008 range and looks to be holding its own (though there was a brief intra-day move to $.009 on Thursday of last week) as range bound consolidation is setting us up for the next move (which direction will it be?)

Our catalyst hook is obviously the “fairy tale” Nemegosenda property and the multi-billion dollar potential for its Niobium deposit. As such, we are waiting on news from the company to confirm the initiation of independent surveys of the property to give us an indication on time frame - and prehaps on price...

Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.008
PRIMARY ALERT PRICE: $.0075 (6.67% Return)
SHORT-TERM TARGET: $.015 (Potential 100% Return from Primary Alert Price)
LONG-TERM TARGET: ?????

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

OUCH! That smarts!

Everything was looking A.O.K last week in shares of RBTI...that is until Friday. The stock spent most of last week bouncing between $.36 and $.45 (a multi-month high) on small but steadily increasing volume. We even had good news: A.) the incorporation of the Company’s identy theft prevention and credit card fraud product, named “Identiflyer” into the the m|Travel and my|mTravel products as well as intent to sell the software as a standalone product to other travel vendors; and B.) the announcement of an open shareholder conference call scheduled for Feb 28th.

Then Friday hit and somebody clearly did not want to be long going into the Holiday weekend. We know that with low volume stocks, higher volatility is commonplace. Unfortunately, we all felt the pinch on Friday as our previous gains on shares of RBTI were wiped out in a few short hours. It stopped “raining” in the early afternoon and the stock has since sat quietly waiting for buyers and sellers to break the stand-off.

We reiterate our “Accumulate & Trade” (certainly someone got the trade part right) at $.25 - exactly where we started this one - and firmly expect it to test the $.45 highs in relatively short order. Remember, this is a lightly traded stock, so if investors catch wind of this play and make a run at the offer, shares of RBTI could spike in a big way - so remain watchful.

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.30
PRIMARY ALERT PRICE: $.25 (20% 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)

Hello? Is anybody home?

The lights are on but nobody is answering the door, it seems. RLTR trading volume has fallen off in a major way from its January numbers, particularly over the last week. The share price, unfortunately, has followed suit.

The problem? Well, we can’t say for sure, but we have to believe that it has something to do with the fact that the Company has not put out a press release since Jan 31st Communication is key to trading volume down here, so we are not all that surprised to see the current state of RLTR trading affairs is reflecting this lack of communication - even in spite of their partnership with SONY.

We are sitting tight on this one, despite the fact that the position is a loser for us at this point. For those with a cast-iron stomach who see the potential we see and believe in the long-term prospects of this one HAVE to like this one trading at $.027 X $.037 (a bit more than a market cap of $6 Million at $.037) if you liked it at $.055.

Something to think about....

Read our initial coverage on Reeltime Rentals

OUR PICK: RLTR.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.0037
PRIMARY ALERT PRICE: $.055 (33% 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 is yet another example of a micro cap company that has seen its trading volume dry up on little-to-no-news and bid/offer spreads widen. LLSR shares continue to sit largely idle in the low-to-mid $.20’s.

Ultimately, not a bad positiion to be in for us to be in on this position, as we made more that 100% on our first trade in LLSR and are now down a meager 21% on the second position with the clock ticking on the Company’s OCT Dental Imaging System coming to market and the “X” factor of the Hygenilase Joint Venture with Laser Energetics, Inc. (that is supposed to being trading as its own public company at some point soon as per the company’s press release).

Since we have a few months until , we are going to pause regular weekly coverage of LLSR shares until they give us something to talk about. Just sit tight on this one. We still believe its a long-term winner.

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 (21% Drawdown)
HIGH SINCE SECONDARY ALERT: $.32 (+12.5% Return)
SECONDARY SHORT-TERM TARGET: $.63

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

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