The Micro Cap Opportunity

02/25/2008
The Micro Cap Opportunity 'Weekly' - Week of February 19th - February 22nd, 2008 + Monday, February 25th, 2008

Announcements & General Commentary:

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

A nice second week for our most recent ‘Featured Pick’ trade candidate, Sarissa Resources, for sure, as we finally saw the stock break the $.01 resistance level - closing yesterday’s session at its high for the day of $.012, a $60% increase from our initial pick price of $.0075.

Undoubtedly, a good portion of the price action and steady volume was made possible by the Company’s announcement on Wednesday in which it announced that it has engaged independent geologists to begin the review process of all historical data collected on its Lake Nemegosenda property - our “fairy tale” Niobium property. Furthermore, the company alluded to the fact that Tantalum and Uranium may also be present on the property and that the potential for a Tantalum deposit might be as sizable as the Niobium deposit.

Time will tell, but we like how the stock is acting. We are still shooting for a re-test of the $.015 resistance level, which if reached, will give us a tidy 100% profit on our position in (hopefully) a matter of weeks. If it breaks resistance at $.015, we are in largely uncharted territory....


Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.012
PRIMARY ALERT PRICE: $.0075 (60% 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 Redux!

Shares of Red Branch have taken a beating in the past week, no two ways about it. Now, based on yesterday’s closing price of $.17, our position has gone from a gain of more than 70% (at the high of $.45) from our initial alert price to a loss of 32% - all in a mere two weeks.

What gives? Your guess is as good as ours, but it seems that the buying the drove the stock from $.13 to $.45 in two weeks came out en masse just as quickly driving the price back down. But believe it or not, there is a silver lining...

From its high of $.45 on Valentines day, the stock has come back down to the $.15 x $.17 level on 143,000 shares in aggregate. If you consider that when a trade is made, much of the time each market maker involved in the trade (representing both the buyer and the seller) will each print each “side” of the trade (known as a “double print”), which suggests that the actual number of shares sold could be as few as 71,500.

In short, that means that it should take roughly that much - but potentially more - to get the stock back to the $.45 level, which represents a 200% return from $.15.

We believe that Red Branch has been unfairly beaten down, for little or no reason. Furthermore, at $.15 the company’s market cap is roughly $13.8 Million. We think its cheap here given all the existing revenues of the Company’s Magellan360 subsidiary ($22 Million in ‘07) and the potential for its my|mTravel product.

As such, we are calling it a second time: Buy RBTI at $.15 for the ride to $.45 - a 200% return.

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.17
PRIMARY ALERT PRICE: $.25 (32% Drawdown)
SHORT-TERM TARGET: $.60 (Not Reached)
SECONDARY ALERT PRICE: $.15
SECONDARY ALERT TARGET: $.45 (200% Potential Return)
LONG-TERM TARGET: $.60+ (Potential 140%+ Return)

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

Reeltime continues to range trade between $.03 and $.04.

The good news? Reeltime made two announcements in the past week. On Wednesday the Company announced a conference call to discuss a marketing relationship with an electronics manufacturer that will expose Reeltime’s service to 750,000 customers per year. On Thursday, the Company announced that it has begun the process to auditing its books to facilitate a 211 filing and an eventual uplist to OTCBB.

Both solid releases which makes it even more curious that the stock can’t seem to break out of the recent range. Either way, we are long-term optimists for RLTR and will stick with it as the story unfolds, so stay tuned for more.

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)

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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