The Micro Cap Opportunity

03/05/2008
The Micro Cap Opportunity 'Weekly' - Week of February 25th - February 29th, 2008

Announcements & General Commentary:

Okay okay, we know...we’re a bit behind schedule. After all, it is Wednesday March 5th and we are putting out last weeks issue of ‘the Weekly’ this evening. Our bad. Better late than never though, right? Okay...perhaps not.

Anyhoo.... we have been reworking some aspects of our site (new offerings will be coming soon) and researching our next pick which has great potential and will be released to our subscribers this week (so stay tuned!). We have also made some adjustments - based on subscriber feedback - about when we release our ‘Featured Pick’s and our issues of ‘the ‘Weekly’ and ‘the Daily’ as we move forward. In particular, ‘the Daily’ has fallen off in recent weeks, but will be back in full swing beginning Monday, so be on the lookout for our daily trading candidates there.

Now, as far as the new scheduling goes, here is a run-down: Beginning Monday, March 10th, ‘the Weekly’ will be issued on Friday afternoons/evenings after the market closes, as opposed to Sunday evenings/ Monday mornings as has been the case historically. Additionally, ‘the Daily’ will be issued in the evening - after the market closes - for the following day’s trading session, as opposed to being released at 7 am for the 9:30 am opening bell as has been the case. Lastly, any new ‘Featured Pick’ will be released after the market closes in anticipation of the next day’s trading to give people ample time to read our commentary, do their due diligence and make a determination on how to act. We found that releasing new ‘Featured Picks’ in the morning before the beginning of trading was not providing our readers with enough time to do their own research. The post-close unveiling of new ‘Featured Picks’ should help alleviate the time constraint.

As for this week’s issue of ‘the Weekly’ we will cover all of last week’s action and ignore this weeks action until Friday afternoon - at which point we will cover this weeks action and begin the new schedule. We will also review the new ‘Featured Pick’ which will be released this week, so get ready!

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
SARISSA RESOURCES INC (OTC: SRSR)

Remember folks, we are just covering last week’s action here - and some action it was! On Monday’s session (the 25th) SRSR shares looked like they had been shot from a cannon - trading as high as $.012 on big volume (and closing there) on no news. At that point we were a mere $.003 away from our $.015 target price and were convinced that our target would be reached at some point in the week. Oh how wrong we were... Unfortunately we spent the remainder of the newsless week wondering what happened to the run as the share price trickled off, closing the week at $.0085. Talk about frustrating! We finally saw the stock break the $.01 resistance level and close 60% higher than our initial pick price, only to see it evaporate.

Ahhh...the world of Penny Stocks. Surprises await seemingly around every corner. As for now (Friday’s Close) we are up 13.3% on our SRSR position (for those who didn’t take some off the table above $.01) and awaiting some more news and the next advance to re-test the $.01+ resistance level.

Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.0085
PRIMARY ALERT PRICE: $.0075 (13.3% 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)

Can this thing catch a freakin’ break for cryin’ out loud?

How about a bid at least?

The goldilocks story that was RBTI seems to be unraveling into some sort of perverse greek tragedy. Last week alone the stock was cut in half.....again, despite one VERY solid news release before Monday’s session and a very promising open conference call that was held on Thursday morning during trading hours.

Monday’s press release was nothing short of fantastic. Consider that RBTI has teamed up with Deskport technologies - a company that has developed branded traveler tools, such as the USA Today(TM) Miletracker (www.miletracker.com) that allow travelers to track their rewards and frequent filer miles - to market RBTI’s my|mTravel product to Deskport's approximately 60,000 Business Traveler users! Now THATS good targeted introduction for a BETA release!

The reaction? Selling.

Then, as the selling continued - while not particularly powerful to suggest a dump of any sort - the company held an open conference call to address the public about its strategy for rolling out my|mTravel to the mainstream consumer, to answer pre-submitted questions from shareholder and even to answer some on-the-fly questions from shareholders. We were on the call listening and were encouraged...very encouraged.

The reaction? Less selling, but selling nonetheless.

**Incidentally, if you would like to listen to the recorded conference call it is still available through the following dial-in instructions:

Conference Play Back (Available after the call)
Playback Number:  (641) 715-3413
Access Code: 992897#

As for what to do now? Well, its tough to deny that the trend is down until proven otherwise. Do not expect a reversal until such time as you see the stock capitulate on extremely heavy volume in the single digits. Until then, its too low to sell here and too unsure to buy again just yet. Sit and wait is our call. Remember, this is a lightly traded (“THIN”) stock, so when it does turn around 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: $.10
PRIMARY ALERT PRICE: $.25 (60% Drawdown)
SHORT-TERM TARGET: $.60 (Not Reached)
SECONDARY ALERT PRICE: $.15 (33% Drawdown)
SECONDARY ALERT TARGET: $.45 (200% Potential Return)
LONG-TERM TARGET: $.60+ (Potential 140%+ Return)

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

Boooooor-ing.

Reeltime just seems to be content sitting tight between the $.03 and $.04 level, as it has for some time. Kinda unbelievable when you consider the fact that Reeltime has a deal with SONY and Lionsgate (we have to believe others are lining up to play ball as well, even though no other majors have been announced yet). Then the company puts out a release that it has teamed up with one of MCO’s long-time micro cap favorites, SOYO Group (OTCBB: SOYO) to add “REELCASH” incentives to every flat screen that SOYO sells through its network of MAJOR retailers and e-tailers. Reeltime even announced that the agreement will introduce Reeltime.com to approximately 750,000 potential customers per year.

THATS A BIG DEAL. The reaction? Nothin’. Nada. Zilch. Zip.

Let’s face it. This one is a waiting game at this point. Eventually, they will announce numbers or a deal that will get this stock moving again. Better still, there are still players in the bricks-n-mortar movie rental business that haven’t made a move to online and on-demand offerings. Reeltime sure would make a compelling acquisition for someone like that. All things being equal, we have to like the risks of owning a stock with that kind of upside potential at $.037 - a market cap of $6 Million.

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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