The Micro Cap Opportunity

03/24/2008
The Micro Cap Opportunity 'Weekly' - Week of March 17th - March 20th, 2008

Announcements & General Commentary:

We hope that all of our loyal subscribers enjoyed the double-whammy holiday weekend, with Good Friday and Easter bookending a very welcome extra day to step back from the recent market upheaval.

We also assume that you caught our latest pick this past week - and the new format for our reports - all designed to give you, our loyal subscribers, a better mix of opinion and fact when profiling our 'Featured Pick's. While there are plenty of you that will be unhappy to see our particular brand of analysis be markedly abbreviated, it actually serves everyone's best interest to give traders a single point of reference on factual company-specific information along with our opinion in a consolidated manner. It simply speeds up the analysis-to-trading decision time.

As always, we encourage you to send us your feedback about what we are doing and how we could do it better, so keep those e-mails comin'!

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 REEF LABORATORIES INTERNATIONAL INC (OTC: RRLB)

Early in the morning on Wednesday, March 19th we released our most recent 'Featured Pick', Red Reef Labs at $.004 or better and, in keeping with the general malaise experienced in OTC land due to the disarray in the broader markets, the stock didn't do a whole helluva lot the first day out. RRLB has managed to pick up its trading activity in the several days since, however (although technically we aren't really supposed to "count" the Monday session - March 24th - as that is really the domain of the next issue of "the Weekly"). This unfortunate corresponding phenomenon is the volatility spike and the increased spread on the level 2 screen, despite the increased volume.

Sure, volatility IS opportunity in the financial markets, but its also the stuff of Wall St. horror stories are made of, as especially volatile markets can move against you quickly and violently - to the detriment of a trader not ready for big-time equity swings. Penny Stocks and Micro Caps, in general are volatile enough, but sometimes spreads increase in conjunction with big price moves and volume....and that is not supposed to happen. Generally increased liquidity goes hand-in-hand with tighter spreads.

Anyhoo....we digress. Our call on RRLB has more to do with the trading levels than the story in and of itself. Sure the story provides fuel for virtually any micro cap price move (so we are waiting on news, to be fair) but this is a bottom fishing play to us  which means, as traders , we need to exhibit patience and wait on the bid to accumulate as opposed to taking out offers. Once we have built a position we then look for a re-test of resistance at the $.01 level and our exit....

In the meantime, if you have not done so already....

Read our initial coverage on Red Reef Laboratories International Inc (OTC: RRLB)

OUR PICK: RRLB.PK
OUR RATING: Speculative Buy & Trade
CURRENT PRICE: $.003
PRIMARY ALERT PRICE: $.004 (25% Drawdown)
SHORT-TERM TARGET: $.01 (Potential 150% Return from Primary Alert Price)

Featured Pick: Recap & Outlook
MARINER’S CHOICE INTERNATIONAL INC (OTC: MCII)

Much Ado About Not-a-Whole-Helluva-Lot in trading of Mariner's Choice last week, although we contend there should have been.

I mean, how much more do people want? The Company opens the holiday shortened week last week with an announcement on Monday morning that the Company has signed an agreement with its first European-based distributor - in Greece - and has already shipped the initial purchase order, thereby entering a HUGE market for their eco-friendly products.

Furthermore, they dazzled us with some demographic figures and financial figures (23 Billion Euro per year Market) inherent to JUST the European pleasure boating industry - while keeping us in the dark on commercial and industrial figures - surely meaningful if not earth shattering in their own right. Then we also get to understand that the European Union represents the tip-of-the-sword on environmental protection legislation and remediation initiatives, which only enhances Mariner's Choice's 'eco-safe' competitive positioning in the market.

Guess you can't win'em all, but we are willing to bet that continued news of increased sales are a forgone conclusion at this point. When they do come out, all it will take is the momentum crowd looking for their next "piece of meat" to potentially have shares of MCII surging once again. Don't be left behind when it happens.

Read our initial coverage on Mariner’s Choice International Inc.

OUR PICK: MCII.PK
OUR RATING: Speculative Buy/Trade
CURRENT PRICE: $.05
PRIMARY ALERT PRICE: $.07 (28% Drawdown)
SHORT-TERM TARGET: $.16 (Potential 128% Return from Primary Alert Price)

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

We got news this past week. Much needed news...and it was good. The stock didn't quite "go nuts" on the Company's first press release in quite a while, but continued to exhibit its range-bound ways. In fairness, it wasn't the type of news that really should have sent the stock surging upward, but it was solid. In essence, the company announced that it had signed an agreement with a private company to develop the DeadMoose Lake Property in exchange for a potential 50% ownership in the property - and the private company was on the hook for all the fist-stage development money. What's not to like?

Still, the real reason we are in the stock is the Lake Nemegosenda "Fairy Tale" property, so we believe the best potential for impressive upside in the stock still remains to be seen. Would you want to be sitting on the sidelines if and/or when the Company announces that $4.5 Billion in recoverable Niobium ore is in the ground there and they will beginning to extract it or our joint veturing with a bigger player to pull it out? Nope. Us Either.

Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.095
PRIMARY ALERT PRICE: $.0075 (21% Return)
SHORT-TERM TARGET: $.015 (Potential 100% Return from Primary Alert Price)

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

Chirp.....chirp......chirp

When its eerily quite in a stock like this after a major move to the upside and then again to the downside, it kinda makes the hair on the back your neck stand on end. Could it be that we begin to calculate the peak-to-valley returns of more than 300% in a span of a few weeks and think that it can happen again?

YEP. That's pretty much about it. We think the proverbial gun is reloaded and it is ready to go off again. The 5-Day, 10-Day and 20-Day Simple Moving Averages are finally in line with the price of the stock, which in our book means "the reset" button has been hit and now RBTI effectively represents a "do over" trade.

Now all we need is something to pull the trigger and get the move started.....

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.11
PRIMARY ALERT PRICE: $.25 (56% Drawdown)
SHORT-TERM TARGET: $.60 (Not Reached)
SECONDARY ALERT PRICE: $.15 (26% Drawdown)
SECONDARY ALERT TARGET: $.45 (200% Potential Return)
LONG-TERM TARGET: $.60+ (Potential 140%+ 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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