The Micro Cap Opportunity

04/05/2008
The Micro Cap Opportunity 'Weekly' - Week of March 31st - April 4th, 2008

Announcements & General Commentary:

So no new pick from us last week (we can tell you are all very disappointed) but our next play IS coming, so don’t fret. In the meantime, you have to feel better about the markets upside move over the past week - in the face of negative news, no less. Let’s hope for a continuation of the trend north, but be mindful, we’re not out of the woods yet. The broader market trends are still down, until they truely prove otherwise so use upside moves to take profits.

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)

Finally a little positive price action - and news - from Red Reef!

Last week we got some news from the company suggesting they had engaged a company in south Florida to test the Company’s anti-mold and mildew products on roofs in the local area (roof mold and mildew are a big problem in south FLA). Not exactly earth shattering, but shows that the Company is doing what it can establish commercial viability of products. Additionally, there were some line item sticking points in the press release that outlined other “recent events” (why they weren’t press releases we’ll never know), such as 1.) On March 19, 2008, Red Reef Board of Directors unanimously agreed to reduce the company's authorized shares by half (3 billion to 1.5 billion); 2.) The Company also added proprietary formulas to its family of products including a line of environmentally friendly cleaners developed for DITEC (www.ditecusa.com) utilizing advanced readily biodegradable surfactant systems include a car and boat shampoo, bug remover, degreaser, wheel cleaner, stain remover and deodorizer; and 3.) The Red Reef Supreme Sugar Mill site in Napoleonville, LA has been added to the LED (Louisiana Economic Development) list of prime Louisiana properties available for commercial development, as part of the program to attract suitable tenants.

The good part is that shares of RRLB actually made a meaningful price move up to the $.005 level during the week (although it only managed to close the week at $.004 - our pick price). After the news and the move this past week, we are reinvigorated and think this thing has a chance to try make a run at a penny, just be smart and be a seller/not a buyer on sig. upside moves.

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

OUR PICK: RRLB.PK
OUR RATING: Speculative Buy & Trade
CURRENT PRICE: $.004
PRIMARY ALERT PRICE: $.004 (+0% Return)
SHORT-TERM TARGET: $.01 (Potential 150% Return from Primary Alert Price)

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

Volume has been tough to come by in Mariner’s Choice. The bad news? Every time the stock makes a run to the upside (or at least has) the movement is met with selling of equal or greater velocity than the buying. The good news? The sellers, whoever they might be, seem to have some patience insofar as they allow the MCII shares to “breathe” and recover on light volume. This would explain why MCII is able to move back up to (and close at) $.06 for the week.

Not sure where it leaves us in the medium-term unless a whole mess of new buying comes in and chews through whatever sellers have left, but that is unlikely to happen unless the Company unexpectedly comes out with some BIG sales numbers.

There was good news this past week though. The Company announced that it is seeing some order traction in the private label portion of its business. The Mariner’s Choice brand isn’t exactly a household name...yet...but the company is also producing its products in white label format for other, much more established, niche focused brands. This is a good thing, as everyone wants to have eco-safe products available to customers these days.

If the Company can continue with good news and even come out with some concrete sales figures, we think investors and traders will reward them with a nice price move....something that would suit our collective positions just fine.

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

OUR PICK: MCII.PK
OUR RATING: Speculative Buy/Trade
CURRENT PRICE: $.06
PRIMARY ALERT PRICE: $.07 (14.3% Drawdown)
SHORT-TERM TARGET: $.16 (Potential 128% Return from Primary Alert Price)

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

Something BIG is afoot over at Sarissa Resources HQ. You can just feel it....

Why do we say this? Gee....maybe its the 50% “peak to valley” price move the stock made this past week on BIG volume and NO news ($.008 low to $.012 High)! Another test of the $.012 resistance level, which wasn’t successful, but the positive news as the stock keeps testing the level and you gotta believe that one of these days SRSR are going to break the $.012 level and it will be off like a rocket to test $.014 and the 52 week $.015 high. We've got our fingers crossed

Maybe someone knows something about the Lake Nemegosenda results. Maybe something else is in the offing. All we know is that this type of price action doesn’t happen arbitrarily.

Almost there.....

Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.011
PRIMARY ALERT PRICE: $.0075 (46% Return)
SHORT-TERM TARGET: $.015 (Potential 100% Return from Primary Alert Price)

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

Again...more of nothing

New low of $.06 established this past week, but to be fair, the 28,000 shares the stock traded that day (less than $1,700 worth at $.06) is hardley something to get worried about. Looks like more “retail players”(= Main St. players, not Wall St. players) are throwing in the towel. Bidders continue to suck the stock up at lower prices (why pay up, right?) Hopefully, we see a bit of news and some momentum, we think the run can start again.

The question: Where will it go? The Answer: We have no idea, but as a point of reference, if this thing gets back to the $.45 level, there is more than 600% profit opportunity on the table. That’s juicy...

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.07  
PRIMARY ALERT PRICE: $.25 (72% Drawdown)
SHORT-TERM TARGET: $.60 (Not Reached)
SECONDARY ALERT PRICE: $.15 (53% 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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