The Micro Cap Opportunity

04/12/2008
The Micro Cap Opportunity 'Weekly' - Week of April 7th - April 11th, 2008

Announcements & General Commentary:

Thank goodness for Sarissa! New pick coming this week - for sure this time - and its a precious metals play (seemingly the ONLY deals that seem to be experiencing sustained moves and keeping their gains in the shakey market environment), so be on the lookout.

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)

On the back of the prior week’s price action, last week saw RRLB shares give it all back and test recent lows of $.002 even though the stock managed to close the weeks’ trading at $.0035, just under our original entry at $.004.

Generally speaking the activity in RRLB shares has not been positive (from our perspective anyway). Coupled with limited news coming from the company’s development coffers, we believe a change of thinking is in order. Sure, the company’s management IS taking steps to enable the stock to go higher (a dramatic reduction in authorized shares, new products coming, their major real estate holdings in Louisiana looking to be developed, etc), but if the market teaches us anything, it’s “you can’t fight the tape”.

As such, it has been noticeable that RRLB does, at least in the near-term (hindsight is helpful in making these determinations), make a great range trading candidate. If you can put your bids in at the $.002 to $.0025 level on a GTC basis and put your sell orders in between $.0035 and $.004, you just might be able to make some coin until a clear trend emerges. Range trades are the “Wash, rinse and repeat” tactic of the trading world (to use the shampoo analogy), but you have to have patience to be effective, so don’t go chasing!

For the time being at least, we are pulling the $.01 price target in favor of the range trading approach until such time as the environment changes.

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

OUR PICK: RRLB.PK
OUR RATING: Speculative Buy & Trade
CURRENT PRICE: $.0035
PRIMARY ALERT PRICE: $.004 (-12.5% Drawdown)
HIGH SINCE PRIMARY ALERT: $.005 (+17.1% Return)
SHORT-TERM TARGET: $.01 (Potential 150% Return from Primary Alert Price)

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

Man, has MCII volume fallen of a cliff or what?

Of course that is a rhetorical question. The answer is obviously “yes”. The unfortunate part is that the price has seemed to follow the drop in volume with a drop of its own. Its great if you are a bottom fisher, but not if your sitting where we are with our initial entry at roughly the $.07 level.

The good news? I really doesn’t take much in the way of buying interest to move this sucker. The problem? The seeming lack of interest in this “green” play - which by most measures, is a pretty good place to be for the future. Our best guess is that not many are thinking big gains are possible in a consumer products company, “green” twist or no “green” twist.

Given the general environment, we think that MCII shares warrant a short-term abandonment of our original $.16 price target in favor of some short-term range trading. With a near-term low of $.028 and a near-term high of $.06, the potential for a double (or close to it) exists by being patient, bidding for stock on a GTC basis at or near the lows and waiting for the stock to trade up to near-term highs. Right now, it seems like the only play to be honest (unless you are in oil & gas or precious metals plays).

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, but until then we have to adjust to market conditions......

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

OUR PICK: MCII.PK
OUR RATING: Speculative Buy/Trade
CURRENT PRICE: $.036
PRIMARY ALERT PRICE: $.07 (-48.5% Drawdown)
HIGH SINCE PRIMARY ALERT: $.082 (+17.1% Return)
SHORT-TERM TARGET: $.16 (Potential 128% Return from Primary Alert Price)

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

Hallelujah!

We knew it was coming....so at the risk of telling you “we told you so” (in the face of our other missteps), well, we won’t say anything other than “congratulations” to our subscribers who followed our advice.

Now, a bigger question. We suggested that you should have sold at least half of your position at this point (recommended at $.015 or above), and we hope you have take some additional profits as the stock continued to trade above the $.02 level. If you haven’t, you should. That being said, you should also let the remainder “ride” and see if you can lock in bigger profits on the remainder of your position if/when SRSR keeps going (hey, you never can tell). At least at this point you have locked in sizable gains, now all you have to do is scale out of the rest of your position as SRSR trades higher.

The quandary? This move has come on NO NEWS....which suggests that something has certain investors clamoring for stock in this one. We think someone knows something about the Lake Nemegosenda assay results. All we know for sure is that this type of price action is anything but accidental, so don’t take yourself completely out of the game or you might miss a move of historical significance.

Hey, wouldn’t it be great to say to friends that you were lucky enough to catch SRSR from $.0075 to $5?

Its possible......

Read our initial coverage on Sarissa Resources, Inc

OUR PICK: SRSR.PK
OUR RATING: Speculative Buy
CURRENT PRICE: $.023
PRIMARY ALERT PRICE: $.0075 (206% Return)
HIGH SINCE PRIMARY ALERT: $.024 (+220% Return)
SHORT-TERM TARGET: $.015 (Target Reached & Exceeded. 100% Return from Primary Alert Price)

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

And it continues to move lower....

Now its at $.05.

While we KNOW its a mistake to abandon a play when its at its lows (inevitably, it ends up coming back as soon as you sell your position), we are going to put RBTI on the back-burner for the time being until such time as it picks up again. We still own stock, but cannot see selling shares down here. It makes little sense.

So instead, we will keep it on our screen for the time being and keep a watchful eye but suspend coverage on RBTI for the time being until it begins to wake up. Eventually, we believe, this will HAVE to happen. Hey the Company did $21 Million in ticket sales last year, right?.

Read our initial coverage on Red Branch Technologies

OUR PICK: RBTI.PK
OUR RATING: Accumulate & Trade
CURRENT PRICE: $.05 
PRIMARY ALERT PRICE: $.25 (-80% Drawdown)
SHORT-TERM TARGET: $.60 (Not Reached)
SECONDARY ALERT PRICE: $.15 (66% 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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