3SOF

This was mentioned on G-TA today!  This is set to leave the station tomorrow!!

Potential high quality penny play for today

PKCY - GREAT, GREAT fundamental story will finally get volume from news today!  This news is a deal with Del Monte.. this is following a deal with Oracle.. and significant strengthening of the balance sheet. 

Michael brought this up a few days ago.. he loved it and as you guys know he is big-time fundamental guy but I was not sure about technicals..yet.. well technicals have developed and today should create a volume burst which should break the local high @ ~.08.. could be a gigantic move!!

We want you guys to know about this ahead of time  .. you are at ground level!

QuoteDel Monte Fresh Produce NA Signs Agreement with Park City Group to Enhance Its Customer Relationships
Thursday May 4, 7:00 am ET
Major Food Industry Supplier Establishes Relationship with Park City Group's Professional Services Division
http://biz.yahoo.com/bw/060504/20060504005134.html?.v=1

QuotePark City Group Substantially Strengthens Balance Sheet
Friday April 28, 7:00 am ET
Reduced Interest Expense to Have Dramatic Impact on Earnings
http://biz.yahoo.com/bw/060428/20060428005096.html?.v=1

QuoteOracle and Park City Group Sign Licensing Agreement
Thursday April 27, 7:01 am ET
Patent Licensing to Become Significant Revenue Source for Park City Group
http://biz.yahoo.com/bw/060425/20060425005158.html?.v=1

---------------------------
From Michael:

Hi G,

Yes I love Park City Group. It has all the ingredients for success.

The company is founded by Randall K. Fields, a very successful entrepreneur. He co-founded Mrs. Fields Cookies and grew the business from $200,000 to more than $100 million in revenues and grew its store base to over 650 stores.

He saw a huge opportunity for software systems to manage perishable food department operations. As all good entrepreneurs he pioneered the development of ActionManager software systems to provide innovative management solutions for Mrs. Fields Cookies.

This was the start of Park City Group. Toady the company has some of the largest retailers and consumer brands on their customer list:

• Home Depot
• Tesco
• Del Monte
• Dodge's Store

To mention a few.

The licensing of the intellectual property to Oracle does not only provide a potential very significant revenue stream for the company (remember the market cap is only around $20 million) but is also recognition from a major player of the uniqueness of PKCY solution. To quote Randall Fields:

QuoteWe believe that there is a very substantial opportunity for licensing parts of our intellectual property. When people think of license agreements, they normally think in terms of licensing software. While that certainly represents one source of revenue for us, what makes this agreement unique is that we have licensed the intellectual property itself. This represents a new and separate source of revenue for us. The licensing of a patent has much broader implications and as such the size of these agreements can be significant

The restructuring of the Balance sheet has reduced the interest cost very significantly and the company has already posted a profit. From the April 28 press release:

QuoteThe Company earned $1.8 million on $4.8 million of revenue in the first six months of this year and this reduction in debt will have a meaningful impact on net income going forward as well. We are a much stronger company as a result..

We will see when PKCY will be on fire but this is highly explosive material so watch out

update:
PKCY: Consulting Agreement w/Del Monte Fresh Produce
Thursday , May 04, 2006 07:52 ET

Park City Group, Inc. (PKCY) announced that it has established a relationship with Del Monte Fresh Produce (FDP) to provide tools and analytics in support of their branded fresh cut fruit program. Del Monte Fresh will utilize Park City Group's analytic tools and professional consulting services to enhance their already successful relationship with their retail customers. Park City Group's Professional Services Division will assist Del Monte Fresh in efforts to provide better quality and freshness for consumers, while delivering improved sales and higher profits for their retail customers.

ELite and Michael:

Just wanted to thankyou both for this little gem.  I did a nice day trade on it, just cuz I need that immediate gratification now and then and wow did it make me some money.

Thinking about getting back in either end of the day or in the morn. The fundies just look so good on this one!!

GOOD WORK!  Since starting to hang around here back in January my portfolio is is up nearly 30% you are the best!

Rodri

PKCY is about to break out of its trinagle!  This can be a huge play.. Projected target could be .50.. I think we will see .20 easy tomorrow. 

Here are updated charts:

i have a limit order in for  62000  at .09  and in 20 minutes only 5000 have filled 

changed the order to .093 and finally got 60000 at a average .0927

Couldnt stand it, got back in at .093 

Another great pick from the 3SOF team.

I have 1 position from $0.074 and have a limit buy waiting for the break of next peak $0.105. If that gets taken out (volume backed of course). Then $0.20 comes right on the radar.

Great work Michael and Elite.

Quote from: AussieTrader on May 05, 2006, 02:38:33 AM
Another great pick from the 3SOF team.

I have 1 position from $0.074 and have a limit buy waiting for the break of next peak $0.105. If that gets taken out (volume backed of course). Then $0.20 comes right on the radar.

Great work Michael and Elite.

Hi Aussie,

Thanks for the kind words and good luck with your investment. I am also planning to add today. The take off yesterday caught me with surprise. I was skeptical when eliteG said that 0.8 was in play but with the break out yesterday under heavy volume I can easily see the momentum take the stock to 0.2.

Yesterday morning we had a stock with very strong fundamentals and a questionable chart. This morning we have a stock with very strong fundamentals and a very strong chart!

0.2 (and 0.5 for that matter) is certainly supported by the fundamentals of the business.

For those who are interested to know more about the business there are a very nice interview with Randy Fields here: http://ceocfointerviews.com/interviews/ParkCity.htm. It is from July last year but gives a really good view on the strong market fundamentals that are driving the business. I especially like this part:

QuoteOur customers are beginning to talk about us and we have two customers lined up to give presentations at two more tradeshows in the upcoming months. Here is another example, a year ago, when directors were surveyed this idea of addressing the fresh item management problem, it was not in the top twenty list of possible projects, but now it is number eighteen of possible projects that IT directors in the supermarket industry will do. We have gone from nowhere to number eighteen. If I were a betting person, I would bet that with the effort we have underway, next year it will be in the top ten and the following year it will be in the top five. What that means is the job of the market leader is to awaken the sleeping giant, let them know what the problem is and how the problem can be solved and what the economic benefits are.

And this:

QuoteLast year, perishables were 51% of the total sales of the supermarket industry. More than half of all of the business comes from the sale of perishables and there are no comprehensive perishable control systems available, that we are aware of, except ours. As a result, the more that value retailers become a threat, the more that supermarkets are looking to perishables as their future salvation, and that plays right into the need to control what they are doing, and by definition, that strengthens our hand."

51% of all sales of the supermarket industry literally runs up to 100 of billions of dollars and these guys have the only comprehensive software to manage that business 

- and by the way I forgot to mention yesterday that Victoria's Secret is one of their clients as well. Now that is real perishable goods 

another chart view  big breakout!

you are amazing eliteG. any stop loss point?

You guys think Monday might be profit taking on it ??   

im in 127000 now. lets see this one go to .50

Another great pick by the Master himself!   Is there a reason it isn't being added to the 3SOF portfolio?