3SOF

3SOF should not bought this one in the first place... (DID NOT EXECUTED MANY TIMES)

1) 3SOF portfolio has 4 OB's & only 2 stocks trading in higher exchanges, what is going on?
2) & I thought 3SOF never ever hold now a stock through earnings after the DIET crashed.

This past week or so has been very depressing.  I feel like I am just throwing fistfulls of money out the window.  I know that the most everyone is in the same boat, so it's not necessarily bad stock picks, but still -- ouch!  never feels good to throw away would-be laptop computers, trips to the beach, new cars, etc...   

Let's pray for a rally!

AMEN.

Have a GRRRREAT DAY ALL !!!!

Quote from: Terliso on May 16, 2006, 11:21:16 AM
1) 3SOF portfolio has 4 OB's & only 2 stocks trading in higher exchanges, what is going on?

Remember... "Penny stocks is the bucket shops of our time".  What always happens at bucket shops???

Ok.. the price movements in these stocks are not only very volitle but also designed to rope you in.. once they got you the price will move to shake you out.  That's kind of how it works.  Truth is this happens in every stock, but more so in pennies because they are small and can be manipulated.  Run up.. then run down.

Quote from: Terliso on May 16, 2006, 11:21:16 AM
3SOF should not bought this one in the first place... (DID NOT EXECUTED MANY TIMES)

After IGII is down to $0.16 I guess it's not difficult to say that our timing was bad on this one.
We bought IGII assuming 6.66% risk on our portfolio after analysing the risk/reward ratio like always, timing was really bad, but that happens and we assume that.

Quote from: Terliso on May 16, 2006, 11:21:16 AM
1) 3SOF portfolio has 4 OB's & only 2 stocks trading in higher exchanges, what is going on?

My view on this is that 3SOF has only about 40% exposure on the market right now, and few days ago we had about 90%. Having 4 OB's is not common on 3SOF, but it happened before, nothing is happening, we followed our trading plans, and we sold out all positions that have triggered the stops, we held our OB's assuming they would not follow the general market, and off course because we have good expectations on them.

Quote from: Terliso on May 16, 2006, 11:21:16 AM
2) & I thought 3SOF never ever hold now a stock through earnings after the DIET crashed.

3SOF held several positions through earnings after that trade on DIET.

It's been some bad performance days for 3SOF Portfolio, it happened before, and I'm sure it will happen again, except if we stop trading stocks. It's difficult to deal with such days...

My best regards,

For people who doesnt want to hold through earnings we should post the date of the earning call in advance...so then everyone can decide whether to hold or to sell or  buy back later.
I also thought it was decided in some rules that 3sof won t hold through earnings but i can t find it anymore...Thanks

Quote from: ket1390 on May 16, 2006, 01:32:33 PM
For people who doesnt want to hold through earnings we should post the date of the earning call in advance...so then everyone can decide whether to hold or to sell or  buy back later.
I also thought it was decided in some rules that 3sof won t hold through earnings but i can t find it anymore...Thanks

Hi Ket,

I wish that was possible but it is really the exception to the rule that OTC stocks announce the date for their earnings release. That is kind of the charm of Penny stocks - you never know what the next day brings 

Penny stocks are very risky and until I joined 3SOF I wouldn't touch them and it is only the last couple of months when I have been holding more than one at a time (that was after eliteG had a serious talk with me ). I have decided to reserve approximately 10% of the money I have in the market to invest in pennies and to be honest I have earned more money on those 10% the last couple of month than I have earned on the 90% invested in "solid" stocks. It really comes down to the risk/reward ratio. Don't invest in pennies unless you are willing to absorb the loss on a day like this and always remember to diversify you portfolio.

Concerning IGII the earnings are not bad. It seems the market has decided to take profit. I am concerned about the accounts receivables but that is an old story. When you deal with goverments and do business in Africa you need to have a bit of patience.

update IGII:

IGII released earnings today(unannounced beforehand) and for some reason had a sell-off.  This move was harsh but a very normal % penny move.  Even the best fundamentally backed pennies can have these moves.. it comes with the territory and most of our members are very experienced with the the risk/reward associated with a penny position.

The team talked about IGII and we believe it has a good chance of bouncing right back and even heading higher.  Cesar wrote a great analysis:

"I've listened to the Conference Call and got this:

- $16 to $17 M revenues expected for the full 2006. $8 to $9 M in net income. Net income is such a high percentage of revenues because the company is just replicating and selling something that was previously build.

- $32 to $35 M in revenues expected for fiscal 2007 and about $16 M in net income.

- At this moment the company has contracts with the government of South Africa and 9 states  in North America. It expects to sign contracts with Malaysia (larger than South Africa) and Brunei and more 12 North American states in 2006.

- It is also in talks with Dubai, India, Saudi Arabia and the UK.

- Over time recurring revenues will surpass one time revenues, but for 2006 he expects recurring revenues to be just 20% of revenues, for 2007 25% and so on.

Here's what I think: since there are about 200 countries in the world, and the company still just sold its product to one, the potential is huge. As more and more countries join this technology/software, more will want it, so the company may be selling it for several years to come, maybe 10 years or more, so one shouldn't think of it as a one time event.

The CEO also talks about $1M/month in recurring revenues from South Africa and Malaysia (each), $300,000/month from Brunei. From what I've perceived, it costs $20 a month for each company to join the program, something like that. This gives you $2.3M in recurring revenues per month, or $27.6 M a year from these three countries alone in the future.

Well, just stick with this number: $8.5M in net income in 2006, $17 M in net income in 2007. Apply an earnings multiple of, say, 8, and you get $0.93 for price per share in 2006 and $1.87 in 2007.

I believe people selling today were wrong. The stock is set to break $0.29 on the upside soon" http://www.otcbbcoverage.com/stocks/index.php?topic=30.new#new

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Position: bought IGII @ 0.265 on 05/15/2006
Order: Hold
Exit: n/a
Target: n/a
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update IGII:

Although IGII seems to be an overwhelming undervalued stock the price has headed south after we were surprised by earnings.  We will try to maintain a postion but need to have an exit strategy.  So we will use a sell if set to close below .20.

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Position: bought IGII @ 0.265 on 05/15/2006
Order: Hold
Exit: sell if set to close below .20
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1 question....

Is the maximum loss for 3sof remains the same @  -30.00%?

Thanks..

well a .20 it'll be a 24.5% loss and they are gonna stop it at that.

So, is this thing considered stopped out now that it prints a low of 0.198?


In time of late stage bull market as big cap is in favor over small cap, are the team thinking of moving up the marker-cap scale?

they said if the closing price is under .2 they would sell. i don't think its possible to set a stop loss for OTCBB stocks so i'm sure they still have it. They seem to really like the fundamentals and value of igii to get rid of it even if it stays stagnant for a while. Me on the other hand, am not as patient hehe.

If it is "set to close" below 0.20. I take this to mean "if it looks like it will close below 0.20".

Less than 30 minutes to go. Time to take out my crystal ball, rub it and see what it will show me.

I think I take no action on it today. If it closes below 0.20 then I sell it at the open tomorrow, if 3SOF sells it today.

fyi:
bellwetherreport.com: The Bellwether Report takes a closer look into IBSG International, Inc
Thursday , May 25, 2006 03:58 ET

May 25, 2006 (M2 PRESSWIRE via COMTEX) -- IBSG International, Inc (OTCBB:IGII), is a company that our research team will be tracking over the ensuing weeks. They recently came out with a significant corporate development, causing a market stir. The BWR Research Team will continue to bring its subscribers cutting edge research tools, and second to none customer service.

IBSG International, Inc a holding company for four technology and software subsidiaries, announced a couple of weeks ago, its financial results for the first quarter 2006.

Revenue for the three months ended March 31, 2006 reached $2.1 million, almost double the $1.1 million for the first quarter of 2005. Most of this additional revenue came from the Company's international business. IBSG International also had deferred revenues for the latest quarter of over $900,000.

In first quarter 2006, the Company had operating expenses of $900,000, almost exactly what they were in the same period of 2005; there was a $6,000 increase, which was primarily the result of establishing the technical center in Ahmedabad, India in February 2006. As a result, IBSG International reported an operating profit of $1.2 million for the quarter ended March 31, 2006 compared to $182,000 for the quarter months ended March 31, 2005.

The Company had other expenses of $1.1 million for the three months ended March 31, 2006 compared to other expenses restated of $32,000 for the three months ended March 31, 2005. The increase of other expenses for 2006 was due to the settlement of the debt and warrants outstanding, the sale of an asset and a provision for taxes. The loss associated with the settlement of the debt and warrants was $471,000. The Company also recorded a loss of $532,000 as a result of the sale of the CAC asset, on which the Company had recognized a total of $3.5 million at the time of the sale.

The sale was for $4 million, of which $1 million is due in 2006 and the balance is due for each subsequent year over the next 3 years. This figure is reflected in the long-term receivable category on the balance sheet under assets.

Net income for the quarter ended March 31, 2006 was $112,000 compared to $150,000 for the same quarter of 2005 primarily due to the extinguishment of debt and warrants as described above.

Dr. Michael Rivers, CEO of IGII stated, "We are very pleased with our progress in the first quarter of 2006. Our revenue is growing year-over-year in a fashion that is both healthy and sustainable. The expansion of our Johannesburg project to cover the entire Union of South Africa may have seemed challenging, but it is up and running across that country, and it will contribute to revenues for the second quarter and beyond."

He added, "We are continuing our discussions with the Malaysian government to launch a similar project there, and our relationship with BAE through our purchase of A-Division in the first quarter will help ensure that we are in the running for other such projects globally. We expect the success that we are seeing in South Africa can and will be replicated elsewhere."

Rivers observed, "In the U.S., IBS Group has launched the implementation of our digital management solution for use within the state of Connecticut's Small Business Development Center network. This network is also capable of being replicated in other jurisdictions in the U.S., and we are exploring opportunities to do just that." He concluded, "IBSG International is on a trajectory toward significant growth this year as measured both at the top and bottom lines."

Earlier today they announced that the first South African businesses to utilize IBSG's economic development trading platform are now online. The recently installed platform is fully operational, and it is projected by the SA government that, over the next three months, a substantial portion of the 100,000 Small-Midsize Enterprises (SMEs) in Johannesburg alone will be operating on the system based on IBSG's BizWorld Pro(TM). The initial focus will be the over-32,000 SME mining vendors. There are an estimated 250,000 registered SMEs in South Africa, which are expected to come on line over the next 6 months. The Company projects that as the project begins to generate substantial monthly revenue, the continued surge of revenue from larger national contracts will be less evident.

Dr. Michael Rivers, CEO of IBSG International, said, "We are very pleased with the progress we have made with the coordinated efforts of our in-country partners, Galaxy Five and IBSD, in getting this system up and running. In getting this job done, we relied on BAE Systems as one of our funding sources, along with the South African Department of Trade and Industry (DTI) and its Industrial Development Corporation (ITC). Because we are engaged in a long-term relationship with BAE Systems (BAE) through our recent purchase of its subcontractor A Division International IT, we will be able to use this as a model for future systems to be created in other developing countries as part of BAE's numerous offset credit projects around the world.

Mr. Jan Heyneke of Galaxy Five stated, "This project was originally intended to serve the Johannesburg region, but at the request of the DTI and ITC, we expanded it to cover the entire Union of South Africa. In doing so, we increased the value of the system and the vendor improvement program to the users and to the entire country of South Africa, boosted potential revenues to both Galaxy Five and IBSG International, and proved the scalability of the system and the vendor program."

IBSG International, Inc, has not had much success so far since the release of their financials as they have traded down over 25.0% on fairly strong volume. Currently trading at $0.21 this company is trading down on volume of already 4 times the daily average as investors sell off their shares. With a strong working interest in a 640 acre property, I feel this company is very undervalued and could become a great trading opportunity. However, the company has a lot of work ahaead of them as it will be interesting to see what happens next The BWR Research team continues to follow the market sentiment on this company and numerous others.

EMA (50) as TA support (0.191$) vs. 0.199$