HEPI.OB

[Ramsburg]

Profile: Health Enhancement Products, Inc., through its subsidiary, engages in the production and marketing of health products in the United States. Its principal product is ProAlgaZyme, a proteolytic enzymatic protein derived from a natural plant culture, which aids in the defense of the body against introduced or naturally-occurring harmful substances. The company was incorporated in 1983 as L. Peck Enterprises, Inc. and changed its name to Western Glory Hole, Inc. in 1999. Further, it changed its name to Health Enhancement Products, Inc. in 2003. The company is headquartered in Scottsdale, Arizona.
Website: http://www.healthenhancementproducts.com
Market Cap: 106M

Trading Idea:
Disclaimer: This is not the regular type of 3SOF trade, and this may enclose some additional risk due to low volume and the fact of this being an OTCBB stock.

We are looking to HEPI mainly because of 3 things:
- We have an interesting technical outlook
- We have a speculative rumor
- We have a date

HEPI is a low volume stock, its trend has been bullish in the last 6 months, during the last few sessions HEPI started to trade with a slight volume increase and yesterday we had what seems to be a start, volume has peaked and HEPI breakout into new relative highs.
Digging a little bit, we can see this:

- Health Enhancement Products Receives Approval to Commence HIV and CRP Clinical Trial in Cameroon (May 1, 2006)

and this:

- Health Enhancement Products, Inc. to Update Public Regarding Product Research and Other Current Events (September, 19 2006)

HEPI announced today that it will be holding an informal shareholders' meeting on October 2, 2006 at 9:00 AM. The purpose of the meeting is to update the public shareholders and other interested persons concerning our recent research projects and other current events affecting the company.

It doesn't make any sense to schedule this conference if they don't have any «interesting» developments to pronounce... taking into consideration HEPI's investigation theme, we may have some speculation opportunity here...
October 2, give us some time for this trade, and the stock only started to move yesterday.

Trading Plan:
Buy HEPI today.
Note: Due to the low volume on this stock, we may not buy our regular full position here, we'll try to buy below $3.00, but we may buy higher than that. Our goal here is to sell this stock above $4.00 before October 2 although we are not setting any limit sell order yet.

Regards,


.

[AussieTrader]

That's cool Rams, I got me some HEPI already for the exact same reasons you mention in your overview 

Now normally I am not a fan of low volume stocks, but I made an exception with HEPI the combination of the story, the defined date (Oct 2nd shareholder update), and technically the close support on the chart made it a compelling set up for me. In fact I was in the proces of starting a HEPI thread, but hey no need for that now

This is a pure speculation play, but at the same time quite safe (well as safe as any OTC deal can be) My plan was / is to ride the speculation prior to Oct 2nd and sell before that date at anywhere between $4 and $8. Why sell before? Well although it sounds like they will release good (maybe great) news, you can never be 100% certain. That said if I am up nicely prior then may let some ride through the date and see.

Hey I feel even more confident about my HEPI position now 3SoF see's the same opportunity I do.

Good Trading

[422fwhp]

Was it purchased today?

I have a GTC order at $2.80

[tokyopua]

Was it purchased today?

I have a GTC order at $2.80

Looks like 3SOF got it at 3.06, not sure if it was a full position.  I got it at 3.10, and it was one of my only green stocks in a pretty ugly market for my other stocks...

[Ramsburg]

Update:
HEPI keep moving to the upside, this is a low volume stock, although current volume can be considered pretty strong and above average (it looks like some traders are getting in ahead of any expected good news). We believe that HEPI have the potential to trade above $4 before October 2 (press conference day).
We can't design a specific trading plan here, $2.70 should provide support in case of a throwback to the breakout level, our goal is to close this position above $4 while riding this current speculative move to the upside, its difficult to know what could be an acceptable top for an OTC stock like this... but something is definitively going on here...

Trading Plan:
Hold HEPI.OB
(No stop or limit order in place, but any price above $4 should be considered a good selling spot)

Regards,

[Stocky2000]

a good day to enter this stock below 3.00...

[AussieTrader]

a good day to enter this stock below 3.00...

Lets hope so Ket, I take it you now have your position

Nice support found at the 9ema, most of the days volume coming when the bottom was found at $2.85 and then on the run back up to $3.25. Volume remains high (on a relative basis) so this play is still shaping up.

Good Trading

[Stocky2000]

a good day to enter this stock below 3.00...

Lets hope so Ket, I take it you now have your position

hi aussie yes got some at 2.95 ....nice we closed at 3.25....

[AussieTrader]

The ducks are lining up......

Sep 28, 2006
SCOTTSDALE, AZ
MARKET WIRE 
Health Enhancement Products, Inc. (OTCBB: HEPI) today expanded on its prior
announcement that it will be holding an informal shareholders' meeting on
October 2, 2006 at 9:00 AM at the Westin Kierland Hotel in Scottsdale, AZ. The
purpose of the meeting is to update the public shareholders and other interested
persons concerning recent research projects and other current events affecting
the company, including the results of the Company's clinical trials concerning
the possible effects of ProAlgaZyme on HIV and Metabolic Syndrome. Members of
the public are welcome.

The meeting will be held at 9:00 AM (local time) in the GRAND BALLROOM at:

THE WESTIN KIERLAND RESORT AND SPA 6902 East Greenway Parkway Scottsdale,
Arizona  85254 Phone: 480-624-1000

In addition, the meeting will be broadcast live over the World Wide Web. For
the Web Cast, please log onto www.heponline.com and click on the following link:
"Health Enhancement Products, Inc. Live Web Cast."

For those coming from out of town and needing hotel reservations, please call
the Westin and mention Health Enhancement Products. We have blocked off rooms
and there will be a discount for our shareholders.

About Health Enhancement Products, Inc.

Health Enhancement Products, Inc. is a nutraceutical company engaged in the
development of a supplementary health-enhancing product using only pure,
all-natural ingredients. The company's sole product is ProAlgaZyme, a
phytopercolate that is produced from an algae grown in 100% distilled water.

The algae from which ProAlgaZyme is derived produces a phytopercolate which is
drawn off, filtered, tested and bottled for consumption. One recent clinical
study indicated that ProAlgaZyme has potential weight-loss properties, as well
as the potential to improve serum glucose management, when combined with a diet
low in refined carbohydrates and a light exercise regimen.

[Ramsburg]

HEPI @ $4.10 up +25.7% with 200k volume

[fous]

nice trade you got goin here

applauds

[AussieTrader]

This is a pure speculation play, but at the same time quite safe (well as safe as any OTC deal can be) My plan was / is to ride the speculation prior to Oct 2nd and sell before that date at anywhere between $4 and $8. Why sell before? Well although it sounds like they will release good (maybe great) news, you can never be 100% certain. That said if I am up nicely prior then may let some ride through the date and see.

Oh no the profit demon inside me is telling me to hold everything through this Oct 2nd meeting However my business risk aware angel is counselling me on the safer approach LOL

This trade did exactly as I had expected (hoped). Today it met my initial entry swing trade target which was $3.88. I think Friday will see $4 again.

[Ramsburg]

Thanks Aussie (applaud)

Update:
Great session for HEPI, volume jumped to 270k which is very strong on this stock, and HEPI traded above $4.00 for a while. This is coming together with our expectations for this trade, the PR date is getting closer and it seems that the buy pressure is getting stronger too

Remember, we bought HEPI ahead of any news, so we are playing «sell the news» here... Its difficult to predict any potential fluctuations, first because we don't know what kind of news are coming out, and second because this is a traditional low volume OTC stock.
The logical scenario for HEPI will be another big move to the upside today, and a big gap up on Monday because of the potential good news (I assume it is good news, otherwise the company would not advertise like this, and probably part of this volume is coming from insiders or people close to the company).

Exceptionally we'll not design an exact trading plan here, any price above $4.00 could be considered an excellent exit point, but the potential is unknown... 4.50 ? 5.00 ? 6.00 ? 8.00 ? All this prices could be possible for the next 2 trading days depending on many factors...
So we'll not set any specific limit exit price here, and we leave that to member's discretion.

Trading Plan:
*** Hold (suggested exit strategy: any price between $4.00 and $6.00 during the next 2 trading days)

Best regards,

[Terliso]

Good pick!

HEPI traded from 0.70 to 4.20 in six months that's about 475%, the chart looks like wants to consolidate in any trading day next week...

Above 4.20 in play on Ascending Triangle breakout, But this one could run up to $6 if the news is really, really good. IMHO... applause...........

[Ramsburg]

Good pick!

HEPI traded from 0.70 to 4.20 in six months that's about 475%, the chart looks like wants to consolidate in any trading day next week...

Above 4.20 in play on Ascending Triangle breakout, But this one could run up to $6 if the news is really, really good. IMHO... applause...........

Thanks for your input Terliso
I agree... depending on the news, this baby has the potential for that kind of target

Update:
HEPI was up again, keeping itself near the recent highs and trading high (relative) volume. The press conference will be held today in a few hours. We are expecting good news, probably some really relevant news for the company, but as explained before, we'll be selling «the news», whatever they are.
We can't design a specific exit plan for today, so we'll leave this exit strategy to members own judgment and we'll sell HEPI somewhere during today's session.

Trading Plan:
*** Sell HEPI today

Best regards,