2 interesting picks for today

Have a look at ORT.TO and GPR.TO (GPL on amex)

These 2 have been hammered recently with a strange volume that looks more like a short attack than dropping for good reasons.

In the case of ORT, that company is close to getting in full production and was well above 3$ recently. They also got new patents and new contracts signed (please do some dd on it...absolutely fantastic company with a bright future)

GPR  Great panther has been knocked down close to 30% in just a couple of days. Sure silver price is low and it is a profit eating problem BUT remember that GPR gets paid 3-4 months after shipping. So whatever is shipped today will get paid at the next 90 days price. I find it hard to believe that silver will go down much lower.

Remember to  never invest more than you can afford to lose and always do your won due diligence before investing in any companies.
 

URGENT INT update

Well, the least we can say is that the financials for INT ending Dec 31^st were far from being stellar…

So, what is to be done on Monday morning?

There are 2 possibilities: you can sell if you think that INT share will be tanking rapidly and that there are simply no possibilities for any come back OR you can look at the storm comes in (if there is any) and hope for better days.

The actual problem is not only revenues but very high expenses that do not seems to stop and the payables that seems to be accumulating at high speed.

Any simple look at the documents filed on sedar shows that INT is in a very difficult situation at this time (based upon Dec 31^st results). Even if I will not go into them all, I would definitely suggest you do so at this time.

Now is there any hope? It might well be some IF contracts really start generating very good income. Based upon the last AGM and some NR, INT was indicating that all new opportunities will be geared toward generating revenues.

Will they be able to sign those deals? Will they be able to spin off Itibiti as they have mentioned?  Will they be able to spin out Ortsbo as everyone is expecting it?

There are actually too many questions unanswered and if I was only looking short term I would say that INT will have major difficulties coming back, from where they are actually, toward profitability.

Is this impossible, no  but odds are now against them and unless something major happen, I do not see share price going back to the level it was 1 year ago and it could even be difficult to get back over 25 cents.

On the other hand and as far as I am concerned, I would not be selling early on Monday because the storm that may start could be simply kind of tree shaking. The reasoning behind that is that normally market knows that kind of bad results and we should have seen already a major sell-off on Thursday or Friday but nothing major happened.

What is still interesting is the private placement of an extra 1M$ that should be closing soon and the 2,5M$ that just closed a couple of weeks ago. It is very difficult for me to imagine that those who subscribed the last one did not know the exact INT financial position and if future was not holding anything positive for INT why in the world would they invest that kind of money in INT?

So, in conclusion, INT was at Dec 31^st in a very bad financial position and I think that contracts signed may have generated some income in Q3 2013. To what extend? Very difficult to know and can only guess at this time.

One thing is sure, if INT does not reduce expenses dramatically and increase revenue rapidly, they will be facing difficult decisions to be taken and their future could be compromised.

So at this time I will recommend HOLDING any position that you are comfortable with still knowing that INT is now HIGH RISK and speculative.

As usual, do not invest more than you can afford to lose in ANY COMPANY and always take some profit when possible.

UPDATE UWN

Since a couple of weeks, trading on UWN was a lot higher than usual with a very good upswing from low 80's to over 1$ then back to mid 90's.

Well this sudden interest could come from GodStar slots playable on Facebook.

This is a new application that could be a great marketing tool for UWN. For example this morning on their Facebook site, they had posted an invitation to visit them in Seattle.

Well, if this advertising and promo tool is well exploited, it could definitely bring some more customers and profit to UWN.

This is another example showing that they are not sitting simply on their actual slot machines route and their mini casinos: they want to expand and I think they might be having a shot at that.

We also have to remember that UWN could explode rapidly if they were getting a casino license in Washington.

As usual, do not invest more than you can afford to lose.

Great Panther: time to get in?

Well, I do not recall seeing that panther at that price for a long long time. Thanks to silver price, we have now a very good and solid entry point into that PROFITABLE silver producer.

There has been many articles written about gpr.to  (GPL on Amex) recently on Seeking Alpha:

http://seekingalpha.com/article/1200601-finding-a-small-cap-alternative-in-great-panther

http://seekingalpha.com/article/1163221-bullish-on-silver-prices-why-this-panther-could-be-great-for-you

http://seekingalpha.com/article/1060611-silver-bug-7-stocks-for-you

As far as I am concerned, GPR.TO is not a speculative buy. That company has been producing silver for a very long time and in a profitable way and their last report where it shows intersecting high grade gold-silver mineralization will simply add again more reserves to it’s portfolio.

On their last reported quarterly results, GPR shows a cash on hand near 27M$ meaning that their cash position PER SHARE is over 20 cents PLUS a 4,5M$ in recoverable taxes totalling 31.5M$ or close to 25 cents per share. Strictly on a cash basis GPR.TO is actually trading only at less than 6 times on hand cash. When you add receivables (another 12,8M$) you then end up with Cash on hand and cash equivalent of 43M$ or 30 cents per share. This is very high for a profitable producing mining company. It is still a junior company but a highly profitable.

The real value of GPR.TO  is their properties because you may have the cash you want, if it sits in the bank and you do nothing with it, there is simply no leverage associated.

On the property side, well GPR.TO  has developed (or is the process) 3 more: San Ignacio. Santa Rosa and El Horcon.  Those 3 properties will add up again resources

So, why would the share tanked that much over the last 6 months from a high of 2,33$ in mid-September to a low of 1,39 on Friday February 15^th?

In my opinion, I believe that it is only a question of Silver price. What is interesting to compare GPR.TO to is NYSEARCA:DSLV that tracks silver. Without going too much into details, let’s simply say that when there is a net difference between those 2, GPR.TO has a tendency to fill the gap and actually there is one that has been amplified recently and GPR.TO will have to fill it pretty soon. The correlation between the 2 is interesting (but naturally not an exact science) and if it does, as it has done in the past, I expect GPR to get back closer to 1,85 to 2,00 range in the coming weeks. By doing so, there is a potential gain of close to 40%. That is really good as it will allow taking the profit on some shares and keeping the rest running at a cost close to 0.

So, am I bullish on this one: YES I am.  I own shares of GPR.TO since early 2012 and that company has been one of the most profitable companies I have ever traded. As I said, I always take some profit when possibility arise BUT I always keep most of them only selling some to reduce my cost base.

I fully expect a great future for GPR and can only imagine what will happen when silver goes back to 40-50$ range.

As usual, do not invest more than you can afford to lose.

A new platform is born from INT

Very interesting release this morning from Intertainment Media announcing a new platform where you will be able to chat in respect of your preferred topic AND without any language barrier.

For the past many months we have seen Ortsbo concentrating on business development and many investors were under the impression that the personal user segment was gone for good.

Well I must admit that I was taken by surprise this morning when INT  announce the birth of ''YAPPN'' .

That new platform seem to have all of INT trial test done over the last many months combined into 1 single place.

Those used to do some DD on Ortsbo must remember Fantalk where you were able to have a look at tweets or Facebook messages from other fans around the world and automatically translated into your own language. It was fun BUT it was missing something: you were unable to chat with those people. Based upon the release of today, it would seem that they found a way around that problem and that with the new platform you will be able to chat with all of those fans in your own preferred language.

Interestingly also is the fact that it is kind of a join venture where Ortsbo (INT) will get 60% revenue sharing.

This news release is really good and it is indicating that INT is still developing and testing new products.

How about the release also yesterday of the agreement with one of the major call centers to use Ortsbo Platform for their customer care business. Naturally no value was indicated and I must say that for competition reasons I would tend to agree with INT in that regard and we will see after Q1 release if it did increase revenues and by how much. My guess is that this simple contract will increase revenues by 100% over the year.

So with only 2 news release, INT / Ortsbo have now indicated that they have the intention to dominate the automatic translation world in the general public AND commercial area.

Will it help the share price. Yes it will and I would not be surprised to see a nice POP within a couple of trading days.

As usual do not invest more than you can afford to loose and it is always prudent to take some profit off the table whenever it happen.

UPDATE DRL (Doral Financial)

This is getting interesting. For the past couple of weeks, DRL was almost seem to be in a very narrow trading range with relatively slow average trading volume.

Not sure about this one but it seems that yesterday the volume picked up mid afternoon and ended up over the infamous 0,70 that we have seen very often.

This morning we see some pre-opening volume that does not make the usual day for DRL and again with a higher pre-opening price.

May not mean a lot BUT remember that BPOP did a great profit during the last quarter and its shares went up dramatically yesterday well above what I could have expected as being a great day.

Now, what is that volume and pop up in price for DRL ??? Is this a leak (they will release quarter numbers on the 28th) or short covering in case of a great quarter???

What was interesting from BPOP results is the lowering of provisions for bad debts and this could affect positively DRL also.

One thing is sure, with the nice profit realized by BPOP, if DRL does not show the same kind of improvement, well they maybe in big trouble BUT  if they were to disclose a meaningful profit then it could be the start of a great stretch upward.

I will paly a bit the momentum that seems to be happening now and will most probably get some out before the numbers are release just in case and still make a good profit (in my opinion).

As usual, do not invest more than you can afford to lose and always take some profit when possible.

You can follow me on twitter: @investman2

UPDATE INT.TO

Well, the least we can say is that it is exceptionally quiet at this time with Intertainment Media and especially in the wait for updates on contracts that everybody are waiting for.

It has been a long time since INT has promise news about contracts to be signed that will generate good revenues.

It is very curious not having hear from them in a long time and I suspect that things are still moving in the right direction and until the actual placement is close we will not get finally what we all expect: profit generating contracts.

The shares have been hammered down since last year with some rapid up's that traders could have used to make a quick profit and at the same time reducing the core base cost.

INT is a venture play meaning that it is a start-up company with all the risks that do comes with a tech company.

I do still think that this could be a great profit generator this year for the shareholders that have been patient for a long time and that ANY new contract will change the share price instantly moving it higher in a blink.

Naturally the last time it hits 3$ INT did not had that many shares so 1,50$ would be a great achievement and this number is easily achievable: they need 1 or more profitable contracts and that would do the trick.

Will INT succeed: yes they can and now the ball is in the management team.

As usual do not invest more than you can afford to lose and it is always safe to cash in some profit when the occasion arise.

You can also follow me on twitter at:  @investman2

ALERT UUU.TO

I have been supporting that company for a long time and knew that uranium spot price will get back to a more acceptable price in the next 12-18 months.

This morning UUU advised us that they will go private for a meager 2,86$ per share.

That offer is far below the real value of UUU.TO and anything under 4$ should not even be considered.

I will definitely say NO to this one even if chances of blocking the deal are minimal.

When you get your special shareholder meeting material, be sure to follow the instructions and vote.

François