First Penny Picks announces this week's micro-cap stocks with solid revenues. Titan Energy Worldwide, Inc. (OTCQB: TEWI), Red Giant Entertainment Inc. (OTCQB: REDG), Baristas Coffee Company Inc. (PINKSHEETS: BCCI) and Groveware Technologies Ltd. (OTCQB: GROV).
Titan Energy Worldwide, Inc. (OTCQB: TEWI) has $19 million in revenue, enormous growth numbers, and news that is bigger and better than most companies in the OTC market. Yet, at the close Friday TEWI's share price was barely over four cents and the total market valuation is a grossly undervalued $2.9 million. Get the full TEWI technical report here: http://bit.ly/FPPResearchReport
Red Giant Entertainment Inc. (OTCQB: REDG) had just under 106K in revenue last quarter. Should these earnings stay flat we could see 400-420K in revenue over the next year. Friday REDG securities closed at .09/share. With a current outstanding share count of approximately 434M that's a market cap 39.1M. Now, especially within the OTC market we see companies trading at many times their earnings. Right? However, 92 times earnings is pretty close to where Facebook's IPO started and we all know what happened there. However, there is always a flip side to the coin... Get the full REDG technical report here: http://bit.ly/FPPResearchReport
Baristas Coffee Company Inc. (PINKSHEETS: BCCI) had 413K in revenue for the quarter ending September 30th, 2012. BCCI has been on our watch list since last fall at around 1.2 cents per share. BCCI announced on March 6th, 2013 that they completed all requirements and that its application to receive a symbol to be traded on the NASDAQ Capital Market has been approved under the symbol (NASDAQ: BAPI). With a current PPS of around a nickel we are still a little uncertain as to how these requirements are being met. Here is brief overview of what we believe to be the most up to date Nasdaq listing requirements.
Approved alternatives to Nasdaq's historical $4 minimum bid price listing standard. Under the new alternative listing standards, a security may qualify for listing on the Nasdaq Capital Market if:
$3/share price -- for at least five consecutive business days prior to approval, the security has a minimum closing price of at least $3 per share and the issuer has either:
Equity Standard: (A) stockholders' equity of at least $5M; (B) market value of publicly held shares of at least $15M; and © a two year operating history; or
Net Income Standard: (A) net income from continuing operations of $750,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years; (B) stockholders' equity of at least $4M; and © market value of publicly held shares of at least $5 million; or
$2/share price -- for at least five consecutive business days prior to approval, the security has a minimum closing price of at least $2 per share and the issuer has (A) market value of listed securities of at least $50M; (B) stockholders' equity of at least $4M; and © market value of publicly held shares of at least $15M.
In addition, the issuer must also demonstrate that it has:
Net tangible assets in excess of $2M if it has been in continuous operation for at least three years;
Net tangible assets in excess of $5M if it has been in continuous operation for less than three years;
Or Average revenue of at least $6M for the last three years.
Nasdaq-listed securities have historically not been regulated as "penny stocks" (which subject broker-dealers trading in them to additional disclosure and other requirements) because of the exception for securities registered on a national securities exchange that, among other things, required a minimum bid price of $4 per share at initial listing. NYSE Amex benefits from a "grandfather" exception that permits lower initial prices. With Nasdaq's new alternative listing standards, it can compete with the NYSE Amex for listings in the $2-3 range. However, it is possible that companies listing under these lower standards may become "penny stocks."
To address this, new Nasdaq interpretive guidance (IM-5505) provides that an issuer listing under the alternative price requirements may become a "penny stock" if the issuer does not meet the net tangible assets and revenue tests after listing and does not satisfy any of the other exclusions from being a penny stock contained in Rule 3a51-1 under the Exchange Act. Nasdaq will monitor issuers whose securities are listed under the alternative price requirement, and publish on its website on a daily basis a list of those companies that no longer satisfy the net tangible assets or revenue tests, nor any other exclusion from being a penny stock. If a security subsequently has a $4 closing price for at least five consecutive business days, it can be reevaluated under the regular Nasdaq qualitative and quantitative initial listing standards and deemed listed under these standards. Nasdaq has represented that its review of the issuer's compliance at this stage will be "robust" and "wholesale." In addition, Nasdaq has represented that enhanced surveillance procedures will be used to monitor anomalous trading in securities listed under these alternatives.
With Nasdaq now competing with NYSE Amex for listings in the $2-3 range, mid-sized IPO candidates have additional options for accessing the capital markets. Get the full BCCI technical report here: http://bit.ly/FPPResearchReport
Groveware Technologies Ltd. (OTCQB: GROV) had about 87.4K in revenue last quarter and according to a recent press release by the company they have seen a 300% increase in downloads of their MobiTask app. As of December 6th, 2012 GROV had 61.5M shares outstanding and a recent market cap of just less than 8M reflected by a PPS of 13 cents. This company is participating in a 1.3B dollar market and could see substantial growth from here. Get the GROV full technical report here: http://bit.ly/FPPResearchReport
Disclaimer: Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. We accept no liability for any losses arising from an investor's reliance on or use of this report. This report is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Certain information included herein is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. First Penny Picks has not been compensated for this report.
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