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VOLUME 07 : ISSUE 75
Smart
Energy Plays Offense With Its Stock
Though
I said it only a few days ago about the very same company, I think it bears
repeating now...there are almost always two messages being delivered
in one news release. I believe today's two messages from Smart Energy Solutions
Inc. (OTCBB: SMGY) both
bode
well for shares - the 'read between the lines' one even more so
than the straight-forward one.
The
'big news' is simple enough - Smart Energy has hired an investor relations
firm. H.L. Lanzet Inc. will be taking over the company's dealings with
investors, media, etc. As far as publicity goes, it's a relatively common
practice, and should be a win/win relationship.
The
first message I took away from the press release was the obvious one -
the knowledge that Smart Energy now has an outsourced IR team. Personally,
I thought it was a great move.
It's
not that the company did a bad job with it on their own (they actually
did quite well on their own). It's just that I've always felt a management
team's focus should be on results within their area of expertise. In Smart
Energy's case, their expertise is manufacturing and selling Battery Brains
- not fielding the market's questions. I say let the investor relations
folks take care of that.
Reading
Between The Lines
The
second message I took away was far more subtle, but maybe far more important.
It all starts with a simple question..."Why is an IR outfit merited
now, but not before now?" And investor relations experts aren't cheap....Smart
Energy is making a substantial investment here.
In
my experience, outsourcing such an important task isn't a defensive measure,
but an offensive measure - one a company takes before something
big happens.
Smart
Energy spent most of last year getting its ducks in a row, so to speak.
During most of that time, the stock's price wasn't the major concern -
the company was focused on perfecting the manufacturing process, and starting
the sales process with the big retailers and auto dealers (a 6 to 12 month
process in most cases). Even if the company wanted to bolster the stock's
price, it wouldn't have really been supported by results.
This
year, however, has been radically different. All the ducks are
lined up...and have been for a while. The company has instead been working
on expanding the product's footprint, which will ultimately mean revenue
- you know, the stuff that inspires a stock's trading level to rise.
Here's a very brief recap of what I mean:
07/25/07
- Smart Energy Solutions signs distributions agreement with CLP System
AB, Sweden - To Expand International Presence
07/16/07
- Smart Energy Solutions reserve power module standard on all Riverside
Kia of Macon, GA new vehicles
06/25/07
- Smart Energy Solutions to unveil advanced Battery Brain for Army vehicle
systems
06/11/07
- Smart Energy Solutions completes shipment of Battery Brain to Royal Dutch
Touring Company
05/30/07
- Smart Energy Solutions signs distributions agreement with leading U.K.
distributor the Amethyst Group
04/30/07
- Smart Energy Solutions announces new product to be launched by Canadian
Tire Corporation
04/24/07
- Smart Energy Solutions and Autolite(r) brand enter into licensing agreement
....and
the list goes on and on.
We've
been pounding the table pretty hard about this company, cognizant of the
recent ramp-up in production and sales outlets. We suspect sales will also
ramp-up accordingly over the next several months. That's why we encouraged
you to go ahead and take on a position while nobody else had SMGY on
their radar. Once any verified sales started to flow in, we figured
the market could get excited (and bullish) in a hurry.
Well
ladies and gents, we think the SMGY secret isn't going to be much of
a secret anymore. If you were still thinking it over, your window
of opportunity may be closing fast. Why? Two reasons.
First,
the addition of a professional IR firm we believe is very likely to help
investors feel more comfortable with owning SMGY shares. That's just what
investor relations people do.
The
second reason is, the company has pro-actively turned its attention
on getting the investment angle of their story out there in a meaningful
way. The CFO is already the investor contact, and they have a media
person as well. Now they add an investor relations force? It's pretty
obvious to me the company is gettin' real serious about keeping
its stock fully valued.
Window
Of Opportunity Closing Fast
Yeah,
I know signing an IR firm is neither a technical nor a fundamental reason
to be a shareholder (though we like SMGY based on both of those criteria
as well). Sometimes, however, it's the little things like this that can
finally tip the scales in favor of a good company's stock.
Even
without
today's news though, I still think this stock is a high-octane idea
on the verge of firing on all cylinders.
Remember
last week's update on SMGY (Smart
Energy's Army Now Marching in Sweden)? There were two key points we
made about the chart:
1)
June 25th's deep intra-day low of 46 cents may have been the pivot point.
Hopefully it washed out any lingering sellers. In fact, to me it looks
like it did. Why? We've seen higher lows ever since then.
2)
Though
the lows are getting higher, SMGY has spent most of this year in a range.
The bottom edge of the range has pretty much been the 38.2% Fibonacci retracement
line, while the top edge has been the 50 day moving average. The resistance
provided by the 50 day line, however, appears to be under a serious attack.
Well,
you can add a third feature that suggests now may be a good time to become
an owner....we're now seeing higher highs and higher closes. It's
subtle, but there. The proof is a 20 day line that's pointed higher again.
I just
get the feeling this stock's time has finally come. The new investor relations
group may be able to supply the right nudge. And, who knows what else the
company might do in the near future to support its shares. As always, I'd
much rather be in a position before the last proverbial straw rather than
chase these shares later.
Here's
the official word form the company...
SMART
ENERGY SOLUTIONS SIGNS INVESTOR RELATIONS COUNSEL
POMPTON PLAINS,
N.J. - August 2, 2007 - Smart Energy Solutions, Inc. (OTCBB:
SMGY), developer and manufacturer of the innovative Battery Brain(tm)
product line of vehicle and marine devices, has retained H. L. Lanzet,
Inc., New York investment relations counselors, to represent Smart Energy
to the investment community and financial media. Lanzet specializes in
small and micro cap companies.
"We've signed
a number of new contracts and are gaining significant traction in both
national and international markets. We believe it's time for us to ramp
up our communications and get our story out to the investment community,"
said Pete Mateja, CEO of Smart Energy Solutions. "Lanzet can help us improve
our exposure in the North American investment community."
Lanzet, which
has over 50 years experience in investor relations, financial public relations
and venture capital, represents clients with corporate finance officers,
money managers, autonomous brokers and financial media. In recent years
the company has focused on emerging growth situations.
About Smart Energy
Solutions
Smart Energy Solutions,
Inc. (OTC Bulletin Board: SMGY; Berlin: UBM.BE; Frankfurt: UBM.F) is the
sole owner of the Battery Brain line of vehicle accessory products. The
company is headquartered in Pompton Plains, NJ, with operations in Zhuhai,
China, Milan, Italy, Petach Tikva, Israel and Clifton, NJ. Visit www.smgy.net.
Forward-Looking
Statements:
Actual results
could differ materially from any forward-looking statements contained in
any Smart Energy Solutions press release. All statements made in this press
release are made as of the date of the release and could change due to
unknown risks and uncertainties.
# # #
Media Contact:
Smart Energy
Solutions:
Bruce G. MacDonald,
Liebler!MacDonald - 248-233-8062, bmacd@liemac.com
Investor Contact:
Ed Braniff, CFO,
Smart Energy Solutions, Inc. - 973 340 6000, ebraniff@optonline.net
Paul Holm, H.L.
Lanzet, Inc - 212-888-5470, lanzet@aol.com
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Stock
Buyback Breathes New Life Into Titan Global
Want
proof that things like tumbling markets are no reason to not keep good
companies on your radar? Just take a look at Titan Global (OTCBB:
TTGL) over the last week and a half - it's going like gangbusters.
We
first mentioned it was possible last
Tuesday in a blog entry - the day after we learned they
had acquired Appco. The stock managed to bust through a key resistance
line in addition to all of its key moving averages. Some decent follow-through
on Wednesday really got our attention, then Thursday's marketwide debacle
stole the spotlight. However, it didn't detract from whatever was going
on with Titan....it's still raging.
The
catalyst? We got an update on Wednesday that the stock buyback has started.
To date, they've
bought 436,000 shares of the four million they plan on re-purchasing.
We could chalk some of the recent strength up to the buyback effort, but
not enough to say it was the only reason. We've seen 390,000 shares already
trade this week on top of last week's 457,000. The week before that, 235,000
shares changed hands. That's a total of more than a million shares in less
than three weeks. So, some of this strength has to be true organic stuff....the
right reason for a stock to go higher.
Regardless
of why, I think the breakout has made this idea a pretty darn good one
again. Everything we liked about the company before is still out there
- and we have a couple of new reasons to like it even more.
Remember,
our suggested target of $3.00 still stands. By the way, the last big run
between May of last year and March of this year was a quadrupler. So, I
think this one is certainly capable of making that move. I'd personally
rather jump in now at the beginning of a potential move rather than wait
and see.....and end up missing out.
To
see the chart, click
here.
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