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VOLUME 07: ISSUE 47
TTGL
Puts Money Where Mouth Is, SWEB Widens Net
Normally
I try and focus on one news item or idea in a newsletter. If we ever have
two things to feature, then I just have to pick what I see as the most
pressing one. Well, I think the fact that I'm including two today
speaks very highly of both affected companies.
Stockgroup's
Spinning a Bigger Web
Talk
about a double meaning! I have to say, from my point view, Stockgroup
Information Systems (OTCBB:
SWEB) looks just plain 'good for investors'......its own
shareholders, as well as any individual investors utilizing
their services. Why? Their expansion plans are being realized at a very
impressive pace, and today's acquisition adds yet another feature that
should broaden their appeal to the average retail (little guy) investor.
Remember
a few weeks ago we were highlighting how the acquisition of TeleCommunication
System's Mobile Finance Division was going to open up a world of opportunity
for institutional-level business? In a nutshell, the advent of Internet-capable
mobile devices like BlackBerry's and Treo's has by default created a new
industry - the delivery of financial and investment information via those
devices.
While
very 'Star Trekkish', it's can also be a little expensive to get that robust
data delivered to a hand-held device. Thus, it's mostly feasible for the
institutions - who could justify one to two hundred bucks a month per
user for the service. The good news for Stockgroup is there are plenty
of these upper-level customers.....the Mobile Finance enterprise was doing
about $6 million per year- profitably - when Stockgroup bought it.
Well,
Stockgroup
just brought a retail investor version of the same kind product into the
mix, with some retail investor subscribers already in tow. Specifically,
Stockgroup today announced the acquisition of Semotus Solutions' (AMEX:
DLK) financial wireless data assets. And when we say 'bought', we mean
they now own the whole kit and caboodle....current accounts, software code,
and intellectual rights.
The
software applications developed by Semotus essentially perform the same
function as the institutional version - getting financial and investment
information to and from the hand-held devices owned by the non-institutional
player. The key difference between Mobile Finance's version and the Semotus
version is the amount of data transfer required. The Semotus version isn't
a 'streaming' application, and therefore doesn't eat up bandwidth...which
means it's extremely affordable for any investor.
We
see this as a major coup for the company. Revenue will be realized immediately,
and, we can't imagine better hands for the Semotus application to be in.
Stockgroup was founded on the idea of catering to the average retail investor.
Plus, you don't need me to tell you what kind of growth the hand-held device
industry has already seen....or is likely to see in the future (industry
analysts expect the pace of hand-held sales to increase in the foreseeable
future). If anybody can take this ball and run with it, I think Stockgroup
can.
More
than that, I think the gettin' may be really good right now. After hitting
$1.45 in early April, Today's close of $1.17 may be an uncanny bargain.
Of course, we also saw a huge rebound once we hit a low of 99 cents, so
we doubt we're the only ones thinking that way. Point being, we don't
know how long the market's going to let these low entry levels persist.
If you're a fan of the company's stock, it may be time to accumulate.
If
you're looking for more, be sure to check out the blog.
Titan
Puts Money Where Their Mouth Is
Though
I've seen a lot in this industry, I think there are really only
a handful of basic characteristics of top-performing corporations.
One of these qualities - in my own layman's terms - is a company
that eats its own cooking, so to speak. When a company shows interest
in buying back their own stock, they usually see something good down the
road.
So,
when I read a few moments ago how Titan Global (OTCBB:
TTGL) was looking to buy back its stock, you know what I thought.
I see this as one of the ultimate internal votes of confidence in an enterprise's
value. In other words, I think this could be a really good thing for
TTGL shareholders, especially considering they intend to retire the shares
they reacquire
There
are two key benefits to current and any prospective TTL owners here.
First
and foremost, any concerted buying effort is apt to help keep the trading
level at least steady, if not going steadily higher (that's kind of what
happens when there are more buyers than sellers). Once there are fewer
shares, there will also be less dilution of profits.
The
second benefit to TTGL holders - and it's a close second - is
the message this sends out about Titan's management team and what kind
of opportunity they see for their stock. Rather than attempting to disperse
the risk of ownership, they're proactively trying to garner it. Why
do you think they'd want to that? (And that wasn't rhetorical....read
on.)
I'll
tell you what I think - I think they see the proverbial writing on the
wall. Sales are getting stronger, the company turned a profit for the first
time last quarter, and the stock is trading well under recent highs. And
compared to where shares were trading a month or so ago, these guys seem
to sense a value-based opportunity.
Per
the plan, Titan seeks to repurchase up to 4 million shares. Now, just because
a company says they're going to start a repurchase program doesn't obligate
them to. However, I will offer this on Titan's behalf...late last year,
they bought back 1.2 million shares from a fund company who provided capital
a couple of years ago. So, I don't really doubt the repurchase intent.
One
more thing..... as of March of this year, the management, directors, and
strategic investors of Titan owned or controlled about 75% of the 48.9
million issued and outstanding common shares. And now they're looking
to own more (relatively)? Talk about putting your money where your
mouth is!
From
where I sit, Titan's success seems to be gaining momentum. I'm not sure
why shares pulled back a few days ago. Maybe it was just time for a break,
and there's a whisper that one of the institutional owners got out of their
position. Frankly, it doesn't even matter to me - we set our target
at $3.00 based on revenue growth, and our valuation measure hasn't changed
by a cent. I see the company's goal of raising per-share value by reducing
the number of them as just icing on the cake.
Bottom
line - you may not be one of the VP's or on the Board of Directors at Titan,
but there's still a big opportunity to sit on the same side of the table
with them (and trade with them) at an unbelievable entry level of $1.20.
There may be a lot fewer shares up for grabs real soon.
Here's
the release.
Titan
Global Holdings Announces Commencement of 4 Million Share Open Market Buyback
Plan
Board of Directors
Cite Attractive Share Price and Company's Improving Fundamentals for Plan
to Decrease Share Supply
DALLAS--(BUSINESS
WIRE)-- Wednesday May 9, 2007--Titan Global Holdings, Inc. (OTCBB:TTGL),
a high-growth diversified holding company, announced today that the Company's
Board of Directors have commenced an approved 4 million share open market
buyback plan. The Board cited its attractive share price, as well as reported
record financial revenue results and strategic progress from its various
business units in making this decision.
As of today, Titan
has 49,129,052 shares of common stock outstanding. As of May 4, 2007, management,
directors, and strategic investors of Titan already owned or controlled
in excess of approximately 75% of the common stock issued and outstanding
shares.
"Titan's management,
directors, and strategic investors continue to view our share price as
a compelling value proposition," said David Marks, Chairman of Titan Global
Holdings. "Therefore, from time to time, these parties, including Titan,
have and may make additional open market purchases consistent with SEC
rules."
In a private transaction,
Titan previously announced its re-purchase on December 29, 2006 of 1,250,000
from Laurus Master Fund, Ltd. As of April 30, 2007, Titan had in excess
of 2,000 shareholders. On May 4, 2007, Titan's stock closed at $1.14 per
share. Titan's stock reached its 52 week high of $1.49 per share on March
8, 2007.
"Titan's metrics
have been exceptional with sequential quarterly increases in revenues,
EBITDA and earnings," said Bryan Chance, Chief Executive Officer of Titan
Global Holdings. "We intend to take advantage of this attractive share
price, which is currently trading at approximately 23.5% lower than our
52-week high. As such, Titan may from time to time continue such purchases
with the resulting decrease in the Company's float."
Pursuant to SEC
regulations 10b-18, the maximum price Titan can pay per share is the greater
of the highest independent bid or the last independent transaction price
quoted or reported; as for the daily quantity of shares purchased, the
daily limit is 25% of the average daily volume for the preceding four week
period.
Finally, once
per week, Titan can forego the quantity limit defined above and make one
block purchase of an unlimited size up to the unfilled balance of its approved
buyback plan. A block is defined as a purchase price of $200,000 or more
or at least 5,000 shares and a price of at least $50,000, or at least 20
round lots that totals 150% or more of the trading volume.
As Titan makes
open market purchases, after settlement, such shares will be cancelled
and the shares outstanding will be reduced. These purchases will be reported
in Titan's Form 10-QSB and Form 10-KSB filed with SEC.
Consistent with
Titan's previously announced policy, in addition to any share ownership
disclosure that is legally required by the Securities and Exchange Commission,
Titan will announce from time to time the aggregate ownership of its key
management, directors and strategic investors in an effort to provide complete
transparency to all stockholders.
About Titan Global
Holdings
Titan Global Holdings,
Inc. ("Titan") (OTCBB:TTGL) is a high-growth diversified holding company
with a dynamic portfolio of companies engaged in emerging telecommunications
markets and advanced technologies. In its last fiscal year Titan generated
in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio
Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson,
Texas, is a market leader in prepaid telecommunications products and the
second largest publicly-owned international telecommunications company
focused on the prepaid space. Oblio leverages strategic agreements with
Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name
prepaid calling cards. Annually Oblio sells an estimated 35 million of
its brand-name prepaid calling cards through its established distribution
channels estimated at more than 60,000 retail outlets.
Titan Wireless,
Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual
network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products
and wireless services through Oblio's established distribution channels.
Titan's Electronics and Homeland Security division specializes in advanced
manufacturing processes to provide commercial production runs and quick-turn
delivery of printed circuit board prototypes for high-margin markets including
Homeland Security and high-tech clients. For more information, please visit:
www.titanglobalholdings.com. For investor-specific information and resources,
visit http://www.trilogy-capital.com/tcp/titan/
or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html.
To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking
Statements
Safe Harbor Statement
Under the Private Securities Litigation Act of 1995 -- With the exception
of historical information, the matters discussed in this press release
are forward-looking statements that involve a number of risks and uncertainties.
The actual future results of TTGL could differ significantly from those
statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as the inability to finance the company's
operations or expansion, inability to hire and retain qualified personnel,
changes in the general economic climate, including rising interest rate
and unanticipated events such as terrorist activities. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of such terms, or other comparable
terminology. These statements are only predictions. Although we believe
that the expectations reflected in the forward-looking statements are reasonable,
such statements should not be regarded as a representation by the Company,
or any other person, that such forward-looking statements will be achieved.
We undertake no duty to update any of the forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
the foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk factors
associated with our Company, review our SEC filings.
Contact:
Trilogy Capital
Partners
Financial Communications:
Ryon Harms, Toll-free:
800-592-6067
ryon@trilogy-capital.com
Source: Titan
Global Holdings, Inc.
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Value Your Feedback
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the Editor
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or inquiry, please send it to our physical address:
TGR Group, LLC
4653 Carmel Mtn Rd Suite 308 #402
San Diego, CA 92130
Force
Protection Graduates
Just
an FYI......Force Protection (NASDAQ:
FRPT) moved to a NASDAQ listing on January 18th.This has nothing to
do with any of our active profiled small companies or other trading ideas
(as found in the Trader's
Corner or elsewhere). However, I still found myself compelled to let
you know.
Why?
Because we covered it as a bulletin board stock back in 2004/2005. And,
this stock more than deserves to graduate - it's up nearly 600% since the
time when we were studying it.....proof that there is major upside potential
brewing here in the world of bulletin board stocks.
Hope
you hung on to some of your shares from a few years back.
Is
J&J's Loss MIV's Gain?
Did
anybody else catch Monday's news about Johnson & Johnson (NYSE:
JNJ)? Trials of one of the company's drug-coated heart stents have
been
dropped. And they're also discontinuing sales of this CoStar stent,
even in countries where it's been approved.
The
company has another drug-coated stent already on the market, and says they
intend to use that coating to develop a new version of the stent being
dropped from R&D. However, it seems to me as if that's a 'back to square
one' move.
So
what? This may be a boon for MIV Therapeutics (OTCBB:
MIVT) and its drug-coated stent....there seems to be one less competitor
in the lucrative $6 billion-per-year market.
Even
if MIV only gets a fraction of the business J&J had (or was going to
get), we're still talking multi-millions here. Click
here for the full background on MIV's opportunity, which may have just
gotten a whole lot bigger.
And
yes, I think this is yet one more reason to own MIVT shares. I like the
way the stock has remained scrappy, finding support at the 20 day average
line and continuing to push higher. The next milestone I see is the 74
cent mark, where we topped in January and February. A move past that level
would be a new multi-month high, and could finally spark the buying interest
I feel is due here.
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SCN is owned and operated by TGR Group, LLC ("TGR"). All companies are
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