News Details – Smallcapnetwork
The Sack Lunch Productions (SAKL) Outlook Isn't Just a Theory. OGES Flips the Switch.
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February 2, 2024

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PDT

Happy hump-day everyone. Did we all see the news from Sack Lunch Productions (SAKL) this morning? If not, no biggie - I can sum it up for you in one sentence below. But, there's a lot about the press release that also needs to be said, even if SAKL didn't make a point of putting it in writing. The news: In a nutshell, Sack Lunch posted a list of all its public scheduled events for the remainder of the year. It's already completed 56 events, and has 93 more lined up, for a total of 149. The number doesn't include the private sponsored evens various companies have booked for 2016. And, the list didn't include any event that may be added to the calendar in the meantime. For perspective on how much growth that is, last year, Sack Lunch Productions hosted about 100 of these events. The company anticipates about 250 of them this year. Then it hit me like a ton of bricks as I was reading through the list of all the events Sack Lunch Productions has on its schedule for 2016.... something we hadn't made perfectly clear yet. That is, the 250 events on the calendar for this year aren't just a best-guess or a goal. The vast majority of those are already booked events. It's not as if current and would-be SAKL owners don't have every reason in the world to expect the company's top line to swell from $10 million last year to $18 million this year. In that same vein, it's not as if the expected growth in net income from last year's $300,000 to this year's estimate of $3.4 million is just a hope either. The company knows how much each event brings in, revenue-wise, and how much they cost to host. The forecasted numbers are very much rooted in a reality that already exists. I still contend sooner than later the market is going to recognize the earnings outlook of $3.4 million justifies a much higher market cap than the current capitalization of $8.2 million. SAKL wasn't the only Featured Stock worth a look today, however. In a perfect world, news about or from a company would make it crystal clear how it was performing and how it will perform in the future, and the stock's price would gently, rationally change to reflect that new risk/reward scenario. We don't live or trade in a perfect world though, and with small caps we have to see and accept all the obscure hints a stock gives us, as a stock is as much a predictor of news as the other way around. I only make that point today to provide some of the context for the surprisingly strong bullish move Oakridge Global Energy Solutions (OGES) made today. It was up a whopping 12%, on pretty good volume. Interestingly enough, there was no news behind the sudden reversal. It just happened, organically. That's good though. If a stock can perk up like this on no news whatsoever, it's a sign there are some buyers out there waiting in the wings. It's also a good sign that somebody out there knows something. I mean, let's face it... there are never any true secrets on Wall Street. What does someone else know that's so bullish? Hmmmm. Anyway, if you've been biding your time waiting for an ideal entry point into what's an incredible (and incredibly overlooked) story, we think this is it. The close back above the 20-day moving average line today is a big deal. If you're not familiar with Oakridge Global Energy Solutions but are interested in how its game-changing technology is so disruptive, here's the SCN's first look. Anyway, we'd like to congratulate those of you who are also subscribers to the Under the Radar Movers newsletter. You booked about a 15% gain on your Stone Energy (SGY) trade today after getting into it only yesterday, and on Monday you booked a 26% gain on GlobeImmune (GBIM) after getting into it on Thursday of last week. Not that every trade in the URM service has been such a big winner so quickly, but, several of them have been as big and as quick is GBIM and SGY. It only takes a few of those kinds of trades per month to jump-start some sizeable growth in your portfolio. I honestly don't see why James Brumley and his crew are practically giving the Under the Radar newsletter away at only $14 per month, but that's none of my business. I'm just glad the low price means a bunch of people have signed up and have benefited from all those great stock picks. You can too. Finally, though the market may have gotten off to a good start today, it sure didn't finish the session with that bullish zeal. The stroll above the 20-day moving average line was soon turned into a pullback below it. Of course, it's not as if there was any appreciable volume behind the early bullishness OR the late bearishness. A nd then there's the VIX... the stinkin' ridiculous VIX, which soared today despite the market's anemic action. What's the deal? One word... Brexit. We'll know on Friday. It'll either be really good in the short run, or really bad. Most people know it too, and are positioning accordingly by hedging rather than committing. That's why the VIX is through the roof but stocks themselves are falling asleep. I suspect Thursday is going to be even more lethargic. We'll see. By the way, I don't know if we've mentioned this to you guys yet or not, but this Brexit business is far more noise than anything else. A month from now, it's really not going to matter. I know that sounds crazy, but after seeing SARS, a nuclear meltdown in Fukushima, North Korean missile tests, hurricane Katrina, a Greek debt crisis, and about a dozen other disruptive things all fail to have the long-term adverse impact they were supposed to have, I don't see this event being any different.