No home runs today, so let's try something new tomorrow

Published: Tue, 04/22/14

 

Good evening all,
 
WBXU didn't give us the bounce I expected today, but I'm very confident this will happen, soon.
 
My thesis is still intact. There appears to be very strong support at $0.009, just like I said in my original email.
 
There was signs of promise at the open, but some aggressive/impatient sellers put a stop to that.
 
But they couldn't break multi-month support, a very positive sign.
 
Please re-read my original email (below), as unless it breaks down below $0.009, I'm still  confident in this one.
 
If I am wrong though, we must cut our (small) losses if it breaks down below this support.
 
Most importantly, if you are disciplined, this has very low risk/high return potential.
 
So while we wait for the WBXU trade to develop, I have something that could be ready to move tomorrow.
 
I will send you all the details in the morning, which potentially includes some breaking news from the company.
 
Have a great evening.
 
ShiznitStocks.com
 
 
---------------------------------------- WBXU ----------------------------------------
 
 
Hello fellow investors / traders,
 
I hope you all had a relaxing long weekend and Easter break. I was hard at work looking at hundreds of charts and analyzing company fundamentals/SEC filings.
 
All to bring you the most profitable trade setups, of course.
 
Anyway, please take a look at WebXU, Inc (WBXU) today.
 
There are 3 (very good) reasons why I like WBXU for a trade.
 
 
#1 - The Chart / Technical's
 
Just take a look at the chart and it basically speaks for itself.
 
 
 
It is grossly oversold, having retraced 100% from its pre-run up levels back in February. And its RSI at 31 says the same thing - oversold.
 
The next thing you will notice with the chart, is the multi-month support levels of $0.01.
 
Yes it dipped just below this in February, but only for a very short time. Other than that, the last time it traded below this support level was back in November - again, only just under, and only for a few days.
 
WBXU is very well supported at $0.009-$0.01. The perfect launching pad for a bounce and possible short squeeze higher.
 
 
#2 -The Fundamentals
 
According to Yahoo! Finance, WBXU has a ridiculously low market capitalization of only $289k.
 
For those not too familiar with fundamental analysis, let me explain it this way.
 
Most companies trading on the OTCQB/Pink Sheets have a market cap in the millions, many in the tens of millions.
 
A market cap as low as WBXU has ($289k) is very rare. Value investors will be bargain hunting WBXU at these "cheap" levels.
 
Some of my biggest alerts have come from companies with tiny a market cap like WBXU has.
 
Even more interesting is that Yahoo! Finance says WBXU has an enterprise value (a measure of the value of the company) of $2.65 million.
 
This essentially means that WBXU should be trading almost 10x higher than what it is now!
 
 
#3 - Management
 
WBXU has an insanely strong management team, led by its CEO/Chairman Matt Hill - MUST READ
 
Mr. Hill has been at the forefront of Internet marketing since the late 1990's. During the 1990's, Mr. Hill was one of the original founding investors and employees of Shopping.com which sold in 1999 to Compaq for $220 Million. Mr. Hill worked with Prime Ventures and its portfolio of companies, including serving as Chairman of SuperNation, LLC, overseeing its acquisition in 2003 by Intermix Media, formerly EUNIVERSE (AMEX: MIX).
 
In 2005 Mr. Hill founded the E-Commerce entity Shopit.com, which he sold in 2009 to Atrinsic, Inc. Mr. Hill, serving as President, sold his most recent Internet brand services venture Adjuice, Inc. in 2010. Mr. Hill has served as an investor in Reunion.com, Realty Tracker (sold to Guthy-Renker in 2007), Demand Media (NYSE: DMD), Weblo.com, Vator.tv, Dolphin Search, Consumer Direct, Hollywood RX, and F3 Family Entertainment. Mr. Hill holds a BA in Economics and Communications from Boston College.
 
How is that for a resume? Very few micro-cap company's can boast having a CEO with these kinds of credentials.
 
You can learn more about the company itself at http://www.webxu.com. 
 
 
Now I think I have outlined a good case for WBXU to move higher off these current levels over the coming days, maybe even weeks.
 
The only caveat to my theory above is that if support at $0.009 - $0.01 does not hold, and we break down through this level, all bets are off.
 
Yes, it could fake a breakdown and then bounce higher, but it is important to stay disciplined and use stops - just in case. You can always re-enter a trade at a later time, be it minutes, hours or days.
 
I hope we have a profitable day in the markets.

 
ShiznitStocks.com
 

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