We have had 5 recent Disruptor plays since Aug 22nd
SSNI is the most recent and continues to consolidate nicely, we love it for upside in 2014 as a backlog of contracts likely grows. E-mail us for the password on that report if you missed it. Its online in the alerts/profiles section.
CUR- NeuralStem- Recommended at 2.27, now up 21% and we think huge potential
ENT- Recommended at 9.52, now 15.50 up over 55% and this one we were early on and it broke out a few weeks later.
SBOTF/KLH.V- Recommended at 1.13 back on August 22nd, has been to 2.11 and now 1.86. We continue to like it, has a near 13 week base pattern and a big conference call update is next week as announced by Stellar Biotechnologies today. (see their website)
TASR- Recommended at 12.28, ran to 18.50, now 16 and change and pulling back. This one hit our $18 target way ahead of schedule, so is now consolidating…
We will have a new Disruptor possibly out this week so stay tuned, we will send an advance Email to let you know the day and time if so.
CLICK ON CHARTS TO ENLARGE IN A NEW WINDOW
Updating our last 5 Disruptor plays (One every 2-3 weeks).
We give our “FREE” subscribers a Business Disruptor report every 2-3 weeks. Growth companies we think are under the radar, that can appreciate in value 30-150% within 3-12 months (often very quickly) and that we love the charts and fundamentals on.
Below are the last several with charts— the latest is SSNI— “You wanna fade us”?
We say Join Us…. instead…click the Green Subscribe button, enter your email, confirm.. and your in… like Flynn!
ENT- Global Eagle- 9.55
(Portions of this report are taken from other article sources)
55 million shares outstanding
120 million in cash or over $2 per share in cash, minimal debt
Good Article from Seeking Alpha: Click Here
Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide.
Probably a name we would wager none of our SR subscribers have heard of. Kind of like YY which has more than tripled, NQ which more than doubled, Stellar Biotech which is still climbing, and others right?
So let us introduce you to the next 60% plus gainer we think for SR members.
Here is company that has all of the elements for an emerging growth stock and for the “buzz” factor to get investors on board. Satellite, Internet Wi-Fi, Airline growth, Media, content, advertising and more all rolled into one company that nobody knows about. One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel’s recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only through the carrier’s Wi-Fi system.
Why does nobody know about ENT? This is a company that emerged from a shell, often referred to in the Wall Street business as an SPE. Special Purpose Entity. These are basically trading stock shells looking for an acquisition to form a business, they are very common. Essentially a group of high net worth investors, packaged up with strong management formed to acquire a business with a stock that is already tradeable. While the search is ongoing, the stock is usually thinly traded if at all until such time that the acquisition is folded into the company or the shell as it were.
This often gives rise to amazing opportunities while retail investors are totally asleep at the switch. We compare this company to GOGO, a Wi-Fi in-flight airlines internet provider. We were in fact going to recommend GOGO at 16.50 earlier this week, but decided that ENT is a much better value, better business, better balance sheet, better management, and likely much bigger upside as investors catch on. We like to be early, not late… early in the story is when you make the most bread folks. (NQ, FB, DATA, INVN, SBOTF, the list goes on of our plays)
ENT was formed by the former CEO of MGM Entertainment, Harry Sloan and CBS Entertainment President Jeff Sagansky earlier this year, Global Eagle has a strong management team, which has been helpful in securing content and gaining licenses for TV and film distribution. Global Eagle’s closest comparison is Gogo, which trades at a price-to-sales ratio of 5.3 and a price-to-book ratio of 4.7, compared with Global Eagle at 3.7 and 2.6, respectively. Global Eagle is expected to be profitable next year, while Gogo is not. Global Eagle has the stronger balance sheet, with only $8 million in debt, while Gogo has $245 million. Which raises the question: Why is Gogo worth three times Global Eagle in terms of market cap?
Its because investors do not know the story yet, and when they do as they did with YY and others… the stocks can move very rapidly to get to fair value.
Global Eagle has multiple revenue sources. In the second quarter, its largest revenue source was the sale or licensing of content, video and music programming, applications and video games, good for $38 million. Next were Wi-Fi, TV, Video on Demand, shopping and travel-related applications at $12 million. Third was the sale of satellite-based connectivity equipment at $6.4 million. Finally, Global Eagle brought in $5.7 million for technical services such as encoding and editing of media content.
The market for Global Eagle’s services is expected to grow from roughly $700 million last year to an estimated $2.1 billion by 2017. Expected to drive that growth is the rise of international carriers from market leaders Boeing (NYSE: BA) and Airbus, particularly in China. Global Eagle gets 60% of its revenue internationally and only 40% from the U.S. — but while the U.S. in-flight connectivity penetration rate is 43%, the international penetration rate is only 4%, making the international market the biggest opportunity for Global Eagle.
As a result, analysts expect Global Eagle to post revenue of $263 million for this year and $340 million next year. Earnings are expected to rise from a loss of $1.05 a share this year to a profit of $0.66 a share next year.
So you can purchase ENT now under $10 for about 15 times 2014 earnings estimates with 30-35% growth on the top line. In addition, the chart is ripe for a big move once over $10 per share on a technical basis.
We see the stock breaking to 11.50 once 10 is taken out… and fair value closer to $15 for a 60% gain potential. The stock fell hard during the market correction as you can see on the chart. This is also due to the fact that once emerging from the SPE shell, often there is alot of volatile trade as the stock settles. Now it has settled and is under heavy accumulation and also a nice reverse head and shoulder pattern. These tend to break to the upside, then more traders and investors get on board as the story comes out.
We mentioned XOOM, TASR, and SINA a few days ago as ideas. All of them are up, so we will update those and some others from the past.
Our track record of profiled picks is an 81% hit rate. Yes, we have had a few losers like ATOS, MNKD, DXM, but that is going to happen… what is amazing is the % gains we have seen with prior picks since March.
SINA- We mentioned this to buy with a stop at 78 in our E-mail earlier this week. Its bidding $88 in post-market trade on Thursday night as Twitter announced their IPO filing. Why? Because Alibaba which is also private, took an 18% stake in the Weibio business that SINA controls a little while ago. Weibio is considered the Twitter of China, and we figured that SINA will continue to see higher valuations. That and we really liked the chart. We have it going to $110 and later $140. We could have written it up, but we didnt have the time, so we mentioned with specific buy and stop advice if you read that e-mail.
XOOM- A Payment processor/transferor expanding worldwide. We mentioned it also, it zoomed higher and if it pulls back it may be a good entry below 30, but not sure if it gets there.
TASR- We all know we just wrote this one up with details as a long term Business Disruptor, we said to spend several days entering the stock and use pullbacks to your advantage… no change in opinion.
NQ- Hitting all time highs in after market action on Thursday night to near $21. We wrote it up at 9.20 and all the way to $8 we defended it. The Mobile Security Leader we called it back in May.
INVN- At multi month highs. We called it “The Next Intel” at 11.91 in May. Its nearing $19 here soon…
HIMX- We wrote it up on seeking alpha and on Stockreversals as a Wearable computing play. It was $4.55 then, its around $9.xx now for another 100% gainer for us.
YY- We wrote up this Chinese Text/Video etc play at 16.35, its $49…. Triple
DATA- Still loving this at 73-74 from our 59-52 BUY the stock write ups. We called it “The Next Microsoft” and we still believe it is. $96 was our target for 1st quarter 2014 and $76 for this fall, it already hit $76 once…
SNTA- In another one of our E-mails we said to buy this at 4.11 due to insider buying. It ran to $8 within a few weeks and is still doing well in the mid to upper 6′s. (BIOTECH)
FB- We wrote up Facebook at $28 in March and wrote a Seeking Alpha article on it telling investors to buy and hold. Its at $45 and climbing.
NM- Shipping stock we profiled in March, see the post on our website. We mentioned BALT, GNK, DSX and NM was the main one. NM rallied nearly 90% since… some of the others more than that.
We could go on, the point is we look for Strong Growth names that are somewhat under the radar or maybe unloved at the time.
Taser is the latest… it will be $18 we think by first quarter 2014 for a 50% move if we are right, but it wont happen overnight.
We hope you are enjoying the service… we will not get them all right… but we sure as heck will try.
(Our Premium service is also on fire, first two picks 31% in 6 days for #1 and 18% in a few days for #2. They both pulled back but we sold 1/2 and held 1/2 on each…. our next future growth premium pick is coming out within a few days, consider joining us)
For only $99 a month you can join us and get alot of very good and active advice and more…
Read more Here: http://stockreversalspremium.com
TASR- Taser International- 12.25 9/10/13 close
Editors Note 9/20: We opened this up to the public 10 days later today removing the password protection. The stock is at 14.86, already up a healthy 21% in 10 days for our FREE subscribers from 12.28 range…. JOIN US TODAY!
Buy ranges 11.30-12.50 over several days if possible… but could break out higher soon to 15, it’s tough to say… read below:
Yes, we all know about those TASER guns and how law enforcement use them on a regular basis to subdue criminals and those they are trying to take into custody etc.
This is well known. What is not well known is that TASER has been working for 4 years now on a platform that will take the TASER weapon to the next level. That level is allowing digital evidence (video/audio) as attached to a Taser to then be uploaded into the cloud into software, which the Police/Law enforcement agencies can use for many reasons. The AXON flex is a digital video camera worn on an officer’s body that TASER CEO Rick Smith says “will become standard equipment [at police forces] within the next 5-10 years.” EVIDENCE.com is a service TASER offers for recording and storing video recorded by the AXON flex.
1. Reduce civilian complaints.
2. Save on paperwork and courier services for evidence
3. Provide evidence for each use of a TASER weapon
4. Reduce lawsuits dramatically and costs thereof.
5. Increase the attractiveness to law enforcement of this new platform to adopt it.
New Product “BodyCam” being adopted as well (click to read)
Watch the Cramer CNBC interview with the CEO (click to view)
Recently a Judge in NYC ruled that the Police force could use digital evidence/video for their stop and frisk policies. The latest TASER AXON video product uses smart video technology with cloud based software to put it all together.
This is what we call getting in front of a new product revolution, which is often the key ingredient to move a stock higher. Just look at TSLA (Electric Cars), Apple (I-Pod, I-Phone), NQ (SR pick for mobile security on mobile devices) and many others.
With TASER, we have a well known former glory growth stock, and often they come back to life with a new exciting product cycle. The old traders who remember the glory days come back into the stock, and you can get these big moves
Overbought but Insider Buys Shares:
Now, recently the stock took off from 8.50-12.50 areas after the Judge ruled that these devices could be used on August 12th. The stock looks overbought, and it is. However, a Director of Taser, Pardovi Hadi doesnt seem to care as he just picked up another 50,000 shares at $11.89 on August 29th, taking his share count up to 224,000 shares. He also bought in February in the $7′s ranges for another 50,000 shares.
Judging by the volume bars on the chart, institutions are also getting in early on the product cycle even with the spike move.
That said… advice is to buy up here in the 11.40-12.50 or so ranges over a few days if possible. We would love the stock to drop down quickly to the 20 day moving average (see chart) but it may or may not happen. We would pounce on any downdraft day that may come ahead. There is a good chance this takes off over 13 and does not look back…
Suggested Buy ranges: 11.40-12.50 plus minus 10 cents or so roughly, see if we can get a pullback before buying more once you start a position. It may take off, we may miss it, but we are expecting a pullback…. suggestion is buy some for sure, then try to add on dips. That is how we roll on our team.
Chart will enlarge if clicked