The stock I am bring to your attention for this week is FLST Fuelstream Inc.
Please start by checking their cool website to learn about this great company http://www.thefuelstream.com/
You know it's not like me to just say big catch lines like "10 bagger here" or "play of the year" in huge bold letters. So although I strongly feel the stock could very well move over the course of this week a good 5 bags from it's current prices, and may be the hottest sub penny play of this slow summer. I won't write it in huge letters, I won't even mention it again at all. Just read the full blog post and come to your own conclusions.
Before I get into the facts on this company, and why I feel so good about it I must digress.
Before I get into the facts on this company, and why I feel so good about it I must digress.
If you've been following my blog posts you know that I love to find stocks that are beaten down and holding by bottoms, that have upcoming catalysts and low floats. Today I am breaking slightly from that MO, because although the stock was at a all time bottom Friday morning that quickly changed, and I as Friday was coming to a close I didn't mention the stock on Twitter because I was hoping for a pullback as people take some profits before the weekend. Unfortunately that didn't happen, and FLST surged off a bottom closing very strong at .0022 up 69% on the day, really the only sub-penny stock that trading strong moving up all day. Usually alerting a stock up 69% is very risky and dumb as it could mean the stock is a frontloaded dump leaving many bag holders monday morning while people drink the IHub Kool-Aid over the weekend. But I strongly feel FLST will not be like that and let me explain why.
Let me play out a scenario which i'm sure you've seen many times. There's a stock a low float and good company, the stock trades very well it moves great on news, and holds support levels and follows it's chart making a steady rise. The stock's support levels are around .004-.005 and moves up and holds over a penny for some time. You feel confident in your investment or have been swing trading it to perfection. The the stock starts moving down as it continues to dip you keep adding shares at .003 and .002 confident this great stock with it's low float and good revenues will surely bounce soon. But you watch the level 2 very weak bids and huge ask you watch and stock drops lower and lower and even when they put out news and bring big volume soon volume dries up and you sell for a loss. Then about a week later the stock suddenly surges back to like and pulls a 10 bagger in the course of a few days and now trades easily over a penny. This happens ALL THE TIME. the most recent examples of this that I can think of are TBEV and BBRD please see their charts.
The question is WHAT THE HELL HAPPENED ? Most of the time the answer is, that a company in order to raise more money to fund their operations issues convertible nots and dillutes the stock please read this link that explains how this works http://www.securitieslawyer101.com/convertible-securities/
When the note is being cashed in for shares, the increased selling and diluting drive down the price in most instances. However once the note is done, many times the stock will very quickly shoot back up to it's "real PPS" in some cases back to where it traded before the note was issued but many times the momo of the stock especially if it's a real low floater (see TBEV) can send the stock soaring much higher, especially if the company issues solid news during this move upward. I have seen many times quick 10 baggers over the course of a few days when this happens.
I have been a fan on FLST for a while (if you followed my twitter feed you'll remember one morning about 7 weeks ago when it we alerted it pre market and it moved up 100% in about a half hour on strong news) when I saw the dilution knocking it down, I made sure to have it on my radar and watch the level 2 to see any signs of dilution over. I noticed on Friday the stock was finally move up easily and didn't see any dilution during trading. I guess I wasn't the only one to notice this and Friday saw great trading on large volume. But now given this background you should why I am alerting FLST even though it was up "big" on friday. As always it is very key to watch level 2 for strong bid support, and keep a eye on the chart (see below) for support levels (add) and watch for break of key resistance points also.
This stock has everything that we love
- Beautiful Chart
- Super Low Float
- Real company with real strong revenues, OTC Pink Current
- Upcoming near term catalysts
- Dilution is over
Chart-
For a more detailed chart analysis I asked for the opinion of one of the best chartists I know. I strongly suggest you follow @funnypennystock if you look through his feed you'll see is charts and analysis are spot on, he specializes in being able to chart properly sub-penny stocks (which have different variables to consider then regular stocks) Below is his annotated chart.
Low Float-
The TA is ungagged below is the most recent updated share structure information as of Friday
I/O – 250,799,408
Float – 227,564,346
Low Float-
The TA is ungagged below is the most recent updated share structure information as of Friday
I/O – 250,799,408
Float – 227,564,346
The authorized share account per the most recent filing is just 750 million. For stock trading in this area a low float is usually considered around 800 million shares, FLST has a confirmed tiny 227 million share float!
Real company Revenue Streams-
As mentioned before please their website for the full info on the company http://www.thefuelstream.com/
Essentially their business plan is serving as the middle man in distribution of aviation fuel throughout the entire world. Get more details about it by clicking on the following link http://www.thefuelstream.com/services/ Please read their recent PR's over the last few months to see the huge growth they've achieved in the last few months. You'll find the company has had large revenue growth and will be posting it's most recent financials soon as well as having added additional fuel servicing sites in various airports throughout the world.
Read their most recent pr's http://www.thefuelstream.com/news/. Through their recent partnership with global fuelstream plans on overseeing the logistics of the delivery of over 3 million gallons of jet fuel a month. How does such revenue figure into a company like fuel stream with ridiculously low float ?
I found this post on IHub interesting
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=103719295
Upcoming Catalysts-
Late Friday the company put out a 8-k http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10092255 announcing the appointment of a new CEO I would assume we can expect a PR from the company early this week providing more details on this important change, as well as further updates from the company. Also in recent PR's they mentioned they were working on rapidly expanding growth and announcing new fuel sites in the coming months.
To sum it up we have a super low stock that is storming of the 52 week low with strong momentum, a real company with a great business plan, and rapidly growing revenues, that is expecting to provide many updates in the near term. Remember to watch level 2 carefully and watch for the stock to break key resistance points before adding more. I want to re-iterate the disclaimer I wrote in the beginning I receive no compensation in any way shape or form for any of my blogposts or for anything else for that matter that I say about any stock. This is not recommendations to purchase any security just my own personal ideas, I strongly suggest you don't invest any money on anything I say i'm not a profession financial advisor etc, etc,
If you have questions concerns please send me a e-mail at pennycheckers@gmail.com. I will try my best to get back to you within reasonable time.
Thanks.
Real company Revenue Streams-
As mentioned before please their website for the full info on the company http://www.thefuelstream.com/
Essentially their business plan is serving as the middle man in distribution of aviation fuel throughout the entire world. Get more details about it by clicking on the following link http://www.thefuelstream.com/services/ Please read their recent PR's over the last few months to see the huge growth they've achieved in the last few months. You'll find the company has had large revenue growth and will be posting it's most recent financials soon as well as having added additional fuel servicing sites in various airports throughout the world.
Read their most recent pr's http://www.thefuelstream.com/news/. Through their recent partnership with global fuelstream plans on overseeing the logistics of the delivery of over 3 million gallons of jet fuel a month. How does such revenue figure into a company like fuel stream with ridiculously low float ?
I found this post on IHub interesting
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=103719295
Upcoming Catalysts-
Late Friday the company put out a 8-k http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10092255 announcing the appointment of a new CEO I would assume we can expect a PR from the company early this week providing more details on this important change, as well as further updates from the company. Also in recent PR's they mentioned they were working on rapidly expanding growth and announcing new fuel sites in the coming months.
To sum it up we have a super low stock that is storming of the 52 week low with strong momentum, a real company with a great business plan, and rapidly growing revenues, that is expecting to provide many updates in the near term. Remember to watch level 2 carefully and watch for the stock to break key resistance points before adding more. I want to re-iterate the disclaimer I wrote in the beginning I receive no compensation in any way shape or form for any of my blogposts or for anything else for that matter that I say about any stock. This is not recommendations to purchase any security just my own personal ideas, I strongly suggest you don't invest any money on anything I say i'm not a profession financial advisor etc, etc,
If you have questions concerns please send me a e-mail at pennycheckers@gmail.com. I will try my best to get back to you within reasonable time.
Thanks.
