The last time I blogged Coates International, Ltd. (COTE) was to tell traders to short them (Read it here).  And, I was right.  I liked the company  fundamentally, but thought that the chart was setting it up for a fall.  COTE blazed a trail across the markets back in July of ‘09 almost tripling in value from around 40 cents to $1.15.  In my earlier blog, I said the following:  “The stock might be due for a correction in the near future.  Any kind of reasonable “support” for the stock is around the 50 cent mark….so, it could fall a long way!”

Three days later, the stock was at 53 cents! A penny stock, once again!

Now, the chart is turned around.  The stock price is depressed and I think that COTE should be watched for a bounce in the near term (and it could be the next hot stock if they start landing some contracts).

Let’s talk about the company:  COTE is the creator, developer and manufacturer of the patented Coates spherical rotary valve system (CSRV System) for use in various piston-driven internal combustion engines.  It is a technology that has been under development for over 15 years and may now be “ready for its closeup”.  The company is claiming that they have created the internal combustion engine of the future.  They claim significant benefits compared to the engines of today: Increased Engine Efficiency, Lower Emissions, Reduced Lubrication Requirements, Cheaper to Manufacture, and Adaptable to Multiple Fuel Types.  Here is a link to a very informative article done on COTE by Industry Online.  I am not an automotive engineer, but it sounds like COTE has something in their CSRV technology.

With the income of a Canadian sale for $10MM ($8 MM of which remains a receivable), its Chinese manufacturing initiatives and several Beta sites that are under negotiation, it might be a good time to put COTE on your trading radar.

The chart looks good for gains!

• COTE is trading near its 52-week low ($0.28);
• Watch to see if this level acts as support for the stock…any break below 32 cents should be watched to see if a new bottom develops;
• The MACD is drifting….with good news and some buying, it could turn bullish very quickly.

Another factor to consider about COTE that gives me comfort is the insider ownership.  I like the fact that insiders own over 80% of the company.  COTE hasn’t been an overnight sensation.  My impression is that they have a core group of founders and executives that believe in the mission of the company and are in for the long haul.  I hope they get rewarded, because that means I will be rewarded too.  I have put COTE on my own personal trading radar with the idea of buying shares in the very near future.  I have a call in to the company and will update my blog with any intelligence I gather.

Do your due diligence!

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

I have known about Adaptec, Inc. for many years…even traded it once or twice.  It has mostly fallen off of my radar screen lately because it really hasn’t been that attractive.  I was doing screens on Stock Fetcher this morning and I was amazed to see that ADPT was on my screen for stocks that are down 8 days or more.  That speaks opportunity to me, but not in the way I normally speak about stocks.

Adaptec, Inc. provides hardware and software data center solutions globally.  Founded in 1981, it may not be around very much longer.

If you were going to put a company in your “back pocket” for awhile, this might be the one.  I am typically a short-term holder and after the most recent market meltdown, I am going to stick to that philosophy.  A long term trade to me is a month.  But, it might be a good strategy to put some Adaptec shares away in an account that is long-term.

Why?  Because of several simple reasons:

1. The company is for sale.  In December of ‘09, ADPT announced the engagement of Blackstone Advisory Partners to ” assist in the sale of the company’s assets and operations”;
2. The company is currently trading at less than its net cash position
3. The company is trading for less than tangible book value

At $3.16 in cash at the latest Q, ADPT is clearly a “free stock”.  It is unclear what premium its operations and assets will command, but I don’t think I am going out on a limb by saying that ADPT will sell for more than cash.

Here is a chart that tells the tale of the once-mighty ADPT:

• Sellers are dominating clearly…very few up days over the past two months
• The MACD is strongly bearish, but the histogram indicates that the strength of the signal might be waning
• The stochastics are oversold (no surprise there)

Here is ADPT’s website so you can do your own due diligence.

ADPT may have some bounce in the near term, especially if the stochastics continue to show an oversold signal.  However, the pay day for traders in ADPT will be the sale.  I am very curious about how the company is valuing itself.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

P.S. - I am working out of the home today and I got one of those special stories that every work-at-home parent dreams of.  My absolutely adorable 4-yr. old Daughter, Teagan, needed to be in my lap while I wrote this blog.  Needless to say, I wasn’t very efficient.  Who cares?  I am reminded how blessed I am…by her and her three siblings.

Here is a picture so you can see just how blessed I am.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

I did a blog on Atlantic Wind and Solar, Inc. (AWSL) a few months back and am bringing it back to my members again (link to previous blog).  I think that AWSL might be a good trade for the near term and the long term.

To review:  AWSL is primarily a solar company that has taken advantage of the Ontario Government’s Feed-In-Tariff program to corner the market on rooftop solar installations in that province.  They have other projects outside of that jurisdiction, but the first projects that will make money for AWSL will be in Ontario.  I would encourage readers to view AWSL’s site.  Here is what I wrote in my previous blog:

“By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks.  They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.”

AWSL has been a hot topic on the boards and Penny Stock Chaser has been flogging it unmercifully.  AWSL was even on Tim Sykes radar for awhile and that is the company’s own fault.  They have decided to go the stock promotion route quite vigorously.  But, it is said in this business that small cap stocks don’t move without promotion…and, I believe it, too.

Let’s strip away the hype and take a look at AWSL.  Here is what I have learned from numerous sources:  PR, talks with their IR people, boards, 3rd-party articles:

• AWSL is for real;
• AWSL has partnered with major real estate developers in Ontario province like Cushman Wakefield and Remington Properties to lock up rooftops and other properties;
• They have secured a large number of contracts with the local utilities under power purchase agreements;
• They are working on several large debt financings that will capitalize the company in a big way;
• They are making noises about getting uplisted to larger exchanges (that is always a good thing for stocks)

Here is the chart so you can see what I am talking about:

• AWSL is trading in a range of between $2.50 and $2.75
• MACD is bearish, but is strengthening
• Volume has tailed off, but history shows that it can take off at any time
• Stochastics are neutral and could turn positive with more buying action

I own shares in AWSL and I bought in at around $3.75.  I guess I believed what I was writing.  The stock dividend brought my basis down to the level where I am in the black again.  However, I would like to see all of this potential become realized and I will watch with interest what effect the future news has on the stock.  I know that the shorters are betting that AWSL is all hype and will “fold like a cheap suit”.  I don’t agree.

I will actually end this blog with what I ended the last one:

“My conclusion is that traders should radar list AWSL.  If you trade it, make sure you have a tight trailing stop on it.  Take the gains as they present themselves.  If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO).  If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though.  I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.”

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

Disclosure: Long AWSL

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Winning Brands is currently a penny stock that has flirted with sub-penny stock  status very recently and then seemed like it was going to be  dollar stock…all in the space of a few weeks.

As you will see in the accompanying chart, Winning Brands, Inc. (WNDB) has been on a roller coaster ride of late.

I would look for some more confirmation that the stock is basing here at these levels.  It is highly volatile and appears to be under accumulation.

Winning Brands is one of those “take it on faith” stocks….because, there is not a great deal of  information available about them other than some PR, a website and a few filings.  They have made claims that they are going to be fully reporting.  I have talked to the company and they say that they are working aggressively towards that goal.

The company itself has a complete line of eco-friendly cleaning products that they are selling through retail outlets worldwide.  I have some experience in retail and while it is important for WNBD to get broad distribution, it is also important that they back up sales with ads, buzz, point-of-sale promotions….all stuff that costs money that WMBD doesn’t have yet.

They are on a fund raising campaign and will need every penny to make a splash in the market.  I did a very unscientific study and called my local paint store that carried WNBD’s products.  The counter person, at first, didn’t even know they carried it.  I insisted because I saw it on the site and she then located it.  I was hoping for a “gee whiz” testimonial about how this was the greatest product ever.  But, I didn’t get that.

That is, however, what WNBD needs to achieve….. A buzz that will carry the name of the company and its products to the four corners of the globe, literally.  Their “Extreme Home Makeover” tie-in is great, but where are the Billy Mays-type infomercials?  According to a December PR, they are working on a Direct Response ad program.  If that gets seen, it could be HUGE for the company.

WNBD might be a good little trader. It is building a following from what I read on the boards and it has a “story to tell”.  Any break below $.01 and the stock should be avoided.  But, if it can hold this level, then it might be a good entry point.  News and rumor are going to drive this company’s stock.

Be fast, be nimble with WNBD.

Good luck and good trading,

Jeffrey Dean

Note: Yahoo! Finance lists the name of WNBD as Global eTutor, Inc.  Google Finance and Pinksheets.com list it as Winning Brands, Inc.  This must be one of those corporate shells issues.

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A little company called Green Energy Live, Inc. (GELV) literally came out of nowhere in December of 2009 for my members.  A MASSIVE gain of 120% was the highlight of a very good December for Soup members.

Well, GELV is back! I track companies that we have done alerts for in the past and am excited to bring this one back to members.

Everyone knows that past performance is no predictor of the future, so I am not guaranteeing anything.  However, I still like GELV and think that it might be a great trade, again! continue

My apologies to the movie Network, but I am really ticked at Kender Energy, Inc. (KNDR).  Here is a company that seemingly had “the world on a string” and I believe has really let traders down.  Right now, the company is at the mercy of the discussion boards and chat rooms.

What do I mean ” at the mercy of discussion boards and chat rooms”?  It means that the company has, for all intents and purposes, disappeared.  The last PR was December of ‘09.  The PR before that was for the signing up of a distributor in one of the largest markets in the world…..Hawaii?  Two problems with that is that Hawaii is tiny AND KNDR doesn’t even have a working prototype.   The only “news” I get is on the boards and you know how reliable that is!

KNDR has a very exciting solar technology that they are touting.  (Web link here)  I have talked to a number of people about KNDR and they all agree that IF they can commercialize it, the technology could be huge.  According to my sources, KNDR MIGHT have an Alpha system by mid-2010.  What is an investor to do until then?

Since I like KNDR’s technology so much, I have gone over and above the “call of duty” to do research on them.  I called their IR firm (who is out of business and not returning calls), I have emailed the company on numerous occasions and I have talked with others about KNDR.  The company never got back to me and no one had any inside info on the company.

Here is their chart….You can see a steady decline and a lack of interest on the part of traders.

Will KNDR become a sub-penny stock?  It could, but I doubt it.  The company needs to put out some meaningful PR and let traders know that they have a pulse. If they get some news, this stock could rocket! There are a lot of people in the stock and they are rooting for it, too.

Be careful of the boards.  Many of the posts that I am seeing are highly suspect.

I am rooting for KNDR and their “solar engine”.  I am just not rooting that hard.

Good luck and good trading,

Jeffrey Dean

Editor’s note on 2-4-10 - I got an email from Robert F about KNDR that I thought made great sense.  Here is what he wrote:  “Read your blog, I agree with you that the company has been too silent. You would think that at a time when the company is in need of investor support, that they would give shareholders more transparency.” I couldn’t agree more

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

There is already a huge industry in America built around converting biomass into biofuel. Most of that conversion involves sugar, corn and corn kernel starch.  These readily available feed stocks seemed to be the perfect solution as a replacement of hydrocarbon-based fuels.  What planners didn’t realize is that corn and grain prices worldwide would skyrocket as biofuels were competing with food producers and growers for a finite amount of feed. What is needed is the next generation of biofuels that don’t rely upon scarce supplies of a pricey commodity.

That is where Raven Biofuels Corporation (RVBF) comes in!
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Carbon Dioxide (CO2) has gotten a bad rap for causing pollution, the greenhouse effect AND global warming.  Deservedly so, in most cases.

Fossil fuels such as oil, gas and coal have powered the world’s economic growth since the days of the industrial revolution.   As the world economies expand, so does the need for fossil fuels.  The U.S. Energy Information Administration projects that global energy consumption will increase 50% by 2030 to over 112 million barrels of crude oil per day.  The economic cost is significant with the price of oil and coal setting new highs seemingly every day, but the environmental impact is staggering with BILLIONS of tons of CO2 into the atmosphere annually.

What if there was a way to turn that pollution into profits?

Yes!  That is what today’s alert company Carbon Sciences, Inc. (CABN) is doing! continue

One of my alerts of previous months was Wind Works Power Corporation (WWPW).  It was a great stock for members!  When I profiled WWPW on November 19th, 2009 it opened around 88 cents and hit an intraday high of $1.40 just three days later. That is a potential gain of almost 60%.  Since that time,  however, the stock has “taken a break”.  It has retraced all of that gain and is trading below my alert price.  I think the time is right to take another look at WWPW.

I like wind power. I believe that it is one of the energy technologies that will help get America off the oil habit.  The challenge with companies is realizing that promise.  The high-profile “crash and burn” of Texas billionaire, T. Boone Pickens, and his failed mega wind farm in TX is just one of the black eyes the industry has gotten in recent years.

However, I understand more about WWPW and I like their business model. I have kept it on my trading radar and have talked to their IR people and I understand even more about the company.  If you read their PR and peruse their website, you will notice that they have an impressive array of projects in Canada and around the globe.  The challenge for an investor is to look beyond the hype and see if there is a business there.  I could say that I am a wind farm developer but without utility contracts, contracts with landowners, and financing, I am just a promoter.  WWPW appears to be much more than a promoter, BUT….

The important thing to understand with WWPW is that they will never complete a single wind farm project!

I will let you digest that fact for a moment.  What WWPW does is “packaging”.  They have a management team that has done before exactly what WWPW is contemplating now.  I will use their Canada operations as an example.  Currently, the company has 190 MegaWatts (MW) of wind power on the drawing boards (spread over 15 different projects).  With land locked up, plans drawn up and utility power purchase agreements in place, these projects are VERY VALUABLE.  The value of these projects is derived by applying a dollar sales multiple per megawatt and also factoring the ongoing revenues from the profits interest WWPW will retain.  According to the company, those 190 MW’s could conceivably demand a purchase price (from a utility or another energy company) of $500,000 per MW and also the company would keep a net profits interest of 5 to 20%.

Do the math in your head and it appears that WWPW could be a very valuable company in the near future.  At 53 cents, WWPW seems cheap to me based upon expectation of future earnings. I will use another company similar to WWPW as corroboration of my point.  Recently, Schneider Power, Inc. (SNE.V) was purchased by Quantum Technologies for what appears to be a high premium, but what initially drew me to SNE was that they had sold one of their wind projects off recently for a good price.  Read release here.  Schneider sold their interest for over $5 MM  and retained a profits interest going forward of up to 20%.

I apologize for going long in this blog, but I want my readers and members to understand the opportunity as I see it.

Here is the chart…which is attractive in its own right.  See my notations on the chart.

I plan on trading WWPW (probably today) and have a good feeling about it.  It is a company that has a quick path to profitability… and don’t forget that it has another 210 MW that are located in the United States and Europe that are in various stages of development.   Here is a link to an investor presentation nested on their site that makes a very strong case for WWPW (as you would expect it to) - Investor Fact Sheet

I have so much more on this company, but since I am not trying to write ‘War and Peace’, I’ll save it for another time.  WWPW might be worth taking some time to get to know.

Good luck and good trading

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company,  Investor Soup had previously been compensated to cover WWPW in November of 2009.  That agreement has expired. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.