RAYS, SRRL, DGHG – Today’s Hot Stocks

Raystream Inc. RAYS

 

Once again, RAYS, pushing its way to new highs, just keeps going and going, recalling images of the Energizer Bunny!The stock reached 1.89 on Wednesday, up 40% since our initial alert at 1.36. It appears as if a break of 2.00 is in the cards for this play, and after that, there is no telling just how high RAYS could go.

A lot of people are talking about RAYS like it’s the next LEXG, another heavily promoted stock from approximately a year past. We personally feel that it is never to soon to protect your profits, so despite a great run thus far, we are always trying to ensure that our eyes don’t get bigger than our stomachs, so to speak. As always, vigilance is key.

Diversified Global Holdings Group, Inc. DGHG

It is an exciting day for DGHG and its shareholders, as a highly sought after phenomenon has come to pass: Exchange Uplisting!  This is the first day that the stock will be trading on the OTCQB, having come up from the Pinksheets.

As long-time DGHG followers, we feel a sense of satisfaction when one of our covered issuers makes such a significant stride forward.

Let’s also remember the 12% share reduction from last month. All in all it appears as if Diversified Global is making all the right moves.

DGHG UPLISTS

DGHG uplisting to the OTCBB & Video Chart
DGHG uplisting to the OTCBB & Video Chart

Stellar Resources, Ltd. SRRL

SRRL was a great call for us this week, as it seems caught the timing of its bottom with astonishing accuracy. In August, the stock was trading over .20, and this month, it ran from .03-.055, for an 83% gain in just two trading sessions. Based on SRRL’s history, it seems anything under .03 is a bargain-basement price.

SRRL INSIDER BUYING

In a very exciting turn of events, the CEO of SRRL has submitted a Form-4 outlining the purchase of a whopping $3,000,000 worth of company stock. This is way larger than your typical insider buy, leading us to believe that something could be going on behind the scenes for the CEO to have that much confidence.

SRRL Video Chart - Stellar Resources, Ltd. (OTC:SRRL)
SRRL Video Chart – Stellar Resources, Ltd. (OTC:SRRL)

DGHG – Diversified Global Holdings Group – Today’s Hot Penny Stock

Diversified Global Holdings Group, Inc. DGHG

DGHG made a nice move at the time of our first mention, and subsequently came down to find support at a dollar. We like this company a lot, and there have been several developments in recent weeks to strengthen our resolve in calling this a long term opportunity.

Value Could Approach $2.00+ per Share based on these facts and figures: 

  • Diversified Global recently reported $203M, an equivalent of $2.33 per share, in shareholders’ equity, which means that the current stock price is trading roughly 100% lower than actual valuation.
  • Excluding land, equipment and the like, DGHG’s total assets are around $0.38 per share, which represents a fairly significant percentage of the share price.
  • Diversified Global recently reported bottom-line growth rates of 256%, according to the latest 10-Q.
  • The company reduced its share count last quarter by 6.7%, and only recently retired another 12%, indicating the company’s dedication to building shareholder value.

  All in all, 1.09 per share seems like an absolute bargain.


Side Note:

We urge our readers to take a look at the Opportunist Magazine Wall Street Journal Edition online, if you would like to receive paper copies by mail, fill out the form on this page. The magazine’s October Edition features our repeat play, Dinewise, Inc. DWIS, and our one-time play, Global Entertainment Holdings GBHL.

EXTO, DGHG, EMBA – Today’s Hot Penny Stocks

Exit Only, Inc. EXTO

Once again talking about EXTO this morning, as the company released an updated share structure which we have included here:

As mentioned earlier this week, the MACD indicator was beginning to pinch, and that motion is continuing here as the chart prepares for a cross, at which time we should experience a noticeable uptrend.

That trend is already in the making as yesterday marked the first green session this week. We expect next week to be far more productive, however, as most of you have undoubtedly noticed, we are in this play for the long haul, as any price below a penny seems a distinct undervaluation.

Diversified Global Holdings Group, Inc. DGHG


DGHG is another good long-term play for us, and the following PR is another confirmation that the company is dedicated to building shareholder value. With big news like this, it is easy to view DGHG shares as undervalued.

Results in the retirement of approximately 12% of shares outstanding


ORLANDO, Fla., Sept. 27, 2011 /PRNewswire via COMTEX/ — The growing international holding company Diversified Global Holdings Group Inc. (OTCQB: DGHG) recently announced that DGHG’s commitment to exploring diverse opportunities for growth has resulted in a decision to dispose of its two electronic component businesses in the Russian Federation. Additionally, negotiations with Nikolay Uraev, one of the three original founders of the company, have resulted in his agreement to contribute to capital 11 million shares, which shares will be retired.

This announcement clarifies the expected amount of shares to be retransferred to the Company by departing Director Nikolay Uraev, the former owner of the Kontakt LLC subsidiary, which he is repurchasing for the 1,100,000 shares to be retransferred to the Company. Kontakt is one of DGHG’s two Russian electronic component subsidiaries.

With this agreement, approximately 12% of outstanding shares have thereby been positioned for the retransfer. Neither retained earnings nor cash flows will affected by the closing of this transaction, assuring a greater efficiency in the course of creating positive value for shareholders.

eMamba International Corp. EMBA


EMBA’s chart bears a big resemblance to EXTO in that the MACD is starting to pinch toward a cross. The stock ran from a low of .17 on Aug 17th, to a high of .775, a monstrous gain of 356% After retracing back to .36 it appears to have found a solid foundation, and a good jumping off point for those of us who are new to the stock.

eMamba is a leader in cloud-based software driven resource planning, and after-sales customer relationship management.

EMXC, DGHG for Today’s Midday Alert

eMax Holdings Corp. EMXC

EMXC, after touching a low of .0013 on Monday and Tuesday, hit a high of .0021 today for a 62% one-day gain. The MACD cross we expected has occurred, as pointed out on the chart below:


We were on the lookout for a fresh PR, and the company delivered in kind this morning, with some rather exciting news regarding a $50M loan

ORLANDO, Fla., Sept. 21, 2011 /PRNewswire via COMTEX/ — eMax Worldwide, Inc. formerly known as eMax Holdings Corp (Pink: EMXC) www.emaxworldwide.com announces the execution of loan documents in the amount of $50,000,000.00 (Fifty Million Dollars) with Inter Global Investments, LLC. In addition, EMXC has received bank confirmation from Inter Global Investments, LLC.’s shared credit facility. eMax Worldwide has received confirmation from their Lender’s Bank of a shared credit facility in the amount of $50,000,000.00 (Fifty Million Dollars).

Roxanna Weber, Chairman of eMax Worldwide stated, “We are extremely excited to report to our shareholders, that today marks the next expansion phase of eMax Worldwide. eMax Worldwide has signed loan documents for 50 million dollars in funding for our expansion and acquisition targets. This single event facilitates completing the buyback and also positions our company to buy and invest in immediate revenue producing companies. Part of the funding will be used to expand the operations of our partly owned company, eMax Media Group, (Pinksheets:MPIX). The growth we have achieved to this point has been exceptional; however, it pales in comparison to the next steps of our business plan objectives. Our company value and potential revenues will grow exponentially going forward.

 

Diversified Global Holdings Group, Inc. DGHG

DGHG has been on a slow and steady incline since our mention of it last Tuesday, when the stock was trading at 1.16. From there to today’s high, that’s a tidy 11% increase in just a week’s time.
  The stock had news out this morning, announcing the completed negotiations for the sale of one of it’s subsidiaries:
Orlando, Fla., Sep 21, 2011 (PRWeb.com via COMTEX) — Diversified Global Holdings Group Inc. (OCTQB: DGHG), a rapidly growing international holding company recently announced that pursuant to its commitment to focus on its best growth opportunities in the current global environment, it had completed negotiations for the sale of Kontakt LLC, one of its Russian electronic component resale subsidiaries, for 1,100,000 shares of its common stock (approximately $1.5 million in current market value) to be retransferred to the Company by the former owner of the subsidiary, Nikolay Uraev, a director of the Company.
In the agreement, Mr. Uraev has also agreed to resign from the Company’s Board of Directors and to contribute to the capital of the Company, in addition to the 1,100,000 shares retransferred in connection with Kontact LLC, a significant portion of the shares of common stock he received as a founder in the acquisition of Diversified Global Holdings, Inc., during November 2009. The successful sale will have a positive impact on DGHG’s statement of operations.
“DGHG intends to sell the remaining subsidiary and ultimately close this division, as we are looking to maintain the focus of DGHG on our better performing subsidiaries and future growth opportunities,” said Richard Lloyd, CEO of Diversified Global Holdings Group. “We will continue with our acquisition strategy and believe that divesting of this division will have a positive effect on our growth and profitability in the years to come.”

DGHG – Diversified Global Holdings Group, Inc. Inside Today’s Penny Stock Report

Diversified Global Holdings Group, Inc. DGHG

DGHG is a new pick for us this morning; we are excited about the opportunity to mention such an intrinsically undervalued stock. There are several indications that this stock’s actual value is significantly higher than the current PPS of 1.16.

Value Could Approach $2.00+ per Share based on these facts and figures: 

  • Diversified Global recently reported $203M, an equivalent of $2.33 per share, in shareholders’ equity, which means that the current stock price is trading roughly 100% lower than actual valuation.
  • Excluding land, equipment and the like, DGHG’s total assets are around $0.38 per share, which represents a fairly significant percentage of the share price.
  • Diversified Global recently reported bottom-line growth rates of 256%, according to the latest 10-Q.
  • The company reduced its share count last quarter by 6.7%.

These are just a few of the points that lead us to the conclusion that Diversified Global Holdings Inc. (OTCQB: DGHG) may be an emerging stock with high growth potential. Between the company’s strong growth and profitability, not to mention its apparent gross undervaluation on today’s market, we are led to the assumption that at current levels in the 1.10’s, DGHG is an absolute steal of a buy. We will certainly be moving to acquire some of these highly discounted shares.

 SEC Filings

http://www.diversifiedglobalholdings.com/

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