Newsletter

Hi,

I have a fun fact for you, we’ve had at least one triple-digit runner every week for the past three weeks.

During that time we’ve seen runs of 400, 506, 983, and 1,638%.

With this week half over we’re still on the hunt for the next Monster that could make it 4 weeks in a row.

As the saying goes, you have to strike while the iron is hot and it doesn’t get much hotter than this. Therefore, tonight I’m announcing a brand new play:

  - Tonight’s play is a “fresh-as-they-come” true .01 play

  - It has a small float

  - Tonight’s play has real numbers with year-over-year growth

  - Just reported that Q3 gross profit is up 14.1% over Q3 2014

  - For the first nine months in 2015 gross profits are up 15.4% (year-over-year)

  - The Company just announced a major acquisition

  - It’s undergoing major expansion

  - The chart just started showing signs of a potential breakout

  - It’s shown significant volatility of late

Got your attention?

Tonight’s play is a well-run, quality small market company that has already proven its ability to succeed, so let’s get to it:

Tonight’s play is

Ovation Music & Studios (OVMS)

www.ovationmusicstudios.com

Quote & Chart: OVMS

Ovation has proven itself as Boca Raton's #1 source for Private Music Lessons, Instrument Sales, Service and more. Now, having already laid a successful ground floor, the Company has begun a massive expansion effort.

In fact, OVMS originally caught our eye when it announced the acquisition of Blue Rain Studios of Knoxville, Tennessee as part of their aggressive growth strategy plan.

After doing some further digging, we’ve discovered that OVMS does not intend to stop there, but rather intends to expand its market base significantly to include:

  - Atlanta, GA metropolitan and suburbs

  - Charlotte, NC

  - Westchester County, NY

  - Washington, DC metropolitan area

  - Including parts of both southern Maryland and northern Virginia

Important: OVMS is also developing a license/franchise opportunity as a component of its expansion plan and business model. 

Now that’s a serious plan… clearly this is a company that means business. Therefore, current valuations may not clearly reflect the upside potential.

Couple that with its current oversold RSI of 42 and we could be looking at an explosive situation!

A Closer Look at Ovation and Its Market:

Apart from instrument sales and rentals, OVMS is a music education company that provides individual and group lessons, rehearsal studios, professional recording studios, and live performances with its Rock Shop™ and Jazz Jam™ ensembles.

OVMS is developed for students of all ages. Their unique method provides professional musicians and teachers in one-to-one voice and instrument lessons. When the students have developed skill in the instrument as well as in music theory and ear training they are combined into rock bands and/or jazz ensembles, which perform in public venues.

Also, the Company has put forth a plan to acquire or partner with opportunities in music instrument and electronics to offer their customers more diverse product lines.

This is just the latest move in what has already been a highly effective growth strategy.

OVMS has already seen a huge improvement in revenue growth:

 - Q2 Growth: reported a 17% jump in second quarter gross revenues

 - Q2 Growth: for the first six months gross revenues are up 19.9% (YOY)

 - Q3 Growth: Q3 gross profit is up 14.1% over the same quarter in 2014

 - Q3 Growth: first nine months gross profits are up 15.4% (YOY)

With its focus on aggressive expansion, we could see additional growth and further acquisitions right around the corner.

Market Outlook:

Unfortunately music education is being cut from many school districts across the country, yet these “budget cuts” have given rise to the music business sector, where companies like OVMS can benefit.

A Gallup Poll survey - Public Attitudes toward Music - revealed that Americans have highly positive opinions about music in general and music education specifically.

 - 87% of those surveyed say that music is a very important part of their lives

 - 70% said they would still like to learn to play an instrument

 - 85% of those who didn’t play a musical instrument wish they had learned

Bottom line: Instrument sales are spiking, demonstrating a growing demand for music education.

One way to gauge the demand for music education is to look at the sales of instruments and related electronics equipment:

  - Custom acoustic instrument sales have risen 39% since 2009

  - DJ equipment is flying off the shelves at an all-time high

  - “Niche” products like the Ukulele have seen sales almost double in two years, going from 581K to more than 1 million

Conclusion:

As we speak the Stochastic is “Bullish”, the Low Analysis is “Very Bullish” and with an RSI of just over 42 it apparent that we’re looking at an oversold situation.

In fact, it appears that the short-term 20-Day Bollinger Bands could be turning in that direction.

If we see a bounce from here, we could be in for something big…

… with a 52-week high is at .07 there could be quite a bit of room on the upside.

Considering it’s current level of .018, the year’s high is more than 288% above where it sits as we speak!

OVMS may remind you of a handful of companies we’ve looked at of late:

  - Small float

  - Recently slid

  - Been at higher levels

  - Solid foundation

  - Expansion plan underway

Now we all know that the past is a poor indicator of what the future may bring, but one thing is for sure… OVMS has a lot going for it right now.

Volatility levels are strong and average volume is a credible 659K.

In addition, OTCMarket.com lists OVMS's float as being just 10.1Mln!

Revenues are up and the Company is expanding… it could be perfect timing, so get started on your research immediately.

One last thing to consider: OVMS has developed its marketing plan that includes using TV ads in target markets on specific networks.

Meaning, we could be hearing quite a bit more from OVMS in the near future, so don’t wait, now is the time to put OVMS on your watchlist.

Currently at just .018 there could be a significant upside.

We urge our members to do further research and get ready for the morning… we could be in for a massive day ahead.

Remember, we always encourage you to do further research. Never take our word for it, read our disclaimer to see why, and of course always consult a professional.

Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.

Talk with you soon,

Exp