Newsletter

When it comes to this morning, you have a very important decision to make.  Bacon...or sausage.

After that, there's nothing to think about.  You need to be watching COLV – Coastal Integrated Services.  If you're not percolating to see what a 2.8 cent stock does after announcing enormous news regarding Volvo approving their primary product, you may need electro-shock therapy.  You should see a doctor.

Unfortunately I'm not psychic, COLV could be a loser for all I know, but what I do know is I could hardly sleep last night because I was so tremendously pumped that COLV could start our year with the biggest BANG any year has ever started with since I started this newsletter, back when I used to have to use a typewriter and deliver it door to door.

News involving such a large brand name from a company below 3 cents (even below $1) is practically unheard of.  When it does happen it's usually about some BS takeover rumor or other fluff news just to get traders excited.  COLV announcing Volvo (and Mack and Renault) granting OEM approval for COLV's primary product to be used with their vehicles is an overwhelmingly massive announcement.  You can read all the details here:

http://finance.yahoo.com/news/Volvo-Powertrain-Grants-OEM-prnews-954652002.html?x=0

The bottom line is this is a company trading for peanuts, probably due to a lack of awareness.  This tremendous news puts COLV on the map.

This is a company that could see annual revenue growth of around...800%!

That's right, in one year COLV's revenue could go from under $500k to over $4 MILLION!

Take a look...

"Our company has already been in contact with over 20 trucking companies that institute Volvo and/or Mack trucks in their entire fleet or at least the majority of their fleet. Just the trucking companies that we are targeting with Volvo's and Macks in their fleets have the potential of creating over $900,000.00 in revenues per quarter by the end of the fiscal year,"

If you are new to the OTC market, you may notice those numbers are very small compared to more familiar stocks.  But your brand name companies are trading for $10, $50, $100, etc.  The power isn't in the dollar amount, it's the GROWTH amount.  800% revenue growth is quite a compelling reason for share price growth of an equal or greater amount!

Is it more than a coincidence that COLV popped for over 800% in a single trading day last month?  Hmm...

This is a compelling trade, but let's get back to the company.

The company focuses on buying, marketing, and selling lubricants to the transportation industry. Its first product is the specially engineered HI-TEK25 15W40 diesel motor oil. Trucks using COLV's oil can see their fuel costs drop by 5% to 15%, making this a potential home run for COLV.

The stock closed at 2.8 cents yesterday and volume was light.  I highly doubt we're going to see light volume today :)

News of OEM approval from the 2nd biggest name in the biz (as well as 2 other big names) should get traders fingers scrambling for the "buy" button.  Btw...OEM approval means that the oil can be used without voiding the warranty on new trucks. That indicates that Volvo has reviewed HI-TEK25 and found that its safe…and that opens up a huge market for COLV.

This news comes as the company is getting its sales team in place. They have decided to focus their initial efforts on the Midwest.

Among the retail leaders in the Midwest is Meijer, a company that does more than $14 billion a year in sales at its 200 stores. About half of the stores are in Michigan, with the rest in Illinois, Indiana, Kentucky, and Ohio. Meijer tested COLV's HI-TEK25 in its own fleet of trucks and verified that it helps save fuel. Meijer plans to offer HI-TEK25 for sale in their stores and COLV estimates that could add another $420,000 in annual revenue.

Having its product picked up by a major regional retailer could be enough for COLV to double its sales…that’s good, but the news from Volvo is even better.

There are about 2 million tractor trailers on the road in the US and a lot of them are made by Volvo, Renault, or Mack. All of those trucks can now use HI-TEK25 diesel motor oil with confidence and there could be more OEM approvals for COLV in the near future.

Trucking is a $250 billion a year industry with very thin profit margins. Diesel costs an average of $3.82 a gallon and the industry uses billions of gallons a year. Saving 5% of that cost would boost profits dramatically…and trucking, like any other industry, is interested in increasing their profits.

COLV will help customers make the switch to their oil with an innovative financing option. Companies pay for shipping the oil, and that’s it for the initial cost. They pay for the oil later by splitting the savings with COLV. This 'savings-sharing" arrangement with COLV, has the potential to add even more to the company’s sales.

I've done sales for many years and know this offer is a Blake Griffin slam dunk.

All of those sales could lead to a far higher stock price. There aren’t many pure play lubrication companies like COLV trading in the stock market, but WD-40 (WDFC) is one company in a business that’s similar to COLV. WDFC is actually delivering growth to its investors, with revenue increasing about 12% in the past year. It trades at a price that is nearly 2 times sales. If COLV meets the sales targets from just Volvo and Meijer and traded with the same price-to-sales (P/S) ratio as WFDC, it would be worth about 5 cents a share.

While that's nearly a double, it's still big but the numbers lead me to believe in MUCH larger possible gains.

Companies with faster sales growth generally have higher P/S ratios. Hansen Natural (HANS), which might be the best pennystock-success stories of all time with gains of more than 400,000% over 25 years, has a P/S ratio of about 5 and revenue growth of about 25% a year. With a P/S ratio of 5, COLV could be worth more than 12 cents a share. I don’t know what will happen with COLV, but it looks like the fundamentals could support a gain of more than 320% in the stock price.

If that's the premium Hansen gets with revenue growth of about 25% a year, what would a company with revenue growth of 100%, 300%, or 800% get?

The numbers are so shocking, that question hardly ever comes along!  The point is, COLV, in light of recent news, seems to be the most radically undervalued play I've come across in a while.

They have a sales team in place to cover the Midwest and are completing agreements for reps in the Western and Southeastern US. The company is also working on finalizing a distribution agreement to get their products into Canada. COLV has the potential to become a multimillion dollar company in 2012.

Traders could be getting into COLV today because of the news that it released yesterday. This stock has been a good trade several times in the past few months. There was a single day gain of 833% in mid-December. That day, COLV formed a perfect white marubozu candle, a very bullish candlestick pattern. The price has consolidated since then and could be ready to break out.

A white marubozu means the low was the open, and the close was the high...a totally perfect trading day.  That means basically anyone day trading the stock would have probably made money, and if they rode the stock from the open to the close...they could have seen INSANE returns!

Now with the scope of this news, I think you should keep an eye on COLV for more than one trading session, that's for sure.

The chart looks like it is bullish for the short-term. COLV has been testing support near the 50-day moving average and closed above that price yesterday. Clearing the 200-day moving average would trigger a MACD buy signal and the stock could move all the way back to its 52-week high of 10.5 cents, which would be a gain of 275%.  

Again I must remind you that even though COLV appears to be the hottest alert I've had in weeks or longer (and I've had some VERY hot ones lately) you still have to use caution.  All of my alerts are volatile, and any of them could turn into a large-scale loser.  The scary sounding ones can trade perfectly and give you 300% gains, and the safest sounding ones can crash 70%...you never know.  Which is why you should always trade with the utmost caution, use a very tight stop, book profits when you can, watch out for gaps and never let any one trade go too far against you!

(Unlicensed amateur opinion.)

With that all being said, COLV has traders going through the roof.  I saw other newsletters that I like alerting their readers to COLV after seeing my alert.  When other newsletters jump on board immediately, before they even have a chance to see the stock trade and make sure it looks good, you know there's something special about that stock.

COLV has everyone, myself included, excited and for good reason.  Market is opening soon, all eyes on COLV. 

With the biggest news announcement in all of Pennyland yesterday, a share price low enough for awesome percentage gain potential, and a history of flying for 800% gains...COLV looks to be the one to watch today.

PSA - Stock Psycho

www.pennystockalerts.com

Don’t ever invest based on what I say, do your own research and consult with a licensed professional before investing, only invest what you are prepared to lose. Any statements and opinions given are amateur and biased and should be treated as such. Past performance does not indicate future performance in any way. Check the latest SEC filings before investing, and research other information on the risks of investing in low share price companies at www.sec.gov

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