Newsletter

Good evening readers and welcome new subscribers.

This morning we sent you our first watchlist of the new year and we couldn't have asked for a better day from the company we thought deserved the TOP SPOT. CHLO absolutely exploded during today's trading session - it was even the days biggest gainer in the entire market!

CHLO opened at .0056 and traded as high as .061 with extreme liquidity! CHLO didn't just run 2000% on a few trades, the volume was great enough to accommodate nearly EVERY budget. Over 34M shares exchanged hands today!

We've said it throughout 2012, and we will continue to say it throughout 2013 - with so many undiscovered companies in the penny markets there is no need to stick around longer than necessary, especially those that are up 2000% in one day!

We've been watching a certain 17 cent company for a few weeks for the right time to release our report, and we believe a recent intraday-event is exactly what we needed to see before introducing it to you. Read below to see what happened to this ticker and why we believe NOW is the time it deserves your full attention.

Our new alert is:

SMAK- SMACK Sportswear

Smack Sportswear (SMAK) is the leading brand of custom designed team and beach active apparel, with its primary focus on volleyball.

SMAK manufactures its Southern California inspired apparel in its headquarters, only five miles from the home of beach volleyball. By doing this from a logistic standpoint, it allows SMAK to offer its customers world-class responsiveness, supply chain excellence, and un-compromised quality.

We all might love to play volleyball, but that means ZERO when it comes to looking at things from a business perspective. The question isn’t “do I like to play it”; the question is “How many people like to play it?” This gives us an idea of how big the marketplace is for whom SMAK is trying to reach.

After a bit of research, we quickly found out that volleyball is ranked #2 (behind soccer) as the most popular sport in the world!

“Volleyball is second only to soccer in worldwide popularity. Approximately 46M Americans play the game and an estimated 800 MLN play all over the world.” (Source: click here)

There was an episode of Shark Tank on recently, and the investors roasted the presenters because their product only allowed them to sell to pregnant women. The reason? The marketplace was just way too small. SMAK on the other hand has 46M Americans to sell to and 800M people worldwide. Not too shabby, huh?

SMAK's CFO In Our Sights

SMAK has a CFO who has a very attractive resume. Click here to read it in its entirety. It is very detailed, so we don’t want to overwhelm you within this email, so we figure it’d be more efficient for you to just go to the link and read all about this guy for yourself. If we had to use one word to sum him up, it would be: achievements and they are many. Namely he was the CFO of True Religion Apparel, a company that started out just like SMAK and now has a phenomenal success.

To continue your search on the company, be sure you visit their website. Not only can you learn about the company from a trader angle, but you can also see their product and what they have to offer. You can visit their website by clicking here.

Technical Analysis

One of the first things we look for when looking at a chart is proof that a company is capable of making large moves in short periods of time; and SMAK doesn't fall short in this category.

Not that long ago it made a move from $.22 all the way up to $.585 in less than two weeks! With this knowledge, we know not very long ago the value of the shares was up above fifty cents. With shares now trading below twenty cents, the "risk vs. reward" has significantly tilted in our favor.

The exhaustion of selling pressure has helped us make money on many picks in 2012 and SMAK has the same criteria we always look for.

Staying on the topic of volume, something really caught our attention in regards to that big volume day from Friday. There was a big spike in volume. There could be something big coming around the corner. A big news release or perhaps a technical bounce could be on its way. Large volume spikes like the one that occurred on Friday can be awesome leading indicators.

Breakout Potential

Breakout charts can really gain momentum and move fast, and that’s the goal with SMAK. The key level that we will be watching closely is 18 cents.

The past few days we've watched shares attempt to get above this level, but with a break, this is where the fun begins. The next resistance is at the top of the bottom channel at 0.22. This in itself is a 22% potential move.

A breakout of the channel gives the chart lots of room to breathe as the next resistance is not until 0.335 followed by 0.51! All you need to do is look at the chart and you’ll see for yourself!

SMAK appears to be giving us massive potential on two fronts:

First, the chart has massive potential for a breakout, and second, the target market is for the second most popular sport in the world. When you combine these two dynamics, you find yourself looking at what could be an explosive scenario!

Make sure you're watching SMAK tomorrow!