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It's amazing how active our network has been this month but I guess when you manage to pull out winner after winner, it's difficult NOT to be active. The key has been to be ready as early as possible and the proof is in the pudding.
Our last alert went on a VERY aggressive run earlier this week and delivered potential for gains of up to 40% before lunch! I'm not one to complain about a half day at the office and if you made that just as big of a winner as it could have been, you might not be complaining about a 40% gain before the afternoon either.
That pick ended up being a bit higher priced than this next alert but that could be for the better. If a stock trading above a penny can run up to those kinds of highs what could a sub penny do? For many of you who've been in this network during the 4th quarter, you have already seen what sub pennies can do. In fact if this next play even sniffs the level that our last pick OPENED AT, we could be talking almost 100% for potential highs!
Alexandria Advantage Warranty Company
(symbol: AAWC)
In our opinion AAWC could be another pure play on a momentum pick. For starters it has demonstrated several times how high it can run on moderate volume (that's number 1), next it closed Tuesday at sub-penny levels ($0.0059), and finally, AAWC has been quietly gaining ground while posting higher lows & testing higher highs...tell tale signs, in our opinion, that the underlying tone could be very bullish.
AAWC is no stranger to monster runs. In fact the last time it was trending at a similar level, AAWC ended up jumping over 700% in the matter of ONE DAY! Following the pull-back, it looks to us like clear levels of potential support and resistance formed.
Since AAWC broke resistance in mid-October it has seen higher lows and the test of higher highs...this could suggest that a new uptrend might already be in the works. Obviously Tuesday the stock flexed its muscles again and made a move toward a level of resistance it hasn't seen since July.
Based on the overall amount of activity, it could once again come down to those who are ready early to have a shot at capturing some early holiday gains Wednesday morning!
About AAWC
AAWC is a provider of new and used car warranties to independent and franchised car dealers and their customers. As of the company's last update, AAWC is finalizing its agreements with the entity with which it has a signed letter of intent, and is hopeful to complete the transaction in the near term. Furthermore, in anticipation of finalizing the transaction, the Company has secured financing from a fund that will meet the financing requirements that are part of the agreements being finalized
Auto warranties or vehicle service contracts are big business. According to the Vehicle Service Contract Industry report compiled by Colonnade Advisors, the vehicle service contract (VSC) industry totals $29.4 billion at retail!
The market for VSC payment plan providers and finance companies is estimated at $9.1 billion. Payment plans generate short duration receivables with high yields and low losses. Large, successful payment plan providers require transaction processing expertise and deep access to low cost capital. Pretax margins can exceed 30%.
Since the recession, new vehicle sales have rebounded, expanding the market for VSCs. New car sales grew to 16.4 million units in 2014, the highest level since 2006 and are expected to increase to 16.9 million units in 2015!
Dealerships have been turning to the sale of VSCs and other ancillary products to increase profits. VSC income accounts for roughly 16% of total dealer profits. Furthermore, the market for used vehicles is 2.6 times the size of the new vehicle market on a unit basis, reaching 42.1 million units sold in 2014! Private sales accounted for about 12.5 million units in 2014 or roughly 30% of the market.
Do you see potential with revenue and margin numbers like these?
Momentum Could 'Drive' Gain Potential Wednesday!
All month we've aimed to not only find strong picks but to make sure we bring you these reports as soon as possible. Being ready early has been a major focus for us heading into the rest of 2015 and we don't plan on breaking that focus any time soon. Wednesday we're looking at a sub penny with a possible breakout set up where we feel that this mix of market activity and lower PPS could spark a continuation in this uptrend. Pull up AAWC tonight and...
Be Ready to Trade at the Opening Bell Tomorrow Morning Wednesday November 11, 2015 @ 9:30am EST.
Don't Wait for Email! Get Our Picks & Trade Updates Instantly. From Your Cell Phone Text the Word "BDPS" to 82257
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