It’s Michael (Mach) from DanceswithBulls.com . Im sending all our senior members a “First Alert”. (Approximately 400 personalized emails.) I did this in 2005 and 2006 with our Stock picks of the year and I’m doing it again in 2007!
In 2005 we picked CBAI as our stock pick of the year and upon the PR release to the public the stock surged 400% over the next 3 days. Our 2006 PTSC stock pick surged from .10 to over $1.00.
Nonetheless, our senior members that acted upon the “First Alert” vs. waiting for the official PR were greatly rewarded. Your membership and contribution to our success as a team does have advantages.
Thanks for being part of the team!
Our 2007 Stock Pick of the Year will be UVCL.OB and the release date will be during the 3rd week of January.
Due Diligence
On Sept. 14, 2006 UniverCell Holdings, Inc. (OTC BB:UVCL.OB) and Pure Romance, Inc., a privately held company with its principal headquarters located in Loveland, Ohio, announced that they have signed a letter of intent with respect to Pure Romance's proposed acquisition of UVCL in a reverse merger transaction. Pure Romance is expected to merge into UVCL, and the shareholders of Pure Romance will maintain controlling interest of the outstanding capital stock of UVCL after the merger.
Phone Conversations: Pure Romance Inc. is doing everything they can to move the process forward as quickly as possible. The company has no doubt that this will be finalized very soon.
From the UVCL.OB Nov 15, 2006 Quarterly: UVCL anticipates it will “ close the merger by the end of January 2007.”
EARNINGS HISTORY FROM THE COMPANIES WEB SITE:
1995 1.2 Million
1996 1.3 Million – Earnings Growth
1997 1.4 Million – Earnings Growth
1998 2.1 Million – Earnings Growth
1999 3.0 Million – Earnings Growth
2000 5.0 Million – Earnings Growth
2001 9.0 Million – Earnings Growth
2002 20. Million – Earnings Growth
2003 26. Million – Earnings Growth
2004 35. Million – Earnings Growth
2005 50. Million – Earnings Growth
2006 60. Million – Earnings Growth
11 Consecutive Years of Incredible Earnings Growth!
Share price expectations - I did a quick analysis based on all available Pure Romance Information.
On Pure Romance’s web site the President of the company states that the profit margins are approximately 20%. Based on 60 million in revenue, a profit margin of 12.5 million, and UVCL’s outstanding float of 200 million shares; earnings per share upon completion of the merger will be approximately .0625 cents/share.
Assuming a 1 to 1 ratio for (Share) Price to Earnings ratio, the minimum expected share price upon completion of the merger is a .0625.
Stocks trade in multiples of Price to Earnings and the only way to get a true estimate of the potential share price is to compare similar companies in the same industry. Tupperware for example is currently trading at 22 Times Earnings. Therefore, Pure Romance has the potential to trade at a share price of $1.375(.0625X22)per share!
Of course, a $1.375 share price will take a reasonable amount of time to attain, but it is NOT UNREASONABLE based on the company’s earnings per share to expect a minimum 1XEarnings to 5XEarnings share price once the deal is announced!
Therefore a realistic share price expectation is a .0625 to .30 share price on the announcement alone! FYI the current share price is under .01 cents. This is roughly a 600 to 3000% anticipated near term gain!
There has historically been a market buying frenzy when our annual stock picks were announced. Once again, I believe that our senior members should have first knowledge of our annual stock picks. Again, the announcement will occur during the 3rd week of January.
Thanks for being part of the Team!
Michael
*Also note there is an updated list of TV shows, Radio Shows, Awards, Magazines, and Newspapers the company has been featured on listed on the Pureromance.com site. It’s actually quite impressive.)
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