Jimrockford Blog, 11/28/2012

 

YOO - New! PP - New! ALYI (huge blue sky!), MMX (another run coming?), BXR (two great properties), CJC (up over 100%), APM, DRV, etc. etc.

 

IMPORTANT

EVERY TIME I HAVE TALKED ABOUT A NEW STOCK ON MY BLOG, THE SP HAS RUN.....EVERY SINGLE TIME...... DOES THAT BODE VERY, VERY WELL FOR YANGAROO (V.YOO) AND PACIFIC POTASH (V.PP)?.................ABSOLUTELY!!!

 

Disclosure: I own some of these stocks – but not all. When reading this piece, it should be clear which companies I think are worthy – i.e. I may discuss stocks here that I really am not impressed with.

As well, I tried to keep this blog short, but with the two new companies (they are up first) I really like, and a lot to say on the others....it became pretty long.  I appreciate all inbox comments.

 

 

Yangaroo Inc. (YOO on the TSX-V) – First Time on the Blog!

 

http://yangaroo.dmds.com/

YOO 5-year chart - http://www.stockhouse.com/companies/overview/v.yoo/yangaroo-inc

 

I am a big fan of Yangaroo (YOO on the TSX-V). IMHO, after a long and very tough period developing its technology and business, it is now ready to fly.  And it has some very well pedigreed and high powered pros that have recently come on board (i.e. the President is the ex-COO of IMAX). I always find  that who exactly is betting their time and careers on a company, is always a great test of that company’s worth.

 

As an aside, I was initially told about YOO by a stockbroker buddy of mine. This guy is definitely one of the shrewder market guys I know, and was in on the initial IPO ten years or so ago – and has made good money for himself and his clients since, owning and trading the company. My friend knows YOO through and through and has decent amount of the float in his book of business. With the amount of DD, institutional knowledge and trading history I know he possesses - and seeing that he was a strong believer (and has been buying with his own money) – IMHO, it definitely warranted a very thorough kick of the tires. So...I did my DD.....and I love it at this price.

 

Below is a description of what YOO’s patented technology and what the company does (I lifted it directly from their website):

“YANGAROO is a company dedicated to digital media management. YANGAROO’s patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients.”

 

“The YANGAROO Awards platform powers many of North America’s major awards shows.”Named one of Canada’s Top 100 Tech Companies by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas.”

 

 

Huge Client List:

Yangaroo’s list of Clients and Partners in the realm of advertising, music and technology is quite impressive. They have landed clients from the likes of MTV, BET, CBS, A&E, Corus, CMT, SoulTrain - and many, many more. The depth and breadth of these relationships shows  why their revenue and revenue projections looks like the proverbial “hockey stick.” YOO had to gain these business relationships in order to make their business model work – and to attain scalability.

 

YOO have three key multi-year agreements driving each of their divisions:

  1. Advertising:  They are partnered with NY based Horizon Media, the largest privately held media buyer in the world, with billings last year over $3.5 billion.

 

  1. Music Video Delivery: They have a multi-year contract with MTV Networks, a division of Viacom Int’l,  to deliver all music videos and power their internal workflows

 

  1. Awards Management: They have a 5-year agreement with The Recording Academy (The Grammys) to provide electronic voting, review and submissions.

 

 

Here is a link to YOO’s Advertising Partners, Advertising Clients and Broadcasters.

http://yangaroo.dmds.com/clients/advertising

Here is a link to their Music Partners, Record Label Clients, Video Destinations and Broadcasters:

http://yangaroo.dmds.com/clients/music

Here is a link to their Technology Partners:

http://yangaroo.dmds.com/clients/music

 

Why, IMHO, did the YOO SP get so low/oversold, (it closed at 3.5 cents today)?

 

  • YOO were in a very detrimental lawsuit up until a year and a half ago with a competitor, Destiny Media. This was not good for their SP.
  • YOO was facing a problem with their debenture holder. That problem has been solved – and with much better terms. This amicable solution would not have happened had the debt holders not been convinced of the depth of their turnaround.
  • Look at the 5 or 10-year chart. YOO has raised money at much higher prices and has burned through upwards of $30 million. It has taken that type of capital to develop the money-making rocket that it appears to have now become.
  • Plain and simple, “deal fatigue” has made a lot of early investors immune to the fact that this company is now about to achieve what they originally set out to do.
  •  Yangaroo has dealt with a name change, a revolving door for CEO's, financing concerns, and patent litigation, among other challenges.

 

 

 

 

 

Why Does YOO Look So Attractive Right Now, IMHO?

 

  • Monies were raised above the market price – and Management put in $370k of their own personal monies.
  • The next quarterly should be coming out this week. This should give a very strong indication that the company is just about in the black – and should be profitable next quarter.
  • Their technology is world-beating.
  • Industry acceptance for their product is just getting stronger and stronger.
  • IMHO, some strong NR/s should are on the horizon.
  • YOO has a good amount of shares out. With the way I see the next couple of quarters developing, I would not be surprised to see them institute a share buy-back program – IMHO, a real positive for the company.

 

 

 

 

Revenue and Potential

 

  • Revenues are growing very, very strongly in the advertising industry application.
  • On their most recent financial report, Yangaroo indicated 104% year over year revenue growth, an EBITDA increase of 59%, and a reduction in net loss of 68%.
  • YOO has huge margins - i.e. over 85%.
  • There is a $350 mil market in the US alone for their technology.
  • There is no money in audio, but a lot of money in video – which is music video and advertising.
  • DG (DGIT on NASDAQ) is their biggest competitor – i.e.  $350 revenue worldwide
  •  Head of advertising for YOO, Karen Dealy, was DGIT Senior Vice President.
  • The company needs to hire a couple of key sales people. Every person hired should make their revenue multiples higher than they are paid in salary.
  • YOO has an accelerating growth curve and double digit growth over the last 5 quarters. If that continues the company will be very profitable.
  • The HD Ads market is an exploding new space.
  • DGIT may have lost a little bit of market share to YOO and Extreme Reach for distributing TV ads in its most recently reported quarter, as TV revenue dropped 1%.
  • If YOO gathers up to 5% market share, they are huge winners.
  • YOO is only months away from profitability – their recent financing takes them beyond this point, IMHO.

 

 

 

YOO vs. Destiny Media (DSY-on the TSX-V, last at 77 cents, with a year high/low of $1.03/
.38), a competitor:

 

  • Destiny Media has made some nice moves due to the Clipstream format and the ability to move stuff onto your handheld – but, IMHO, the model is flawed and they won’t make as much money as people believe.  IMHO, the YOO model is better.

 

  • DSY has just audio delivery now, which is in market in decline in North America – and is competing with flash and adobe – i.e. streaming software is common. They do not compete with YOO in broadcast video delivery!

 

  • YOO delivers High Definition (HD) music videos and advertising to television broadcasters throughout North America.

 

 

 

 

The appointment of the following three senior people, IMHO, is quite telling - both operationally and in sales:

 

YOO’s New President:

I don’t see Gary Moss, the President and CEO since Feb 29 of this year, as stepping up and taking the YOO helm unless he was absolutely sure it was going to be an extremely attractive turnaround play. This is a guy, who sports a very enviable C.V... He went from the COO position at IMAX, with its high profile and  $350 million in annual revenue (when he left), to the Presidency of a company (YOO) that is not yet in the black – and that has a market cap of a mere $5.49 million.

Here are a few paragraphs from the NR announcing his taking over of the YOO leadership:

 

“Gary Moss brings significant expertise and experience to the role of CEO. Mr. Moss was previously Chief Operating Officer of IMAX Corporation (IMAX-NYSE) where he was responsible for global operations, strategic planning, corporate development and innovation in a high growth, results driven environment. His specific areas of responsibility were sales, marketing, theatre operations, technology, HR, strategic planning and post production. Implementation of company-wide policies and procedures (including the selection of SAP to replace out-dated systems), coupled with creative deal structures, resulted in record revenues and profit, particularly from emerging markets. Moss was the lead business negotiator for cutting edge technology deal licensed from Kodak, which will enable competitive differentiation for the next generation of laser projection equipment.”

 

“Prior to IMAX, Moss was Chief Operating Officer and Chief Financial Officer of Live Nation Artists, the successor to Concert Productions International (CPI), a major world-wide concert promoter. He was also Vice President of Finance with EMI Music Canada Inc. for nearly a decade, and Vice President of Finance with Sega of Canada Inc. Mr. Moss is a Chartered Accountant and received his Bachelors of Commerce from the University of KwaZulu-Natal in South Africa."

 

 

 

YOO’s New Chairman:

 

Like the appointment of Gary Moss, the move up by Anthony Miller to the Chairman’s role on June 26, 2012 (he had been a BOD member for almost two year prior), indicates that YOO is finally about to achieve its potential. Miller is a guy who can get the crucial advertising industry dollars – but I don’t see him taking on the position unless he was suitably impressed that YOO was going to knock it out of the park. Here is some info on Miller:

 

“Anthony Miller was Chairman Emeritus of MacLaren McCann, one of Canada’s leading advertising and marketing communications companies. He previously served as Vice Chairman of the global parent, McCann Worldgroup, based in New York, and has held a number of senior positions in advertising agencies in both the United States and Canada for more than 40 years. Miller is a former chairman of the Canadian Institute of Communication and Advertising, a past chairman of the Young Presidents Organization (Ontario), and a member of the Chief Executive Organization...”

 

 

YOO’s President of US Advertising Operations:

 

Karen Dealy, came on Board in mid-August, 2010 as the Head of US AdvertisingShe was a main player at the biggest company in this space, DG Systems, and helped build out their advertising business. Under her leadership, Yangaroo has an installed base of over 2500 North American TV stations.

 

More info on Karen Dealy:

  •  
  • “She has also held senior management positions at AMFM Radio Networks, and ABC Radio Networks. Ms. Dealy received her MBA from the Simmons School of Management, as part of a special ABC-sponsored executive management program. She received her Bachelor of Arts degree from Texas Tech University in advertising and marketing.”


 

These newish YOO Exec’s and Chairman are very impressive in their own right. Clearly, they would not be with such a tiny player if they didn’t envision a huge upside.

 

 

YOO a Potential Takeover Target?

 

Yangaroo has a solid position in an industry with high barriers to entry, and their loyal client list reads like a media who’s who. YOO’s attrition rate with their clients is practically zero, and the customers they do have are increasing the amount they use them.  Add to that, their customer base is growing very rapidly.

  • IMHO, it is quite likely that a large company may be encouraged to engage in a hostile takeover of Yangaroo. To gain Disney, CBS, ABC, and ESPN as customers in one move makes YOO a very attractive acquisition? While a takeover would be very good for YOO shareholders in the short term, it could curtail the longer term gains that should be possible, IMHO.

 

  • YOO has a shareholder rights plan in place, which is intended to discourage takeover attempts, and make the company more costly to potential purchasers.

 

Corporate Comparables

 

                                                                Shares Issued        Mkt Cap.           S/P       52 Wk High/Low

 

 

Digital Generation Inc.                                27.6 mil             $269.2 mil          9.74           15.65/7.51

(DGIT on NASDAQ)                                         

 

Destiny Media Tech. Inc.                             50.2 mil              $39.1 mil           0.78            1.03/0.38

(DSY on TSX-V)       

 

Yangaroo Inc.                                                 156.9                       $5.5 mil          0.035          0.05/0.02

(YOO on the TSX-V)                       

                           

 

In Conclusion – And Why I Love YOO at This SP:

                      

The fundamentals of YOO are improving quite rapidly – but we haven’t yet seen a correlation in the SP.  A good argument, IMHO, can be made that the market cap is grossly undervalued. IMHO, a very nice move north is coming.

                  

Pacific Potash Corp. (PP on the TSX-V)

 

http://www.pacificpotash.com/

 

Pacific Potash is a Vancouver-based junior exploration company that has two significant potash properties – one in Alberta and one in Brazil. The Alberta Property is good, but the Brazilian property, IMHO, could really help it break out – and quickly!

 

Corp. Presentation from March 2012 (A little dated, IMHO, but a nice piece of DD to reference)

 

  •  

 

 

Some Background:

  • The guys behind this company are good professionals and are very strong financially.
  • The main guy behind the company is Balbir Johal, the Executive Chairman and Director.  A lawyer by trade, he’s got a good name on the Street and is known as a hard worker who gets things done.
  • The geo hitter here is a guy named Dean Pekeski, who became the VP Exploration in July. Pekeski is a name guy in the industry, who enjoys a stellar reputation. Pekeski has drilled over 30 potash wells for Western Potash, alone.
  • V.PP was going to merge with Pan American Fertilizer Corp. (PAF on the CNSX). This deal was terminated (on Nov. 16), but the market clearly expected it not to work - giving V.PP over a 60% haircut in the last month and a half. IMHO, the stock is now oversold.
  • The market cap is a tiny, $3.4 million. I’ve had discussions with pros, where good arguments have been made pegging the proper valuation as perhaps two to three times that.
  • There is an enviable share structure – with just under 40 million shares being out.
  • The stock is liquid. There is somewhere around 1500 to 200 shareholders, with very few institutional holders.
  • There is $1 million in the till.
  • The V.PP crew have shown they are able to raise quite a bit of monies – not an easy task in these markets.
  • Financings were done at much higher prices, with millions of dollars raised at up to 75 cents.

 

The Price Range:

 

V.PP traded at over a dollar in the 2nd quarter of 2011. It has since fallen to an 8.5 cent bid. That, and the year low of 7.5 cents, is a far cry from their 25 cent year high. IMHO – and especially with what is right now going on in Brazil I (see below) - we have seen rock bottom for the company’s SP.

 

Here’s a link to a 2 year chart:

 

http://www.stockhouse.com/companies/overview/v.pp/pacific-potash-corporation

 

 

V.PP’s Brazilian Property – “Closeology” at its Finest!

 

The Huge Find in the Amazonas Basin and the Original Stakers

 

 

  • The Amazonas Basin is similar in depth, age, origin and scale to the basin in Saskatchewan, estimated to contain a potential of some 30 billion tonnes.

 

  • Petrobras found a historic 1.1 billion tons of historical potash resource in the Amazon Potash Basin in an area covering 280 km2. The Amazon Potash Basin is 285 times larger than the Petrobras deposit areas.

 

  • Pacific Potash Corporation has an interest in 90 mineral exploration licenses in three separate contiguous blocks that cover an aggregate total of 795,824 hectares within the Amazonas Basin. The Properties are situated approximately ~20 and ~40 km from Petrobas’ Arari and Fazendinha deposits – a short distance when it comes to Potash. Large potash basins can stretch hundreds of kms in length.

 

  • V.PP got their Brazilian potash property from Western Potash - and took their geo with them, to boot. It is an 80-20 JV, with Pacific Potash having 80%, leaving Western Potash with 20%. $250k has been paid and 500k shares have been delivered. Next July a further $250k and 500k of shares is due to Western Potash. The Brazilian government is to be paid roughly $800k per year to keep the claims in good standing.

 

  • PP has gotten rid of any superfluous land in their claims in order to cut down the yearly governmental payments.

 

 

 

  • Stan Bharti’s Forbes & Manhattan affiliate, Potassio do Brazil (Brazil Potash), was going to buy the Petrobras asset for $100 million, but the Brazilian government saw this historic asset as a strategic asset – and cancelled the sale.
  • Forbes & Manhattan then tried to stake the entire basin.
  • I have it on good authority that Brazilian billionaire, Eike Batista, of AUX and Ventana, is an investor in Brazil Potash!
  • The claims in the basin have already been awarded – and no more claims are being given out.
  • The Brazillan government is changing their rules – but the old claims, like Forbes & Manhattan’s, Crowley’s and Pacific Potash’s (all of which are doing 43-101’s) are grandfathered.
  • V.PP’s property is contiguous to Forbes & Manhattan’s.

 

Stan Bharti and his Forbes & Manhattan (Brazil Potash) Are Leading the Charge

http://www.stockhouse.com/opinion/movers-and-shakers/nov/23/forbes---manhattan-taps-into-brazilian-resources

 

  • Brazil Potash has raised about $90 million so far on their property.
  • Brazil Potash is doing a $300 to $500 million raise in launching a $500 mil to a $1 billion company on Brazil’s BM&FBOVESPA Exchange. This is projected in Q1 2013!
  • Brazil Potash is coming out with a 43-101 by the end of the year - or sometime in Q1 2013.
  • Brazil Potash is pitching a conventional mine on their Amazonas Basin Property.

 

 

Cowley Raising Monies as Well (20-25 million dollars)

 

                                                                                          

  • Cowley is planning a drill program adjacent to the V.PP properties!
  • Cowley has raised over $4 million on their Amazonas Basin Property – and is raising a LOT more. (Actually, they raised 4 million but have 120M seed shares that even if put at
    .01, raises the total to well over $5 million. I guess they have a lot of founders stock?
  • Crowley is promoting solution mining.
  • Cowley’s work is crafted around a forward-looking assessment report that correlates old oil and gas wells, old seismic and old down-hole geophysics.

 

 

 

 

DD on Brazil, Brazil for Potash Mining, Types of Potash Mining

 

  • It is very easy to ship potash from Brazil.
  • The area has excellent infrastructure. Brazil is a big importer of potash and is friendly to foreign investment.
  • Potash mining with solution mining is completely scalable, the capex is a fraction that of conventional mining, there is a shorter timeline to production – and the environmental footprint is much less.
  • The amount of water, flooding, and rain in the Amazon, make a conventional mine a tough go – and definitely more risky, IMHO.
  • $300k will get the property drill ready
  • $1 million is in the bank, with a majority of it to go to a property payment in the first part of the new year.

 

Pacific Potash’s Property - and Getting Started

 

  • Indications are that the basin for V.PP is a solution mining play.
  • V.PP’s property is in the deepest part of the basin. That’s where the potash layers are the thickest (i.e. 1100 to 1800 m). Solution mining can be done over 2000 m.
  • With the amount of rain and flooding in the Amazon, solution mining is definitely what the V.PP guys are looking at (water levels vary by about 10 m between seasons).
  • A 43-101 is expected.
  • I foresee a financing – but at much higher prices.

 

 

 

The Alberta Property:

 

  • V.PP was the first company to find potash in Alberta.
  • They did correlation gamma ray physics of old oil and gas wells to try and see what might be there.
  • They drilled over 3 m of KCL in October of 2011.
  • The first hole looked good (the SP went to 29 cents), but the second hole fizzled.
  • It was the right depth, but the market was looking for better widths and grade.
  •  Even though Alta. is better tax-wise than across the border in Saskatchewan, it wasn’t what the market wanted.
  • I can see V.PP getting flow through dollars and going back to the property.
  • The Alta property alone, IMHO, is probably worth more than the current market cap.

 

 

 

A Corporate Comparison

 

                                                                Shares Issued      Mkt Cap.      S/P       52 Wk High/Low

 

 

Encanto Potash (V.EPO)                      278.2 mil             $41.7 mil        0.15             0.475/0.15

 

Allana Potash (V.AAA.)                        228.5 mil              $103.98         0.455            1.14/0.435

 

Passport Potash Inc. (V.PPI)               180.6 mil               $38.8 mil       0.215           0.395/0.155

 

Western Potash Corp (T.WPX)          181.3 mil                $85.2 mil       0.47             1.42/0.41

 

Ethiopian Potash Corp. (V.FED)         125.5 mil                $8.16 mil      0.065            0.72/0.065

 

Pacific Potash Corp. (V.PP)                  40 mil                    $3.4 mil         0.085          0.25/0.75

 

 

 

THE PLAY IN A NUTSHELL, IMHO!

 

I SEE V.PP AS A VERY SMART AND STRATEGIC OPTION ON THE AMAZONAS BASIN. YOU GET MASSIVE BLUE SKY POTENTIAL FOR UNDER A DIME A SHARE (IT CURRENTLY TRADES AT 8.5 CENTS). YOU ALSO GET TO RIDE THE FORBES & MANHATTAN, BRAZIL POTASH WAVE (AND COWLEY). IMHO, WHEN THE BRAZIL POTASH IPO COMES OUT, ALL BETS MAY BE OFF RE WHERE THE V.PP SP CAN GO.

 

 

 

 

 

 

Alternet Systems Inc.

 

I can’t say enough good things about Alternet. I think they have the fundamentals and blue sky (as a few years of blogs and posts show) and are spring-loaded enough to be a once-in-a-life-time win. I truly believe this – and am backing it with my wallet.

I think it is extremely important to read the The Letter to Shareholders of Nov. 14:

 

http://www.otcmarkets.com/stock/ALYI/news

 

A Synopsis of What I Found Important in the Letter:

  • Very important advances were made in the first three quarters of 2012

Regional Leadership

  • Utiba Americas sold and deployed services in 6 countries in Latin America – both financial institutions and mobile network operators – Bolivia, Columbia, Ecuador, Guatemala, Honduras and Venezuela.
  • Utiba Americas is the leader in the region, with an estimated 35% of deployments in these markets.
  • The new 6 countries target 120 million potential users.

Regional Deployments

  • “Regional third party payments provider Movilway continues to deploy the Utiba electronic recharge (topup) platform throughout its distribution network in the Central and South American region. Movilway is currently in 12 countries with more than 80,000 retailers.”

Partnerships in the coming quarter

  • “Partnerships In the coming quarter, both Utiba and Utiba Americas will announce a number of strategic partnerships with companies with complementary product offerings. Pending agreements include an important regional channel partnership and a complementary suite of business analytics tools for microfinance, credit assessment, and mobile retail purchases. “
  • “Already announced in this year are agreements with i2c, Inc., Validsoft, and Spindle, which provide access to open loop payment processing, advanced mobile transaction authentication services, and a low cost acceptance network, respectively, and build upon Utiba's participation in the MasterCard Mobile Money Partnership Program announced in February. “

Relationship With Utiba and Global Move?

  • “Utiba Americas expects to announce new regional contracts before the end of 2012 that will potentially expand its Mobile Financial Services platform to another 27 countries across the globe.”
  • “On a separate note, one which augurs well for future success, Utiba Americas and Utiba continue to strengthen and broaden their relationship. The two companies are dedicated to making the Utiba brand and its products the preferred global solution. To that end, both entities leverage each other's capabilities and relationships and management are in constant contact to ensure seamless and timely product delivery and success.”
  • “...we expect to announce global SaaS clients for Utiba Americas in the coming quarter.”

Revenue Recognition and Accrual

  • “As discussed in earlier shareholder communications, all of Alternet's revenues currently come from our mobile payments subsidiary, Utiba Americas, which has been changing its product mix from a traditional software license toward the sale of software as a service (SaaS), or from a onetime revenue event to a monthly recurring revenue stream over a period of years. This shift is in keeping with industry trends towards the use of cloud computing and based upon an evaluation of customer needs. This shift also results in a delay in recognizing revenues and per accounting practice, accrual only of the revenues billed in a given period.”
  • “As a result, the value of Utiba Americas' multi-year agreements is not evident in our financial statements, as we are only able to bill for services when the project has been delivered, and monthly services fees are billed and booked for the period.”

International Mobile Security (IMS) -- Cyber Security Subsidiary

  • “IMS' strategic partnership and reseller agreement with UK based Delma Technologies has effectively increased the company's international sales force and given IMS access to Delma's products and resources. Based upon the early success of this relationship and complementary nature of the two companies' technologies and services, we have begun exploring additional joint efforts, to include software development and combined delivery and support efforts. We expect these efforts to permit a timelier closing of opportunities, which has caused a delay in reporting revenues at the subsidiary.”

 

 

 

The Analyst Report written the German analyst, Andreas Schmidt, is IMHO, an important cue – i.e. ask yourself why a German analyst wrote up a Report recommending Alternet.

 

Here is a link to the Analyst Report, brought to our attention by the energetic and intrepid SH poster, ‘dontknowmuch’ (take a bow, sir – and you definitely know a heck of a lot!)

 

  •  

 

And here is a link to the piece in the original German:

 

  •  

 

Back to the Analyst Report

 

Some points:

 

  • Firstly, the analyst calls ALYI a BUY with a $1 dollar target within 18 months. The SP closed at 14.5 cents on Friday. That is a heck of a call in profession that is notoriously conservative, especially when one knows that many eyeballs and institutions will be seeing that recommendation – i.e. if he is wrong on the call, he will wear it.
  • The analyst notes ALYI’s “dynamic growth.”
  • Here is a translated quote re ALYI’s internet security side: “AlterNet holds 60% of IMS mobility, which specializes in the development of software and services for mobile security systems. The entire cyber security market worldwide amounted to a volume of USD 64 billion and is expected to grow rapidly in the coming years. Up to the year 2017, doubling to $ 120 billion is expected.”

 

“IMS mobility products are offered at three groups of buyers: Governments, companies, and also in the end customer segment is active reseller and whitelabeling solutions. IMS won already many pilot customers, who are expected to remove licenses in larger quantities. Under the existing agreements are expected with revenues of over 13 million USD per year. For the next few years, also is expected to a dynamic growth.”

 

Re the above, it’s interesting, IMHO, that the analyst, Andreas Schmidt, talked of the commercial and institutional sides of ALYI – but also discussed the massiveness of the security side. Alternet is a company with two great technologies – and now they are going global!
 

 

 

Macmillan Minerals Inc. (MMX on the TSX-V)

When I started blogging on MMX in mid-Sept, it traded at 5 cents. Since then, there have been two assay NR’s and it has traded as high as 13.5 cents. The shareholders, who weren’t used to a live stock – and who doubtless had problems with other companies in their portfolio – treated this as a selling event.The SP therefore went back down. I am dead sure, though, that it will be taking another ride before long.

 

A few points:

 

 

  • The 6 holes received so far in the 2 NR’s are good – but too “skinny.” For the first holes on a property, though, I believe they bode very well for MMX.
  • MMX should be getting the three holes they are waiting on from the Guadalajara branch of the Mexican mining ministry at any time.  There is a fair amount of eagerness from the geos I have talked to re their assay potential.
  • George Brown, the President of MMX, took Duran Ventures (DRV on the TSX) to well over $3 bucks a share when he had the tiller at that company. I have every confidence in Brown’s steady, yet aggressive, approach. This guy will get it done.

 

 

And people, it is vital to remember MMX’s Cerro de Oro. To repeat three points I made in a previous blog about this play:

 

  • There is 2,300 hectares with a 100% interest.
  • It is within within trucking distance of the biggest mine in Mexico, the Penasquito mine, owned by Goldcorp. Common sense says that Goldcorp, a major producer would have interest in it.
  •  
  • Diamond drill hole # 13 at Cerro de Oro (as shown in the PPT) was 85.5 m of 0.196 g/t Au 82.9 g/t Ag


 

IMHO, MMX is a no-brainer to go north from here – and, IMHO, it shouldn’t be long.

 

 

 

 

Blue River Resources Ltd. (BXR on the TSX-V)

 

The PP is closing in a smart way in pieces – and to the people/entities that the BXR guys want to have hold it. The raise is not affecting BXR’s activities in the least. IMHO, we should see something out on 15 cent flow-through shortly.

 

Here is a good article on the producer, Copper Mountain, which BXR is quite close to. Definitely Copper Mountain have their supporters:

 

http://www.bloomberg.com/news/2012-11-27/copper-mountain-tempts-with-canadian-stability-real-m-a.html

 

I cannot wait to see the assay results on the two properties that Blue River is drilling.

 

Canada Strategic Metals (CJC on the TSX-V)

 

CJC HAS BEEN UP AS MUCH AS 220% ON HUGE VOLUME OVER THE LAST 13 DAYS OF TRADING! AM I SURPRISED? NOT AT ALL! READ MY BLOGS AND SH BULLBOARD POSTS AND YOU WILL SEE WHY I WAS SURE THAT AN EXTREME PRICE RISE WAS AN ABSOLUTE LAY-DOWN.

 

To get a good read on the new lay of the land, it’s important to read CJC’s Nov 2012 Corp Presentation:

 

https://www.dropbox.com/s/4co9my0jw172rpo/CJC%20-%20Graphite%20-%20November%202012.pdf

 

A few points:

 

  • The new insider group is from Quebec. In my educated opinion, the new guys will get the substantial tax credit monies owing from the Quebec government very, very quickly.
  • My bet is a total shareholder update is coming – one that has plenty of talk of their focus, exploration and 43-101’s.
  • This group raised a great deal of monies in Asia for V.CRE (lithium and tantalum) and American Vanadium (T.AVC).
  • Graphite is the one element they need for a battery – hence their interest in CJC.
  • It’s not just proving up the graphite with the new CJC group  – it’s about their connections and strategy
  • The President is buying stock in the open market.

 

 

 

Amerix Precious Metals Corp. (APM on the TSX-V)

 

Drill results should be here this month or next month. I look forward to them with interest.

 

 

Duran Ventures Inc. (DRV on the TSX-V)

 

Duran is advancing the Aguila to a Preliminary Economic Assessment. I look forward to that as well.

 

 

 

 

NovaDX Ventures Corp. (NDX on the TSX-V)

                                                                                                                  

If  I were the President of NDX, and coming into the office every morning I had to see  the past guy’s self-absorbed face, I’m not sure I wouldn’t just let loose with my cup of Timmy’s. Seeing that NDX is in Vangroovie, though, it would probably be a cup of Starbuck’s venti bold......I guess you get the picture. 

 

A few points:

 

  • The word I am hearing on Howe Street is that the President will stay on and work his way through the mess – but a lot of people are finding other things to do with their time.
  • The 5 cent financing will show whether a new story is written for NDX, IMHO.
  • The company and its agent continue to market the brokered special warrant financing.
  • The large cross a few days ago was from a guy at PI who looked to be doing it for tax-loss selling. This is a pretty good signal, IMHO, that the SP probably won’t be going much lower.

 

 

 

Brixton Energy Corp (on the TSX-V)

IMHO, Brixton’s white night arrived – but was rebuffed by two of the three member BOD. Hmmm.....My very educated guess is that it was the two do-nothing guys who said they were happy with the status quo.....Surprise...surprise.

 

 

Shane Resources Ltd. (SEI on the TSX-V)

 

SEI has had a few very interested tire-kickers taking a look at it. Something will happen, in my educated opinion, but it will have to wait for the new year.

 

Cheers – and again, I welcome any inboxes.

 

Jim