TAON - Could Be Poised For A Rally

TAON released news today before the bell. The stock quickly moved out of the gates and hit its 50 day moving average before pulling back into the afternoon. I think the $.0034 figure will be an important one if TAON decides to move higher from here. The stock closed at $.0025 on above average volume.

TAON has traded down from around $.015 earlier this year and looks ready for a reversal. Today's news could help bolster the stock going forward.

We saw a delayed reaction to news like what i think will happen with TAON, with the stock UYMG. Some of you may recall when I brought UYMG to the blog at $.0025 and called for a rebound in shares, the stock just recently hit over $.025 a share. The ultimate major price move didn't happen over night, or even over just a few days. That is what I think will happen with TAON, of course nothing in this market is ever 100% sure. The stock could continue down to $.0001, anything is possible.

Tao Minerals Ltd. Signs LOI to Acquire Las Aquadas Property
MEDELLIN, COLOMBIA, Jul 06, 2011 (MARKETWIRE via COMTEX) -- Tao Minerals Ltd. (TAO) (OTCQB:TAON) is pleased to announce the signing of a Letter of Intent (LOI) to acquire the Las Aquadas property from Bullet Holding Corp of Medellin, Colombia. The Las Aquadas property is located in the Caldas Dept and approximately 120 kilometers south east of Medellin, Colombia.

The due diligence period for each of the parties is to be completed by September 30, 2011 and all terms and conditions concerning this proposed transaction will be set forth in a definitive agreement that will be subject to the approval of the parties.

The key point issues of the Proposed Transaction structure are as follows:

- Listing on Frankfurt Exchange - Tao will undertake its best efforts within 90 days to seek a listing on the Frankfurt Exchange consistent with any and all listing requirements.

- Vend in of Bullet Property - Bullet will transfer its interest in the Las Aquadas property with a minimum valuation of

US$ 10,000,000 in exchange for a minimum of 60 % of the issued and outstanding shares warrants and/or debentures of Tao on a fully diluted basis conditioned upon the completion of the Financing.

- Financing - Tao completing a financing for gross proceeds of at least US$ 10,000,000

- Senior Officer - James M. Sikora will agree to serve as the President of Tao on a full time basis for a period of at least two years from Closing.

- Board Representation - the board of directors of Tao at closing shall be compromised of seven people, three nominees of Tao, three nominees of Bullet and the seventh nominee being jointly agreed upon by Tao and Bullet.

- Closing - The Closing shall occur no later than September 30, 2011

Tao president, James A. Sikora stated that Tao is very pleased to have executed this LOI to acquire an excellent and key project in such a strategic gold mining district of Colombia.

Tao Minerals Ltd. is a mining exploration and development company formed to acquire, develop, and exploit natural resource properties focusing primarily on the rich, yet highly underdeveloped gold deposits of Colombia doing so in a socially and environmentally responsible manner. As a corporation, Tao has firmly established itself in Colombia over the past five years, becoming fully adept with the legal and political processes required and hiring highly qualified personnel in the geological, legal and security professions. Arriving early to the boom in the expansion of natural resource development in Colombia has enabled Tao to firmly establish itself in Colombia.

Contacts:
Tao Minerals Ltd.
James A. Sikora
President & CEO
877-331-8777

Fridays Watchlist - QING, STHG, APRM, TAON, GRPS, VTPI

QING now trades at a .50 p/e. In 2010 QING earned $.40 a share, today the stock closed at $.20 a share. In the most recent quarter QING earned $.15 a share, putting it on pace to earn at least $.60 this year. Using a conservative p/e multiple of 10, QING should be trading for at least $6.00 a share. There is no denying the value in these shares according to the company financials and growth. the company is planning to open over a hundred new stores this year. At some point investors will catch onto this stock and I don't think it will be trading at such an obscene discount. you've been warned.

STHG it pains me to put this stock on my watch list, but since most of these stocks are just trading vehicles for all of you, STHG could make a decent trade at some point. What has me scratching my head is that the stock did over 600 million in volume today yet there are less than 800 million authorized. To see the outstanding shares get traded 1x or 1.5x is possible but unlikely, to see the entire authorized trade is even more unlikely. Something is awry here and I am curious to see if the authorized do increase the next few days after the fact. If not then you would have to think some naked shorting has taken place, which could be the kindling for a relief rally. Either way this stock could make for a very quick trade, other than that I would not touch this stock.

APRM the company recently got current with OTC Markets and has projected revenues for its yet to be released commerce site at almost $13 million. I think when this news hits the wires APRM will trade much higher than current levels. Factor in the low outstanding share count and float and APRM has some great potential going forward.

Bottom plays: TAON, GRPS, VTPI all three either forming a bottom or hit bottom today and look ready for a rebound. I really like VTPI here at $.0009/$.001 and think it could do a 100-300% type run from here. I might be a little early with this call, but in the end I think it will be very profitable.

Wednesday's Stocks To Watch - QING, MCET, VAEV, GRPS, TAON

QING as of yesterday's close QING's p/e stands at .62. Simply an amazing p/e for any stock and a number you will be hard pressed to find for any stock in any market. That p/e is based upon QING's 2010 eps of $.40. This past quarter QING posted a $.15 eps which would equate to a $.60 annual eps which would be a 50% improvement from last year. Just doing a simple multiple of 10, you get QING as a $6.00 stock which means the stock would have to move 2,400% higher from its current $.249 price tag just to meat a very conservative valuation.

MCET mounted an amazing rally yesterday after issuing some pre-market news concerning a stem cell patent they were issued. Could yesterday be the start of a multi-day rally or was it just a one hit wonder? While NEOM closed its first and second days near its highs, I think MCET not closing near its highs might signal that future gains are not in the cards, but we shall see,

VAEV an 8k outlining a licensing agreement was released late in the day yesterday. The stock saw a boost in price and volume that should continue today as investors digested the news over night.

GRPS and TAON are two stocks trading near their lows and should be watched closely for a potential move off of them. A great way to make money in this market is buying stocks when no one wants them and right now GRPS and TAON appear to be unwanted stocks. Keep an eye on them.