Stocks To Research This Weekend - VPRS, QING, SMVI

VPRS the stock surged higher today out of the gate hitting $.093 on impressive buying. It settled down, but its becoming evident that investors are starting to catch onto this reverse merger stock. Take a look at the recent 8k filing showing new ownership and CEO. This stock has the potential to trade much higher in the future as the market begins to factor in these developments.

QING trading at a p/e of .50 this stock is being priced for bankruptcy, considering the company is growing at a 50% clip I think the market is way off on this one and this stock offers a tremendous bargain at current levels. Using last years eps this stock should be trading at $4.00 or better a share. That doesn't include the growth we are already seeing this year as the company posted earnings of $.15 per share for the latest quarter.

SMVI this stock could start to heat up the next few weeks. The chart shows a stock that is looking to rally with $.0006 as the next logical price point. After that the 200 DMA comes in at $.0012 and the 2011 high of $.0024 would be next.

Thursdays Stocks To Watch - WAMUQ, QING, GRDO, VPRS

WAMUQ As far as I understand this play, people buying WAMUQ are betting that JPM was wrong in taking Washington Mutual and its assets from them. The assumption is that shareholders of WAMUQ would stand to make out if JPM is proven wrong in its handling of the WAMU takeover. Only a few weeks ago this was at $.04 and today hit a high of $.23, a nice huge return for anyone that was in from the start of the recent run. I think this stock will remain in play for a while.

QING boasts a p/e of .61. Your typical, profitable company usually has a p/e of at least 10, which means QING should be trading at $4.00+ and not $.24. If you factor in the recent quarterly eps of $.15 then this stock should really be trading at $6.00 or $9.00. I think its only a matter of time before the market comes upon this glaring undervaluation.

GRDO with its share structure currently maxed out, this stock should rebound smartly from recent lows. I think the stock should continue to impress in the near term.

VPRS the stock is quietly climbing higher as we await further details about the possible reverse merger taking place. A recent 8k filing shows the shell was bought and the new CEO being the CEO of a privately held Chinese medical company. The drug they are marketing would, according to a recent document, provide substantial income and revenue: Vivatuxin® is expected to generate $45.1 million revenue and $13.8 million net profit in 2011, $92.8 million revenue and $36.1 million net profit in 2012, and $143.3 million revenue and $52.1 million net profit in 2013.

Tuesdays Stocks To Watch - VPRS, SFIO, BRZL, APRM

VPRS closed at $.08 today on over $250,000 in money volume. Last week an 8k hit the wires in which it appears a reverse merger is in progress. The new CEO is the CEO of privately held MediPharm Biotech Pharmaceuticals. In a recent research piece the company is projecting impressive revenue and profit figures: $45.1 million revenue and $13.8 million net profit in 2011, $92.8 million revenue and $36.1 million net profit in 2012, and $143.3 million revenue and $52.1 million net profit in 2013. These reverse merger type stocks can really get hot and post some amazing gains, which makes VPRS a stock to watch going forward.

SFIO the stock popped higher today and had over 1/2 million in dollar volume. Today's gains are on top of Friday's gains and confirms SFIO is not a one hit wonder. The question is how many days can this stock continue to run for? I think there is a good chance for more gains tomorrow as the stock closed above its 200 DMA.

BRZL as long as this stock stays above $.009 I feel the bullish scenario, a move to $.015 -$.02 short term, is still on the table.

APRM recent filings by the company, after an almost one year hiatus, show that the company is trying to get current before the new ecommerce site is launched. I see no reason for these filings unless APRM was preparing itself for a new chapter in its history. With investor interest low, the stock sits well below what I feel the stock will hit if the company comes through for its shareholders. With its attractive float and share count i think APRM will trading into the pennies when the commerce web site gets launched.

VPRS - Reverse Merger With MediPharm Biotech Pharmaceuticals Co. Ltd?

There is almost nothing more breathtaking in this penny stock market then watching a reverse merger type stock run farther and higher than anyone's most wildest expectations.  One only has to go back to earlier this year when GWAY ran from $.01 to over $5.00 in the span of three trading days, to see the type of gains that these reverse mergers can provide.

If you recall the day GWAY's run first started, as I do, GWAY issued an 8-k before the market opened. Until the press release hit the wires, later on in the day, GWAY only traded up a few ticks from $.01 to $.03 a share as most traders ddn't bother to look at the 8k, or thought it was no big deal.  Boy were they ever wrong.   When the press release about the merger hit the wires GWAY exploded on a run that investors dream about.  Up until the press release it seems only a few people had fully digested the 8k filing, which is what I see happening right now with VPRS.  (Below is a chart of the GWAY reverse merger run.)

Yesterday VPRS issued an 8k, a change of CEO and ownership.  Essentially, judging from the 8k, the shell was purchased for 35 million shares of stock, at what price we do not know.  What we do know is that the new CEO is also the CEO of MediPharm Biotech Pharmaceuticals and they expect to post significant revenues in the years ahead.  I could be wrong, but putting two and two together here is not that difficult.  Per a recent company profile MediPharm Biotech Pharmaceuticals  is a private company.  VPRS is a debt free SEC reporting shell stock with over $100k in cash on hand.  It appears MediPharm Biotech Pharmaceuticals  is reverse merging into VPRS and bringing value into the shell.  This value is already starting to be reflected in the share price.

Here is the good stuff:

MediPharm plans to invest in Radiation-Protective Fa-cilities (RPFs) in 150 China Tier 3 hospitals, with each hospital requiring investment of $75,000 for a total of $11.3 million. Vivatuxin® is expected to generate $45.1 million revenue and $13.8 million net profit in 2011, $92.8 million revenue and $36.1 million net profit in 2012, and $143.3 million revenue and $52.1 million net profit in 2013.


Also:


Through a strategic marketing collaboration study with the Ministry of Health of China currently covering 101 hospitals, the company has agreements to supply 20,000 doses of Vivatuxin®, priced at $3,000 each, used for the treatment of advanced lung cancer patients, who have previously failed at least one course of chemotherapy, and is negotiating collaboration with additional 50 hospitals.

These are some pretty impressive numbers and are found here (click to get taken to the document).

These numbers were put together less than a year ago, and now we find this company going public.  This has not been pr'd yet and if this news does get pr'd... well we saw what happened when the pr for GWAy came out.  Right now anyone that hasn't read the 8K has no idea what is going on with VPRS.  I think the reverse merger is certainly what is happening here and could propel the stock to much higher levels.  With the current share structure and financial projections, VPRS is a stock that could really surprise going forward.

These reverse merger stocks are some of the most explosive out there.  Right now we have little to go by other than some recent financial projections.   A lawsuit that comes up when you search the company and CTL was resolved favorably in 2009, so that is not an issue.

Speculating on just how big this could be is the fun part.  We've seen stocks like GWAY and TMSH run far beyond our wildest expectations.  Could VPRS post a similar type move?  Absolutely.  We've already seen this year that anything is possible.  Right now we have some nice information to nibble on which has peaked our interest.  Judging from the revenue projections MediPharm Biotech Pharmaceuticals Co. should bring tremendous value into VPRS and this stock should be added to your watchlist going forward.