MNGA pullback......Examine SRER at .10 on rpt

 

Focus:

 

 

 

 

Recent upside mentions on AJAC....Monitor basing into the day.....recall the low mktcap
Aja Cannafacturing Appoints New President and CEO; Proceeds With Charge! Energy Divestiture PlanMarketwired(Tue 9:00AM EDT)

 

olume:	12,531,133
Avg Vol (3m):	2,511,470
Market Cap:	218.13K

 

 

 

 

 

 

MNGA pullback to consider, given recent good new....recall channeling 1 – 1.30

MNGA	9:18 am Magnegas has entered into definitive agreements with an institutional investor for a financing of $5 million in total gross proceeds at Briefing.com Tue 9:18am

MNGA

10:43am EDT

1.0701

-0.2299

-17.68%

1.05

1.24

1,425,117

656,537

 

 

 

 

Recemtly we discussed tripling revenues on SRER     Merriman Capital Initiates BUY on the transformed SearchCore (SRER) with 200% Upside to $.30 By Tobin Smith | October 20, 2014, 6:56pm GMT Key Point: Merriman Capital, an investment bank which is 100% focused on the <$500 million microcap space, initiated a buy rating on NBT Equity Research sponsored research client SearchCore, Inc. last week (see disclosure below). We also hold a short term 12-18 month value target of 30 cents per share on 3X multiple of sales-200% appreciation from here. I think the analyst was very conservative with his valuation and notes, but my strong assumption is as SRER opens new stores and triples Q4 to >$800,000 in top line sales…he will get more comfortable with their transformation to high growth manufactured home retailer. From Merriman: "SearchCore has exited the finder site industry and is transitioning into a pure play retail provider within the manufactured homes industry. The company is directing all its efforts on building out Wisdom Homes Of America, a subsidiary focused on opening/acquiring manufactured home retail sales centers." SRER reported a preliminary top line of $352,000, which was up from$50,000 in 2Q14 and largely in line with our $360,000 estimate. The improvement was primarily due to increased manufactured home sales out of the company's Tyler, Texas retail center. We believe management is working on bringing its other retail centers up to par with Tyler and expect at least one more location to contribute to sales in 4Q14 and 1H15, which should equate to a meaningful bump in revenues going forward. We anticipate the company will file its 10Q in November and will update our model and projections accordingly. Our 30 cent price target is based a 3-times sales multiple to our FY15 revenue estimate of $6.2 million, which we then discounted by 30% to account for time value, adoption and execution risk. When we assign this figure to our FY15 diluted share count of 47.0 million, we arrive at our 30 cent PT. We are modeling geometric y-o-y growth and thus believe our 3x multiple is conservative as many companies that exhibit this type of top line growth trade between 5-10x sales. Click here to view Merriman Capital's Repo

BORDER THREAT Mexican Drug Cartels Are Worse Than ISIS america.aljazeera.com This summer ISIS beheaded two Americans and has warned about executing a third; additionally, one U.S. Marine has died in efforts to combat the group. By contrast, the cartels killed 293 Americans in Mexico from 2007 to 2010 and have repeatedly attacked U.S. consulates in Mexico.

R.I.P. Oscar De La Renta Dead At 82 abcnews.go.com Legendary fashion designer Oscar de La Renta has died, a family member told ABC News. He was 82.