Three Up, Three Down, But Time For a New Inning

I know we've focused a great deal on a select number of our stocks lately. However, if that's where the action and the news is, then that's where it is. Though only one of them had any news today, I want to take a quick look at all these charts and recap the latest corporate activity. 

Before that though, I want to highlight some recent blog entries related to market timing. Without getting into too much detail, the ISE Sentiment Index as well as the number of NYSE new highs and new lows both suggest there could be more upside in store for the market. 

To a large extent this flies in the face of my other theory - that the recent surge only carried the market to the top of a range. If the pattern repeats itself, we'll see a pullback soon. 

I can rectify the opposing ideas by discussing the time frame in mind. My short-term outlook (days) is bearish, while my intermediate-term time frame (weeks) is bullish. If you're looking for the 'why' and the 'how', I encourage you to read through the recent blog posts. 
 

	Livin' Up To Expectations

Based on the way the stock was perking up before hand, I had a feeling SpongeTech Delivery Systems' (OTCBB: SPNG) quarterly numbers were going to be good. I wasn't disappointed on April 15th, nor was I disappointed in the stock's performance afterwards.

The rally finally took a much-deserved break yesterday.

To be fair, we've seen this kind of move before from SPNG...a couple of good weeks, followed by a return to the previous low. Is this one different? Well, yes, in the sense that this move is fully supported by the company's growth.

Aside from the decisive swing to profit and the huge increase in sales we learned about last week, SpongeTech has been on a promotional rampage lately. Here's a quick recap of recent publicity and revenue announcements:
 

• SpongeTech product to be featured on Price is Right game show 
• SpongeTech to sponsor New York Yankees game (Were Mets fans slighted? Keep reading.) 
• SpongeTech to sponsor New York Mets game (I'm not taking sides on the Mets/Yankees thing.) 
• Re-order of $1 million worth of sponges from Dubai Export/Import Co. 
• Order worth $450K from Russian distributor 

As long as SPNG musters some support around 2.5 cents, I think the uptrend can remain intact. On the flipside, a move above 5 cents could light a fire for the stock.
 

	Waiting for Traction

I really thought the bullish blip in March could finally get Smart Energy Solutions' (OTCBB: SMGY) shares going. We saw a couple of closes above the 50 day moving average line, but then saw the stock slide back under it.

There's a glimmer of hope here though. On Monday we saw a low of $0.17 before a rebound to $0.21 - a low which matched the February 20th low. And since that first test of $0.17, we've seen a decisive amount of buying volume on the days it was moving higher (i.e. the accumulation-distribution line is on the rise).

Though I remain disappointed by the overall result here, I also remain optimistic - the company is doing their part. At this point I think a move above 23 cents would be a good sign ...provided SMGY could stay above it. A couple of closes above 25 cents would make an even better bullish argument. Anything else, and it's just spinning wheels.

That said, don't be surprised to see the stock move better on or after the 29th. The company will be presenting itself at the LD Micro conference in Los Angeles, California then.

What's the LD Micro conference? LD Micro is an equity research firm with a focus on small and micro cap names. There will be a couple of hundred large investors at the conference, some of which may like what they hear about Smart Energy...and finally give the stock a much-needed volume jolt. 

We'll be watching closely that day. The news release is below.
 

	The Hint Is In The Volume

I loved last Thursday's action from Spicy Pickle Franchising Inc. (OTCBB: SPKL), or last week's action for that matter. However, I suspected it may have been a little too much for that short time frame. Sure enough...

Even so, I'm actually glad the stock eased up over the last two sessions. We had a couple of readers ask about jumping on the SPKL bandwagon. I discouraged it at $1.00, but I think the sub-$0.90 area is a little more palatable.

That's not the big hint though. Look at volume for each day over the last six. The buying volume was strong and growing. The selling volume over the last two days was weak. The bulls may have tipped their hand here...and given some of you a second chance to step in.

Also, I didn't get a chance to tell you this until now, but Spicy Pickle was named #25 of Fast Casual magazine's 'Top 100 Movers & Shakers' for 2007. It's a big deal for a couple of reasons. 

First, the '100' were selected from 450 potential restaurant chains, so Spicy Pickle is basically in the top 5% of eligible restaurants. 

Second, the chains were chosen based on a business person's (franchisee's) point of view as opposed to a consumer's point of view. When the industry insiders give you a nod of approval, it can sometimes mean more than Wall Street's approval.

By the way, the Spicy Pickle conference call from last week is now available for replay. If you missed it, I still encourage you to listen in. You'll find it on the Spicy Pickle web site.

Here's the Smart Energy news release.
 

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TGR Group, LLC has been paid a fee of $30,000 cash and 750,000 shares of newly issued restricted stock by Spongetech Delivery Systems Inc. for coverage of the Company. Additionally, one of the managing Members of TGR Group, LLC has purchased 150,000 shares of Spongetech Delivery Systems, Inc. in the open market with an average cost basis of $.035 cents per share.

Larry Isen, the editor and publisher of the OTC Journal, through various entities he controls, has purchased 1,200,441 shares of Spicy Pickle at an average cost of $.2125 per share. These purchases were made in Spicy Pickle private offerings. The aforementioned purchases were made between August of 2005 and August of 2006. On 12/15/07, on entity controlled by Larry Isen participated in an additional financing wherein 12 shares of convertible preferred, converting at $.85 into 120,000 shares and 90,000 warrants with an exercise price of $1.60 were purchased. In addition, Larry Isen has received 785,000 shares of Spicy Pickle common stock for consulting services and has purchased 189,000 shares in the open market at an average cost of $.89 cents per share. In addition, MarketByte LLC, an entity controlled by Larry Isen, has received a fee of $30,000 cash, and 300,000 newly issued restricted shares for coverage of Spicy Pickle. TGR Group LLC, the publisher of the Small Cap Network, has received $30,000 and 300,000 newly issued restricted shares for coverage of Spicy Pickle. Mr. Isen is an affiliate of TGR Group. In addition, two other individuals affiliated with TGR Group have purchased a total of 300,000 shares at $.25 per share, 21,961 in the open market at $.76 per share and received an additional 70,000 for consulting services. Current positions of the aforementioned can be found at www.otcjournal.com and www.smallcapnetwork.com in the Spicy Pickle information section.

TGR Group, LLC has been paid a fee of $30,000 cash and 350,000 shares of newly issued restricted stock by Smart Energy Solutions for coverage of the Company.

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