Microcap Investing

A Speculative Play Institutions Have Yet to Discover

A Taipan Publishing Group Strategy Report
By Stephen Oakes, Editor, Volume Spike Alert

International Commercial Television (ICTL:OTC) is a microcap company on the rise. This product and marketing firm is on the verge of taking its operations to the next level.

In the chart below, ICTL has proven its ability to keep the train moving. Over the past couple of weeks, the uptrend had its first major test. Would it roll over and collapse under the bottom support line in the symmetrical pattern drawn? Or, would it break out to the upside from its trading setup and continue to rally?

The best part is that the waiting game for those interested in microcap investing is officially over. Over the past few days, we've seen a new 52-week high as shares climbed past $3.50 on significant volume before giving some ground to profit-takers.

However, there is no reason to panic while the stock sheds some of its fat. Shares should naturally test its new support line at $3 before continuing higher. It's investor psychology at its finest.

You see, whenever a stock moves outside of its trading range, there is a need to justify the move. This is why shares will probably consolidate near the price level mentioned above. At this stage in the game, ICTL needs to gather some momentum,

The fundamentals for this company are also quite impressive. With a 98.6% return on equity and gross margin of 69.6%, one could only imagine how lucrative of a business ICTL is in.

Plus, there's no reason to worry about the company's ability to pay down its short-term liabilities: They have a quick ratio that is much higher than the breakeven mark of 1, currently residing at 2.70 -- which is great!

Operating revenue and profit margins continue to improve each and every year with no signs of slowing down.

Get this: Net income went from -$0.18 million in 2003 to $340,000 in 2006. Again, in viewing the available data, I'm seeing net income for the first half of 2007 equaling $680,000! Not bad for a start-up micro-cap.

It's not too often that we are presented with such an investment opportunity! Now is the perfect time to pick up shares before the smart money acts.

For more on these type of hot opportunities, read this Special Volume Spike Alert Stephen has prepared for you.

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Useful Links on Microcap Investing

Investing in Hedge Funds: Strategies for the New Marketplace

Investing In Micro Cap Companies

MicroCap Investing – An Overview