EKNL - Long term Stock Pick EKNL Website ht
Post# of 2150
EKNL - Long term Stock Pick
EKNL Website http://ekointernational.com
Confirmation of EKNL and their final draft of their upcoming acquisition with oeBin.
Boy oh boy do the shorts have it in for themselves now! Can you imagine the look on their faces now? Many of the shorters started in the beginning of December around .02 !!! With highs of .33 they're in some deep, deep trouble. This is huge for us because a short squeeze is just coming in closer and closer each and every day.
Between EKNL 's website launch containing several clues and their previous press releases , we were able to dissemminate that oeBin was the referred to target company. It all seems to click now that EKNL has established factual information.
We believe that EKNL is busier than we had thought since they have alluded to another acquisition in addition to that with oeBin .
If you have not read the latest press release here it is:
TORONTO, Jan. 26, 2012 - EKO INTERNATIONAL CORP. ("EKO") - (EKNL - Pinksheets), EKO International Corp. and OEBIN Ltd. (OEBIN) are pleased to announce that a final draft agreement has been reached between the two companies which will result in formalizing the acquisition of OEBIN by EKO. OEBIN anticipates that sales over the next twelve months excluding a new industrial coating line of products is expected to be in excess of $20,000,000 .
EKO is in the final stages of securing the distribution rights of a newly developed industrial coating which has numerous applications and is currently being used successfully in Europe . OEBIN will provide the marketing infrastructure to distribute the product in Canada and the U.S.A.
This press release describes several key elements to EKNL 's strategy, price valuation , and upcoming acquisitions.
Let's take this apart peice by peice.
- Final Draft Agreement for oeBin
- Sales expected to be in excess of $20,000,000
- Another company acquisition in the works which already has established European exposure.
$$ SHARE PRICE VALUATIO N$$
Math time. Please keep in mind that my valuation is quite conservative, but lays out the foundation of the potential price per share.
Revenue: $20,000,000
Conservative Profit Estimate: 15% or $3,000,000
Shares Outstanding: 29,756,809
0.10 per share (Without earnings multiplier 10X)
Conservative 10X earnings multiplier
0.10 X 10 (earnings multiplier ) = $1.00 per share
Now this is solely calculated from the FIRST acquisition. Can you imagine the price per share when the second acquisition is finalized? An easy price target of $2
GotMomoStocks.com alerted EKNL at .07 and at $1.00 per share that is a whopping 1328.57% !
This was no joke when we said Move over DROP !
SHORT SQUEEZE:
A situation in which a lack of supply and an excess demand for a traded stock forces the price upward.
If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
EKNL is about to break through some new resistance and take it to a whole new level. Keep your head up and your shares close. Shares are few and shorts are many, who's ready for a short SQUEEZE FEST ! This is the beginning to an amazing tale and I hope you're along for the ride.
News just hit and a second acquisition has been alluded, it's too bad the shorts can't smell just yet. Remember that shares are cheap and and dips are for accumulating. The more strong hands we have on shares the easier it will be to move higher and reach our price target of $1 .
BUT WAIT! There's more! Here's some motivation.. What do you think is going to happen when we reach $1 ? DROP saw a boost and so will EKNL as instutional investors start locking up shares and the float.. one secret recipe for a momo blast to the moon. We've seen it time and time again, and it is EKNL's turn. Boom.
ETA?
Move over DROP ! EKNL is here to stay. Now, comparing the two because the company structures are very similar it is easy to see that dollarland for EKNL is extremely feasible, but just how long? DROP took over a year to reach such massive highs and that was due to several factors. One major factor that caused the delay in price appreciation was that DROP added to the pot of freely traded shares available, whereas EKNL's insiders are determined to raise the price per share as fast as possible. If EKNL is serious about future acquisitions, an appreciation in PPS is mandatory so that they are more attractive in the market and future takeovers. No company wants to be acquired by a sub-penny, what's the point until they are more valuable.
The beauty of the reverse meger influences such things and it magically benefits us also. Imagine that.
VOCAB BUILDE R - Time to Brush Up!
Reverse Merger
A private company may use a reverse merger, or reverse takeover (RTO), to become a public company. The original public company, also known as a shell company or shell stock, usually has no substantial value or assets other than a listing for public trading (having a stock symbol) at a particular exchange. To perform a reverse merger, an already public company will issue shares to acquire a private company that has a business and actual value.
Private companies normally use initial public offerings (IPOs) as the standard way to go public. Compared to an IPO, a reverse merger offers a cheaper and faster way to become public. However, unless a dilution occurs after the completion of a reversed merger, the company can't raise capital through this process.
For penny stock investors, a reverse merger offers the most profitable venture. The reversed merger stocks have the volatility to explode more than 1,000%, and these stocks offer a good trade on a short-term basis. If a legitimate company with realistic claims and a sound business model undergoes a reverse merger, it may offer a good long-term investment. These types of stocks slowly work their way toward fair market value as investors methodically accumulate shares.
Forward Split
A forward split (F/S), commonly done at a 2 to 1 ratio, stands opposite the reverse split. A shareholder owns two shares at half the previous price of each owned share after a forward split. Companies do forward splits to bring high stock prices down to attract smaller investors. Forward splits signal a company's growth and the continuance of a share price increase. Forward splits rarely occur with penny stocks due to an already low price per share (PPS). Penny stock companies have more interest in a higher price, which is required for uplisting to bigger exchanges such as the New York Stock Exchange (NYSE) or NASDAQ.
THE STRATEGY
It is important that the shorts know that in the end we have the upper hand. It only takes one person with more shares than what is in the DTC to ask for a stock certificate in physical form and your broker will realize that the shares can not be delivered. This will in turn cause your broker to try and buy back your shares at a premium, resulting in a price movement higher. We will be executing this strategy with over 300,000 shares and refuse to sell them under $1 .
Even more relieving news is that some of our members have scooped up a couple hundred thous and shares and are in the process of pulling certificates also! Hold on tight as EKNL still has a lot more to give.
THE SEC AND NAKED SHORT SELLING
The emergency actions rule expired August 12, 2008.[39][40][41][42] However, at September 17, 2008, the SEC issued new, more extensive rules against naked shorting, making "it crystal clear that the SEC has zero tolerance for abusive naked short selling ". Among the new rules is that market makers are no longer given an exception. As a result, options market makers will be treated in the same way as all other market participants, and effectively will be banned from naked short selling .
ACQUISITION UPDATES
We couldn't be more pleased with EKNL and their plans for the future.
oeBIN has positioned itself as a hybrid company (bricks, mortar, people and the power of the internet) – we use the internet and it’s global marketing power, however transactions are still completed through communications with real people.
We keep the costs out – we don’t move equipment until it’s sold – we don’t tie up capitol in unsold inventory. When we do purchase equipment it is below current wholesale value that can be force liquidated in less than 30 days. We use our affiliates yards and compounds so that we don’t have a large storage facility to pay for every month, thus allowing us to keep our prices the lowest in North America.
Looks like oeBin is the real deal and reported the following sales:
2009 - $1,883,000
2010 -$ 4,735,000,
2011 - $5,386,000
Also the first four months of the 2012 year beginning
October 1 st , 2011 - $3,072,000.
EKNL is smart to acquire a company with cash flow and valuable assets. oeBin appears to have all of their ducks in a row and ready to make EKNL some $$
Remember that EKNL is a reverse merger play and recently had excellent news on a soon to be settled acquisition.
The importance of this acquisition is extremely significant. Once EKNL acquires the target company, a steady stream of revenue will be added to their books and in turn boost shareholder value. Currently EKNL is trading at .275 and after a successful acquisition, at share price of $1.00+ will easily be obtained, if not already there in the coming weeks. We have seen DROP do this same run after several acquisitions.
EKNL has the same company structure and potential to reach maximum share value as DROP .
A reverse merger is a beautiful thing when executed correctly and EKNL is on a path that is more than certain to re ach such a level.
Due Diligence
We believe EKNL is all over the boards and a potential massive profit generator.
- There are only 153k shares of EKNL total in the DTC
- Very tight float
- NO dilution
- Reverse merger play, just like DROP
- Over 2 million shares have trade, but only 153k in the DTC, how are they going to cover?
- Anyone requesting an EKNL stock certificate from the DTC will have a failure to deliver causing the stock to be sold at a premium, forcing the price upwards of $1.00 . Can you say, short squeeze?
- The steady increase in volume is contributing to slow and consistent gains. This ride has only begun.
- Insiders are holding their shares with a firm grip. They don't want to sell. This is evident when trying to purchase at the bid and not being able to get filled. The ask is where the money is made.
OTC Markets verifies all of this same information . Go ahead see for yourself.
http://www.otcmarkets.com/stock/EKNL/news/Ini...73&b=y
Current EKNL Stock Chart
GotMomoStocks.com is the home of EKNL , and it is going to stay that way.