ORLANDO, Fla., Feb. 28, 2007 (PRIME NEWSWIRE) -- Dave Gentry, CEO of RedChip Companies, Inc., announced today the initiation of the RedChip Blog available at www.RedChip.com.
In his blog, Mr. Gentry discusses current market conditions, his "stock picks", and his "short pick" for the day:
"The game is not over, not even close. At least not for small-caps. RedChip's family of stocks remained relatively unscathed on Tuesday's sell-off. China was due for a precipitous correction and all roads connect in the global economy. The U.S. stock market is not an island unto itself; however, the American economy remains strong. Interest rates are still at historical lows and consumer confidence remains high. In the short-term, certain sectors in the market will remain strong while others sectors such as the dotcoms will be hit hard in the coming weeks and months. The sell-off could be part of a longer-term correction or even the beginning of a bear market.
"My suggestion is to buy the box stocks; look for undiscovered companies with growing sales, improving margins, profitability or near-term profitability that operate in the high growth sectors. Two I like: ITGL and ORXT.
"Short Pick: ANSW
"Answers.com -- this company is losing $1.12 per share. They are trading at a price-to-sales ratio of 13.55. Though they have a sexy search engine with unique capabilities and they are aggregating customers, they have yet to prove that they know how to make money. The ANSW's of the world will come back to earth this year. Their huge losses and sloppy balance sheets will come back to haunt their stocks. Profits do matter and always will matter. Until they have proven they can make money, this stock should trade in the $4.00-$5.00 range or about 5 x forward revenues. It's a great short at these levels."
About RedChip Companies, Inc.
RedChip Companies, Inc., is a well-established source of independent research and information on the small-cap market. Dedicated to "discovering tomorrow's blue chips today," its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street's radar screen. Through RedChip Review, the Company's flagship publication, analysts provide a unique breadth of coverage and depth of research on relatively unknown small-cap companies. RedChip Visibility provides publicly-traded small-cap companies an opportunity to present their business to institutional and individual investors by holding investor conferences across the country. RedChip also has an affiliate company, the Aurelius Consulting Group which provides traditional investor relation services.
The RedChip Companies Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2761
DISCLOSURES
ORXT
This blog should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that ORXT paid Red Chip Visibility, a division of RedChip Companies Inc, $34,500 for the RedChip Research Report. The Company has also hired RedChip's affiliate company, Aurelius Consulting Group Inc., to provide investor relations services for a fee of $10,000 per month.
ITGL
This blog should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that ITGL paid Red Chip Visibility, a division of RedChip Companies Inc, $28,000 for the RedChip Research Report. The Company has also hired RedChip's affiliate company, Aurelius Consulting Group Inc., to provide investor relations services for a fee of $8,000 for per month and 250,000 warrants with a strike price of $0.30 and 250,000 with a strike price of $0.50 for twelve months of service.