RedChip's Top 24 Small-Cap Stock Picks Up 115% on Average From Date of Coverage Through June 2012


ORLANDO, Fla., July 2, 2012 (GLOBE NEWSWIRE) -- While small-caps are the riskiest asset class, and no research analyst or firm can guarantee the success of companies they choose to put under coverage, over the past six years RedChip analysts have selected on average four small-cap companies per year with average returns of 115% from the date of initial coverage through June 2012. These same stocks reached an average RedChip post-coverage high of 299% during the same period. Four of the 24 companies were acquired by larger companies at significantly higher prices than when RedChip research was first issued.

The two biggest gainers were ZAGG, Inc. and L & L Energy, Inc. RedChip was the first firm to put coverage on both these companies; both were company-sponsored or paid-for research. ZAGG is up 1,390% from the date RedChip first issued research coverage on June 4, 2009 at $0.73. The stock reached an all-time high of $16.62 in August 2011, for a percentage increase of 2,177%. LLEN reached a post-coverage high of $14.29, a percentage gain of 1,373%, in April 2010. RedChip initially put coverage on the company at $0.97 while it was still on the bulletin board on April 15, 2009.

Sharps Compliance Corp., which RedChip issued research on in February 2008 at $2.25, reached a high of $11.95 in October of 2009 for a gain of 431%. Another RedChip stock that achieved a 435% gain was Coffee Holdings Company, Inc. RedChip was the first to issue research coverage in October 2005 at $5.49, and the stock reached a high of $29.35 in July 2011.

LKQ Corp. is up 283% from RedChip's initial date of coverage on November 28, 2005. Of the 160 companies RedChip has put coverage on since October 2005, only 17 of those stocks failed to appreciate beyond the initial coverage price. For the 160 small-cap stocks RedChip has issued coverage on since October 2005, when the company was acquired from ICM Asset Management by Dave Gentry and the Aurelius Consulting Group, the average post-coverage high was a whopping 138%.

Some of those 160 small-cap stocks failed to hold their highs, and many were negatively affected by the financial crisis of 2008. Dave Gentry, president of RedChip Companies, commented, "In the early years after buying RedChip, we took on some clients that were more speculative than we have historically covered. In recent years we have become much more conservative in the companies we choose to put under research. We have always balanced our portfolio of sponsored-research client companies with those that have strong fundamentals, strong growth and profitability."

He added, "Our track record over the last six years is, by any metric, outstanding."

RedChip's unique hybrid model has served it well over the past decade, when it began offering company-sponsored research in addition to independent, non-company-sponsored research. RedChip has issued research coverage on approximately 26 companies per year since October of 2005, with approximately 30% of those companies issued as non-company-sponsored research.

Gary Eelman, RedChip Research Director, formerly with Deutsche Bank and CITIC Bank, stated, "Small-caps are volatile by nature. For RedChip to average four stocks a year with average returns of 115% is no small feat. I joined RedChip two years ago after evaluating RedChip's unique research and investor relations platform."

Mr. Eelman continued, "Having just returned to the United States after many appointments in Asia, I was attracted to RedChip because for over 20 years, RedChip has focused on providing fundamental equity research and continues to enjoy a stellar reputation in the small-cap research sector and investor relations sector."  

The list of RedChip's top 24 small-cap stock picks over the past six years follows with dates of initial coverage, post-coverage highs and current prices:

                     
Company Symbol Exchange Start Date Initial Price Current Price* Pct Change Post High Post High Pct High Date Comment
Antares Pharma Inc. AIS NYSE MKT 9/16/10 $1.51 $3.50 132% $3.32 120% 3/26/12 Ticker Change to ATRS on 6/15/12
Asure Software, Inc. ASUR NasdaqCM 1/1/12 $6.38 $6.55 3% $8.85 39% 1/11/12 Split 3:2
Boots & Coots WEL AMEX 6/6/06 $1.67 $3.01 80% $3.15 89% 8/28/08 Split 1:4, Acquired on 9/17/10 at $3.01
China HGS Real Estate Inc. HGSH NasdaqGM 1/13/12 $0.62 $0.60 -3% $1.02 65% 4/4/12  
Coffee Holdings Company, Inc. JVA NasdaqCM 10/12/05 $5.49 $5.90 7% $29.35 435% 7/11/11  
Craft Brew Alliance, Inc. HOOK NasdaqGM 7/14/10 $4.94 $7.60 54% $9.90 100% 9/15/10 Ticker Change to BREW on 03/22/12
L&L Energy, Inc. LLEN NasdaqGS 2/23/12 $0.97 $1.73 78% $14.29 1373% 4/6/10  
Echo Therapeutics, Inc. ECTE NasdaqCM 2/28/08 $1.75 $1.58 -10% $4.28 145% 4/18/11  
Elephant Talk Communications Corp. ETAK NYSE MKT 3/25/08 $0.06 $0.07 9% $0.16 167% 7/7/11 Split 1:25
Greenfield Online, Inc. SRVY NYSE 10/24/05 $4.91 $17.47 256% $18.19 270% 7/23/07 Acquired by MSFT on 10/16/08 at $17.47
Inventure Foods, Inc. SNAK NasdaqGM 7/14/10 $3.06 $6.26 105% $6.67 118% 5/9/12  
K12 Inc. LRN NYSE 3/13/09 $14.64 $22.94 57% $39.37 169% 4/29/11  
LKQ Corporation LKQ NasdaqGS 11/28/05 $33.19 $127.08 283% $145.12 337% 5/29/12 Split 4:1
Local.com Corporation LOCM NasdaqCM 5/24/12 $2.44 $2.40 -2% $2.50 2% 5/29/12  
NovaGold Resources Inc. NG NYSE MKT 8/14/09 $3.77 $5.03 33% $14.61 288% 12/6/10 Spinoff 1 per 6
Pervasive Software Inc. PVSW NasdaqGM 12/19/05 $4.14 $7.27 76% $7.41 79% 7/26/11  
Rentech, Inc. RTK NYSE MKT 9/23/09 $1.80 $1.99 11% $2.32 29% 4/27/12  
Sharps Compliance Corp. SMED NasdaqCM 2/13/08 $2.25 $3.30 47% $11.95 431% 10/26/09  
SpaceDev, Inc. SPDV>3052394Z OTC BB 7/30/07 $0.51 $0.72 40% $0.85 67% 1/2/08 Acquired at $0.715 on 12/17/08
South American Silver Corp. SAC.TO Other OTC 4/3/12 $0.62 $0.97 56% $3.20 416% 4/11/11  
UNR Holdings, Inc. UNRH.OB OTC BB 5/17/12 $1.49 $1.20 -19% $1.70 14% 5/29/12  
Yak Communications YAKC NasdaqNM 2/28/06 $3.28 $5.23 59% $5.23 59% 11/7/06 Acquired by 232266Z CN on 11/08/06 at $5.23
ZAGG, Inc. ZAGG NasdaqGS 6/4/09 $0.73 $10.88 1390% $16.62 2177% 8/3/11  
Zhongpin, Inc. HOGS NasdaqGS 8/4/06 $8.00 $9.13 14% $23.16 190% 11/8/12  
Average           115%   299%    
* As of June 29, 2012                    

About RedChip Companies, Inc.

RedChip Companies, an Inc. 500|5000 company, is an international, small-cap research and investor relations firm headquartered in Orlando, Florida; with affiliate offices in Beijing, Seoul, Hong Kong and Singapore. RedChip delivers concrete, measurable results for its clients through its extensive global network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™. To learn more about RedChip's products and services, please visit: http://www.redchip.com/visibility/productsandservices.asp.

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