Thursday, October 27, 2005

Penny Stocks CBXC

This company may be competition to ADSX. ADSX also has tracking implants for animals, and Humans. CIMBIX could be an interesting company.

CIMBIX Corp. Announces That It is Now Ramping up for Production of Its PetsMobility's PetsCell -- the Cellular Telephone/Tracking Device for Pets

CIMBIX Corporation (OTCBB:CBXC), is pleased to announce that its wholly-owned subsidiary, Petsmobility, Inc. ('Petsmobility') is quickly approaching the final stages for its initial production of the PetsCell. The Company anticipates it will begin taking orders from distributors as early as December 2005 and anticipates initial shipping of the product in Spring 2006.

PetsMobility will provide wireless communication products and services to the ever growing $60 Billion pet market and the $100 Billion wireless Industry. The patent pending PetsCell is a one of a kind device and has been written up in some of the world's most prestigious business publications including, The Economist, Forbes, The Wall Street Journal and the New York Times. "

Wednesday, October 26, 2005

Penny Stocks GTXC

We have been contacted by the general council for pink sheet Company GTXC. We were advised that our information may be driving potential investors away from GTXC in an attempt on our part to short shares of GTXC. Unfortunately I do not know how to short penny stocks, and it is extremely expensive to short a stock under 5$. We are choosing to voluntarily remove the information previously stated on our site about GTXC, and IronInvesting.com. PennyMarkets.com or its associates do not currently hold, or plan to hold shares of GTXC. Further more we do not know of any way at this time to short pink sheet companies.

GTXC has issued several press releases declaring that they are not associated with IronInvesting.com. You can read press releases for GTXC here.

Tuesday, October 25, 2005

CCBEF

Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian® sparkling flavored water and Clearly Canadian O+2® oxygen enhanced water beverage which are distributed in the United States, Canada and various other countries.

CCBEF, formerly CCBC was delisted form the Nasdaq just a little while ago. Looks like the company is reorganizing, and could see a second rebirth. We like the volume, and expect to see the recent up trend continue.

This is not investment advice.

Monday, October 24, 2005

BABB

Bab Inc. franchises and licenses bagel, muffin and coffee retail units under the Big Apple Bagels, My Favorite Muffin and Brewster's Coffee trade names. Bab Inc, announced that its Board of Directors has declared its regular semi-annual cash dividend of $0.02 per share, and a special dividend of $0.06 per share, for a total of $0.08 per share, payable on January 3, 2006, to shareholders of record as of December 7, 2005. Now that should get you interested in the company, right? Maybe not, but I have taken a liking to this penny stocks, and am adding BABB to my limit minder!

Looking at the current share price of BABB, and considering a .08 dividend. I have to believe the stock will be at a much higher price on Dec 7.

This is not Investment Advice

Dow Jones, Nasdaq

Here we are again. The markets are up on nothing more than ignorant euphoria. Please explain to me why the Dow is up 100 plus, and the NASDAQ is up over 15 points. Have we not learned from our previous misconceptions? The US markets have no grounds for this sort of rally, and anyone pretending to be more than a day trader is plain silly. This once again is a short lived rally, and the markets will return to their down trend. Although it may not happen today, or tomorrow. Unfortunately our economy can not sustain a market rally. The rebound will end, and those who invested their savings will most likely regret it. So what; gas is down a record .25 at the pumps; who cares! Overall gas is still way to expensive for our economy to continue growing, and besides the damage is already done. There will be very little or no Christmas shopping season. Sorry kids, I needed gas to get to work, there will be no toys under the tree this year. If you want to get in on the only real growth company take a look at HAL.

Saturday, October 22, 2005

Penny Stocks

This paper will explore the history of Penny Stocks, the OTCBB and how the development of the North American markets has affected the development of the Over The Counter market. The second part will explore the evolution of the OTC and the effect it has had on the economy. The third paper will explore potential abuses of the market and how to avoid them. The final paper will be an oratory on the benefits of the market and potential ways it can be improved.

Normally, when we ask a question such as why something is, we are searching for the historical or the linear answer. I am asking this question to determine if we need the OTC markets and why, if at all, investors should participate in it. Let us explore the history of the OTC market and through this exploration begin to see how the OTC has evolved.

The United States has a long history of stock and stock exchanges. The American propensity for economic growth was the fuel behind the industrial revolution and on into the modern age. The first stock sold in North America was sold in 1515 with the sale of shares by the crown of Spain for land acquisition ventures in the new world. This tradition continued through the Jamestown and Plymouth colonies. The Hudsons Bay Company was the largest company in the world at one point and was created specifically to take advantage of the lucrative North American market. For over 2 hundred years, the English Crown would not allow coin or gold and silver exchanges with the American Colonies. Their grip on trading with the Americans helped to proliferate the use of bills and letters of credit between buyers and sellers. The existence of the colonies as "business" enterprises also helped develop the American willingness to use other peoples money to grow an enterprise. English investors were more than willing to purchase these letters and bills. After all, the American colonies created more wealth for the English industrialists than any war had ever produced.

These share exchanges happened from one banker to another and from one shareholder to another through private transactions. John Law, father of modern share distribution and the government backed security, caused the first modern financial panic in October of 1720 when shares of his Louisiana Company collapsed because of lack of earnings. John Law found that through the issuances of certificates backed by the government or the large companies and ventures, investors were more ready to part with their money. These certificates, called specie, were essentially stock and were sold by Law's bank to other bankers and investors.

This financial panic was the first of its kind in recorded history. People were not accustomed to the utilization of value and had no tools with how to appraise correct value. Investors were so certain that John Laws investment scheme would bear fruit that they began to purchase assets that they felt they would need in their new status as wealthy aristocrats. They spent their current savings to purchase lavish homes and land from which they could retire. The debt rate in France went up almost 212% in the 6 months that John Law was awaiting his returns. Thus when the specie that John Law distributed failed to bear fruits, the investors went into an asset sales panic to cover their debts. The losses taken by the investing public ruined so many bankers and banks that the suicide rate doubled in 1 week. Banks and bankers closed shop and left the cities where they had sold the Louisiana shares. Individual investors went to prison for failure to pay debts. The financial panic was so devastating in its impact that poets and writers would immortalize it.

Some in clandestine companies combine;
Erect new stocks to trade beyond the line;
With air and empty names beguile the town,
And raise new credits first, then cry 'em down;
Divide the empty nothing into shares,
And set the crowd together by the ears. {Defoe}


This panic gave us a new word, "speculation", meaning to buy specie. The specie in question are shares in ventures "penny stocks" without proven return rates. At the time all specie were issued as a way to capitalize a new or start up venture. Thus speculators were those individuals who purchased shares. This practice was the first step in the modern venture capitalist movement. Venture capitalists became synonymous with the loan sharks of today. Their practices included the strangulation of ventures until the venture capitalists had their return on investment.

Speculation has been the cause of many financial crises'. The Panic of 1819 was caused by poor overseas markets and increased speculation in the over the counter shares of the export companies and shippers. The Panic of 1837 was brought on by speculation in over the counter shares of western land developers and the poor performance of those developments. The Panic of 1857 was caused by speculation both in Europe and the US markets in over the counter shares of railroads. The speculation in large railroads was not the problem, it was over speculation that smaller railroads would become large ones. The collapse of these smaller companies shares caused a depression that was not overcome until after the Civil War. There were many other panics such as Black Friday in 1869 based on a manipulation scheme to try and corner the gold market. In 1873 a crisis occurred when credit was over extended causing banks to call debt and was not caused by speculation in the over the counter market. Credit became the cause of the 1893 and 1907 crises.

Speculation problems inherent in the system prior to 1933 were caused by dishonest stock brokers who sold shares of low grade penny stocks to large groups of investors. The investors then panicked as they realized how worthless their securities were. The losses coupled with the current economic climate exacerbated problems, and encouraged bank runs on banks which had authorized the issuance of similar low grade securities. The banks failed to meet withdrawal demands, there were no cash reserves and banks were forced to shutter. Bank runs occurred frequently during this time. Banks served depositors similarly then as they do today, offering checking, savings and investment accounts. As banks closed, depositors lost all their savings

The closures created such an enormous outcry in the US. The government in 1908 set up a commission to investigate the need for a federal banking system. In 1913 this commissions findings were put into the Federal Banking Act of 1913. This act established the Federal Reserve as a lender of last resort to protect banks from these runs. This would allow the bank to continue to provide their customers with cash even when they were running low. This "insurance" allowed many bank brokers to continue their practice of speculating in penny stocks without fear of a run. They could now calculate the losses and factor them into other operations. Thus windfalls could be gained and risk managed.

The Crash of 1929 and subsequent depression was caused by over speculation in radio issues. This over speculation was partly due to the continued practice of investing client funds into low grade securities. This collapse was so complete and the nature of the economy so intertwined with the world markets that the government knew it had to act for the security of the nation. In 1933, the US government acted to bolster its control over the markets by enacting the Securities acts of 1933 and again in 1934. These acts became the first to curb rampant speculation and enact safeguards to prevent the sale of securities immediately after an investment. It also established criteria for investors to meet that help inform investors about their risk. Since the enactment of the Securities acts, the markets have had their ups and downs. The latest crisis in 2000 and 2001 was caused by speculation in technology stocks very similar to the shipping crisis of 1819, the railroad crisis of 1857 and the speculation in radio companies of the 1929 crash.

The banks and traders were utilizing non-standard methods to transfer and trade these more or less private shares in a more public manner. Many of the biggest brokerage firms and trading houses were located in the financial district in Lower Manhattan. Other cities around the country such as Chicago, Philadelphia, Boston, St. Louis and San Francisco had smaller versions of Lower Manhattan. These trades were transacted face to face and through the mail and overland transportation.

Transactions occurred in taverns and bars where the brokers would get together to share information and buy and sell issues. The New York Stock Exchange was formed by a group of prominent bankers and brokers who began trading local taverns in the early 1790's. It later evolved into the curb exchange where brokers would trade on the steps outside its Wall Street office at 40 Wall St. This practice was abandoned in 1836 when the NYSE forbade its traders from trading in the streets. When this happened the over the counter market in bank stocks received a boost since these issues were traded actively on the curb exchange and could no longer be traded in the NYSE. Thus the trading of these shares had to continue with the banks and brokers over the counter. The NYSE made their proclamation in part to prevent the trading of these penny stocks by their members. Some have speculated that this act caused the panic of 1837. These shares had been regularly traded and many brokers and investors relied on the daily trading to fairly value the shares. When investors could no longer count on these daily price changes they could not make active decisions on when to buy and sell. Thus, when the economic crisis built, these investors from the United States panicked and tried to sell their shares all at once. This selling caused a run on the banks to redeem their certificates. This run made so many banks close that when the word reached Europe, there were runs on the banks there as well.

The existence of the over the counter market was not the cause of these economic crises'. It was however a medium for the abuses that took place. The problem with the over the counter was lack of regulation and standardization of transactions and disclosures. In addition, lack of timely information created a greater propensity for panic when bad information came out.

In 1901 a great event occurred in the world of investing. Noted investment advisor and statistician John Babson, who later contracted Tuberculosis. Why was this such a great event, it certainly wasn't a great event to Mr. Babson? Well, Mr. Babson spent the next few years in bed. With all that time to think, Mr. Babson came up with a strategy to reinvent himself and provide sustenance for his family. By utilizing his contacts in the investment industry, Mr. Babson was able to build a network of investment firms who contributed buy sell and volume data to Mr. Babson. Babson then compiled this data and applied the first technical statistics to the markets to determine value and increase accurate pricing. This system was the foundation for his company the Business Statistics Organization and later called the Babson Report. This report was the catalyst for information utilized by Arthur Elliot in his 1904 venture to publish the quotations of buy and sell transactions in a weekly and monthly sheet known as the National Quotation Bureau. Arthur Elliot was a publisher who knew he could capitalize on this data in a newsletter format. By utilizing Mr. Babson's reputation he could gain readership fast and provide data that people can trust and rely on.

In 1904, the National Quotation Bureau began operation and helped to standardize the transfer and transactions in these shares. The Bureau's responsibility was to facilitate trading between market makers and dealers in paper certificates across the nation. The National Quotations board has continued to provide quote and trade data. In 1962, the automated electronic quotation system began operation through a joint venture with the National Quotation Bureau and solved many of the time delay and quotation differential problems present in the market. In 1971, the National Association of Securities Dealers Automated Quotation System began operations. The NASDAQ quoted all over the counter issues at its beginning. The quotations were later upgraded to include 3 levels. The first was for larger more established companies and is called the National Market. The second tier is called the Small Cap market. The last level was the remainder of the over the counter issues that could not qualify for the upper levels and was managed in a joint venture by the NASD and the National Quotations Bureau. This level was often called the NASDAQ OTC, OTCBB, or penny stocks. Erroneously, this market was not a NASDAQ market but rather a National Quotations market piggybacked on the NASDAQ quotation system.

The NASDAQ began the first formalized regulation of the over the counter market. The additions that NASDAQ made had an immediate impact on the quality of the issues it presented. In addition, the NASDAQ made capital readily available to those new start up companies in technology and medical areas. Since its inception, the NASDAQ has become one of the largest exchanges in the world responsible for over 1/3 of the trades in the US markets each year.

Since 1994, the NASD has been ridding itself of the burden present in the OTC bulletin boards. These companies represent the greatest area of abuse in the market and subsequently the NASD decided to rid itself of the regulatory burden of this market. The over the counter has essentially reverted back to the pre 1962 day's. The addition of trading software for the OTC bulletin boards allow real time trading and allows brokers to receive data in real time identical to the NASDAQ markets. This new trading data has enhanced the ability of traders and investors to gather trade data but has done nothing to increase the quality of companies on the OTCBB.

Prior to 1999, over the counter non-reporting issues were quoted along with the fully reporting issues. This was a difficult system because the investor was left to determine which of the over the counter issues were reporting their financials and which were not. In 1998 the Securities Exchange Commission in cooperation with the National Association of Securities Dealers enacted new regulations requiring all companies listed on the over the counter to be fully reporting or face de-listing to the pink sheets. This forced many of the over the counter issues that have never reported to disclose practices and transactions that are critical to investors being able to make informed decisions. The companies who are not reporting are relegated to the Pink Sheets. The Pink Sheets are managed by a private non government entity and subsequently has much less volume than the OTC supported by the NASDAQ trading system.

New share exchange systems are being tested currently such as Internet Exchanges. These exchanges hoped to capitalize on the individual investor growth of the 1990's. The bursting of the bubble in 2001 ended that. There is a much smaller audience for this type of trading now. The over the counter volume has slowly declined over the last several months as well. Volume is at a low point for a 15-year period. The loss in portfolio value has caused many investors to reevaluate their portfolio's and to rebuild rather than risk capital positions. Part of this is due to the quality of the companies located on the exchange and part of it is due to the lack of broker involvement following the 1999 SEC change.

OtcMarkets.com which ironically enough was first a registered domain by Jason Buchen.  During his deployment to Iraq in 2003-2004 he lost interest in penny stocks.  The domain went dormant and was registered several years later by pinksheets.com and later became to predominant market for OTC securities.  In 2002 Jason Buchen called the owner of pink sheets and during the conversation suggested that calling the market pink sheets excluded a number of other securities from the conversation, and suggested OTC Markets as a better alternative, and that's it.  Whether he remembers the call or not does not matter, because it did.

Thursday, October 20, 2005

CRLU

Well it took over a week, and allot of sweating but I was right. CRLU had a little more than 650% worth of run in it, now up almost 750%. It took a few days, but with these volatile pink sheets, you have to give them time to develop. In the short term CRLU may out perform the S&P. So if you are a gambler, and I think you are if you are reading this blog. I believe CRLU may be good for a little bit longer.

Sign up for our newsletter on the right if you would like to get alerts like this one in your email.

This is not investment advice.

Dow Jones, Nasdaq

Who would have guessed the Dow Jones, And Nasdaq would tank today. Well, ill have to raise my hand, because I did. This is not rocket science, if the market looks, and acts like a dog. Then do not be fooled during short term rallies.

This is not investment advice.

Wednesday, October 19, 2005

IPWG

Well it is never a day of celebration when people lose half of their investment, but we did tell you so. As we suspected IPWG took a hit, and lost more than half of its value. We do not know why the stock fell apart, but we did warn yesterday that it could happen. What goes up must come down.


This is not investment advice.

Dow Jones, Nasdaq

Are you kidding me, Intel just posted bad numbers, GM could file bankruptcy, and the markets rally over 100 points. This is just not realistic; did anyone notice Hurricane Wilma moving towards the Gulf of Mexico. This market is absurd, oil prices are higher than ever, and there is no longer this discounting for inflation crap either! World markets tanked for better than 1% yesterday, so why are American markets rallying like it's 1990. Please give it a rest. Everyone knows retailers are not going to have a blow out christmas shopping season. Already retailers are complaining because people are buying gas, and not shopping in their stores. Walmarts stock has had a dismal run over the last two years down better than 15% from it's highs of $60, while expanding at a fast pace. I think this is an unsustainable rally that will turn south once again!

This is not investment advice.

Tuesday, October 18, 2005

IPWG

Not alot of chatter about this companies recent move. Why would the stock have such appreciation without any real news? Well we have seen this happen several times in the past with pink sheet penny stocks. They run like wild for a month or so, then fall like Enron. Yeah I know it is not nice to reference the fall of the big crooked E, but we forget so quickly. Maybe this exclusive deal with Naanovo Energy is worth a 100% run on the stock. Only time will tell. We are not adding IPWG to our limit minder!

This is not investment advice.

AGCI

After looking at this company we decided to add it to our limit minder. AGCI may make it up near 1$.

AngelCiti Reports a 28.5 Percent Jump in Third Quarter Results
AngelCiti Entertainment, Inc. (OTCBB:AGCI), an online casino software company, announced today that it had a gross net win of $270,841 and an overall handle of $6,994,216 for the third quarter of 2005 as compared to a gross win of $210,654 and an overall handle of $5,189,873 for the 2nd quarter of 2005.

"We're pleased to again be showing a positive trend from our core operations and fully expect to continue to carry that trend into the fourth quarter," remarked George Gutierrez. "The tide of the meteoric rise of online poker seems to have subsided, resulting in players returning to their old forms of online entertainment, such as online casinos. That, combined with re-focused marketing efforts and new games provided by our software seems to be garnering additional customers and play to our platform."




AngelCiti Updates Shareholders on Midas Stock Dividend
AngelCiti Entertainment, Inc. (OTCBB:AGCI), an online software licensor, has updated shareholders regarding the upcoming dividend of shares in Midas Entertainment, Inc. (Pink Sheets:MDSE), held by the company, to shareholders. The Company has elected to effect the stock dividend to allow shareholders the added benefit of direct share ownership in the meteoric growth of the online poker industry. Midas Entertainment is an online poker software company whose software fuels such sites as CityPoker.com, SkinPoker.com, DesertPoker.com and SharkPoker.com.

Midas recently effected a 20-for-1 forward split of its common shares. The previously announced dividend by AngelCiti was one share of Midas Entertainment for every seven shares of AngelCiti owned by a shareholder. The dividend which will now occur with a record date on the close of trading on October 25, 2005, and a payment date on October 27, 2005, with shareholders receiving 20 shares of Midas for each 7 shares owned in AngelCiti. Subsequent to the dividend AngelCiti will still own approximately 17 million shares in Midas Entertainment. This dividend comes on the heels of recent successful IPOs by PartyPoker.com and EmpirePoker.com which have generated tremendous interest in the financial community for this industry.




AngelCiti's August Results Show Upward Trend
AngelCiti Entertainment's (OTCBB:AGCI) wholly owned subsidiary, Worldwide Management, announced that it had a gross win of more than $106,510 in August 2005 coming on the heels of $100,974 in the month of July noting material improvement already exceeding the gross win of the second quarter of just $206,512. The trend has continued into September as well with $24,500 in gross win through the first week of the month.

"We have regained our focus on core operations after experiencing a very challenging second quarter from an administrative standpoint," remarked George Gutierrez. "We were losing some customers due to the huge growth of online poker, while simultaneously benefiting from that growth via our share ownership in Midas Entertainment, an online poker company. At the same time we were focusing a lot of corporate energy toward the Carib Gaming acquisition. We have now turned the corner back into an area of stronger operations and are looking to have our strongest quarter of the year during what is typically the weakest time of the year for online gaming."




AngelCiti Benefits from Recent Midas Entertainment 20-for-1 Stock Split
AngelCiti Entertainment, Inc. (OTCBB:AGCI) announced that Midas Entertainment, in which it now owns over 67 million shares, completed a 20-for-1 forward split last week and has begun trading under the ticker symbol MDSE (Pink Sheets:MDSE). In connection with the stock split, Midas retired over 10 million common shares (which would have been 200 million post split), thereby bringing AngelCiti's stake back up to approximately 15 percent of Midas Entertainment.

"Midas' stock split provides a unique opportunity insofar as such moves are typically accompanied by increased liquidity and exposure," remarked Midas president George Gutierrez. "We will soon further announce how the Midas stock split will impact AngelCiti's upcoming dividend of Midas shares and expect to also soon provide additional details regarding the acquisition of Carib Gaming."




AngelCiti Corporate Update
AngelCiti Entertainment (OTCBB:AGCI) announced an update to keep shareholders apprised of its ongoing corporate developments.

AngelCiti noted an upturn in its core business in July 2005 with a Net Win of $95,967 as compared $76,140, $59,844, $74,668 the prior 3 months and that upturn seems to be continuing with over $56,000 in Net Win through August 15th. Since inception in May 2002, AngelCiti has had 192,800 downloads of its software and has netted over $4.34 million in Net Win.

AngelCiti also continues to move forward aggressively in its acquisition of the Turks & Caicos' largest gaming company Carib Gaming. AngelCiti acquired a 10% stake on June 13, 2005 and has had meetings in London, New York, Los Angeles and San Diego piquing additional investor interest in completing the acquisition. Management has made completion of acquisition a key priority.

"We are excited by the recent upturn in business, as online casino gaming has been somewhat adversely impacted by the rapid growth of online poker. However, since we continue to own a significant stake in Midas Entertainment (a publicly traded online poker company) we have been able to experience the upside of that component of the industry as well," remarked AngelCiti president George Gutierrez. "We are also in the midst of some additional hires that we feel will begin to impact the corporate bottom line. Finally, we are very excited about the positive response we have received regarding our acquisition of Carib Gaming and look forward to more fully integrating that company within our corporate structure."

The Industry

A recent Article in the Toronto Globe and Mail estimates that in the past five years, on-line gambling has grown three-fold, into a $12-billion-a-year business and InformaMedia Group, which tracks electronic gambling predicts that online gaming revenue will even reach $14.5 billion by next year.

The Company

AngelCiti's wholly owned subsidiary Worldwide Management provides gaming software to online casinos including SharkCasino.com, and currently services casinos in English, Spanish, German, Chinese and Japanese.

This news release contains forward-looking statements regarding AngelCiti's business strategies and future plans of operations. Forward-looking statements involve known and unknown risk and uncertainties. The company's risks and uncertainties include: intense price competition, economic, political and regulatory uncertainties, the need to raise additional capital for growth and expansion and its reliance on the internet as a means for promoting the software it sublicenses. The forward-looking statements contained in this news release speak only as of the date hereof and AngelCiti disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in AngelCiti's expectations or future events. The representations of net handle and gross net win in this press release are presented as measures of performance for the company that are different from those presented in the income statement in accordance with Regulation G promulgated by the Securities and Exchange Commission and are not to be considered as revenue or a GAAP related financial disclosure criteria.

CONTACT: AngelCiti Entertainment, Inc.
George Gutierrez
(800) 908-9574
Info@angelciti.com

This is not investment advice.

Thursday, October 13, 2005

CRLU

The last time we mentioned CRLU we takled about it's 650% one day gain. We thought for sure the run would continue, but it did not. In fact it fell back once again on low volume, but today the stock is on the rise again, and we are smiling! We thought for maybe a second we could have been off, but we wernt. We are sticking with our expectation of an additional 100% gain.

This is not Investment advice!

Wednesday, October 12, 2005

AGSI

Aegis Assessments, Inc. Provides SafetyNet(TM) RadioBridge(TM) for Hurricane Relief Efforts
Wednesday October 12, 8:30 am ET

Aegis Assessments, Inc. (OTCBB:AGSI) announced today that it has provided its Aegis SafetyNet(TM) RadioBridge(TM) system to the United States Emergency Chaplains Corps for use in the greater New Orleans area in their hurricane relief efforts. The SafetyNet Radio Bridge interconnects incompatible radios and bridges them beyond their normal capabilities to provide immediate radio interoperability at an emergency site.

Is this oproduct legal? If it is where was it while I was in Iraq?

This is not investment advice.

ACRG

Here are all the recent press releases for ACRG. This one looks like a solid performer, we will be keeping a close watch.

ACR Group, Inc. Reports Earnings and Record Sales for Second Quarter Ended August 31, 2005

Income Rebounds Significantly From Previous Quarter
HOUSTON, Oct. 12 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG), a leading wholesale distributor of air- conditioning, heating, and refrigeration equipment and supplies, today reported operating results and sales for six months and the quarter ended August 31, 2005, the second quarter of fiscal 2006.

Net income for the quarter ended August 31, 2005 was $1,856,000, or $.17 per share, compared to $2,065,000, or $.19 per share, for the quarter ended August 31, 2004. The Company continued to generate strong growth over the previous year except for its business units based in Georgia and Colorado. As previously reported, both sales and income at those business units have been reduced during the transition of their HVAC equipment brands. The decision to change brands at those units was made in order to distribute the Haier brand of equipment at all of the Company's business units, providing an opportunity for long-term growth.

Sales for the quarter ended August 31, 2005 were $61.1 million, which was a record for a single quarter and 3% greater than sales in the quarter ended August 31, 2004. Excluding the two business units that changed equipment brands, sales increased 25%, and same-store sales increased 18%, in the quarter ended August 31, 2005 compared to the same quarter in 2004.

Net income for the six-month period ended August 31, 2005 was $2,016,000, or $0.18 per share, compared to $3,194,000, or $0.30 per share, for the six- month period ended August 31, 2004. The decrease in earnings in 2005 is attributable to the decline in sales and income at the Georgia and Colorado business units.

For the six-month period ended August 31, 2005, the Company also reported sales of $108.7 million, a decrease of 1% from sales of $109.6 million for the six-month period ended August 31, 2004. Excluding the Georgia and Colorado business units, sales increased 21%, and same-store sales increased 16%, in the six-month period ended August 31, 2005 compared to the same six-month period in 2004. For the first eight months of calendar 2005, industry-wide product shipments increased 4% based on data compiled by a leading industry trade association.

Gross margin percentage on sales increased to 23.5% in the quarter ended August 31, 2005, and to 23.4% for the six-month period then ended, compared to 22.9% and 22.6%, respectively, for the same periods in 2004. The margin improvement in each measurement period resulted from Company's success in negotiating improved purchasing and payment terms with suppliers.

Commenting on the Company's second quarter and year-to-date results, Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, stated, 'We are certainly pleased that our operating results rebounded so nicely from the first quarter of this fiscal year. Despite the difficulties experienced by our Georgia and Colorado business units in transitioning equipment brands, we established a quarterly sales record in the second quarter, and our net income was only 10% behind last year. As we have previously commented, we are not going to make up the lost business in Georgia and Colorado this year. However, we are continually regaining business and are still confident that the equipment brands that we have selected to replace the Goodman brand will enable these business units to compete effectively for the displaced customers. We believe that the remarkable growth experienced by our other business units will continue to help us offset much of the shortfall in Georgia and Colorado.'

About ACR Group, Inc.

ACR Group, Inc. is a wholesale distributor of air-conditioning, heating, and refrigeration ('HVACR') equipment and supplies. The Company owns and operates 48 branch locations that are organized into six business units covering nine states.

Statements in this news release that relate to management's expectations or beliefs concerning future plans, expectations, events, and performance are 'forward-looking' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results or events could differ materially from those anticipated in the forward-looking statements due to a variety of factors, including, without limitation, weather conditions, the effects of competitive pricing, general economic conditions, and availability of capital.

(financial data to follow)



Three Months Ended Six Months Ended
August 31, August 31,
2005 2004 2005 2004

Sales $61,140 $59,538 $108,678 $109,583
Cost of sales 46,789 45,889 83,212 84,776

Gross profit 14,351 13,649 25,466 24,807

Selling, general and
administrative costs 11,238 10,134 21,741 19,381

Operating income 3,113 3,515 3,725 5,426

Interest expense 379 280 678 535
Interest derivative loss (gain) (43) 7 162 (23)
Other non-operating income (171) (171) (323) (313)

Income before income taxes 2,948 3,399 3,208 5,227

Provision for income taxes 1,092 1,334 1,192 2,033

Net income $1,856 $2,065 $2,016 $3,194

Earnings per share:
Basic and diluted $.17 $.19 $.18 $.30

Weighted average shares
outstanding:
Basic 10,977 10,681 10,958 10,681

Diluted 11,223 10,847 11,269 10,789

SOURCE ACR Group, Inc.



Knobias, Inc. Announces ACR Group Inc as the SPOT of the Week in Its Small-Cap ClipReport
RIDGELAND, Miss., Oct. 10, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected ACR Group Inc (OTCBB:ACRG) as the SPOT of the week in the Knobias Small-Cap "ClipReport."

ACR Group, Inc, headquartered in Houston, is one of the nation's largest independent wholesale distributors of heating, ventilation, air conditioning and refrigeration (HVACR) equipment, parts and supplies. Customers include service and construction contractors. ACRG's growth has been accomplished through acquisitions and expansions. Since 1990, ACRG has acquired or started 7 additional HVACR distribution companies and now has 6 geographical business units with 48 branch operations in 9 states (CA, CO, FL, GA, LA, NV, NM, TN, TX). Because a large and diverse inventory base is an important element in company sales, ACRG stocks over 11,000 parts, supplies and equipment pieces, made by over 150 different manufacturers.

The Bulls say . . .

-- Strategic Transition Penalty: In Q405, ACRG decided to discontinue selling Goodman branded equipment in favor of a new distribution agreement with Haier brand HVAC equipment. Currently there are no competing distributors of Haier in ACRG's markets, unlike the competition faced as a Goodman distributor. As predicted in May, this long-term strategic decision has had a negative impact on early 2006 results. ACRG management is confident that this move gives the company great competitive advantages and "outstanding" long-term growth opportunities. Since the May release, ACRG has fallen -42% and may signal a value to those who believe the company will successfully transition inventory, educate customers and recapture market share over the next few quarters.

The Bears say . . .

-- Good Call? According to statements made by management, the decision to switch equipment suppliers in Q4 is meant to capitalize on long-term growth opportunities by making short-term sacrifices. Admittedly, fiscal 2006 financial results will be impacted by this move. This impact was evidenced in ACRG's July 15th Q1 financial report headline, ". . . Sales and Income Impacted By Change in Equipment Supplier". Expect continued pressure on the stock if more disappointments are announced due to this strategic decision.

The "ClipReport" is a daily newsletter distributed FREE to anyone interested in proprietary news and insight concerning small-, micro- and nano-cap stocks. Each week Knobias independently chooses one company to be highlighted in the SPOT. To qualify for selection, each company must: 1) trade on the Nasdaq National Market, Nasdaq Smallcap Market, Amex, OTCBB or Pink Sheets; 2) have a Market cap of less than $250 million; 3) have annual revenues greater than $1 million, 4) have a closing share price greater than 5 cents, and 5) have average daily volume of at least 10,000 shares. Knobias is never compensated for SPOT selections, and NO position will be held in SPOT stocks by Knobias, its management or staff while the stock is being highlighted.



ACR Group, Inc. Announces Increased Financing; Maturity Date Is Also Extended One Year
HOUSTON, Sept. 19 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG), today announced that it has amended its financing arrangement with Wells Fargo Bank to increase to $35 million the amount that may be borrowed under the revolving credit line. In addition, the amendment extends the maturity date of the financing arrangement to August 31, 2007. All other terms of the financing arrangement were unchanged. The effective date of the amended agreement is August 31, 2005. As of August 31, 2005, the Company's collateral base was sufficient for the entire $35 million to be available to the Company.

Commenting on the amended financing arrangement, Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, Inc., stated, 'The additional $5 million that is now available to the Company gives us significant flexibility to respond quickly to new business opportunities as they arise. The same-store growth rate at most of our business units continues to significantly outperform the industry, and we are continually seeking expansion opportunities. Wells Fargo Bank has again demonstrated its willingness to support the Company's growth by expanding our credit line.'



Tom Reno Appointed to Board of Directors of ACR Group, Inc.
HOUSTON, Aug. 23 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG) today announced the appointment of Thomas J. Reno to the Company's Board of Directors.

Mr. Reno is President of Thomas J. Reno and Associates, Inc., a management consulting firm specializing in compensation and benefit consulting, which he founded in 2000. Prior to starting his own firm, he was a partner at KPMG in charge of the compensation and benefit consulting practice for Houston and the southwest region. He has over 30 years experience in human resources, benefits and compensation consulting. Mr. Reno is also active in several industry and civic organizations.

Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, stated, 'Tom will be an immediate asset to our Board of Directors. His experience and interest in corporate governance will be invaluable as we address the requirements of Sarbanes-Oxley and structure the leadership of the Company to sustain future growth.'

About ACR Group, Inc.

ACR Group, Inc. is a wholesale distributor of air-conditioning, heating, and refrigeration ('HVACR') equipment and supplies. The Company owns and operates 6 business units and now has 48 locations in 9 states.

Statements in this news release that relate to management's expectations or beliefs concerning future plans, expectations, events, and performance are 'forward-looking' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results or events could differ materially from those anticipated in the forward-looking statements due to a variety of factors, including, without limitation, weather conditions, the effects of competitive pricing, general economic conditions, and availability of capital.

Sunday, October 09, 2005

CRLU

This dormant company has come back with a vengance, up 650% in one day on moderate volume of 546 thousand shares. The share price has suffered under low volume selling over several months. We are expecting to see a continued uptrend for CRLU in the short term.

CRLU Cirilium Holdings, Inc. to Acquire Orangebox Entertainment, Inc.

Orangebox Entertainment, Inc. is an cutteing edge company. Thier strategy is to increase their market growth by diversifying thier customer base. Providing production and post-production services in all areas of the entertainment industry is the company's focus. This would include video, audio and music services for both U.S. customers and those abroad. Orangebox is unique in thier strategy to provide services for all areas of the entertainment industry. Most companies only focus on one segment. Orangebox definately has a competitive edge!

Thursday, October 06, 2005

SNRN

Sonoran Energy, Inc. (OTCBB:SNRN) announced today that the Company will be closing a $7 to $10 million private equity placement over the next few weeks. Sonoran Energy had originally set a $7 to 10 million target to fund the Company's field development operations at its current assets in the U.S., and to support its projects in the Middle East. The financing round consists of several private placements by investors and institutions of which the largest single investment has been $2,500,000.

Looks like Sonoran Energy is on its yearly run. Maybe they will stay above 1$ this time. Anyhow just thought I would point out their recent share increase as other oil stocks fall.


This is not investment advice!

Wednesday, October 05, 2005

USGL

USGL is a gold company trading on the OTCBB. Other than that, looking at the chart suggests there may still be another rise in the share price possibly to three dollars. I would not take a long term position based on the recent run in share price. I will add USGL to my limit minder, and keep track of where its heading.



This is not investment advice.

Tuesday, October 04, 2005

PGDP

Taking a look at the six month chart for PGDP makes you wonder how much father the stock could rise. It looks like Shazamstocks.com has recently profiled the company. So we cant assume the rise in share price is purely because of natural market activity. I am going to remain cautious on Paramount Gold.


This is not investment advice.

Monday, October 03, 2005

TIDE, AMEP

Mid and late last week we mentioned both AMEP, and TIDE. These companies have shown significant strength as oil continue to hover around the 70 dollar mark. Investors dont know when oil prices will retreat, but untill they do small oil operations will get plenty of needed attention.

This is not investment advice.