Monday, September 25, 2006

MGOF: And Justice for All

MANGOSOFT, INC. of Nashua, NH (OTC: BB: MGOF) announced today that its subsidiary, Mangosoft Intellectual Property, Inc., had filed a civil action earlier this morning alleging patent infringement against eBay, Inc. of San Jose, California. More specifically, the lawsuit is against eBay’s subsidiaries Skype Technologies SA and Skype Software Sarl of Luxembourg. Mangosoft is alleging that eBay’s subsidiaries have infringed upon U.S. Patent No. 6,647,393, and continue to infringe upon it. This patent is apparently on what’s been termed “dynamic directory service”.

So what the heck is a dynamic directory service? That’s a good question. A dynamic directory service is a single data structure that provides both the physical location of directory information around the network and the directory information itself within that structure. Within a network of computer nodes this data structure is distributed throughout the network, and continuously redistributed. This creates a data service that is more versatile and dynamic.

Unless you’re a techie wizard, this probably doesn’t make a whole heck of a lot of sense. It doesn’t make a lot of sense to me anyway. I suppose that is a good thing, as I cannot break any patents on something that I don’t know how to make. Apparently that was not the case with Skype Technologies and Software. My question is, is there anything new left under the sun? Let’s say that two techie geniuses create the same invention on the same day. One of them beats the other to the punch getting the patent; the other has still “created” something. I would be cautious about coming up with a new idea or invention. It might end up costing you in the long run.

Saturday, September 23, 2006

NFL, NBA, HIP HOP Superstars...OH MY!

Dan Holtzclaw here, author of The Little Black Book of Microcap Investing. I have another great find you. Read this article and see what you think. If you want to find great stocks like this, grab a copy of my book. I show you exactly how I find these stocks. You can get it at or at

NFL great Warren Sapp...NBA sensation Ben Gordon...Rapper extraordinaires Juvenile and Juelz Santana. What do these 4 superstars have in common? All are H3 playaz! Sapp, Gordon, Juvenile, and Juelz are H3 financial partners for the H3 Flagship Hip Hop Soda Shop stores. Gordon and Juelz have agreed to be principle partners for the planned Hip Hop Soda Shop on 125th street in Harlem, NY while Sapp has plans to open Hip Hop Soda Shops in Miami, Tampa Bay, Orlando, and Oakland. Juvenile has signed a Personal Services Agreement with H3 that includes an opportunity for the rapper to open 30 Hip Hop Soda Shops in the state of Louisiana over the next three years under an Area Development Agreement.

H3 Enterprises is a unique Pink Sheet stock on many levels. First of all, how many Pink Sheet or OTCBB companies can you name that have bonafide superstars from the sports and entertainment industries actively promoting their products? I'll give you hint...NONE! Usually, if an OTC company does have a celebrity promoting their products, they are ancient history. Seriously, who cares if a television star from the 1970's is pimpin' your goods? This is not the case with H3.

Warren Sapp is a perennial NFL Pro-Bowl player and one of the most feared defensive players in all of football. Sapp has actively promoted his relationship with H3 and the Hip Hop Soda Shop through appearances with CNBC, ESPN, the Sporting News, and radio interviews , and magazine interviews.

Ben Gordon is one of the fastest rising stars in the NBA. In his rookie season 2004-2005, Gordon was named as the NBA's 6th Man of the Year. Other recipients of this prestigious award include NBA greats such as Bill Walton, Kevin McHale, Antawn Jamison, John Starks, and Bobby Jackson. Gordon's relationship with H3 and Hip Hop Soda Shops has been noted by numerous media outlets including the New York Post, UpTownFlavor, and ESPN. In addition to his involvement with Hip Hop Soda Shops, Gordon and H3 have also teamed up to market a white-tea based energy drink called BG7. This delicious high octane drink has been noted by Energy Drink News , the New York Post, and many other media outlets.

Louisiana native Juvenile is one of rap and hip hop's biggest stars. His album 400 Degreez was one of music's biggest selling album reaching quadruple platinum status! He has since followed up that album with a number of other platinum selling efforts. Juvenile's home state of Louisiana was devastated by Hurricane Katrina and the superstar's agreements with H3 allow him to help bring immediate relief and redevelopment programs to the disaster torn area.

Harlem based rapper Juelz Santana is one of hip hop's hottest young talents. His most recent album What the Game's Been Missing, released in November 2005, reached the Top 10 of the Billboard Album Charts and is certified Gold. Juelz is very active in his promotion of the Hip Hop Soda Shop and has been featured in media outlets such as Vibe Magazine and a number of hip hop press and websites.

H3 is providing a means for many successful African Americans to give back to their community. Juelz noted, "... we're gonna get a chance to actually work together for the good of our own hood." while Sapp said, "The Hip Hop Soda Shops can be one of the most positive things to ever happen to our communities...I can't think of a better way of giving back than putting my money to work on my own turf for my own people while helping H3's powerful new enterprises flourish all over the world."

In addition to the Hip Hop Soda Shops and Ben Gordon's BG7 energy drink, H3 is also offering the latest in online gaming and entertainment with H3Players and its own line of clothing and merchandise.

According to H3, the exploding popularity of Hip Hop and the Hip Hop culture will maximize merchandising and retailing opportunities, particularly for H3’s own merchandise lines. Simmons Lathan Media Group (SLMG) estimates that 45.3 million consumers are now spending $12.6 billion a year on Hip Hop media and merchandise worldwide, with an annual growth rate exceeding 100%. HTRE will capitalize on this insatiable appetite for everything Hip Hop with a large merchandising area in each location featuring exclusive merchandise lines from H3 and Juvenile, as well as two exclusive lines that can be chosen by the owner/operator of each particular location. The developers and franchisees will also have the ability to choose up to 50% of the media sold and the music played inside their Soda Shops.

In addition to its superstar partners, H3 also has an outstanding management team in George Lois, Brian Peters, Jackie Robinson, Steve Staehr, and Jamar McNeil.

Marketing icon George Lois is the most creative, prolific advertising communicator of our time. Best known for his breakthrough cultural transformations, Lois made a failing MTV a media powerhouse with his legendary “I Want My MTV” campaign, turned unknown Tommy Hilfiger into an instant celebrity with the placement of a single newspaper ad, created new marketing categories with his names and ads for Lean Cuisine and Jiffy Lube, and changed the viewing habits of America’s sports fans with his “In Your Face” campaign for ESPN. Lois is the author of five classic books, including the recently published $ellebrity (a Time Warner book) and is the only person ever inducted into all three marketing related Halls of Fame, (Art Directors, Graphic Arts, and Copywriters).

Brian Peters is an award winning HipHop impresario whose Halls of HipHop concept stole the show and won top prize in Visa and Bank of America’s “Best New Business Concept 2004” in Washington D.C. At 25, he has become a legend of New York HipHop starting as an intern for Bad Boy Entertainment under the tutelage of Sean “P. Diddy” Combs. He has created and promoted concerts for colleges and universities around the USA, and has arranged live performances in New York City for many of HipHop’s top performers and most well-known clubs. He has also negotiated performance contracts for a number of platinum selling artists including Outkast, Nas, and Snoopdogg.

In his storied athletic career, Jackie Robinson achieved the status of All-American, World Champion, and Hall-of-Famer. After applying the same athletic disciplines and dedication to a series of extremely profitable business ventures, Jackie landed a spot in Black Enterprise Magazine’s “Top 100 Business People” (#51), a list that includes the likes of Oprah Winfrey and Bob Johnson. Jackie is currently the owner/operator of 53 franchised Pizza Hut Restaurants, as well as a number of News & Gift stores and several highly successful eating establishments inside Las Vegas’ McCarran Airport. He has also created and developed his own record label (SLV), was a senior executive for the Aladdin Hotel Casino for eight years, and served 10 years as CEO for the largest administrator of Federal Tax Credit programs in the state of Nevada.

Jamar (J Niice) McNeil is a multi-award-winning radio personality who has been H3's driving force from the beginning. Battle-tested in the music industry, Jamar has been heard on Clear Channel's HOT 99.5 in Washington D.C. As a popular DJ he has hosted extravagant events in the DC metro area with premier artists such as Jay Z, Beyonce, Beenie Man, and the Black Eyed Peas. He's now taken his show, "In the Crib With J Niice" from the east coast to the Midwest airwaves at Clear Channel's 96.5 Kiss FM in Cleveland, Ohio. Jamar is also the morning show personality for X 107.1, Cayman Islands’ #1 Hit Music Station, and has also worked at XM Satellite Radio. His connections in the radio and music industry have given him the opportunity to build lasting relationships with many of the top stars of Pop and Hip-Hop. He will utilize these contacts, along with H3's other major connections, to coordinate a continuous flow of public relations and promotional opportunities for the company.

Staehr brings a distinguished financial management background in the gaming, tourism and entertainment industries. A certified public accountant licensed to practice in Nevada and California, Staehr will be responsible for handling all aspects of financial accounting and SEC reporting for H3Enterprises. He joins H3Enterprises from Cash Systems Inc., where he served as corporate controller for the $100 million company that provides cash services for the gaming industry. He coordinated the relocation of the company's headquarters from Minneapolis to Las Vegas, and will put these skills to use on H3Enterprises' move from New York City to Las Vegas, as well.

Shares of H3 stock (Pink Sheets: HTRE) have recently tumbled from a high of $0.78 to a low of $0.13. This is certainly a "Blood in the Street" stock...a good stock at ridiculously low prices. Additionally, H3 is reported to have a very large short position. Of the 76 million outstanding shares, 5.9 million shares are estimated to be shorted. With any amount of significant volume, HTRE could easily experience a huge pop with a short squeeze.

If you like the analysis presented here, you will absolutely LOVE The Little Black Book of Microcap Investing! This book is full of information similar to what you just read. If you want to make money with high potential stocks such as HTRE, you need to buy this book. Get it at or

Monday, September 18, 2006

What IS In A Name?

This post is an update on a post I had made earlier concerning Marshall Field’s (MF) and Macy’s. As most of you know, Macy’s bought our MF. The MF in our neighborhood maintained its name. I thought this would last indefinitely. It seemed to me to be a good idea. I considered it a smart business move. As a loyal MF customer, I didn’t mind shopping in Macy’s as long as the MF name was still on the outside of the building.

Imagine my surprise when I went on my last shopping venture to what I expected to be MF! Hanging where the MF logo used to be was a big, red, gaudy Macy’s sign. Uh-oh. I was concerned. I went into the store a little apprehensive but the big gaudy sign did not prepare me for I would find there. Everything had been changed around, and rearranged. I couldn’t find anything where it used to be. Some of the brands were names I had never heard of before and they didn’t have that classy MF look. Others were so outrageously priced I didn’t dare try them on. I looked at the sale racks, where I used to find my best deals, and I found nothing. I carefully walked through every department in the store and found a similar state of chaos in each department. What had they done to my MF? The best parts of the store had been obliterated.

That was honestly my personal experience, and my opinion. Was it correct? Possibly not; I’ll tell you why. A self-fulfilling prophecy is a psychological phenomenon in which we make a prediction based on our own biases and emotions and then we look for evidence to or subconsciously fulfill our prediction. Another example is telling your self, “I’m going to have a horrible day at work today”. You then go to work with a bad attitude and purposefully have a horrible day. The Macy’s sign was like that. I saw it, and I thought, “this store is not going to be the same”. I went in with the expectation that everything was going to be messed up. Guess what I found?

That leaves me to the question of, what really is in a name? Yahoo! Inc. (Nasdaq:YHOO) and Acer Inc. announced a strategic partnership to distribute a co-branded toolbar and start page and to set Yahoo! as the default search engine on all Acer PCs sold globally. Acer is the world’s number four branded personal computer vendor, and the deal with cover a few years. The Yahoo name and Acer name will be co-mingled as Acer owners will see the Yahoo homepage each time they turn on their computers. It seems like everyone who has a computer to turn on knows what Yahoo is. I had never heard of Acer. It sounds like this is about to change. If Yahoo’s self-fulfilling prophecies are true, this name game could be huge.

Saturday, September 16, 2006

Expect BIG Gains on the OTCBB Soon!

Hey guys, Dan Holtzclaw here, aka the "Stock Doc". Just in case you don't know me, I am the author of the Best Selling Book "Penny Stocks: The Next American Gold Rush" and the newly released book titled "The Little Black Book of Microcap Investing" available at and at I am new to the PennyMarkets Blog. My goal is to give you folks a different spin on microcap stocks.

From my years of observing the markets, I am convinced that the majority of OTCBB and Pink Sheet investors come from NASDAQ minded individuals. This makes sense as those who invest in the NASDAQ tend to be tolerant of stock volatility and more apt to invest in lesser known equity securities. If you compare charts from the NASDAQ and OTCBB you will see that OTCBB activity tends to parallel NASDAQ activity. As I have postulated before, when times are good on the NASDAQ, it is my belief that investors often take some of their profits and stick them in OTCBB stocks. This was clearly evident in 1999-2000, when both the NASDAQ and the OTCBB were at their peaks, and may be happening again now. As I am writing this, the NASDAQ is approaching levels that have not been seen since 2001. When the NASDAQ made steady gains for the majority of 2003, dollar trading volume for the OTCBB followed suit a few months later. Again, it is my belief that most investors first make their money on the NASDAQ and then stick some of it in the OTCBB…hence the delay between activities amongst the two markets.

Take a few minutes to compare the charts of the NASDAQ to OTCBB dollar volume statistics. The OTCBB website contains data on market statistics for the over the counter market. In the market statistics subheading, you can find information on share volume, dollar volume, total transactions, etc. I personally don’t like the charts provided on the OTCBB website, so I download the data into an excel spreadsheet. This allows me to create various charts for comparison and analysis of market trends. When looking at OTCBB market data, I like to look at total dollar volume to get a feel for overall market conditions. Dollar volume lets me know the “pulse” of the market. It is real data. Total share volume can be misleading because you don’t know the price at which most tradable OTCBB stocks are moving. For example, a one cent stock may trade 2 million shares in a single day, but that only translates into $20,000…chump change for most large market stocks. The bottom line is how much cash is entering the market. More investors mean more money entering the market. More investors and more money means that more stocks are going to move. More stock movement means more opportunity for trading activity. More trading activity means more opportunity to make money with a stock. Can you see the value of monitoring total dollar volume?

While OTCBB dollar trading volume gains tend to lag slightly behind gains in the NASDAQ, decreases in the NASDAQ influence the OTCBB much faster. When times are bad, investors tend to eliminate their riskiest investments first. As such, if the NASDAQ is declining, the first things to go for most investors are their OTCBB investments. This trend was clearly evident for most of the year 2005. From January to May of 2005, the NASDAQ took a breather and experienced a general downtrend. As this occurred, investors likewise withdrew from the OTCBBand dollar trading volume declined. From May to July of 2005, the NASDAQ once again surged upwards and, as expected, OTCBB dollar trading volume began to follow suit. Unfortunately, just as the OTCBB began its positive dollar volume run, the NASDAQ once again corrected and the OTCBB rally died. From August to October of 2005, the NASDAQ experienced a minor correction and, as expected, the OTCBB lost dollar volume. In general, 2005 OTCBB dollar volume was mired in a downward trend generated from the January-May and August-October NASDAQ corrections.

It is well known that the markets are very cyclical in nature and my observations of the parallels between the NASDAQ and OTCBB can create opportunities for “timing” investments in bulletin board equity securities. For example, from November 2005 to mid-April 2006, the NASDAQ enjoyed very substantial appreciation in value. In December of 2005, I noted that the NASDAQ was in the second month of a positive run and I expected the OTCBB to soon follow suit. The OTCBB hit a low point in dollar trading volume in December 2005 and then recovered explosively. From its December 2005 low to early April of 2006, dollar trading activity for the OTCBB improved by nearly 150%! When this occurred, a number of bulletin board stocks experienced amazing gains. As a matter of fact, a number of OTCBB stocks achieved quadruple digit percentage gains!

Look at the recent activity of the NASDAQ. From May to mid-July of 2006, the NASDAQ was in a steady decline. During this time, as I have clearly shown, dollar volume for the OTCBB quickly followed suit. From May 2006 to July 2006, dollar volume for the OTCBB dropped by nearly 50%! Now for the good news. Since mid-July, the NASDAQ has enjoyed appreciable gains of nearly 10%. Likewise, beginning in August 2006, the OTCBB began to follow suit and dollar trading volume improved by about 15%. As gains for the NASDAQ have been extremely sharp from mid-August until now, I expect that dollar volume for the OTCBB will increase dramatically, possibly to levels similar to March-April 2006. More money coming into the OTCBB means more trading activity and more opportunity for big gains!

The point I am trying to stress is that the OTCBB activity tends to parallel that of the NASDAQ. Use this information to your advantage! People always ask, “How do you determine when to buy and sell a penny stock?” Well, this is one way to do it, especially if you are swing trading.

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Sunday, September 10, 2006

Blood in the Streets Investing

Hey guys, Dan Holtzclaw here, aka the "Stock Doc". Just in case you don't know me, I am the author of the Best Selling Book "Penny Stocks: The Next American Gold Rush" and the newly released book titled "The Little Black Book of Microcap Investing" available at I am new to the PennyMarkets Blog. My goal is to give you folks a different spin on microcap stocks. For my first blog, I want to talk about one of my favorite investing strategies...Blood in the Streets Investing.

For starters, what exactly is blood in the street investing? This investment strategy attempts to identify good stocks that, for one reason or another, have fallen out of favor with Wall Street. These stocks are typically in the doldrums and are usually approaching or setting 52 week lows. For investors with a little intestinal fortitude, these stocks offer opportunities for appreciable long term gains. These gains may not come overnight, but with time, a solid blood in the street stock can add a substantial boost to your portfolio.

As Warren Buffet once said, “…be greedy when others are fearful!” Well, nothing tends to strike fear in the heart of an investor more than a tanking stock. Blood in the street investing is not for everyone as it can be a very gut wrenching process. To buy a stock when everyone else is selling is difficult. You must also be willing to sacrifice some time. Unless you have a magic crystal ball, there is no telling when the stock in question is going to right its course. As it is impossible to predict the bottom for these stocks, I usually purchase them on a downtrend and they often continue south after I get in. That is okay because I am prepared for this. In fact, I expect it. Many times, if a stock continues to fall, I will do something else that many experts advise against...I will average down. (I will tell you more about averaging down in a future article). Now you must realize that I don’t do these things by the seat of my pants. I do this because I am confident in the stocks that I have invested in. I gain this confidence by setting my stock screener to find stocks that meet certain criteria. (I give these criteria in my book...if want to see exactly how I set up my Blood in the Streets Stock Screener, buy a copy!) After setting the parameters for my stock screener I then examine each stock individually. (If you want to know exactly what I look at when examining these stocks, buy the book!)

With blood in the streets investing, you cannot simply pick up a stock just because it is near its low. There must be other reasons for buying the stock. That is where my stock screener and other identifying factors come in. Sometimes good stocks fall in spite of strong fundamentals. If you can identify such stocks, you can acquire them at a significant discount.

Last month, I gave 5 blood in the street stock picks on my website
These stocks all met the specific blood in the streets criteria that I discuss in my book. Since putting out my picks last month, these 5 stocks have risen an average of 26.58%! One of the stocks rose an amazing 55%! You must remember that all of these stocks were AMEX and NASDAQ stocks. Gains such as these on the big boards are quite impressive. Let's see your mutual fund top that in one month!

Can you perform blood in the street investing with penny stocks? I would say "yes", but only under certain circumstances. Remember, you can't just rush out and buy any old stock just because it is near its 52 week low. The stock must satisfy other criteria. Right now, I have 3 OTCBB and Pink Sheet stocks in mind that satisfy these criteria. One of these stocks is RHWC (yes, I own shares in this stock). If you want the other 2, buy a copy of my book at Type in the coupon code "Penny" when buying the book and I will give you a $3 discount plus the other 2 blood in the street picks.

Thanks and Good Luck with your trades!


Monday, September 04, 2006

NHCT: What’s In a Name

When Macy’s bought out Marshall Field’s (MF) I was concerned. I pictured my favorite department store being dozed to the ground, with all of the name brand labels being ground into the dirt. That isn’t what happened. Actually, not much happened. The company now has a Macy’s charge card but even the name on the front of the store stayed the same. A pretty good reason for this is that MF in our area had a pretty good sales record and client base. What good would it do to change the store? Suspicious people like me who had formerly shopped there might back off. Changing the name might actually lose customers. The other part of that is that Macy’s is a good name – but so is MF. There is not really a huge difference in what they do; they are both department stores (or were). If an auto parts store had bought MF, then it might make sense to change the name.

The above account is used to illustrate my confusion concerning a name change that caught my eye recently. On August 28th, National Healthcare Technology Inc. (OTCBB:NHCT) announced that they had chosen a new company name: Brighton Oil, Inc. Does that make sense? What in the world does healthcare have to do with oil? I am sure there are some connections, perhaps in manufacturing plastic items or something like that. Is the company functionally different? That is my question. Has there been such a dramatic shift that a new name is warranted? Or, is a name change the best way to cash in on some of the oil hype in the media? The brief press release issued by Brighton stated that this was the most appropriate name to reflect their growth into the oil and gas industry. I’m not convinced. A comprehensive explanation issues by Brighton might clarify things for me – and for its investors.