Tuesday, December 05, 2006

OTCBB Graduation Party

Dan Holtzclaw here, author of the best selling Little Black Book of Microcap Investing. You may want to keep your eyes on a stock that is mentioned in my book. The stock is International Power Group (Pink Sheets: IPWG). This stock has amazing potential.

Waste to energy. It is the wave of the future and IPWG holds the key to this technology!

IPWG recently received notification that its SEC Form 10-SB Registration Statement has cleared comments by the SEC. Essentially, this means that IPWG will soon be able to move off of the Pink Sheets and onto the OTCBB. This may not sound like a big move, but believe me...it is. The move from the Pinks to the OTCBB will allow many institutional investors to take a position in IPWG. This stock has quite a following and many were waiting for this day to come.

Last year, IPWG hit a high of $1.90 and has since been mercilessly shorted by a number of hedge funds and institutions. Many of these shorts felt that IPWG was nothing more than a pipe dream, that it was nothing more than just another penny stock scam. As such, they felt that they could short IPWG into oblivion. The short position for IPWG has been estimated to be anywhere from 9 to 20 million shares. Speculation has it that IPWG was recently held in the 30-40 cent range as institutions attempted to slowly cover their short positions in IPWG. With yesterday's news, the shorts have seen that IPWG is for real and now the rest of the investing public knows it as well. As such, it appears that the shorts are running scared and beginning to accelerate their covering.

IPWG has risen over 50% today alone on just over 500,000 shares of trading volume. The shorts are in trouble. While IPWG does have a larger amount of outstanding shares, the majority of those shares are in the hands of company officers. Of the available public float, a huge chunk of that float is held by friendly hands. The realistically available shares for the shorts to cover with are few. Considering the fact that the shorts have had their way with IPWG since it hit $1.90, they have alot of covering to do.

It is expected that IPWG will list on the OTCBB very soon. In a press release dated 4 Dec 2006, IPWG CEO Peter Toscano stated, "We are pleased to have accomplished this step in our planned move to the OTC Bulletin Board. Our planned listing on the OTC Bulletin Board would be a significant development in that it would enhance the visibility of our company and provide better liquidity for our shareholders." With IPWG's impending move to the OTCBB, expect the shorts to ramp up their covering and expect newcomers to jump on the IPWG bandwagon.

This news alone may sound great, but you have not even heard the best part yet! Grab a copy of my book at Amazon.com and you will see why IPWG is an amazing stock!

As always, please see my disclaimer.

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