An Interesting Microcap Morning - January 6th

Microcap Morning:

•Crossroads registers 250K shares with a maximum offering price of $2.62 under its incentive program. Eberwein also added 10K shares between $2.51 and $2.57.

•SuperCom to  buy Cyber Security company Prevision for $2.5M. This will be financed via the company's current working capital. The size of this purchase is certainly not the one that would "triple revenues" per the CEO, and this will not require the company's shelf to finance either.

•Asure Software  launched their new website, worth a look, it looks great.

•Creative Learning Corporation  announced their 658th franchise, beating their year-end goal of 650 franchises. In December the company awarded 11 Bricks Four Kids and 4 Challenge Island Franchises. Further, the company awarded 29 sub-franchises under its international master franchisees, bringing the total number to 683. Management stated that January is looking to be a very strong month as well.

•Our current watch list for potential new plays includes $INVT, $DAIO, $MARA, $IFON and $SPDL.

Current Watchlist Overview:

Invetergy has solid IP assets and an extremely experienced management team. The company is tiny and unnoticed and it may be a new potential "marathon" in 2015.

Marathon's team has executed insanely well and continue to do so. If Marathon continues to purchase assets, there will be no problem or continues to asserts its ownership on its current assets. Although we think it may be too large. I will be speaking with management again soon.

Spindle has interesting assets, and a depressed PPS, it is up to management to execute at this point. I am not sure as to how much visibility we have into the company's pipeline, I am continuing to research and will be speaking with management soon.

IFON makes rugged devices, like Xplore Technologies (who focuses on iPads mainly). I like the theme, but am wondering as to the moat (especially since new phones are waterproof like the Samsung S5 active, and if the company can recover from last quarter's miss. 

Lastly, I am looking at Medl Mobile (MEDL). The company has an application that allows users to easily share live video. I think this is a very interesting area since for example FaceTime does not allow for multiple users or public sharing. The company also has an incentive plan that gives broadcasters 25% profits. 

Posted to SecretCaps on Jan 06, 2015 — 11:01 AM
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