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Author Topic: MBAH Rocketing - Long Ways To Go
Investorgation
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Rocket Alert - MBAH

This is not done by any means. The float is tight. The share price is still much too low as it is. This is going to keep running.

MBA Holdings Inc. Signs Agreement with Old Republic Insurance Co.
http://tinyurl.com/37vhh
http://www.mbadirect.com/

MBAH as of 6/04/04
Directly from Transfer Agent
Shares Outstanding
35,892,850
Restricted 17,470,210
Trading 18,422,640
10M Issued May 27th
80,000,000 Authorized
shares increased by 10 for 1 split, Ex-Date: 2004-04-05
(Yes, originally about 2M OS, forward split + 10M = current OS)

I started buying at 0.0065 at 52 week low bottom. 52 week high was 0.28. This is a perfect boomerang. Company has revenues. Not perfect financials, but evidently solvent and news shows new ability to sell vehicle insurance through major insurance network.

Based on former prices and potentially strong fundamentals, the share price should be able to recover its valuation in the 0.10-0.20 range.

IvG


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Meshoe45
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Very nice http://finance.yahoo.com/q?s=MBAH.OB
Posts: 1451 | From: Somersworth, NH | Registered: May 2004  |  IP: Logged | Report this post to a Moderator
Investorgation
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MBAH is in a short squeeze. MMs oversold too cheap and are now in the process of covering. I already thought this would hit 0.10 on historical price patterns and revived company potential alone, but this short squeeze now makes me feel this is a major continuing gapper from here.

IvG


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MBAH Friday Market Recap

The price kept going up during the day and closed strong. Placing a reasonable valuation of the stock may be tricky, but the key point first is MBAH was coming off of an acutely low 52 week bottom relative to its quite recent price. The company has not been a PR pumping outfit, so the stock probably flew under everyones' radars for so long that any remaining shareholders in it finally dumped during the decline.

Technically speaking, a correction was certainly in order. When I saw this stock just 3 days ago, I realized I was looking at a classic hard core sub-penny trend reversal capable of massive percentage gains. MBAH really struck me as inherently undervalued which in turn would support the sustained interest necessary for a rally. They do report revenues. The balance sheet is imperfect, but they remain viable. The PR did communicate what may have been possible to substantiate independently via DD, i.e. that they are capable of achieving even broader exposure for their insurance products in the near future through the distribution channel of a major US insurance company. I'm not swearing on a stack of bibles this is the greatest company in the world, but that there is definitely some substance to work with which is significant unto itself.

Many sub-pennies have dwelled in their basements for long periods of time. Here was an active company that had not previously issued much in the way PRs and had perhaps dwindled due to sheer obscurity. Seeing their existing revenue stream may grow now combined with the very recent prices of 0.15+ in 2004 and a 52 week high of 0.28 made it look extremely undervalued to me. It may even have a true valuation of 0.10-0.20, but with forward looking potential, the market may assign an even higher value. So I saw this had the markings of an undiscovered gem capable of really moving and it would not linger below one cent but for a brief moment in time.

The action on MBAH's stock shows a number of possible aspects in play:

It is certainly a momentum play now, so you can take it for granted that the massive volume (3x float today) almost guarantees active trading next week. Weekend researchers viewing volume and price gain lists and board posters will practically ensure every OTC trader and investor knows of MBAH by Monday Due to the reasons cited above, many will realize the continued potential for a stupendous rally is still intact with MBAH.

I believe the low float plus a surge in buying interest by early adopters and quick follow ups by percentage gain chasers may have surprised some key MMs with the strength of the move. Some MMs may have even expected a move, but were not necessarily prepared for the velocity of it.

When I started buying at 0.0065, one of the other primary indicators that excited me was that the Bid/Ask was populated by NITE, SCHB, HILL and BAMM, heavyweight MMs. This indicated (to me at least) they may be ready for some action. They would fill my orders, but only after five minute pauses. They were gauging the situation having already pegged this stock for a runner. But they were hedging on their fills and took some time executing orders before they let it move to 0.07, then 0.074 & 0.078. By that point they started to let go and buying really kept pouring in. After a couple of days of approx. 9M volume, the buying today took off on the gap up from yesterday's strong close.

Those factors I identified as the perfect rally ingredients in MBAH may or may not have been as fully appraised by the MMs, but with the float as low as it is the MMs I mentioned were most likely already gearing up for having a nice profitable rally with MBAH. Then buying pressure increased and other smaller MMs starting playing the bid & ask. This is what sometimes trips up the bigger MMs who may try to control a stock and smaller MMs work independent of any coordinated MM influence. If they at all oversold shares not in their inventory, then the other MMs can actually push the situation out of the bigger ones' hands by making the market and pocketing the spread as the stock rises. Then it was game on and the ensuing results we saw today.

It is open to speculation whether MMs actually cover their oversold positions (and they do oversell, that's a fact Jack) within the mandated 3 day settlement period. If they do, then you have a short squeeze and you will see them shake this like a yo-yo Monday through Wednesday. If they do try to tank it and buying pressure facilitated by other MMs crushes such efforts, the squeeze can be severe if they have not already covered. If they choose to wait longer to cover their positions, they'll probably let it run to the moon first then try to bring it down harder on the retrace if they can. But we all know that is a calculated risk they'll have to decide on since MBAH was so intrinsically undervalued coming off of its 52 week low that it may be hard to bring it back down anywhere near the several penny level again once it breaks .15-.20 and beyond.

Based on my call to TA and the share count figures provided above, you may rightly assume the recent issuance of shares would mean either:

1. The company knows it was undervalued and expects improvements in their business will sustain much higher prices soon so they wanted to make sure shares were in the coffers to sell into the market. This is not a negative relative to the share count if they do succeed in selling at anywhere from 0.10 to 1.00 since that could provide capital financing (if it goes to the company's bottom line) without taking on toxic financing arrangements.

2. The more cynical assumption was they will profit personally from selling those shares after releasing a PR when the stock was due for a rebound.

3. A combination of both 1. & 2. above.

4. Importantly, it added liquidity to the stock subsequently allowing the market cap to achieve a better valuation. They say they had a miniscule OS before of around 2M. After seeing the stock tank to nothing, it would be necessary to protect the company from a dime store buyout by increasing their share count and market cap. This makes perfect business sense. The current authorized share issuable is still only 80M, so dilution is not even a negative for shareholders now and was probably an absolute necessity for the company's survival. It is still low and the market cap at 0.0065 was still a ridiculous $233,303. After the 0.06 close today, it is still a tiny $2,153,571. Peanuts. So other investors will see this and if they think the company has any potential at all, they will think the market cap could and probably should be many times higher than it is now. We know this and the company knew this, so it was good they increased their still small outstanding share count (and low float with about 50% apparently held by insiders) and particularly because it allows for the liquidity and volume we are seeing. Volume is presently a MBAH shareholder's friend and a trader's dream, so you can expect more action here.

5. Even if they already sold or will sell the recent 10M shares into the market it is still a low float with a tiny market cap. That 10M was not or will not be a factor with this kind of buying interest and volume.

It should be very exciting next week.

Cheers,
IvG


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Meshoe45
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Impressive DD.

Thanks!


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Investorgation
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MBAH Is Gassed Up For Monday

I posted my reply on MBAH and why a comparison to IBZT and QBID was not applicable. I've posted a Friday Recap on MBAH elsewhere on this board. In that I gave some solid reasons why it is more than likely to continue going up. I didn't see anyone pumping it. It was just a great pick. It should continue to rally MUCH HIGHER. Here's why:

1. It simply is a tiny float that is dried up. You'll always see sellers at any level, but any buying pressure and it will continue to increase. The MMs are very reactive on this stock and it is completely in run-up mode. I explained that the MMs are short and this is turning into a very big squeeze play. You can choose to ignore that possibility, but I am sure this is true and they'd have to kill me if I told you why I know. But in my Friday Recap I handed it to you on a silver platter and spelled out why in a manner that can be readily deduced if the only thing you had been doing is watching the action from before the break out.

2. The exact same reason this stock rocketed in the first place is still intact, i.e. it was severely undervalued below a penny and that relative to its VERY RECENT historical prices it is still VERY low.

3. The company has revenues and real potential. Value hunters who missed the first leg up of the rally will realize it is still a bargain.

4. Friday was the first day of a big rally. With the volume involved, these rallies typically go much further than it has gone so far, particularly since there is enough substance to support further speculation. You should be able to expect MBAH to run hard at least into Wednesday. However, I would advise to not strictly apply a 3 day rally rule to this stock. It can go very high, so my advice is to only sell in smaller increments as it rise. You will also be facilitating the tight float and squeeze by doing so and also. By doing so you will easily recoup your initial principal and position yourself to maximize your profits which could be substantial.

5. This should be the first step in the rally as it climbs up the mountain. If you doubt it, go look at the historical prices and charts to see what happened to AGIS. It went to 0.70-0.80 very rapidly. I cannot say MBAH will go that high, but the ingredients are definitely in place for something very big. Anyone doing technical analysis on MBAH right now will see a freakishly bullish situation and if they know how to read the situation, they will be buying first thing Monday morning. If you want to make money, ride the momentum, don't fight it or second guess yourself because you think you missed the boat. I believe you have not as the MBAH rally is just starting.

With the CMKX effect kicking in this week, you'll see alot of money flow out of some of the other penny stocks in order to buy CMKX. Some stocks will be temporarily down. If it rallies like many now believe it will, you'll then see some of the profits from CMKX flow out again and traders will be loaded up and ready to bet on new rallies elsewhere. Based on what I see, I believe the two potential biggest gainers this week are CMKX and MBAH and I would have some money in both first thing Monday morning.

IvG


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Meshoe45
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Whats up for today.
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Starting an uptrend.
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Meshoe45
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Anyone on board?
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DueDiligence
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WTF...

I sat here and watched ASKS consistently go under the BIDS and execution prices. Like MM's walked the price right back down purposely!

From .087 to .070

Any guesses what happened?

------------------
IMHO - GLTA - Reductio Ad Absurdum


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L Cypher
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Got in this morning .035 out at .06 . I don't usually daytrade but I had a little time on my hands.
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Investorgation
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This is becoming very elementary and I'm glad I opened enough peoples' eyes to how this is playing out. The only thing any sellers are doing now is allowing the short MMs to cover their positions. As I said before, this stock was so frightfully undervalued under a penny that by the time it took off there was never going to be a chance for them to cover anywhere close to the prices at which they oversold shares. It won't come back down to those levels. It is still a cheap stock and everyone knows the recent prices and the 52 week high had this stock at 250-400% higher than it is now. Two things will happen that lets this continue on its way. First, buying pressure makes this hop. Once fence sitters see it has held Friday's gains and understand what is going on, there can be another wave of buying. It moves. Second, when the MMs are covered, nothing is there to hold it back and they can simply enjoy playing the spread again on the rally. Don't you think that other MMs who were not short are buying for the rally? They'll make very good profits selling on the way up. Look at the Level II now and you'll see the inventory once again is completely tapped out. I still think we can see real momentum going into the close. Anyone who starts buying now will see how it works.

IvG


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BDUBS07
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What is a good entry point into this. I want to here where yall think it will bottom out today. Serious answers only. I may get in today or in the morning trying to find the best price.
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