“Wish I” Fluid Redistribution Stock

By Travis Johnson, Stock Gumshoe, June 27, 2007

This was part of a long and somewhat tiresome ad for Bottarelli Research Small Cap, which we’ve sleuthed out one or two teaser companies from before. This time, it was all about the way Bottarelli talked his friend Mark Blattert into publishing his stock tips with the service, so they could charge $1,750 a year for it.

OK, so that’s simplifying things a bit. But the general idea was that this Mark dude has a proprietary system that gives accurate buy signals just before stocks shoot to the moon — they gave a bunch of examples, including Flamel Technologies, Mother’s Work, Uranerz, and others. Something about a “pre-emptive moving averages.”

I’ve got about as much chance of figuring out pre-emptive moving averages and the other technical analysis mumbo jumbo as I do of being on the next moon flight … and about an equal interest in both.

But they did tease about a few stocks that are right now good picks in this system, and that’s something the Gumshoe can get his head around.

There were three stocks — three that they characterized as being stocks you could look back at at the end of the year and say “I ‘Wish I’ bought that one last summer.”

Hokey, huh? Well, maybe the ideas are useful. Let’s check it out.

The first one “is a $2.84 fluid redistribution outfit that’s based out of Gillette, Wyoming.”

OK, so we already know the answer, thanks to a previous sleuth job (and the Gumshoe’s innate brilliance, of course) … but let’s continue:

This is the technology that lets you get the methane gas out of coal beds without polluting surface water.

And the kicker, according to Bottarelli?

“Mark’s Pre-Emptive Moving Average is now signaling upward momentum, which means shares can blast off at any time. Mark has this $2.84 stock valued at $14.20 in the coming 6-8 months, making it an immediate “buy” at current levels.”

So if you remember hearing Mike Schaeffer teasing about this same little Coal Bed Methane company earlier in the year, you know that this is …

Big Cat Energy (BCTE).

This one hasn’t done much on the positive side lately, appealing moving average or no. Since I last wrote about it it has taken quite a beating in the market and is now lucky to be a $2 company … it dipped below $2 earlier in the week, though it’s now back above that number. On the plus side, if it’s going to $14 I’d rather buy for $2 than for $2.84 any day.

Of course, it was back around $2.60 when I last saw a Schaeffer recommendation for it … and he thought it would go up 10X in value within two years. So that gives us a pie-in-the-sky range of $14 to $26 between 6 and 24 months from now. As long as you’re comfortable with just making up those numbers.

P.S. As is clear from the PS of the ad, which congratulates Mark for picking Go Fish at $3 and watching it “just” go to $6 “as I was preparing this letter”, this ad is a little long in the tooth, though they’re still sending it out — Go Fish last hit $6 back in late February or March, and has plummeted ever since (remember, Brian Hicks at Quantum Investor tried to sell us on this one as the “next YouTube” at around $5.25 as it was on the way down). Today, you can pick it up for about $1. I think I’ve said it before, but if you’re counting on an “exclusive deal” with Taylor Hicks as your big content winner, there might be trouble in paradise.

And come to think of it, the other pick we sniffed out from this service was also at the same time being recommended by a few other newsletters … I know they’ve got a technical system, but so far this Bottarelli stuff has a lot of overlap with other advisers, more than I’ve seen from anyone else in the last few months so far, at least as far as the teased stocks go. Of the other examples cited in this ad: Polymet, World Water and Power (a reader noted that he saw it in another publication at the same time), Uranerz and Flamel seem to have all been picks cited by other newsletters during roughly the same times that this guy picked them (the ones that I’ve actually written up are linked, Flamel was a Motley Fool Hidden Gems pick for a long time). Not that there’s anything wrong with that, and I haven’t looked at the timing in detail, but it did jump right out at me.

So … that’s pick number one that uses the “Pre-emptive Moving Average.” I’m starting to form an opinion about this $1,750 service and the value of that average already, but I’ll be fair and look at the other two teased companies soon to see if they’re any more promising.