Microcap Tech Trader’s “Sound Laser”

By Travis Johnson, Stock Gumshoe, March 11, 2013

Louis Basenese is out with another bold prediction of a huge winner in the speaker world — and the ad promotes a past pick of his as an indication that he can select these kind of fast-breaking stories successfully.

No one can pick ’em every time, of course, but we can at least verify that Basenese did indeed actively tease a little company called Uni-Pixel (UNXL) about 18 months ago when he was first launching his Microcap Tech Trader — and that tiny company did eventually turn into a huge winner as long as you didn’t use a stop loss — it went from $6-7 down to $4 and change, stayed down around $4-5 for a year or so, then started to climb dramatically last fall and is now closing in on $30 a share.

Will his next pick have the same kind of record?

Well, it’s not a new pick — this is a stock he’s been touting for a bit over six months.

The basic pitch is that the company has perfected a “sound laser” and is going to change the world of speakers forever — with perfect, immersive sound that’s targeted specifically at a point in space so you can listen to something without bothering your neighbors or wearing bulky headphones. Basenese calls it the “sound laser,” and the company that’s trying to develop this technology and license it out to manufacturers and product designers is called Parametric Sound (PAMT).

I covered this teaser originally when it ran over the Summer, with our piece running on August 2 when the stock was around $10. After that there was a big bull/bear argument over the shares and the stock fell hard to $4 or so, then got touted again by Basenese in December when it was climbing on it’s way back up to $10. Now the shares are well over $15 and still climbing, presumably partly due to Basenese and his continued attention and partly due to the limited progress the company has made in getting deals signed and products developed.

PAMT’s quarterly release to end 2012 (their Q1 2013 report) looks a lot like the quarterly release I first checked out six months ago (their Q3 2012 report) — plenty of promise, no actual revenue to speak of. They sell a few hundred thousand worth of digital signage products per year, but that’s not why the company gets a valuation of $100 million.

The current spike of the shares seems related to three things: First and foremost, I suspect, attention from penny stock trader Timothy Sykes, who called it a hot pick for March partly because of some rumored testing of their technology in McDonald’s restaurants and potential theater deals (the technology sounds like a bad fit for theaters to me, but I don’t really know it well); second, Basenese is still touting it pretty aggressively, as we’ve seen in our email over the last couple weeks; and third, they actually did announce a broad deal with some Chinese companies last week and were apparently pretty optimistic about future deals on their conference call.

Will it come to anything? That I don’t know — as I said las