Free Stock Tips

Hi Everybody,

Today we have a higher priced play.

The company just entered into a new business, and has began making estimates that have traders excited.  There’s a lot of information to give you so lets get right into it.

Our alert for Thursday is Crown Dynamics Corp., CDYY, and the stock closed Wednesday at $2.25.

CDYY has soared to around $2.25 a share in under 4 months of active trading.

CDYY used to make toothbrushes. It wasn’t glamorous or especially exciting, unless you’re really into dental hygiene.

Evidently they got tired of it too, because in late January they started muttering about M&A.

And the price started to fly.

Couple of weeks later, CDYY delivered the details.

They were trading sterile toothbrushes for the much faster-paced world of mobile blood monitors.

And the initial estimates were that they’d sell 12,000 of these little sensors this year.

That’s a tiny 0.01% slice of the 110 MILLION Americans with diabetes or early symptoms…but the money’s not bad.

Figure $300 for the monitor and another $30 a month for wireless monitoring service, so CDYY expects to gross $5 million, maybe $6 million.

And remember, that’s just market penetration of 1 in 10,000 people who need to watch their sugar!

News of anything more will make traders go back to the calculators and figure out how much CDYY is worth.

The 12,000-monitor sales target earned CDYY a market cap north of $50 million.

CDYY management is looking for a net profit of 37% of sales, so if sales go as planned, that’s a P/E of about 25.

Don’t forget to throw growth in when you’re doing your math.

CDYY is already raking in purchase orders 5,000 at a time!

They’re getting their monitors into the military veteran support networks.

And if that wasn’t enough, now CDYY is getting into hypoallergenic air filters as well!

Air filters are big business, generating maybe $350 MILLION a year for manufacturers.

Even a bad filter can drum up 2 million unit sales over its lifetime.

CDYY’s technology is a lot better than that!

For starters, CDYY filters can go with you on a plane or bus.

They even cure snoring!

CDYY was happy in a trading range of maybe $2.20 to $2.50 before the air filter news.

It doesn’t seem like the new product line has been figured into the share price.

From a technical perspective, CDYY looks eager to at least test the limits of its range anyway.

Maybe these shares are as bored drifting from $2.20 to $2.50 as the management team was making toothbrushes.

That’s the same management team that’s guarding 66% of the stock!

Either way, CDYY looks like a story investors will be latching on to.

As always, do your own research, don’t chase gaps, use limit orders to enter positions, always use stop loss orders to protect your position, and take profits when you are in a position to do so.

Good Trading