Free Stock Tips

Hello All,

Please take a close look at this one because it could end up being a huge gift.

Are you sitting down? We’re about to say something that we only say once or twice a year.

This could actually be one of those OTC stocks that is a strong long term hold.

Don’t faint. It could be true. All you have to do is look at the numbers and I think you will agree.

Here is the awesome part: Because it is a OTC company it has been largely ignored by Wall Street.

The fact is though, with the numbers this company has Wall Street will not be able to ignore them for long.

Ready for details??!!

Our alert for Wednesday is Juhl Wind, Inc., JUHL, and the stock closed Tuesday at 85 cents.

Here’s some information to get you started:

JUHL is a leader in community based wind power development and management.

JUHL has projects in the US and Canada.

Let’s get to the numbers !!

JUHL reported record revenue and earning for the first 9 months of 2011!

JUHL said its record numbers come from the increased wind farm development fee revenue which provides high margin of profitability.

JUHL posted a 276% increase in revenue for the first 9 months of this year over last year.

JUHL also reported a 193% increase in operating income for the same time period !!

Almost 300% increase in revenue and 200% increase in earnings?

Awesome !!

Now think about this:

Last year at this time JUHL reported a 10 cent per share loss and the stock was well over a dollar.

This year JUHL reported 10 cents a share IN EARNINGS and the stock is priced 50% cheaper than it was last year.

See, sometimes in bad markets the baby gets thrown out with the bathwater. That’s what it looks like happened here.

How does a company go from a 10 cent per share LOSS to a 10 cent per share PROFIT and the stock goes down?

That’s a full 20 cent swing in EPS over a year’s time!

Can anyone say OVER SOLD??

Or what about this:

Microcap and Small cap companies usually trade at an aggressive multiple of earnings.

This is called the price earnings ratio. (we so rarely have companies with earnings that this may be a foreign concept to you)

For example the Ishares for the Russell 2000 which is an index fund tracking 2000 small cap companies trades at 91 times earnings !!!

What does this mean? Well it means that this fund trades at 91 times earnings.

Well…… Where would JUHL be priced if it traded at 91 times earnings?

Hmmmmmm 10 cents a share earnings X 91 = $9.10.

9 DOLLARS a share. WHAT???

Now, sit back down, no dancing around the family room and don’t tell the family you booked a trip to Disney just yet.

But think about it. If the Russel index contains 2000 companies and the Ishares trade at 91 X earnings that is enough of a sample of the market that someone could make the argument that trading at 91 times earnings is at least possible.

JUHL doesn’t look like they are slowing down any time soon either.
They just announced official commercial operation date of the $3.6 million Winona County Wind Project in Winona County, MN!

NICE!!

Let’s recap:

JUHL Revenue up BIG !!
JUHL Earnings up BIG !!

JUHL posts 10 cents earnings per share.

The Russel 2000 Ishares trade at 91 times earnings per share.

JUHL closed Tuesday at 85 cents a share.

If JUHL traded at 91 times earnings…

How about 45 times earnings? or 25 times earnings?

We don’t have a crystal ball here but we don’t think it takes a psychic to tell us this one may be one to take a very close look at.

Put JUHL on your watchlist immediately!

AS ALWAYS…………..
Do your own research. Verify everything.
Do not use market orders to enter a position, use limit orders.
If a stock gaps up, don’t chase it, look for pullbacks to enter.
If a stock breaks below our alert price GET OUT. Do not wait.
Always use stop loss orders to protect yourself.
Always take profits whenever you can. Do Not Be Greedy.
Have Fun!!

Good Trading