After ending the week on an extremely positive note, our two plays to watch this week Polar Wireless (BCDI +20%) and CAVU Resources (CAVR +450%) is getting set for a massive breakout from what we have been hearing through the buzz cloud.
Estimate over 2 million in short volume that is reaching critical mass!
We dug in deep and even spoke with some of our close market maker friends on what is the situation with BCDI and the large short position? Well, safe to say that we are told that the shorts are in a bigger predicament that we first thought.
According to FINRA – http://regsho.finra.org/regsho-Index.html short volumes on BCDI since January 2011 totaled $2.8M
|Short Volume (# shares)||2,775,206||294,931||518,851||671,764||1,289,660|
What we have learned is that short’s no longer have the control in covering their short position and will heading towards a naked short position that will force them into covering by the end of the month.
We already saw what a few hundred thousand shares can do to the price of BCDI pushing it close to 10% higher, imagine what a few million shares can do to the price of BCDI – this week we are expecting a significant short squeeze play taking this way past $1. Combined with solid news from the company, we are right on track with our $1.40 target.
BCDI closed at $0.69 relatively flat on the day as shorts continue to battle with the longs – this will not last long and as buying pressure mounts and more pressure is put on the shorts to start covering. Fireworks will start early this week.
What is interesting to note is that insiders control over 80% of BCDI stock, with a float that shorts will find difficult to maneuver. What every longs like to see is a short squeeze play – huge gains can be made when shorts cover their position – we are definitely starting to see the squeeze now on BCDI!
Short squeezes occur more often in smaller cap stocks with small floats.
If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
The key with BCDI and the inevitable short squeeze is their solid fundamentals:
Be sure to read the research report on Polar Wireless (BCDI) to give you an in depth analysis of the big market potential BCDI is tapping into.
About Polar Wireless
The Company is a mobile virtual network operator (MVNO) that works in conjunction with established major mobile service providers. The Company’s mobile solution will significantly reduce mobile roaming charges. It is operable in 213 countries through partner networks. This provides the first global network solution for mobile users to dramatically reduce roaming surcharges while allowing users to maintain their current home number, handset and carrier relationship.
Visit their website at www.polarwireless.com to see their revolutionary product!
Turmoil in the middle east continues to wreak havoc on higher oil prices and the need to focus on domestic oil production becomes the main point of conversations.
Light-Crude Oil Prices
CAVR is capitalizing with the launched of their CAVR Well 1 with solid initial production results and with 2 more to be in production by the end of the summer – translating to $Millions in revenues per year!
CAVR closed at $0.055 and holding solid on to our 450% gains – with more news and updates expected from the company this week, we are looking at double digit prices and an easy triple to our target price of $0.20.
“We continue to surpass our expectations on this lease, we are very confident that we should hit our targets for seven wells in production be the end of this summer.”
This is a monster start for CAVR, with Well 1 up and running. This Well alone will add $1.3 Million in Revenues and with Wells 2&3 to be up in running in the next 90 days this will add many more millions in $ revenues per year! With a low float of shares, our $0.20 target is clearly in sight!
CAVU Resources, Inc. Announces An Initial Flow Rate Of 24 Barrels Of Oil A Day On Its CAVU 1 Well
CAVU Resources, Inc. (“CAVU”), which trades as OTC: CAVR.PK, announced today that the Company’s well, CAVU 1, was recently re-entered and reworked producing an initial flow rate of 24 barrels of oil a day and an estimated 300 MCF of natural gas.
CAVU’s wholly owned subsidiary FILO Quip Resources, LLC, (“FILO”) is the operator and has been replacing and reconditioning all of the Chisholm Lease facilities. Along with the recent completion of the CAVU 1, FILO’s planned rework program has purchased new storage tanks, tubing, high volume submersible and disposal pumps with plans to complete CAVU 2 and CAVU 3 wells over the next 90 days.
The three wells currently being reworked were originally drilled to the Bromide formation at about 3,000 feet. The company has also begun a chemical treatment program to complement the new technology being implemented throughout the lease. The company has remote wireless control, video transmitting and recording equipment to monitor well and facility conditions for productivity, safety and security.
“We continue to surpass our expectations on this lease, we are very confident that we should hit our targets for seven wells in production be the end of this summer. The Chisholm Lease is part of an old Marathon Oil water flood, where over 4 million of barrels of oil were recovered. The old technology previously utilized left a large portion of the reservoir intact. With new technology and chemical stimulation techniques we feel this field and the surrounding acreage has great potential, including well offset well locations, that could provide increased reserves and add to long term cash flow,” said William Robinson, President of CAVU Resources, Inc.
About CAVU Resources, Inc.
During World War II, Navy fighter pilots would look up at the sky and if it was a “CAVU” day then it meant ceiling and visibility unlimited. The pilots believed they would have unobstructed flying allowing them to see their targets quicker, identify the obstacles they needed to overcome, giving them a greater chance of success. The founders of CAVU Resources, Inc., chose the name CAVU because they believe that the company will be the embodiment of its name.
CAVU was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company’s oil and natural gas reserves. CAVU is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties. The Company operates in the upstream segment of the oil and gas industry with planned activities including the drilling, completion and operation of oil and gas wells in Oklahoma, Kansas, Colorado, Montana and Texas. The Company also owns two pipelines in its area of operations, which will be used for gathering its gas and oil and the gas and oil production of other producers. The Company has acquired leases and is currently exploring additional opportunities in oil, gas and helium leases. The company has acquired significant oil and gas equipment including rigs, trucks and completion equipment.
CAVU’s 100% owned subsidiaries, CAVU Energy Services, LLC provides contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. EnviroTek Fuel Systems, Inc., provides natural gas delivery and marketing thru its own pipelines and FILO quip Resources, LLC a licensed Oil and Gas Operating Company manages the company’s properties and leases in Oklahoma, Colorado and Montana. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in Geo-Thermal, Wind, taking advantage of the changing environment and in the world’s need for new, green and innovative resources. More information is available at the company’s website at http://www.cavu-resources.com.
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