We found a company that has a Buy rating on barchart.com, a Buy rating from former Piper Jaffray analysts at Goldman Research Small Cap Research, and has all the positive signs to become the next short-term Omni Ventures Inc.(Pinksheets: OMVE) (March 7 – April 27: 441%), and maybe even the next long-term NeoNode Inc. (Nasdaq: NEON) which is moving to the Nasdaq today from the OTC and gained 2,171% since its December, 2009 low of 0.225.
Shares in the penny stock of LIG Assets, Inc. (Pinksheets: LIGA.PK) should be on the watch list of all of those trading and investing in OTC stocks. LIGA is the classic example of a passive financial services and investment company that routinely converts limited risk capital into substantial cash flow and income. LIGA‘s straightforward strategy is to buy assets below market value and, inexpensively, finance its investments and projects in order to maximize returns while limiting risk exposure. LIGA has been one hot penny stock the last 3 days and one of the cheaper OTC penny stocks to watch.
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LIGA Stock Chart:
LIGA Stock Analysis:
Market Cap: 5.94M
Price/Sales (ttm): 1.46
Price/Book (mrq): 0.54
Profit Margin (ttm): 44.32%
Operating Margin (ttm): 62.93%
Shares Outstanding: 71.54M
5 Day Average Volume: 501,399
20-Day Average Volume – 295,505
RSI: Still under 70, at 62.30. The Bullish trend RSI is on in the last 3 trading sessions indicates there is still plenty of room for LIGA to rise.
With the last 3 trading sessions all hovering around 750K, LIGA could easily push past the resistance level, 0.098 enroute to 0.11 with an additional spike in volume.
MACD and Full Stochastics:
9-day EMA of the MACD Line saw a gap created over the last 3 trading sessions indicating a bull run on LIGA and the strengthening of the moving average.
The Full Stochastic Oscillator has not only broken the important 50 level, but remained bullish and strengthening while showing no signs of any bearish divergence.
LIGA Short Term Indicators:
7 Day Average Directional Indicator: Buy
10 – 8 Day Moving Average Hilo Channel: Buy
20 Day Moving Average vs Price: Buy
20 Day Bollinger Bands: Buy
LIGA Medium Term Indicators:
40 Day Commodity Channel Index: Buy
50 Day Moving Average vs Price: Buy
50 Day Parabolic Time/Price: Buy
One of the amazing factors about LIGA that we find interesting is that for the year ended December 31, 2011, LIGA reported Revenues of $3.03 Million. That’s 0.04 Revenue Per Share!
LIG Assets, Inc. provides funding and financing for early-stage, high-growth businesses and real estate projects. LIGA primarly focuses on income-producing properties in commercial and residential real estate whose cash flow and operating leverage contribute to the overall value of the entire LIGA enterprise.
Properties currently generating cash flow for LIGA include nearly 300 residential properties throughout Texas, a storage center, and SuiteMagic, a technology entertainment services company. Projects under construction include a garden-style apartment complex and an assisted living center.
LIGA’s diversified portfolio should provide huge returns for investors in future years. LIGA owns 50% of an income-producing storage facility and management expects to acquire interests in additional units this year. Plus, over the next 18 months, the Company’s 80+ unit apartment complex will be completed, along with its senior living project in which it owns a 50% stake.
Most interesting is LIGA‘s venture into SuiteMagic which will deploy hardware and software to create an enhanced television suite of offerings that combine the best of HD TV, the Internet, PC functionality and VOD. SuiteMagic provides hotel guests with an all-encompassing in-room experience while allowing hoteliers to monetize the rapidly growing consumer trend towards a truly Internet-integrated TV experience.
Investors in LIGA already received an added gift from the SuiteMagic holding. LIGA shareholders as of the close of the markets yesterday, April 30th, received 1 restricted share for every 3 LIGA shares held as of the close.
SuiteMagic is an innovative technology entertainment services company targeting the hospitality industry. LIGA should generate $7 Million in revenue in 2012 and $14 Million in 2013. SuiteMagic is likely to go public, providing early investors with a huge bonus as LIGA will retain a 45% stake in SuiteMagic.
Bottom Line: Since yesterday was the share distribution date for all LIGA shareholders to be eligable for the SuiteMagic shares, LIGA should see a pullback as of the open. Without a pullback in the first 10 minutes, look for the stock to push towards the 0.096 high from yesterday and the 1st resistance point of 0.098.
LIGA breaks 0.098, and it could close at above a dime and never look back. $3.03 Million in Revenues and a Profit Margin of 44.32% is hard to turn your back on.