Varchild2008 make an extremely BOLD Strong Buy Claim. . . (MTXX)
I've finally decided to stick my neck out again... I am actually going to recommend a stock here that has the following:
1) Massive Q2 loss due to a recall on Nasal Cold Remedy drugs.
2) Class Action Lawsuits against the company regarding those nasal cold remedy drugs. Deadline for filing is tomorrow.
3) The company only has 1 drug....as its major revenue producer. 1... It's a 1 hit wonder... Varchild absolutely HATES 1 hit wonders.... But, there is a problem.... Just cause I hate them deosn't make them a bad investment. (HANS) is still a good investment for example.
So... What am I giving a STRONG BUY rating to and why?? why when the future for the company couldn't look worse? Why when the stock couldn't look more like a speculative JUNK stock than anything in the market today?
(MTXX) Matrix Initiatives. STRONG BUY *alert*
This call is good for 1 day and 1 day only... Ya see... Tomorrow is the "so called" "who cares" class action lawsuit deadline. That's when investors may be at their PEAK fearful....
The fear has pinned this stock that once traded at $19.00+ to just under $6. I say this one opens with a pretty big DIP... Might catch it 25 to 50 cents lower. Who knows... Lots of selling could happen on big September 15th, FEAR DAY.
Now.. Why on Earth bother with a company that has virtually nothing going for it?
Why???? Well... Simple.....
A) Matrix Initiatives has enough cash even inspite of the class action lawsuit to stay good for at least a year without having to resort to ugly debt refinancing or share dillution or other maneuvers in order to continue to stay afloat.
B) How can you *achoo* NOT want to be *sniff sniff* an investor of *whiping tears from eyes* *Snort!!!* of a Cold Remedy known as ZYCAM!!!!
Everyone and their Brother/Sister uses ZYCAM..... ZYCAM .... ZYCAM.... ZYCAM....
It has RUSH LIMBAUGH's backing.... ZYCAM gets talked about by Rush Limbaugh during his show frequently... It gets bought by the truck loads by consumers.... they don't go in and buy 1 pack of Zycam... they STOCK UP ON THIS STUFF!!!!
This is a WONDER DRUG.. And you are getting into MTXX at a ridiculous discount to the true value of ZYCAM's sales...
40% Revenue decline??? seriously???? WRONG!!!! WRONG!!!!!!! WRONG!!!!!!
As the company points out... they have no idea but they do expect a certain, unknown, percentage of the 40% decline to be made up by customers that bought the Nasal brand to switch to the ORAL brand... Furthermore.. Not everyone has heard of ZYCAM.... There's plenty of GROWTH in the drug..
Secondly.... MTXX plans soon to put out a major promotional effort for its ZYCAM drug and other remedies for Colds during the Cold Season.... Q4... This year... BIG PROMO.... ZYCAM is going to sell like HOT CAKES in Q4.. And the Money + Revenue from the sales is going to keep this company healthy for much longer than the 1 year period the company has said.
You want to make lots of money????
Warren Buffet will tell you that he bought American Express when everyone was DOWN big time on the stock declaring the company dead man walking.....
Varchild sees Wall Street declaring MTXX dead man walking..... I see things differently.... much differently.... I don't see how MTXX can possibly not survive when they have tens of millions of dollars of CASH on the books right now.... They have enough cash... Their debt level isn't that big a problem.... Class Action Lawsuit... That too shall pass!!
Will Varchild put his money where his mouth is on this MTXX? Probably not.... I have (SVA) in my portfolio. But, should I put some cash on MTXX... I'll let you know on this blog immediately afterwards.