THE REAL ECONOMIST LAUNCHES MICROCAPSTOCK.BLOGSPOT.COM

*NEW BLOGSPOT WILL COVER THE WIDE SPECTRUM OF MICRO CAPS
*JOIN IN CHATS TO FIND THE BEST MICRO CAPS OUT THERE
Astoria, New York
The real economist in an attempt to keep things simple, has decided to create a new blogspot for micro cap stocks. This blogspot will have more detailed information about these companies and it will also try to identify the best companies out there with everybody's help. It is not intended to be a guru website or make reccomendations. At www.microcapstock.blogspot, the intention is to create an atmosphere of identifying good companies with good financials, management and other tools necessary to create good oppurtunities for investors.
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MARKETS MAY HEAD LOWER AT THE OPENING IN THE US AFTER FED DECISION TO INJECT MORE THAN A TRILLION IN TREASURIES.
MARKETS HAVE BEEN STRONG SINCE LAST WEEK.
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THE REAL ECONOMIST IS IRATED AT AIG BONUSES AND CORPORATE WASTE ON BAILOUT MONEY. PLEASE VOICE YOUR OPINION HERE AT WWW.THEREALECONOMIST.BLOGSPOT.COM.

MICRO CAPS HUNTING - ( Part 3 ) DIRECT INSIDER BUYING

THE REAL ECONOMIST EXPLAINS GVSS STOCK PICK FOR PROS ONLY:
INSIDER BUYING IS A STRONG TOOL FOR EVALUATION.
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There are many tools for evaluating micro cap stocks. I don't like to call them all penny stocks, because for me, penny stocks are the ones where you have at least 100 million shares or more and they trade for just a few pennies. Micro caps are just small tiny companies. When a micro cap becomes a penny stock, then I have to evaluate if to sell it or buy more. One of my preferred tool is Direct Insider Buying. Direct means that the insider is putting his/her money,dollar per dollar and not pennies on the dollar, for the purchase of traded shares. The insider is probably sending a signal to the street that he is buying because he feels that shares may be a bargain at that particular price. He may be right, he may be wrong, he may be clever or he may be not so clever. After the direct purchase, the insider has to file a Form 4 within an amount time. A Form 4 looks like this
http://app.quotemedia.com/quotetools/showFiling.go?name=GVI%20SECURITY%20SOLUTIONS%20INC:%204,%20Sub-Doc%201&link=http%3A//quotemedia.10kwizard.com/filing.xml%3Frid%3D12%26ipage%3D6081722%26DSEQ%3D1%26SQDESC%3DSECTION_BODY%26doc%3D1&cp=off&type=TEXT
For the nasdaq.com site go to:
http://www.nasdaq.com/asp/quotes_sec.asp?symbol=GVSS&selected=GVSS
Direct buying is real and tangible if you compare it to indirect buying or exercise of below market options or just free stock. Of course, direct insider buying is just one tool and many other tools must be looked at separately before combining them to see what effects it can have on that particular stock.

BREAKING NEWS<> MARKETS LIFTED BY BERNANKE'S SPEECH, OBAMA COMMITTMENT TO BETTER AMERICA

FIRST EVER STOCK PICK (FOR PROS ONLY) AT WWW.THEREALECONOMIST.BLOGSPOT.COM
Astoria, New York
A speech by Bernanke televised by TV stations across the globe, including the Italian tv station RAI24 news, had the objective of reversing yesterday's losses for the Dow. With Bernanke explaining that the recession could be over in 2009, investors jumped by short covering and snapping up beaten down stocks. As the real economist has foreseen some kind of relief rally this week, he is also concerned by negative news coming from different angles of this battered economy. It's like the Battle of the Bulge, where there are no clear winners, until something drastic happens. Hopefully, it will be on the upside. With Obama reaffirming, tonight, his committment in fixing this financial mess by sacrificing, people are still perplexed in identifying the exact road that Obama will be taking. Will he be more on the hunt for catching fraudulent activities or will he be taxing the rich to cut down the deficit?
The real economist in its first attempt, will make its first micro cap stock pick for pros only. Pros are considered experts and accredited investors. A regular or new investor needs to consult with a financial advisor or an expert to ascertain his risk tolerance and qualification. A pro should also do some due diligence and check reliable sources for additional information regarding the below mentioned company. Prices could fluctuate significantly causing a major gap in value. Bottom fishing and buying at the bid when combined, could prove to be a winning strategy. This is not a solicitation to buy or sell this security but just a stock pick for monitoring purposes only. The following security has the potential to surge on the upside for various reasons. The following security could also collapse and become worthless for unseen reasons too.
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STOCK PICK : GVI SECURITY (GVSS)
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Last Trade:	0.30
Trade Time:	Feb 24

MICRO CAPS HUNTING (Part 2) THE FOUNDER

The beauty about micro caps is that they are easy to understand as compared to the BIG BOYS, the so called Blue Chips, (maybe you can call them Black and Blue Chops these days ). In this session, I want to discuss the difference between the founder and the other guys. The founder and co-founders if more than one, are the people that give light to the corporation, They could be scientists, professors, business owners, real estate tycoons, or just anybody who wants to start a business with the goal of making money. What I have noticed, is that most founders have a better attitude towards their company than the next guy down the block. He/She( or they), will be dedicated to the success of their company more than anybody else. They are dedicated and they devote most of their time to well-being of the company. Once the founder departs, because of sickness or other reason, the guy down the block steps in. He or she will have a different idea about the company. That could translate into an incentive. Will the new person do the job if the price is right? Will he/she be able to bring his friends in so they can raid the company with creative financing? Will he/she be able to run the company down because he has conspired with a competitor? Will he/she be careless and wasteful as long as he/she gets his/her salary, perk and bonuses? Will the accounting be more transparent as it was with the founder, or will it contain more hidden and forbidden liabilities? The good thing about the founder is that he/she will try to create longevity for the company through some sort of nepotism. The successor could be a child, a younger sibling, a spouse, an in-law or more distant relative. The founder, if he succeeds, would be more interested in the development of his/her successor than the other guy. I have seen companies like LMTI that are classical when it comes to this. And this one may involve the entire family. LMTI, known as Laser Master is not a laser but a gift wrap company. The founder has his children working for him, and together they have weathered many storms in protecting this company. Bottom line is that I am not against the other guy. I am just saying that I will favor a company with a founder if I am seeking longevity in a micro cap. The price of a stock could go in many directions, because I consider the stock as the soul of the body, while the company itself, as the body. ((Laser Master (LMTI) is company with its stock quoted on the Nasdaq bulletin board. Past performance is not indicative of future performance. The mentioning of this company was not intended as solicitation to buy or sell this security but for discussion purpose for the blog on MICRO CAPS HUNTING ( the founder). Usually, the risk of investment losses is higher with micro caps than larger and more stable companies. ))

*BREAKING NEWS - OBAMA SIGNS STIMULUS BILL IN DENVER

MICRO CAPS HUNTING (Part 1)

I have seen many investors in my life. Each investor is different and has different qualifications for investing but all investors are similar when it comes to making a profit on their investment. Whether it's short term or long term ( if they have patience ), each investor needs to understand that an investment can be a tricky thing. You can ask Mario Gabelli, a mutual fund company owner about that. I had the honor of meeting him back in October 2003 on the Intrepid Museum for just a few minutes. My comment to him was about a penny stock called Baldwin Technology (BLD) on the Amex. He was shocked, and quickly replied that the the stock was a tricky one. All micro caps are tricky indeed. BLD sank to a low of 18 cents in April 2003 in midst of a debt restructuring and mounting losses. Mario's funds had a cumulative stake of more than 10 percent as they felt the vibrations of this equity position. The night I met Gabelli, BLD was at 99 cents as it was headed to 7.00 in the next couple of years. BLD became a classic 30 bagger plus. The level of confidence in each investor is different but investors who are searching for risk, may find remedy in micro caps. In the next posting on Micro Caps , I want to discuss the risk of investing in these tiny companies. (BLD was mentioned a past historical performer. It is not indicative of future performance, and it's not intended as solicitation to buy or sell this equity)
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(Attendees at the Small Cap Conference at the Waldforf Astoria vote for micro caps/small caps)
LINK http://www.paulsoninvestment.com/Press/PLCC%20-%20Westergaard%20Survey%2011-08.pdf
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