Up from here because the weak hands are finally out Print E-mail
By M.E.Garza   
Friday, 30 July 2010 09:09

Since posting this information for our subscribers yesterday, the stock is up another 17% today and there is still room for more. 

Yesterday, I doubled my position in Inergetics, Inc. (OTCBB: NRTI)- a company I have covered in detail and will continue to follow.  I did so after seeing the major clean-up that took place on this stock two sessions ago. I was hesitant to post anything until I saw how the stock would react, but now I am very excited about the possibilities for some good price action.

As you may know, Inergetics has developed multiple products for the Clinical Nutrition and Sports Supplement Markets and after years in development are finally starting the commercialization/revenue stage.

The company has spent more than $25 million developing the product and we've been hearing lots of good rumors about upcoming orders and marketing initiatives- including the production of an infomercial starring Joe Theisman, who just signed on as not only as a spokesman for the company's products. Theismann believes CEO Mark Mirken, who took his previous company TurboChef Technologies, Inc.(NasdaqGM: OVEN) from twenty six cents to over $26 has positioned the company to be a big winner across various platforms. It's hard to disagree with him, especially when you consider that Theisman is a long time share holder in the company himself.

You don't spend that kind of money developing a product (much less one with multiple verticals like this one) without going into debt, and the company has been doing an outstanding job of converting debt and cleaning up the books. Two sessions ago, insiders did a major cleanup. A screen capture shows over 19 million shares were taken from "weak hands" (financers who were just looking to get rid of free trading stock while holding on to warrants for the long term). 

As expected, the price action today has been very positive (even on a down market day). Very few shares have traded, but the stock has reacted exactly as expected. It is finally breathing and my best guess would be an easy double from these levels before we run into some resistance. If it breaks past that resistance, this thing could run very nicely even higher.

I do not plan on selling any of my shares of NRTI any time soon. I saw what happened with Celsius Holdings, Inc.(NasdaqCM: CELH)- which we covered as it rose from pennies to over $4 per share and I feel very strongly that we can see similar price movement here. When one considers that Celsius has only one product vertical and that NRTI has more than three, the possibilities are exciting.

We will try to reach out to NRTI for an update next week, but as of this (Friday) morning, we are hearing that some of the first orders are about to start rolling in. If they do, that will confirm much of what we have been expecting and we'll know that this runner has real legs.

Disclosure: Long NRTI


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