There are many indicators that point to a big day for (FLMG) on Monday! This a ideal situation.. You have a stock trading near record lows, exciting news just released, and strong technical signals.. Wall Street has been moaning about the euro for months now, but Fleet Management Solutions, Inc. (FLMG) has seen the worst of itand the chart is now coming up smiling. The European Union is lining up behind the euro and the FLMG shorts are scattering!
You can see why the bears are on the run. Just on Friday, FLMG rebounded over 30%…and the chart indicates there could be a lot more where that came from!
- Friday’s big move pushed FLMG back above the 10-day average and within striking range of the 50-day line at $0.033.
- MACD just edged above signal again, alerting traders throughout the market that FLMG is back on the move.
- STO simultaneously regained the 50-point line that indicates positive momentum is back at the FLMG party.
- Up/down ratio since the start of the month: a spectacular 11 FLMG buyers for every 2 lonely sellers.
Key Tech Indicator:
Moving Average Convergence Divergence (MACD)
The MACD for FLMG currently indicates a strong bullish signal for two reasons:
- MACD is above the signal line, a 9-minute moving average
- MACD is above 0 which implies that the underlying moving averages are trending higher.
The worse things get in credit-challenged Greece, the more money FLMG makes! (How does that make sense?) FLMG leases cars to corporate clients too cheap, or deep in debt, to manage their own transportation. Cars to lease and provide roadside assistance on a Country made of Islands where transportation is not an issue.
Given all the “austerity” out there, CEO Evangelos Alexandris says FLMG business has never been better:
“Our array of services is designed to reduce the costs of ownership and management of automobiles and trucks for our customers…and with the uncertainty inherent in Greece currently, we have actually seen an increase in our business over the past few fiscal quarters.”
In fact, while the euro was tanking, FLMG swung back to profitability and is now booking record revenue. (Read more)
Just do the math: FLMG has $4 million in assets and $2 million in revenue coming in on a quarterly basis but its 39 million shares trade for barely 2 cents apiece. No wonder the FLMG shorts are on the run!
And because the stock is actually down 72% year to date, traders are now looking at FLMG shares like they’re a tasty tidbit indeed!
Maybe it’s relief that the European Union finally got its act together, but FLMG’s volume bars shot up 300% on Thursday and stayed there on Friday. That’s a two-day turnover spike that you’ve got to go back to September to match when FLMG was trading cozily around $0.06 to $0.08 a share.
Want concrete evidence that sentiment is improving here?
FINRA filings show a full 100% of the action on FLMG was short interest as recently as Wednesday. By Friday, two short days later, 84% of those FLMG shorts had cleared out!
Bottom Line: FLMG was doing the best business of its history, but was priced for the end of the world.
Now that the world’s not ending, traders who were too negative on these shares are realizing how silly they look…and they’re trying to buy back in.
FLMG looks like it could be a hot ticket indeed this morning. See for yourself!
Just Released: (Source)
Fleet Management Solutions Inc. (OTC: FLMG.PK), a provider of numerous comprehensive automobile fleet management solutions, is pleased to announce that the company received a business valuation opinion from an independent firm, Valuation & Research Specialists (VRS).
Based on VRS’s projections for the 5-year period 2011-2015 and applying the Discounted Cash Flow (DCF) methodology for a conservative growth scenario, the fair value of the Company accounts for euro 21,883,880 (more than US$29 million ).
Valuation & Research Specialists have applied the DCF methodology which is the most widely accepted approach for corporate valuation and provides a greater depth of understanding of the Company’s dynamics (note that the method incorporates best the Company’s growth prospects over the next 5 years).
The DCF valuation, adopts the following procedure. By projecting the Company’s operating profits, and then adjusting for taxes, depreciation, capital expenditures and working capital, then end up with the future free cash flows to the firm. Discounting those cash flows with the weighted average cost of capital (the interest rate that weighs both own capital and debt employed by a company), then end up with the Company’s enterprise value, also known as EV that equals with equity value (or market capitalization) plus debt minus cash.
Fleet Management Solutions Inc. CEO Evangelos Alexandris stated, “The Valuation Opinion is within the range we were expecting. We undertook this fair value to assist the FMS Board in evaluating potential transactions and be in a much better position to make decisions in the best interest of FMS partners and shareholders.”
Expanding Industry. Telematics and fleet management are gaining a great deal of traction now and anticipated to continue in the future. Maintaining a stable level throughout the recession, fleet management system revenues globally are expected to blossom to $9.5 billion in 2015.
Rapid Growth. Since January 2011, FMS S.A. has more than doubled its number of employees and added two new locations. The growth, a product of expanding contracts and operations, is equating to higher revenue.
Solid Company. Fleet Management Solutions operates through five different locations and maintains a staff of 65 full-time employees serving all of Greece and the Balkans area.
Strong Leadership. Fleet Management Solutions, Inc. was formed through the merger of ABR Bosch Car Services (founded in 1992) and EDC Hellas S.A. (founded in 1998). Bringing together more than twenty years’ experience of the two firms has immediately reaped rewards with a growth rate of 311% in the last 3 years. A door of opportunity has opened wide for Fleet Management Systems. Companies of all sizes are being forced to examine expenses and cut costs, which bodes well for FMS S.A. as their services are designed to maximize efficiency, production and increase the bottom line for their clients.
The solutions that are offered by FLMG are covering all the after sales management needs of the companies that provide Automotive Leasing solutions.
The Companys extended experience in the automobile business allows for the maintaining of a privileged position versus the competition, facilitating the opportunity to provide not only first class services, but also reduced cost solutions.
FLMG offers services, to its customers, that minimize the highly fluctuant – operational and management risk helping them to provide competitive leasing products.
Why is a company like Fleet Management Solutions booming while so many other companies aren’t?
That question is best answered by Chris Hill, vice president, Advanced Mobility Solutions at AT&T Business Solutions, when he stated, “Challenged by rapidly increasing operating costs, companies that routinely use vehicles need to manage their fleets more effectively than ever.”
Much like FMS that held firm or experienced growth during the recession a few years ago, Fleet Management Solutions is experiencing strong growth during Greece’s present economic struggles. Formed as a merger of ABR Bosch Car Services (founded in 1992) and EDC Hellas S.A. (founded in 1998), Fleet Management Solutions S.A. (FMS S.A.) has harnessed the power and experience of the two companies combined to produce rapid growth to the tune of 311% in the last 3 years.
Even more impressive is what the Company is doing recently. Now operating five locations with 65 employees, those figures were only three locations and 26 employees about a year ago. New acquisitions and additional locations are apparently always looming on the horizon for FMS S.A. as the Company is obviously actively pushing for rapid expansion. Moreover, revenue growth appears to be booming. According to management, these deals coupled with other revenues are keeping the Company on target to meet their $15 million revenue guidance despite economic problems in their main market.
The premise of fleet management is to maximize efficiency, bolster productivity and eliminate both costs and wasted money (i.e. save money for the company). As mentioned above, when times are tight, fleet management provides an invaluable service to allow a company to maintain operations at a lower cost, which inevitably helps profit margins. Companies of all sizes are now using FMS S.A.’s services including some of the biggest names in the country. Further broadening their services and increasing industry contacts, FMS S.A. has a strategic partnership with Mondial Assistance, one of the world’s largest companies focused on road assistance and the travel insurance.
The Company was formed through clearly experienced management as evident in the blistering-fast growth over the last three years. Importantly, the FLMG share structure is intact and small enough to allow for exponential share price growth. There are issued 45 million O/S and miniscule float of only 11 million shares.
About Fleet Management Solutions, Inc.:
About FMS Inc.: FMS Greece (http://www.fms-greece.com/) is based in Athens, Greece and currently owns and operates 5 commercial locations with 65 full time employees.
Fleet Management Solutions, Inc. provides a full spectrum of automobile fleet solutions, in the Country of Greece as well as the Balkans area.
FMS offers its clients (leasing companies and corporations) numerous comprehensive fleet management solutions such as online fleet management, maintenance programs, 24 hour roadside assistance, fuel management programs, insurance programs, license and title services, telemetric and acquisition and lease buyout programs, and re-marketing of used vehicles. FMS utilizes authorized dealership networks and the BOSCH Car Service Network with 120 service locations in Greece.
The Company’s extended experience in the automobile business allows for the maintaining of a privileged position versus the competition, facilitating the opportunity to provide not only first class services, but also reduced cost solutions.
The Company was formed as a result of a merger between ABR Bosch Car Services, which was founded in 1992, and EDC Hellas S.A., which was founded in 1998 by EDC Holdings. With decades of experience, both companies identified an opportunity in the automotive market by providing fleet management services and solutions, and subsequently formed FMS S.A. which has grown 311% in the last 3 years.
This seems like investors are gonna be left holding an empty bag as it has all the classic signs of a pump and dump. Could just be a hunch or a full moon vibe.
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