Gediminas Jasionis

Xcelplus Global Holdings Inc (PinkSheets: XPGH) Pushes Forward With Update To Investors

by Gediminas Jasionis January 30, 2010
Xcelplus_Global_Holdings_LOGO.jpgXcelplus Global Holdings Inc (PinkSheets: XPGH) ended Friday's session with a solid 10% gain and seems set for near future appreciation. There are several price driving factors listed in the company's most recent updates and all look reasonable.

Xcel will release full year financials on Feb 24, 2010, but has already stated they're in the green and set for expansion. Preparations for the company to move from the pinksheets to the OTCBB are being made, giving somewhat of a confidence boost to investors.

The concept of business expansion provided in press releases includes the search for suppliers, attempts to get fuels supply contracts with paper mills and lime kilns. Note that according to press releases the company has managed to continue operating without debt and might potentially have over $2 million in cash. Not many penny stock companies have such an advantage.

Moreover, being in the biofuel business, the company anticipates reinstatement of government subsidies for alternative energy providers. Those should come in early spring this year if things go well.

At the time the stock was rather poorly traded and the reason was the lack of transparency followed by a lack of performance. The upcoming quarterly statement will be the first audited information coming from the company and that's a large step forward considering their situation.

It still remains a risky investment opportunity as volatility might strike hard when the financials come out. The move to the OTCBB will have its own addition to share value, though so at least on the surface this stock looks quite interesting.

Comments 0

Type the characters that you see in the box (5 characters).