Petel - Dump

Petel Incorporate has finally worn out my patience. I made a tidy profit earlier this year and sold about half my shares to lock it in ... and a good thing too, as the price has been headed south ever since. Here's what I've made on the remainder:


While I took a loss on those shares, I made a profit overall - earning $993.75 ($825 in January, $168.75 today) on a $540 investment. I do wish the company would have done better, but maybe that's just greed.

This only underscores the importance of taking profit when you can, rather than holding out in hopes that a company will continue to grow. The latter may be a good idea for blue-chip investments, but this is the pink sheets, and the rules are totally different.

Weekly Summary

This week has been up and down, and the net result is not much of a change, overall:


In particular, Petel, Inc. has pretty much established itself as a loser - I keep saying that I'll hang onto the "free" shares I have, but they keep sliding downward, and it might make sense to unload them before their value is less than the commission to get rid of them, and Far East Energy has been doing well overall, though it ended the week with more of a whimper than a bang.

Otherwise, my positions are all either doing "good but not great" to "bad but not rotten."

PTEL: All too quiet

Petel, Inc., recently announced ... well ... nothing at all for the past couple of months, which is unusual for a company that has a history of pumping out press releases every fortnight or so to remind stockholders that it's still trying to gain a foothold in the industry.

The company has been uncharacteristically silent while its stock price continues to plunge, and it's fallen below the threshold at which I usually bail out - but since I've already taken profits on this one, its downward spiral isn't costing me any real money.

If corporate insiders were loading up on shares, I'd suspect that there was something big in the works that they wanted to keep out of the public eye - but since there's no evidence of that, and I've no reason to suspect they're doing so covertly, my sense is that this isn't the calm before the storm, but merely the awkward silence of the righteously embarrassed.

Weekly Summary

Another week has passed ...


It's pretty clear that H3 Enterprise s (HTRE) Petel (PTEI), and possibly Blue Star (BLSH) have gone sour and are unlikely to bounce back - I may dump them next week and salvage what cash is left, and start looking for another position or two to replace them.



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Weekly Summary

Another week's progress shows signs of recovery, but it may be false hope:


The remark about "false hope" pertains to GOIP Global, which has apparently done a reverse-split today and changed ticker symbols. That's almost never a good thing. I've cashed otu and taken profit, but when it starts trading again, the leftovers will probably be meager. Since it's presently (over)valued at $750, that will wipe out the value of my current holdings, and erase the profits I've made year to date.

On the bright side, Petel has bounced back from death's door - just last week, I was considering dumping the remainder. Ironically, this is another company on which I've already taken profits. Maybe the lesson learned is to cash out completely?

Weely Summary

This week, I've held the positions I've had. There are a few other investments I'm watching, and now that the market is showing signs of general recovery, it may be time to consider putting more funds into the market.

Of the positions I've taken Petel is the worst - but I've already taken profits and am riding free shares. A few others are borderline, but most are holding their own pretty well.

The only change I'm seriously considering at this time is dumping GoIP Global - this stock has looked good on paper for several weeks, but there is no volume (as in none - zero shares traded) most days. I was able to dump half of my holdings in small amounts, paying multiple commissions to unload it, but turning sufficient profit to cover them. I may consider liquidating the remainder in the same fashion, just to get free of the situation before it goes south.

Petel Reports 82% Increase in Revenue

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Petel Inc Upgraded on Pink Sheets

In a press release today, Petel Incorporated announced that ...

Petel Incorporated received approval by Pink Sheets OTC upgrading the company from 'Limited Information' to 'Current Information' having achieved full disclosure status.

"Attaining 'Current Information' is a vital step towards our goal and the board is now discussing and researching the next step to 'Premier' status with Pink Sheets QX. We are dedicated to moving the company forward and will continue to work exceptionally hard to develop our status further for future growth," says CEO David Morton.

"We quickly instigated the filing of our 15c-211 in June giving the company the benefit of 'solicited' status with greater transparency and exposure and at that time signaled our intention to work our way up to the OTCBB."

I'm heartened by this slow progress - far too many small companies attempt to leapfrog their way onto the OTC boards by reverse-splitting, only to see the prices plummet back to the same level they were at before the split within a week of trading.

SexQube Business Update

Petel Incorporated announced that:

SexQube [P3tel's adult broadband TV and VOD service] announces a significant boost in viewers and subscriptions. ... Following recent marketing initiatives including .... magazine campaigne, database marketing, and online affiliate programs, traffic and subscription figures between December and February have increased 150% month by month. ... A highly targeted online campaign starts this week and is forecast to generate additional sales of $60,000 per week based on a 10% buy rate of 1 movie per week.

Unlike other companies I could name, Petel tends to be conservative in its predictions, and its past growth has historically surpassed the estimates they originally published, so chances are good that the revenue they expect, and more, will be obtained.

Given that the company has a gross margin of 70% (not unusual in the adult entertainment e=industry) and only $500,000 in overhead expenses (annualized from the 2007 Q3 report), this means a base profit of $1.6 million - or about 9 cents per share - triple the current price.

Roller Coaster

I got an e-mail alert today that Petel, which I sold yesterday at 11 cents, rocketed up to 20 cents today, which annoyed me greatly at first. By close of business, it was back down to 8 cents, some 20% lower than its closing price (12 cents) yesterday.

All things considered, I'm glad I acted when I did to lock in profits, even though I could have made more than I did: there's a lot of volatility in the penny stocks, and you can't really predict when a stock has topped out. When you're lucky enough to turn a profit, take the money and run.

PTEI Pays Out

Petel Incorporated has taken off, more than tripling in value since I bought it a few weeks ago. And so, I've sold off half my shares to lock in profits, and am holding the remainder in hopes that the upward trend will continue.


The profits from the sale more than covered the buy-in for the full amount, so I'm riding free shares at this point. And yeah, it feels great.

Petel Incorporated (PTEI)

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