Saturday, February 9, 2008

Medis Technologies Ltd

Well it is time to start another week in the markets. Medis Technologies Limited is the next stock that we are looking at for a covered call play. We must again advise caution this week because of potential market volitility. Investing always brings risk. Never invest money you cannot afford to loose.

Medis Technologies Ltd. (MTL) is a holding company, which through its wholly owned subsidiaries, Medis El Ltd., More Energy Ltd. and Cell Kinetics Ltd., designs, develops and markets liquid fuel cell products principally for the mobile handset and portable consumer electronics markets. The CompanyGÇÖs 24/7 Power Pack is a small disposable power source capable of providing direct power or multiple recharges to many portable electronic devices, such as mobile handsets, smart phones, Moving Picture Experts Group Layer-3 audio (MP3) players, gaming and other handheld electronic devices. During the year ended December 31, 2006, MTL produced over 7,000 24/7 Power Packs for testing, marketing and promotional purposes, of which it distributed in excess of 1,000 to personnel of mobile network operators, original equipment manufacturers (OEMs), software providers, retail customers, advertising executives, content providers and others worldwide.


Medis Technologies Ltd: Stock Rating Summary
5
Medis Technologies Ltd, a small-cap company in the technology sector, is expected to outperform the market over the next six months with above average risk.
10 is the best possible rating.

FundamentalGrade: D
• The most recent quarterly earnings report was approximately equal to or higher than analysts’ consensus forecast, but not to a degree that is predictive of future returns. Neutral
• Earnings growth in the past year has decelerated moderately compared to earnings growth in the past three years. Negative
• Earnings estimate revision information is unavailable or inconsistent.

OwnershipGrade: C
• Insider trading information is unavailable or inconsistent.
• Shares are under heavy accumulation by financial institutions. Positive for a small company like MDTL

ValuationGrade: D
• The price-to-earnings multiple is a negative number. No effect
• Price-to-sales information is unavailable or inconsistent.
• The ratio of MDTL's price-to-earnings multiple to its five-year growth rate is unavailable or inconsistent.

TechnicalGrade: A
• The StockScouter measure of relative price change and consistency is high. Positive
• Previous day’s closing price for MDTL was significantly below its 50-day moving average, a level from which prices frequently rebound over the long term. Positive

Average brokerage recommendation is Hold.

Covered Call:
Purchase stock at $9.87
Sell March 10 call at 1.50
15.2% return in 40 days

Hedge Wrap:
Purchase stock at $9.87
Sell March 10 call at 1.50
Purchase March 7.50 call at 0.50
10.1% return in 40 days


Talk to you tomorrow.

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