'Doubling Stocks' Editor: Act Quickly on Strange, But Urgent, Stock Pick

Editor's note: Last evening, "Doubling Stocks" editor Michael Cohen gave his subscribers a heads-up regarding what he called a "strange" stock pick that deserved attention, and promised that he'd provide full details this morning. Here's what he divulged this week. Per usual, his ever-candid and irreverent advice holds appeal to savvy and contrarian traders and investors, and more than fulfills the overnight anticipation.

Company: Eternal Image, Inc. [ETNL.PK]

Yahoo Finance: http://finance.yahoo.com/q?s=ETNL.PK

Company Website: http://www.eternalimage.net/

"In the e-mail last night, I mentioned ETNL is one of the greatest fundamental penny stock picks I have ever seen. And I'll get to why in a moment, but first let me tell you exactly what this company is not... And this is very important, because so many penny stocks are the latest bio-medical technology companies... Living on the dream of curing the energy crisis or some such feat.

"And, yes, a breakthrough in a biotech company could see even the mom-and-pop investors become millionaires overnight. The only problem with this fairytale situation is that... That's all it is, a fairytale. These companies eat through financing with no revenues or product to show for it... And these are the exact stocks the 'suave' Wall Street type like, and the exact type I hate.

"I've said it before, but it's worth mentioning again: The best stocks are the small, down-to-earth companies... The ones with a grotty office, just enough staff on the payroll to keep them going, a CEO who lives on almost minimum wage.

"Why? Because this type of company is interested in growth, and making money. Fancy offices, high-paid chairmen and excess amounts of staff are the things which kill companies... at least 90% of the time! With little expenses, a company can keep on going even through rough times... While a biotech company will go under, due to the repayments on the Italian pine decor they bought to impress investors.

"I think I've drilled this home enough. And, so, let me tell you what this company is: Eternal Image Inc. [ETNL] produces themed caskets and urns. A die-hard Major League Baseball fan can root for his favorite team into death. Or a dedicated 'Star Trek' fan can be laid to rest in a casket based on the Photon Torpedo seen in 'Star Trek II: The Wrath of Kahn.'

"And this may seem like a novelty... But this is precisely what has propelled this company to celebrity status amongst penny stock investors. These caskets and urns have been featured on Fox News, CBS News' 'The Early Show,' Wall Street Journal and... National Public Radio.

"Just watch as an ETNL representative is interviewed on Fox News: http://www.eternalimage.net/media/foxnews10_07/ei_foxnews.html

"Did you hear him say, 'We can barely keep up with demand'?

"It may sound crazy that there is so much demand for novelty caskets and urns. But...

Think of it this way: People don't buy soda; they buy Coke[TM] or Pepsi[TM]. They don't buy cars; they buy GM[TM] or Toyota[TM] or BMW[TM]. They wear branded clothes, eat branded food, carry branded phones. You likely don't have a PDA. You have a Blackberry[TM] or Treo[TM], and make 'Xeroxes' instead of photocopies.

"So if, in life, people are brand-loyal, why should that not extend to their funerals?

"However, there is... One Big Reason I Chose ETNL This Week -- and I'll get to that in a moment. But, first, a few of the reasons which gave me so much confidence in this company.

"ETNL was one of, if not the first, company to mass-produce products for themed funerals. In fact, there's a company just a few blocks from me, called Go As You Please, who source their products for bespoke funerals from ETNL.

"It seems they are the 'go-to guys,' and when investigating this company, I looked at how they were going to keep this huge competitive edge. In fact, ETNL's 26-year-old CEO has done this with military precision.

"Think about the things in life that have fans so dedicated, they'd have a themed funeral. There's the big one: sports. There's 'Star Trek,' with arguably the most dedicated following. There's religion...

"In all of these areas, ETNL has signed exclusive licensing agreements. ETNL has licenses to produce caskets and urns, themed with the Vatican [religion], Major League baseball [sports], 'Star Trek' [cult television shows]. And ETNL is constantly proposing license agreements to new companies, ever expanding the products' appeal.

"Another factor is that ETNL has the best investor sentiment I've ever seen in a penny stock. The current investor base is on edge waiting for this rocket to take off. Just read the message board here: http://investorshub.advfn.com/boards/board.asp?board_id=6062 [scroll down]

"Those guys really are crazy about ETNL, huh?

"Now, with all this hype and great investor sentiment, you'd expect the stock to be trading at levels which already reflect this, right? I did, too, but... I Was WRONG! ETNL is trading at a massive low. In fact, back in March last year, this stock was trading at $0.16 per share -- a price which is still slightly undervalued in my opinion. [See the chart above.]

"But now, with ETNL trading at just $0.03, and a rabid group of investors following the stock, you can see why I called this the best fundamental pick I've ever seen. The stock is trading very very low within the range it trades in, which really takes out a LOT of the risk.

"Just think about it... A couple of months ago, people were buying this stock at $0.09 per share -- three [3] times the current price. At just $0.03 per share, your margin for profit and loss is far more favorable.

"But there is one thing which kept my eyes glued to the computer screen when analyzing ETNL... Just 20 or so days ago, ETNL put the wheels in motion on transferring from the Pink Sheet market to the Over the Counter, Bulletin Board [OTC:BB].

"On Jan. 16, 2008, Eternal Image filesd its SB2 with the SEC for uplisting to the OTC:BB. 'Hitting the 'go' key to upload the application to EDGAR was a major milestone for our company,' said Jim Parliament, CFO, Eternal Image.

"This is important for two reasons. Firstly, I rarely recommend a Pink Sheet company -- and the reason is, they are generally of lower fundamental quality than OTC companies.

"And, so, when I do recommend a Pink Sheet company, it is usually because it has far surpassed my criteria in other areas -- like being ridiculously undervalued, for instance.

"But, mainly... It is common knowledge to most good investors that when a company moves up the 'ranks' in the board it trades on... In my experience, they almost always rocket in price.

"An OTC:BB company will generally rise in price when it moves to the AMEX. Likewise, a Pink Sheet company will generally rise in price when it moves up to the OTC:BB.

"Why? Because it is a very good sign. It takes a lot of work and dedication for a company to move up the boards. They must show a good trading history and solid fundamentals, amongst other things. In fact, it's one of the most simple, but also most possible, pieces of news to trade on.

"And this effect is multiplied with ETNL. You see, not only is ETNL the best fundamental penny stock I've ever seen, it's also one of the most-watched Pink Sheet stocks.

"Log on to any online message board about penny stocks, and you'll most likely find buzzing conversations about ETNL. Caskets and urns are easy to understand, making this an easy-to-value company... Therefore, it is a celebrity amongst penny stocks!

"And, so, a move up to the OTC:BB will be followed by thousands of investors, and I believe the standard rise in price will be multiplied many times due to the large following. And even though ETNL has not been accepted onto the OTC yet, I believe there is little chance of rejection. And, very soon, smart investors will reap the rewards of one of the most glaringly obvious penny stocks I've ever seen.

"Best Regards,

"Michael Cohen

"P.S.: Due to the nature of the reason I chose ETNL now, it is very time-sensitive. If you're reading this e-mail more than 24 hours after it was sent, please don't even bother."

ProsperNOW's take: We Baby Boomers [and, yes, our kids, too] want it all, and we want it customized to our interests and tastes -- from birth till our number's up. Give Cohen's some thoughtful attention. If what he and "Marl," DoubleStock.com's 100% automated stock picking robot, have recommended resonate with you, then act -- fast. After all, nothing lasts forever.
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