The large caps need a rest from recent Meteoric rise! The small and medium cap variety now have the attention of Institutions, Hedge funds and Investor types.

Everyone assumes that the market during September will correct. We will have a severe correction! Not this year!--Market will continue to firm as economic stats point to the end of recession.  

We also believe that the market likes the potential failure of Obama's "Cap & Trade" and "Obamacare"! Both programs will cause America to lose millions and millions of jobs!

Actually we are still waiting for the Stimulus Program to create 1 "real" job!
2 New Buy Recommendations : Key Tronics corp. (KTCC) & US Energy Corp. (USEG).
RODM upgrade

RODM was recently recommended via August 12th email alert @ $2.05--On Friday August 28th RODM had exploded on dramatically increasing volume to close @ $3.54/sh ! The brokerage firm continues to fund corporate needs at a feverish pace. In our opinion, RODM should easily fund at higher levels than the $400 million that was completed during the 2nd Q of 2009. At present, RODM has funded around $326 million with 1 month to go until the end of the 3rd Q. Usually the summer months are the slowest and the 4th is one of the strongest with respect to raising money for corporate needs. During Sept 2009 RODM hosts a conference in NYC during Sept 9-11th 2009 they will be featuring over 500 public and private companies www.rodm.com/conferences ) and over 3500 attendees are anticipated. In our opinion, this will lead to additional business during the 4th Q and early 2010.

As mentioned within the August 12th email alert, rodm earned .29 non-gap for the 2Q (.42 gap) - we believe that the 3rd Q will equal or surpass that number and going into the 4th RODM will have netted .45 non- gap for the 9 months ending Sept 30, 2009.

For 2009 we have raised our est. net to .60-.70 based upon our belief that funding will not subside. If we use a conservation PE of 10X our resulting share price equals $6.00-$7.00!

During recent weeks Institutional buying has dramatically increased, which is indicated by the huge increase in share volume. It should also be noted that RODM still has a $12 million NOL which will shield additional earnings from Uncle Obama during 2009.

We believe that additional upgrades by other regional firms could occur. It is possible that RODM could be bought out and it is also possible that management of RODM could declare a cash dividend. All-in-all RODM remains very attractive for dramatic upside potential during the next 6 months unless of course the economy falls off a cliff!

We continue to rate RODM with a strong buy !!!




NEW BUY RECOMMENDATION-- KEY TRONICS CORP ( KTCC $2.05)
Key Tronics Corp. is a leading electronics manufacturing service provider (EMS).

The current customer programs include consumer electronics and plastics, specialty printers and sub- assemblies, household products, gaming devices, telecommunication satellite units, multimedia touch panels, digital control panels, computer accessories, medical devices, exercise equipment, educational toys, industrial tools, networking equipment, scientific instruments, security surveillance devices, military electronics & other kinds of engineered devices.

KTCC has been in business for 40 years!

Why you want to own KTCC!

1.Fundamentally very very cheap! Bk is $5.00, tiny Ltd of $3 million, recently inked a "new" line of credit for $20 million with WFC, PSR (price to sales) of .11, working capital/sh is over $3.70, for year-end results for fiscal 09 rev dipped to $184 million and net/sh of .11/sh is based upon the 10 million shares that are fully diluted and outstanding. Actually during fiscal 09 KTCC paid out .13/sh in severance and had a .07/sh goodwill impairment charge-- If KTCC did not have those additional expenses the net/sh would have been .30!!!

KTCC has now reported 22 consecutive quarters of profits. According to management, KTCC is now allowed to institute a share buyback program based upon "new" lending agreement with WFC.

At present, KTCC has manufacturing divisions located within Mexico, China and USA. The company is only manufacturing at 51% of capacity.



CONSIDER THESE FACTS:

EMS PROVIDERS ARE THE FOOT SOLDIERS OF ECONOMIC GROWTH-WHEN INVENTORIES ARE REBUILT THE EMS FORCE IS MOBILIZED. IF A RECOVERY IS AT HAND THEN SHARES IN KTCC SHOULD BE PURCHASED!

MORE AND MORE OEM'S ARE OUTSOURCING MANUFACTURING TO THE EMS INDUSTRY. ACCORDING TO INDUSTRY SOURCES: WORLDWIDE EMS WILL GROW FROM $261 BILLION IN 2007 TO $493 MILLION BY 2012!

ON AUGUST 28,2009 (INTEL) INTC UPGRADED REV & EARNING ESTIMATES FOR THE CURRENT Q- THIS MEANS MORE MICROPROCESSORS AND CHIPSETS ARE NEEDED TO MEET DEMAND!

THE DEMAND IS FOUND IN PRODUCTS THAT THE EMS INDUSTRY MANUFACTURES!

BOTTOM LINE: KTCC IS VERY CHEAP AND HAS A STRONG HISTORY OF SURVIVAL AND TOP LINE GROWTH. IT APPEARS THAT THE ECONOMY IS GAINING SOME TRACTION AND THAT MEANS MANUFACTURING WILL PERK UP AND IF THAT HAPPENS THEN KTCC IS A STRONG BUY AT CURRENT LEVELS.


US ENERGY CORP. (USEG $2.75)
The company is a natural resource exploration and development company with interests in molybdenum, oil and gas, geothermal and real estate assets.

visit website www.usnrg.com

Please recall that on July 19th, 2009 we recommended BEXP ( review email alert for complete recommendation) as an excellent oil and gas play that just had hit a huge well in North Dakota's Williston Basin.

BEXP was initially recommended @ $3.95-currently $6.87/sh.

We are currently recommended USEG because they have recently signed an agreement to drill 6 wells on BEXP's acreage and will have the option to drill an additional 4 wells dependent upon drilling success. USEG has committed around $17.6 million to drill the first 6 wells in order to earn a 65% working interest in these wells. If USEG decides to drill the additional 4 wells they will then have the option to drill 5 additional well on the "sweetheart" acreage. Additional agreements are included within 8K filings and investor should review.

The Deal!

BEXP IS A HOT OIL AND GAS COMPANY DRILLING IN THE HOTTEST AREA OF NORTH AMERICA AND SITTING ON SOME OF THE HOTTEST ACREAGE WITHIN THAT GEOGRAPHY. BY INVITING USEG TO DRILL ON SOME OF THEIR PROPERTY ACTUALLY SPEEDS UP THE DEVELOPMENT AND RESERVES OF THEIR LEASES. BEXP POTENTIALLY ONLY GIVES UP 5% OF THEIR 100K ACREAGE IN THE AREA AND HAS SOMEONE ELSE TAKING THE RISK AND REAPING THE REWARD.

USEG IS PERFECT FOR THIS DEAL! THE COMPANY HAS EXPERIENCE IN THE OIL AND GAS BUSINESS, HAS $45 MILLION IN CASH AND ZERO DEBT AND GETS AN OPPORTUNITY TO MAKE SOME SERIOUS "COIN" FROM THE SUCCESSES OF THE PROPOSED DRILL SITES! WE BELIEVE THAT ALL SIX INITIAL WELLS WILL BE DRILLED BEFORE DEC 31ST 2009. IF USEG IS SUCCESSFUL AND BRINGS IN SUCCESSFUL WELLS IT IN OUR OPINION THAT BEXP WILL OFFER USEG OTHER OPPORTUNITIES WITHIN THIS AREA.

IN OUR OPINION, THIS IS THE PERFECT PILOT-FISH- GREAT WHITE SCENARIO. BOTH NEED EACH OTHER AND BOTH FEED OFF ONE ANOTHER! BEXP GETS FUNDING AND QUICKER DEVELOPMENT, WHILE USEG GETS A WINNING LOTTERY TICKET AND A RELATIONSHIP BUILDER!

AT PRESENT USEG HAS $45 MILLION DOLLARS AND ONLY $1 MILLION IN DEBT, BOOK VALUE OF $5.00, CONSTANT INSIDER BUYING AND ONLY 21 MILLION SHARES OUTSTANDING AND FULLY DILUTED.

USEG IS A GREAT OIL AND GAS SPECULATION WITH EXTREMELY SOLID FUNDAMENTALS. IT IS A CHEAP WAY TO PLAY THE WILLISTON BASIN. WE SEE ALMOST ZERO DOWNSIDE RISK AND "SKY THE LIMIT" UPSIDE POTENTIAL.

WE RATE USEG WITH A STRONG BUY AT CURRENT LEVELS!
OTHER BUY AND SELL RECOMMENDATIONS
FAS -RECOMMENDED MARCH 22ND 2009 @ $4.95 ( 5 FOR 1 REVERSE) OR $24.75 CURRENTLY $80.00 SELL

GBX-- RECOMMENDED @ $3.27 AND $8+ SOLD HALF @ $10.49 WE ARE SELLING THE BALANCE @ $13.40- -WE BELIEVE IT IS OVER PRICED!

AWRCF.OB - STILL THE CHEAPEST STOCK THAT WE OWN-- REVIEW THE JULY 5TH 2009 EMAIL ALERT! ANNUAL MEETING COMING IN SEPT- WILL GET PRELIM. RESULTS FOR FIRST 6 OF 09-ONE OF THESE DAYS THIS STOCK WILL SURGE!

UNG- NATURAL GAS ETF DOWN BUT NOT OUT- ATTRACTIVE AT CURRENT LEVELS ( $11.13)- UNLESS YOU THINK GAS WILL FALL TO .99/1000 CU. FT.

DGTC.OB--DENTAL MEDICAL COMPANY ON GAS! ONE DAY THIS STOCK WILL WAKE UP OR BE BOUGHT OUT!- HEAVY INSTITUTIONAL BUYING - VISIT WWW.MFFAIS.COM

OTHER WILLISTON BASIN STOCKS THAT WE OWN- KOG AND AXAS ( FEATURED LAST EMAIL). YOU MUST BE IN THIS SPACE!