May 19, 2005
SpeculatingStocks.com Stock Pick: Wellstone Filters, Inc. (WLSF)
Stock Price: $0.415 (long-term strong buy)
We released WLSF as a stock pick a year ago for a 374% gain. We believe WLSF is once again a buy at current levels as they venture into the marketing stage of their "Wellstone Cigarette Line".
Wellstone Filters, Inc. has developed and patented a filter that effectively removes carcinogens and other toxins produced when tobacco is smoked without removing the compounds responsible for the pleasurable effects of smoking. This "less risky" filter will be the cornerstone of the Wellstone brand.
The outstanding share count has increased drastically over the past year from 79 million shares to 252 million. Right now, WLSF has a $104 million market cap.
The company is deciding whether to ally with a major cigarette manufacturer or rollout slowly through an inner sales force and partner with a smaller manufacturer. The latter would lead to more lucrative long-term profits. They plan on launching their brand under one of the above tracks within the third quarter of this year.
WLSF is risky, but if the brand succeeds, the niche created would be profitable and change the cigarette industry.
SpeculatingStocks.com Target Price: We believe WLSF will hit $1.50 within the next 4-8 months.