[MY INITIAL REPORT]

Plan of operation (from 10Q):

Management believes there are adequate funds to continue current operations for the next six to eight years, if we seek outside funding to develop our EnShale technology and related mining operations rather than funding it internally.  Revenues from Newmont USA Limited’s (a subsidiary of Newmont Mining Corporation [“Newmont”]) Leeville/East Ore mine are anticipated to be between $3.5M and $4.5M per year; however, these revenues may fluctuate, based upon the price of gold, and the price of gold could cause changes in the mining operations of Newmont on the Leeville/East Ore mine that could result in increases or decreases in these royalties

Our management reached an agreement  with Gold Mountain Exploration and Development Company (“Gold Mountain”) respecting its Sumpter Oregon property (now known as the “Gold Mountain” property), to increase our 1% ownership by funding its legal fees to ensure Gold Mountain’s legal interest in this gold property. Recently, an out of court settlement was reached, whereby Gold Mountain’s 50% property interest was established, and we anticipate receiving an additional 9% interest in Gold Mountain.  This increased our ownership interest to a total of 10% of Gold Mountain.  During fiscal year 2010, we plan to attempt to acquire a larger interest in Gold Mountain or the Gold Mountain property.

We have been contacted by Kennecott Copper, Freeport McMoran and others interested in our Ophir lead, silver and copper property located in Ophir, Utah.  Our Ophir property is situated near Rio Tinto’s Kennecott copper mine and is surrounded by Kennecott mining claims. The Ophir district is a historically rich silver producer. We have also has had inquiries into the possibility of further exploration and drilling of the hard rock potential of our North Pipeline gold property, and are weighing those potential opportunities against undertaking our own exploration program for this property during fiscal 2010 or 2011.

Nevada Rae Gold, Inc. (“Nevada Rae Gold”) commenced production on our North Pipeline property in late 2007; however, Nevada Rae Gold has been slowed by complications in their operation for processing the placer resource on the property.  At last report, they continue to work on correcting their processing deficiencies.  Nevada Rae Gold continues to make lease payments to us.

We are in the final stages of completing our agreement with Dourave Mining and Exploration, Inc. (“Dourave Canada”) for the exploration and development of the Bom Jesus and Bom Jardim properties in the Tapajos region of Brazil, based upon our initial Letter of Intent dated May 10, 2009.  Geological reports recently provided by Dourave Canada to us have strengthened our management’s belief that these properties merit further exploration.  Once the joint venture agreement has been finalized and executed, it is anticipated that the Dourave subsidiary will contribute the Bom Jardim and Bom Jesus mining properties to the joint venture.  At that time, we anticipate converting our $250,000 interest in mineral rights into an equity contribution into the joint venture, which will give us a 33.33% interest in the joint venture.  In addition, as part of the Letter of Intent, we will contribute an additional $80,000 monthly for the next 19 months, ending August 2011.  Based on the level of exploration activity, the monthly contribution amounts may be increased.

EnShale has completed the construction of a pre-production plant to process oil shale in Uintah County, Utah. Utah Fabrication of Tooele, Utah, fabricated the plant and is working with the company to make necessary on-site refinements prior to putting the plant into operation.   We plan to process 5,000 tons of oil shale and are interested in testing numerous aspects like oil quality, heat balances, emissions and process optimization.

During the completion of EnShale’s demonstration plant, we will be evaluating various opportunities, such as joint ventures or the raising of the funds necessary to construct the expected full production plant and underground mining operations in the Vernal, Utah, area. The funding may take the form of equity, debt or a combination thereof.  It will, as is normal for such a financing process, require a proper due diligence period followed by a contractual negotiation period – all common to the financial industry for such a secondary public and private offering.

Our management believes that the world market for development of natural resources remains strong and will continue to be so for the foreseeable future.  Management looks forward to planned future growth and profitability in this area.

We do not expect to sell or dispose of any of our assets during the next 12 months

Disclosure:  LONG BULM

The Maxim Group estimates were for $56.4m in revenues and $7.9 Million in net income.  CHOP beat estimates producing $57.2 million in revenues and $11.4 million in net income.

    Fourth Quarter 2009 Highlights
    -- Revenue increased 45.3% to $57.2 million from $39.4 million in the
       fourth quarter of 2008
    -- Gross profit increased 70.3% to $17.0 million from $10.0 million
    -- Gross margin increased 430 basis points to 29.7% from 25.4%
    -- Operating income increased 80.9% to $15.7 million from $8.7 million
    -- Operating margin increased 550 basis points to 27.5% from 22.0%
    -- Net income attributable to common stockholders increased 111.5% to
       $11.4 million, or $0.27 per diluted share, from $5.4 million, or $0.18
       per diluted share
    -- Cash and restricted cash of $79.6 million and $37.5 million,
       respectively, as of year-end 2009, compared to $42.6 million and $24.7
       million, respectively, as of year-end 2008
    -- Accounts receivable of $4.8 million as of year-end 2009, compared to
       $10.3 million at year-end 2008
    -- Working capital of $49.3 million as of year-end 2009 versus a working
       capital deficit of $9.4 million at the end of 2008
    -- Shareholders' equity of $87.0 million as of year-end 2009, compared to
       $12.5 million at the end of 2008

Business Outlook

China Gerui’s existing production facility is running at very close to full capacity and for fiscal year 2010 the Company expects to focus on expanding its production lines in order to meet the demand for its products in the Chinese domestic market. In addition to the high-precision cold-rolled steel strip products, the Company will focus on developing other high-margin steel products in the cold-rolled steel category, such as wide strips and sheets.

The Company is on schedule with its plan to construct a new production facility, including two 75,000 ton chromium-coated production lines to be completed by the second half of 2010 and one 100,000 ton zinc-coated production line to be completed by the end of 2011. This expansion is expected to increase the Company’s annual production capacity to 500,000 tons by 2011.

Disclosure:  LONG CHOP

Bullion Monarch (BULM) is a natural resource development and royalty company with interests in gold, silver and oil shale.  Gold royalty companies have been making a buzz lately as they are a very low risk high reward way to play the resource bull market.  Royalty companies are considered low risk/high reward because they don’t have the capital cost risk associated production but offer full exposure to the upside of rising gold or other resource prices. Royal Gold (RGLD) and Franco Nevada (FNNVF.PK) are the most widely held gold royalty companies.  Bullion Monarch (BULM) is positioning itself as a resource royalty company, not only encompassing mining royalties but also other resource royalties (ie energy).  BULM is profitable, has no debt, low management salaries, and buying back stock.  BULM bought back ~4% of their outstanding shares in 2009.

Unlike what I normally do, I will start with the blue sky potential in BULM:

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Mark Zuckerberg bought a gong for the Facebook office, and employees bang it when they launch new products.

For years, it has been Waiting for Godot for investors who want to know when they can get a piece of hot tech company Facebook.

Facebook CEO and founder Mark Zuckerberg speaks to press and advertising partners at an event in New York.

In a Page One story in Thursday’s Wall Street Journal, Facebook chief executive Mark Zuckerberg suggests they are going to have to continue to wait.

“We’re going to go public eventually, because that’s the contract that we have with our investors and our employees,” Mr. Zuckerberg said in the profile of the young chief. But, he added, “We are definitely in no rush.” (You can read the rest of the story here.)

What investors really want to know, however, is how much a slice of the social phenomenon is going to cost them. And they are starting to come up with some bets.

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Comment: Here is a great article that was just in the Wall Street Journal.  And its exactly why I’ve been bullish on GORO, TLR, and soon BULM.

Main Street investors always want in on the ground floor of the next Microsoft or Google, or, in the commodity world, the next gusher or mother lode.

At a time when gold is above $1,100 an ounce and some expect it to go far higher, a lot of investor energy is focused on the so-called junior miners. These are the tiny mining firms that often own little more than a piece of land, some geology studies and dreams of El Dorado. So much cash has flowed into the Toronto Stock Exchange’s small-company Venture Exchange—where mining firms in 2009 raised nearly Canadian $3 billion—that its total market capitalization surged by 112% last year.

For too many investors, though, this pursuit of El Dorado ends up as a financial nightmare. Even if you’re lucky enough to pick a miner that finds a rich vein of gold, you can arrive so early that your stake crumbles while the miner navigates the hurdles between locating a gold deposit and actually producing it.

Despite the “great sex appeal” of early-stage mining companies, “most just wash out,” says Frank Holmes, chief executive of U.S. Global Investors, which runs a gold and natural-resources fund. Those that do find a viable lode often end up hamstrung for years by environmental or governmental delays that erode share prices.

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Membership Base

Quepasa.com has experienced rapid growth as reflected in the following table:

My Initial Report. QPSA hit a new 52 week high this week ($4.20).  I bought an initial position at 2.90 a share a few weeks ago.  QPSA is the only publicly traded social networking company and its gaining members quickly as you can see above.  Quepasa.com is currently adding 40-45k members a day.  Their current burn rate is $350,000 month and the company feels their DSM (Distributed Social Media) campaigns will cover their burn in 2010.  With private transactions valuing other social networking sites at $20 – 60 per member, and with Quepasa.com targeting 20-25 million members by year end 2010, QPSA remains a very unique stock to own in 2010.  As long as the story doesn’t change I will add to my position on a pull back to 3.25-3.50.

Disclosure: LONG QPSA

CHOP will announce their Full Year 2009 earnings next week.  The company’s product demand is a direct result of the increasing consumer demand (buying habits) in China.  Chinese premier Wen Jiabao mapped out the country’s growth plan for the next five years at the annual National People’s Congress. Ian McGuinn, head of operations & research at JLM Pacific Epoch, analyzes the plan, with CNBC’s Maura Fogarty.

Disclosure:  LONG CHOP

GAXC reported their Q4/ Year End 2009 results yesterday after the close and also had their conference call this morning.  I’m not going to get into Q4 results that much because you can read it for yourself.  I was paying more attention to guidance, RP (request for proposal count) for ATM and DVD, and any potential guidance going forward.

The company surprisingly did give guidance.  GAXC management team is ultra conservative, but since their public peers provide guidance they likely felt compelled to provide some base line case for the 2010.

“Assuming similar transaction levels in 2010 compared to 2009, and based on what we believe to be is a stable base of predictable revenue, we are targeting 5% to 10% organic growth from our ATM business,” Mr. McQuain concluded. “Our DVD kiosk business will provide upside to this guidance, and we expect this new and emerging segment to add 5% to 10% in incremental revenue for calendar 2010. As we continue to carefully manage our expenses and focus on higher volume locations and higher margin opportunities, we anticipate accelerating our profitability in 2010 compared to 2009.”

10-20% growth in itself would be quite an achievement given their relatively flat performance the last four years.  That said I believe the company has a good chance of hitting the top end or beating this guidance.

One of the most interesting tidbits of the call was the RP (Request for Proposal) tally for both ATM and DVD divisions.  RP’s are the number of ATM’s we are currently bidding on and same for DVD’s.   The current ATM RP’s stood at 5,000 at year end.  To monetize this further, GAXC is currently bidding on $25 – 45 million in annual ATM business.  This gives investors the growth potential for the ATM side moving forward.  A major win is a big deal.

GAXC also stated that their current DVD kiosk RP’s stood at 550.  They said that most of these RP’s are on accounts that are currently using Redbox, NCR, or another incumbent.  To monetize this further, GAXC is currently bidding on $13 – 16 million in annual DVD kiosk business.  Management stated that demand is so high that they are being very cautious in cherry picking the most profitable locations/accounts.

So in totality, GAXC is currently bidding on new business that represents $40 – 60 million in ANNUALIZED revenues ATM/DVD combined. This is why I’ve been saying since November that GAXC can wake up and wake up quickly on any significant ATM or DVD win.  The company has squeezed as much blood from the rock as they can with internal efficiencies and any new win would have a direct and meaningful effect on both top and bottom lines.

The company also said they expect to have their third kiosk initiative narrowed down by the Q2 2010 conference call.  The company has a vast client base in which to sell further kiosk offerings, so I look forward to hearing what the new initiative will be.

I’m one of the largest individual (non institutional) investors in Global Axcess and will be a buyer of more shares on pullbacks.

Disclosure:  LONG GAXC

-Quarterly Revenue, Gross Profit, Gross Margin and Net Income Increase -
-Record Net Income for the Year of $2.8 Million Included Recognition of Deferred Tax Assets of $1.3 Million; Net Income Excluding Tax Benefit is a Record $1.5 Million -

Global Axcess Corp (OTC Bulletin Board: GAXC; the “Company”), an independent provider of self-service kiosk solutions, today announced the financial results for the fourth quarter and fiscal year ended December 31, 2009.

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Disclosure:  LONG TLR