AGR Tools, Inc. (AGRT).

Today's Pick is AGRT

When a company puts out a PR that they are going to be entering the North American market and they are targeting up to $2 billion in annual sales in a relatively short amount of time, we tend to be a bit skeptical -- who wouldn't be?

That was until we found this company!

Our latest pick is AGR Tools, Inc. (AGRT).

This is a manufacturer that due to contractual obligations was prohibited from selling its products in North America. So, what they did was create a powerhouse company in Europe and Asia. They have created a global brand that requires 9 factories in China to produce over 700 products that they sell.

AGRT is a GLOBAL LEADER in the manufacturing of diamond tools and adhesives. They produceconsumable tools for the natural stone, engineered stone, concrete and masonry industries.

Their products include:

• Diamond Blades
• Drilling/Core Bits
• Grinding Wheels and Grinders
• Milling/Router Wheels and Tools
• CNC Tooling
• Polishing Pads

The company touts its diamond blades as the best in the business. They claim that "AGR Tools with Matrixx Maxx™ Technology ensures you are getting the highest quality diamond tools. More diamond content, superior matrix bonds, uncompromising engineering, and rigorous testing make AGR Tools the World’s Finest Diamond Tools!"

It is not a glamourous business, but essential to so many industries.

AGRT has been effective getting known by retail stock traders. The chart shows us several things, as follows:

• The stock continues to be under accumulation with some massive volume spikes during their current run up (very little selling)
• MACD is strongly bullish
• Stochastics have retreated from an overbought position, but could easily cross the line again should more buying come in, but
• The stock can run for quite some time above or near the overbought stochastic indicator since the stock is so strongly bullish

AGRT has some bold goals for itself in North America!

Due to contractual obligations AGRT was unable to market their brand in North America until very recently. Those contracts have recently expired which now allows AGRT to expand into the North American market. AGRT's stated goal is to capture 25% of the EIGHT BILLION DOLLAR North American market by 2012.

Rock Rutherford, CEO of AGR Stone & Tools USA, Inc. ( whose company is entered into a binding share purchase agreement with AGRT) states that "Our goal is 25% of the market which equates to $2 billion in sales. As our distribution network continues to grow, that goal is becoming more and more a reality". PR Link here

The other nice thing is that their products are CONSUMABLES. Even diamond blades wear out and polishing pads fray and become useless. That is why the CEO says that the market potential for AGRT is $2B ANNUALLY!

The question remains is "How is AGRT going to hit their lofty goal"

The answer is "distribution". AGRT is actively in the process of adding distributors, dealers and agents around North America. Their latest PR points out just that fact.

"AGR Tools, Inc. - Expansion of Distribution into Northern Illinois"

The release stated that "....AGR Tools, Inc. expanded its distribution network to Northern Illinois as part of a recent influx of requests from retailers and distributors. The territory serviced by their most recent distributor addition has a population of approximately 9 million people and an annual diamond tool market of approximately $60,000,000."

The release went on to say that the Illinois market adds to the growing list of its distribution centers throughout North Americaand is the latest of AGRT's 21 distributors in 15 states and provinces in the United States and Canada!

We like AGRT's trading pattern so far. However, we believe that it is a short-term trade only. The prolonged, sharp run-up brings the risk of a correction. The MACD is strongly bullish which tells us this run could continue. If our members trade it, please bracket the trades properly. We say this all the time...."Protect your Profits".

Do your due diligence on this one and get it on your radar ASAP! Here are some links for information about AGRT: Company website and Video Clip about AGRT

Potential investors should also make note of this point we found in a recent news release from the company:

On October 29, 2009, AGR Tools, Inc. and AGR Stone & Tools USA, Inc. entered into a binding share exchange agreement. See AGR Tools, Inc.'s Current Report on Form 8-K filed on November 2, 2009 regarding the new share exchange agreement with AGR Stone & Tools USA, Inc. for details on various conditions which must be met before the share exchange between the two companies closes. There can be no assurance that the share exchange will close. AGR Tools, Inc must issue 46,186,516 shares of its common stock to the current shareholders of AGR Stone & Tools USA, Inc. in order to complete the share exchange. Accounting for the anticipated cancellation of 25,000,000 shares of its common stock, upon the closing of the share exchange AGR Tools, Inc. will have 81,186,516 shares of common stock issued and outstanding.

More information on AGR Stone & Tools USA, Inc. can be found at: www.agrtools.com
Have a great week.....see you on the other side of Christmas!