BGEM has impressive day on Zephyrhills Water news. Watch for breakout!

BGEM was a strong bull again today! As we figured the shorts started purchasing back more of their position today. Blue Gem closed up 14.90% today on over 6.7 mil shares! Point blank, this stock looks like it could potentially explode...

THE TRADING VOLUME AND STRENGTH
ARE INCREDIBLE!

Last night we showed you a research report by an independent analyst (Grass Roots Research), they placed at $1.01 "BUY" recommendation on the stock with supporting information as to why they came up with that target price.

Today Blue Gem released more head turning news!

Pre-market the company released the following...

Blue Gem Enterprise to Distribute Zephyrhills Water

One of the Southeast's Top Water Brands Now Offered Through Blue Gem's DSD Network

Click here to read the entire release.

What are we seeing here? We are seeing a pattern of real business with major brands and growing distribution chains. Fellow investors, this adds up to revenues and increased shareholder value. It clearly shows the BGEM is no fly by night, they are a company with clear direction and incredible management!!!

After market the company released the following...

Blue Gem Enterprise To Distribute Apple Rush Organic Juices

Click here to read the entire release.

Again clearly more products and more distribution to major brands.

We have watched BGEM trade from the $.20 level to as high as $.76 for a gain of 280%, but the simple facts are without the market makers playing such a huge short initially out of the gates, we believe BGEM would have gone past $1.00 already!

We believe that the information in the recent research report shows that at the current levels, BGEM could be a bargain!

If you missed them last night, please take a look at some of the key points we see from the GSR's report on BGEM!

• "We expect robust revenue growth from $6.6 mil in fiscal 2010 (year ended July) to$47.1 mil in 2014 representing a CAGR of 63.1%. Our model assumes the Company raises capital through equity/debt of approximately $2.0 mil in 2010."

Let's start with this analysis. "Assuming the company is able to raise $2 mil in 2010". Hello fellow investors, we are talking about a company that is currently selling their products in Publix, Walgreens, Navarro and other major chains. The man running the sales and distribution operation was recently ran an $800 mil operation! Let me just say that with the recent activity in BGEM's stock along with their incredible new sports drink, in our opinion, $2 mil should be a layup!!

• "BGEM’s average gross margin on case sales of allied brands is over 40%. Blue Gem Enterprise works on lower margins for brands owned by The Electric Beverage Company."

This business has tremendous potential ladies and gentlemen. You have a DSD chain that is not only distributing their "exclusive" drink "Title", but also distributing Cadbury Schweppes products like Hawaiian Punch, Canada Dry Ginger Ale, Yoo Hoo, Orange Crush, Motts Apple Juice.

• "The Cohen Price Target is calculated using market-based multiple valuation, our Cohen Discounted Cash Flow (DCF) and Cohen Price Performance Index approach. The multiple based valuation approach uses the expected 2010 Price-to-Earnings and the Cohen Price-to-Capital Employed ratio. We also include the Cohen Price Performance Index, which is a representative of the post coverage performance of all stocks covered by us. The last component in calculating the Cohen Price Target is the value derived using the long-term DCF valuation approach. Based on an average of these methods, the BGEM common stock is valued at $1.01 per share."

Once again, we urge our subscribers to take a long hard look at BGEM. Recently we had "Title" delivered to us by a consumer in South Florida. Let us sum it up for you in one word, delicious!!!

No wonder you have pro athletes jumping on board with this amazing drink. If you have not done so already, please go to youtube.com and type in Title Sports Drink.