Systems Evolution, Inc.

(Public, OTC:SSEV.PK)

Systems Evolution, Inc. has seen some major action lately from the small cap crowd, and now the question becomes, can it last? MIV Investments Inc. has devised a fair amount of time researching this company, which has seen its shares drop significantly over the past several months. There has been a down-trend since September of 2009, instilling a lot of fear in investors and thus allowing the short interest to build and flourish. Now, all of that seems to change with the recent announcement of the newly appointed CEO and President, Mel Robinson, whom is a well known and respected representative of the company. We are also hearing rumours that they are working diligently for full transparency, and an announcement could be made at anytime, perhaps gaining full PinkSheets.com compliance? Back in December 2009 they stated they would file the disclosure statement and other informational pieces in order to become fully reporting in the next 90 days, and now, that time-frame is up.

In a recent news-line announcing the pilot test of technology by HHHI that enhances diesel engine performance dated February/1/2010, the company noted that, “”This is one of many municipality and state deals that HHHI has in the works for 2010. These type of fleet deals will create immediate revenue for the company moving forward.” Not only will this provide transparency and new found opportunities for the company, but seek to top the balance off as well, which could come at the hands of the recent $1.247M grant application. If you’re an investor looking to reap the ultimate risk for rewards opportunity, Systems Evolution is for you. This company should be seen in one way only, as Warren Buffet would say, “Be fearful when others are greedy and to be greedy only when others are fearful.”

The float is marked at 906,050,234 as of Feb 11, 2010 courtesy of PinkSheets.com. Take 906,050,234*$0.0011 and you get roughly $1M worth of shares being bought and sold at the hands of investors. Considering that during the last trading day we experienced nearly 251M shares, or nearly 1/3rd of the float traded, the anticipation and transparency for this company is growing rather rapidly at an exponential pace. Resistances should be broken fairly easily, as there is nearly 50% of average volume during a trading day shares being shorted. According to this RegSHO report, on March/02/2010, there was 34240833 shares traded, and of that, 17062500 were shorted. A squeeze is imminent, especially considering the latest news and management changes from the company.

A short-term price of $0.0018 is to be expected based on strong technical analysis, and it wouldn’t be out of the question to see it take on the $0.034 levels once the stock becomes more prominent on trading radars.

About Systems Evolution Inc.
Systems Evolution Inc. (SEVI) is a professional service organization that provides computer software development services, computer network support, and contract staff for its clients. SEVI uses Microsoft and IBM Rational tools to build software and support computer networks. The Company has two distinct divisions: Consulting and Next Hire Consultants (NHC). The Consulting Division provides software development and managed network support services while NHC provides engineering permanent placement services. The Consulting Division also provides managed network support services from the Company’s network operations center in San Antonio, Texas. Major clients of the Consulting Division are the State of Texas and MedDorna. NHC’s major clients are Staffing Technologies and Shell Oil USA, Inc. In August 2009, the Company acquired Hoss Motor Sport, Inc. and Highline Hydrogen Hybrids, Inc.

Technical Chart Analysis

From a technical standpoint, things couldn’t be much better for investors jumping into the stock. Opportunities for “dead cat bounces” don’t come all too often, and when they do, the gains could bring many riches. At first glance, the long down-trend marked by the black line from the $0.2 to the $0.004 level might send some shivers down your back, however, there is nothing to fear. This stock is not going to be below $0.0018 for much longer, mark our words for it.

A quick peek at the Relative Strength Index (RSI) used to measure the state of the stock quickly notes that it is highly oversold and well on its way up with a positive sentiment marked by strong growing volume. The Parabolic SAR also confirms the beginning of a long-term uptrend which has not been seen for a long time. Technical chart analysts will love this, both day traders and long-term holders should relish at such a golden opportunity. MACD divergence has been laying flat-line for quite some time, making it ready for the bulls to take it by the horns and drag it past the 0.00 level, confirming a rebound play. Full stochastics have been waiting patiently, as buy volume was dry for the last few months awaiting a reversal as indicated by today’s highly bullish tall white candle.

There is a high chance that the stock will engage in a “Blue Skies Breakout“, and by this we mean a zone which has little to no resistances. They are referred by analysts as “Phantom Resistances“, because once it starts moving, it simply doesn’t stop. Currently the share price closed at $0.0015, bringing it one step closer to the much anticipated resistance at $0.0018 which is also the 50 DMA. Once this breaks through, you can expect a rather quick rise to the $0.034 level as resistances are highly insignificant.

Furthermore, the Money Flow Index (MFI) shows that the buyers are far outweighing the sellers, and that money is being poured into the stock by outside sources, whether it be individual investors or perhaps, institutions. The Force Index is a further depiction that the Bulls are taking hold of the stock, and the shorts are nearing the cover stage, which will further bring increased shareholder value in the near term.

Disclosure: Long SSEV

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A young and savvy, yet experienced and accomplished investments mogul since ‘01; Michael has amassed a fortune as a private self investor. Recently starting his own successful blog and turning it in to a corporation — MIV Investments Inc., a company offering advice to thousands of people worldwide and attracting contracts from various reputable sources. His articles and publications have been linked to Forbes, CNN Money, Reuters, Bloomberg, and many other top worldwide mainstream media sources.

Michael Vlaicu

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