Company: MyECheck, Inc. (MYEC.OB)
Yahoo Finance: http://finance.yahoo.com/q?s=MYEC.OB
Company Websites: http://www.myecheck.com
http://www.myecheckcorporate.com

I cannot believe this, but today I had prepared a stock
pick report about MyeCheck.

And this email talked about how, this company is
gaining momentum and signing new customers every
few days now.

And I expected these new contracts to lead to faster
growth, and kick-start this company.

But…

Just 3 hours ago, MyeCheck announced 100% growth
in revenues in the first two months of the second quarter.

Furthermore, the company’s unaudited revenues have
increased by over 60% for the period May 2008 compared
to April 2008.

See: http://biz.yahoo.com/iw/080609/0404781.html

And because this news has just a couple of hours ago
been released… This huge development has not been
taken account of in the price.

Last night I sent you an email about MyeCheck, and I
explained their business fully.

You’ see with the worsening economic climate, there
are now more and more people either without credit
cards or owning cards with no credit.

In fact it is estimated roughly 45% of americans do not
have the means to shop online at sites which only
accept card payments.

MyeCheck, have developed a proprietary system for
accepting payments, straight from customers bank
accounts.

The system utilizes the new “Check 21″ act, which states
it is now legal to process check payments with a digital
scan of the check.

This is a U.S. law put in place in 2003, which is forcing
the clearing times on checks to be reduced dramatically.

And MyeCheck’s system works like this…

Shoppers enter their bank details, just like a normal
eCheck. These details are sent securely to this company
whom print a physical paper check.

This check is then scanned to produce a digital image,
called a check substitute. The original paper check is
then immediately destroyed.

The images are sent to First Regional Bancorp of
Century City, which routes them through the Fed’s
image network to paying banks.

This has one major benefit in comparison to a normal
eCheck. Because digital images are created, they are
sent to the paying bank in a matter of seconds, instead
of days.

In fact, eChecks processed on the MyeCheck system
are typically accepted in 1 to 3 seconds. Allowing for
instant confirmation funds are available…

And eCommerce stores can feel confident enough to
ship orders instantly.

Now, I told you in yesterdays email I had good reason
for picking MYEC now.

And as explained, I’ve watched this company for the
last 2 months, while they “ironed out the creases” in
their system.

And I believe in this time, hundreds of analysts will
have scrutinized MYEC. And they’ve probably missed
the reason this company should be able to grow
extremely quickly.

In the credit card processing industry, there are
a number of layers.

At the top is the card companies, the likes of Visa
and Mastercard. These are the multi-billion dollar
corporations…

And just below them are the merchant banks, they
usually offer credit card processing for low fee’s
such as 1 - 2%… But they will only deal with large
well established companies.

Finally there are the companies whom have accounts
with these merchant banks. They’ll charge about 5%
for credit card processing, but won’t mind dealing
with the small mom and pop businesses.

What does this have to do with MyeCheck?

Glad you asked… In this example, MyeCheck is similar
to Visa and Mastercard… it is the company at the top
of the chain in eCheck processing.

… They deal directly with the Federal Reserve banking
system, and are allowed access to the “Fedline” so they
can interact with every US Checking Account.

And this has an important bearing on the growth of
MyeCheck, and in fact it is precisely why I believe
they are currently experiencing explosive growth.

You’ see being at the “top of the chain”, MyeCheck can
sign agreements with Merchant Services. These are
companies whom most likely charge a much higher
rate for processing, but they deal with thousands of
small online businesses.

And when MyeCheck partners with one of these
companies, like they have been doing, they are
in fact signing up thousands and thousands of
new small business customers.

And all of these new small businesses, will start
processing eChecks under the merchant service
provider.

Yet it’s even better, because…

This intermediary does all the work!

They provide the 24/7 phone support, they screen
each new business, they advertise for new customers.

And MyeCheck is able to quickly sign up more and
more merchant account businesses, whom will
effectively work for MyeCheck, absolutely free.

Not only that, MyeCheck’s system for processing
is almost fully automated, (it has to be, out of necessity
due to large volumes and low margins).

… But because of this, MyeCheck is able to focus on
growth and simply allow the system to pass more and
more data through it…

And all along MyeCheck simply takes a small percentage
of every single transaction.

And taking on thousands of new customers, adds very
little to the MyeCheck cost base.

The business is almost limitlessly scalable, constrained
only by the IT systems in place.

MyeCheck know this is the way to grow, and this was
proven last week when they reported:

“MyECheck Inc. to Attend Internet Retailer 2008 Exhibition”

From June 9th - 12th MyeCheck will be holding a booth
at the above exhibition. This is an excellent chance
for them to forge agreements with as many merchant
account providers as possible.

Today’s news of a 100% growth in revenues, has only
served to reinforce my views on MyeCheck’s plan for
growth.

Last night I was confident enough to release MYEC
as a pick when I was expecting growth based on their
recent stream of new customers.

Now, they’ve just released press confirming, even
faster growth than I’d expected…

http://biz.yahoo.com/iw/080609/0404781.html

This level of growth, is almost unheard of in stocks
and I believe in the next 1 - 2 weeks a lot of investors
will start watching MYEC closely.

Because of this, I believe it is important you start,
researching this company today.

Best Regards,
PH

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