To OTC Journal Members:

Don't forget to check out our new feature: Daily Market Commentary can be found every day just prior to the market's opening at www.otcjournal.com.
 

2nd Monthly MicroCap Forum- Tomorrow at 12:00 PM Eastern

The second monthly microcap forum, cosponsored by Trilogy Capital and the OTC Journal, will be broadcast at 12:00 Eastern Time tomorrow. We have made several improvements in the presentation- it will be shorter and more succinct. More importantly, we have eliminated the lengthy registration page. With the proper URL, no registration is required.

This month's microcap forum will feature three companies included in the OTC Journal's current offerings: VirTra Systems (OTC BB: VTSI), NuTech Digital (OTC BB: NTDL), and NeWave (OTC BB: NWAV). If you have an interest in any of these companies, your participation is strongly recommended.

The presentation is archived, so you can view it at your leisure. You don't have to be online at 12:00 tomorrow.
 

ActionView (OTC BB: AVWI) Back In Action?

Unlike three of the OTC Journal's current ideas which have made multi year highs over the last week (HYPD, NWIS, NWAV), ActionView must be categorized as one of the losers in a slate of offerings that has otherwise performed well in recent days.

ActionView designs and manufacturers the high impact point-of-purchase signs you see displayed. The signs run up to 6 feet in height, and have unique technology which allows up to 12 different advertisement images to scroll over the length of the sign.

In early pilot programs in an Australian Department store chain, the signs produced dramatic point-of-purchase results, and investors were excited about the concept.

ActionView's business model is designed to maximize shareholder value. The company does not sell the signs. Instead, they partner with the owner of the location and charge advertising fees to vendors who wish to stimulate sales of products at the location, thereby creating an ongoing revenue stream from each sign.

The poor performance of this stock is no doubt related to the company falling short on its promises. On their web site ActionView has formally stated their goal to was have 1200 sign installations world wide by September of this year. Based on announced installations, the market is betting the company is falling far short of this forecast.

When I last reported on ActionView, the company announced it had entered into a joint venture agreement with a Hong Kong based entity to begin sign installations in both Hong Kong and China. I expected the market to respond favorably to this news. Instead, the news seemed to generate an abundance of sellers who ambushed the stock. AVWI got clobbered over the ensuing days. The stock was about $.95 when I last published, and it currently trading in the $.65 range.

Since then the stock has been grinding between $.60 and $.75. Technicians in the audience might describe the longer term chart as the dreaded "head and shoulders" formation, which is very bearish as the stock descends down the right shoulder.

The longer term chart also shows us the stock has completed a 50% retracement of the gains it made throughout the course of 2003, suggesting it could be ready to begin a new uptrend.

I am cautiously optimistic that AVWI could start to rebound as a result of today's post close news release. The company announced it has completed the installation of three signs at a Home Depot (NYSE: HD) location. 

According to the press release, Home Depot has 1500 stores in North America, and is the acknowledged leader in the retail home improvement market. Having been in a number of Home Depot stores, I can confirm that each of the 1500 stores could easily support three signs. Making a huge leap of faith and looking a long ways down the road, this pilot project represents a potential opportunity for the placement of 4500 signs with Home Depot as the company's partner.

Over the past two months shares of AVWI have been taken out to the proverbial woodshed and beaten. A pilot project with Home Depot could be just what the doctor ordered to get this stock heading back north. An oversold bounce into the $.75 range would be my best guess, with a eye towards re-evaluating if and when that level is achieved. The sellers could be all washed out, and the stock just might trade up quite easily.

Here is the complete text of the news release for your review:
 

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