To OTC Journal Members:

This was the biggest week for the OTC Journal in a very long time. Four OTC Journal followed companies performed beautifully ranging from an idea I just introduced last weekend to an idea I have been covering for nearly 2 1/2 years. The microcap world is fraught with peril and disappointment, so one must enjoy weeks like this. They are few and far between. I didn't know where to start, so here's a review of all of them. By the way, had you been following the BLOG and taken advantage of the ideas, you could have made money trading any or all.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.
 

Golden Peaks (TSX: GL; OTC PK: GDPEF)- Climbing the Golden Peak

My new idea in the red hot gold sector simply had a kick ass week, and I couldn't be more excited. I suggested picking up the stock in last weekend's edition at $2.90 CDN (about $2.65 US).

The stock cooperated Monday morning by letting everybody pick up all they wanted in the suggested range before breaking out. Each day this week the stock has made new highs, fueled by the mania associated with the 2006 version of "Gold Fever".

The stock closed at $3.60 CDN today, a 24% gain this week alone. Absolutely awe inspiring and everything I could have hoped for.

There was a BLOG posted on the stock earlier in the week. Go back and review my comments if you choose to do so. I like the stock for $4 (CDN) next week with gold continuing to make its parabolic rise.
 
 

Advanced Cell (OTC BB: ACTC): Pattern Developing

Advanced Cell is my microcap idea in the Stem Cell arena. When the market's obsession with gold and oil wanes, and biotech and stem cells come back into the spotlight, I expect ACTC to get its fair share of notice. After all, this microcap gem has been featured in the Wall Street Journal twice in the last six months. Someone is taking notice.

I posted a BLOG on this one early in the week which contained the Wall Street Journal article. The chart shows how well the stock has recovered just in the last few days.

Now- here's a class- Patience 101. Learn to identify patterns that repeat themselves. If you read my original presentation on the company, you understand the company's recent financing. As I stated quite clearly, the financiers are issued $750,000 worth of free trading stock every month. I believe they get it early in the month. My guess would be they are sellers for the most part.

Therefore, for the immediate future, we can look for a sell off and a rebound pattern to develop. I am suggesting every month this stock will be forced to contend with some supply, and probably drop in price.

Therefore, expect the occasional BLOG and/or edition suggesting it is time to buy when the market wrestles with the supply. Look at the beautiful rebound this week. What a buy at $1.20. Keep some capital free for dips. I'll call it when I see it.
 

NeWave's (OTC BB: NWWV) Numbers Create Tidal Wave

NeWave, the subject of Monday night's edition, was a monster this week. The company announced Q1 numbers- $4 million in revs vs $1.2 a year ago, profitability, and the repayment of $1 million in long term debt out of cash flow.

The market got it right in this case, and the stock went bonkers on Tuesday. It closed on Monday at $.27 and hit a high of $.44 on Tuesday on 3.5 million shares. If this had been a $27 stock going to $47, the talking heads on CNBC would have been drooling over the story.

More importantly, the stock cooperated by trading in the $.35 range for an hour or two on Tuesday morning before beginning another $.10 rise. In my post Tuesday BLOG, I suggested waiting for a retracement to $.33 before looking at the stock again. 

I know we all suffered tremendously in '05 as NWWV cratered from $2 to $.20. However, this one is doing what it was supposed to do a year ago. One reader says he believes the stock is going to $.75. Based on corporate performance, I can't disagree with him. 

Accumulate the H*LL out of this one on dips, but only if you like growth and profitability.
 

US Energy (OTC BB: HYFS) Bounces Like a Champ

Monday's BLOG on US Energy proved prophetic. I identified a perfect 61.8% retracement, and posted a BLOG on it Monday morning. The stock was $.29 at the time, and closed today at $.346. Mid week the company announced it had received a $200k royalty payment from a sub licensee, and the news re-energized the stock.

Click here to read the press release. 

This is my idea in the alternative energy technology group- the company makes a retrofit system for diesels engines which allows them to run on diesel and natural gas at the same time. Huge energy savings with little or no sacrifice of power. It was featured in a CNBC special report.

It's not too late, especially with oil above $73. Watch for mega contract announcements from this company over the next several months. In my view, the stock is a buy right now.
 

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