To OTC Journal Members:
 

Comments in the BLOG

There haven't been any BLOG entries so far this week, but your comments and questions are welcome on the most recent: BrandPartners (BPTR).

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 or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every question. If not for the filter, our BLOG would be filled with invitations to online poker sites- a total waste of the resource.

Tuesday's edition with the three biotech ideas for a long overdue bounce has worked out quite nicely so far. Imclone (NASDAQ: IMCL) had negative news on clinical trials on Wednesday before the open. The stock opened below the stop loss, so there was no entry. Protein Design Labs (NASDAQ: PDLI) is one of the few stocks in the entire market trading up at this time. The entry level was $15.66- current price (8AM PAC) $16.72- up 6.8% gain in two days. Boston Scientific (NYSE: BSX) is at $29.97, down from the entry level of $30.50 by 1.7%. Keep your stop loss at $29.10.
 

Family Room Going to Tribeca

Family Room was out with a project status update before the market opened today. Here's a brief recap:

The following projects are in active production or are slated to be in active production during fourth quarter of fiscal 2005 and the first quarter of fiscal 2006:

• "LONELY HEARTS," starring John Travolta, James Gandolfini and Salma Hayek, began principal photography in Florida on March 24, 2005
• "MERCENARY," starring Steven Seagal, began principal photography on April 11, 2005 in Capetown, South Africa;
• "16 BLOCKS," starring Bruce Willis for director Richard Donner ("LETHAL WEAPON") is scheduled to begin principal photography on April 22, 2005;
• "THE CONTRACT," starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 3, 2005;
• "SATURDAY NIGHT SPECIAL" starring DMX is set to begin principal photography on July 5, 2005; and
• "THE WICKER MAN" starring Nicolas Cage for director Neil LaBute ("IN THE COMPANY OF MEN") is set to begin principal photography on July 15, 2005.

New information includes the addition of absolutely smokin' Salma Hayek to the cast of Lonely Hearts with John Travolta and James Gandolfini. 

In addition, Friday's press release confirms Richard Donner, the action film specialist, will direct Bruce Willis in "16 Blocks". Donner directed the Lethal Weapon series with Mel Gibson, along with Superman I and II, Conspiracy Theory, Maverick, and many others. They start filming next week.

There is also some news that wasn't in the press release concerning a film that was recently released. "The Tenants", starring Dylan McDermott, Snopp Doggy Dogg and Rose Byrne, has been accepted by, and will be shown at the Tribeca Film Festival this month.

If the showing yields a favorable audience response, the film could end up in theatrical release and find it's way to a theater near you. If you click on the Tribeca Film Festival image, it will take you to the site, and you can check the schedule and attend a showing if you are in the New York area.

As you can see from the chart, FMLY continues to grind, trapped in the $.07 to $.09 range it has lived in since last summer.

As many of you know who have read my recent editions, I am negative on the microcap market right now. Prices are eroding on very light volume, not unlike May and June of last year. In 2004 it was war with Iraq and the Presidential election. This year it is rising oil prices, and rising interest rates.

While I am negative on the microcap market, I am bullish on companies. Those are two different issues. Companies can continue to improve while their stocks trade down. Eventually, when enthusiasm returns to the sector, the stocks in companies that are performing go back up.

In a recent BLOG posting, one member suggested it was "convenient" that I suggested short term traders get out of the market. That's just nonsense. I only report market conditions as I see them, and report corporate developments as they occur. In case you haven't noticed, eBay is now trading at about $32. It was $60 at the end of 2004. I could cite dozens of others that have suffered the same fate.

I've said this before, and I will say it again. If you are concerned that the values of the microcap stocks in your portfolio might erode even further before we turn back up, then sell them and get out. If you are a long term investor in companies you like, hang in there and don't spend too much time staring at quotes.

If you are a contrarian and not afraid to go against the crowd, it's time to start looking for some bargain basement values. I don't know what kind of investor you are, but you should know.

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