Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Back on July 14th we published a
list of our favorite stocks within the family of companies that we cover.
Blue Zone (NASDAQ: BLZN) was on the top of the list as the stock
which we felt was most likely to be our next super star.
The stock was trading in the $15
range in March just prior to the market collapse. Since that time it has
been as low as $4. The stock bounced nicely in July when the company made
the jump directly from the OTC Bulletin Board to the NASDAQ National Market.
When it opened for trading on July 10th on the NMS the stock was back over
$9, but since then has slipped back down to the mid $5 range.
Friday's action in the stock
could signal the beginning of the next major breakout.
Since losing most of its July gains, the stock has been trading sideways
on about 30,000 shares a day. On Friday the stock traded 118,300 shares
and closed at $5.875 for a 13.2% gain.
The renewed interest in the stock
was fueled by several articles published in Canada surrounding the first
major deployment of Blue Zone's proprietary software.
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Blue Zone- Cutting
Edge Software for the Next Generation of Internet Applications |
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Here's a quick review of Blue
Zone's business for our new members who are unfamiliar with the company.
Blue Zone is an award winning
software developer that is involved in the next generation of Internet
Applications. Blue Zone develops software which facilitates
Convergence. Convergence is a widely used term
which describes the future harmonious blending of all the forms of media
which will be viewed on your computer or your television. Experts agree
that print, radio, TV, and the Internet will eventually blend into one
medium where the viewer has control over the content they choose to view.
September 1st will mark the first
major deployment of Blue Zone's proprietary software in an interactive
format. CTV, Canada's version of the US's CNN, will launch
new interactive programming on September 1st using Blue Zone's software.
There was media coverage on the new
programming yesterday which we believe sparked renewed interest in the
stock. Two articles were published in the Canadian press covering the upcoming
revolutionary programming and below we have links to Internet versions
of both of them below.
A short story on this new technology
which was published by CTV can be read by clicking
here. This will give you a brief description of the new programming.
In addition, there was another story
published by Peter McMahon of the Canadian Business Journal describing
the release of the new format. Click
Here to review the article.
Convergence has long been anticipated
by the Internet community, but it has been delayed by the shortage of broad
band Internet access. Dial-up modems are not capable of delivering the
bandwidth required to properly view the programming. US based cable operators
and phone companies are scrambling to make broad band Internet access available
to consumers as quickly as they can.
Canada is far ahead of the US is
digital deployment. On September 1st, CTV, Canada's largest news
network, will deploy the first truly convergent news using Blue Zone's
software. This software has been specifically designed for news organizations
which need to create content on breaking news on the fly simultaneously
for TV and the Internet. Television produces its shows, radio broadcasts
its content, and newspapers publish their stories. Blue Zone's software
will allow one effort to bridge the gap between them all.
If you wish to learn more about the
company visit their web site at www.bluezone.net.
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Blue
Zone Stock- Poised For the Next Level? |
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Blue Zone was one of our biggest
winners in the last bull market. We released our original profile on November
12, 1999 at $5, and the stock traded to $15 in March prior to the April
bloodbath.
We expect this stock to be a big
winner in the next bull market. July's price and volume surge which took
the stock back up over $9 was the first step in the technical process of
returning this stock to its previous levels, and hopefully higher from
there. Blue Zone traded 1.3 million shares in just four days back
in July before giving back its gains. Many sellers were taken out of the
stock at that time which should lead to less upside resistance on this
next move. Each volume surge to higher levels helps position the stock
for a permanent move back to its previous high.
July's surge in the stock really
began back on June 9th with a 335,770 share day and a close of $6.50. It
ended with the stock making the jump to the NASDAQ on July 10th at a high
of $9.81. This past Friday's action could signal the beginning of another
prolific move in the stock with the next thirty days taking us to the point
where we will see Blue Zone's revolutionary software in full deployment
on September 1st.
In our newsletter which was released
just after Blue Zone made the jump to the NASDAQ we stated
that the stock would probably pull back unless the company made a series
of substantive news releases on new contracts. Those news releases did
not materialize, and the stock pulled back just as predicted.
Substantive news releases on new
contracts generally don't materialize in August. This is usually the quietest
month of the year due to the summer seasonality. However, business activity
picks up dramatically after Labor Day and keeps up until Thanksgiving.
Blue Zone's launch comes September 1st and then we get into a time
period with a high level of activity.
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Timing-
Review the Rules |
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We believe that Friday's action signaled
the beginning of the next move up for Blue Zone. The first major
launch of their new technology is just weeks away. That will be followed
by a seasonally productive period of time where we will have a high probability
of substantive news.
More importantly we believe that
November, which is just a few months away, will be the start of the next
major bull market. We expect Blue Zone to be a major participant
in the next bull market, and the time to begin positioning yourself
for serious profits in this stock is right now. The publicity surrounding
the September launch will bring a bigger audience to the stock, especially
now that they have attained a full NASDAQ listing. Any news of new contracts
with even larger players than CTV will result in serious profits for investors.
If you don't own this stock now is
the time to take a hard look at it. If you own it at higher levels you
might want to consider adding to your position. However, before making
any investment decisions please review our trading strategies section.
Understanding some of the basic rules for trading strategies is critical
for choosing entry levels which give you the best profit potential. Click
Here to visit that section on the web site and review the trading strategies
section before making any trades.
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