To OTC Journal Members:
 

Blue Zone (OTC BB: BLZN) Update

As predicted in our last two editions, Blue Zone continued on its tear up the charts Thursday and Friday. We could tell by the action in the stock that some major corporate event was imminent, and the proverbial cat came out of the bag on Friday morning.

The stock was trading in the mid $6 range on July 1st when we published the first edition suggesting that the stock was on the verge of a break out. In our July 5th edition we confirmed the stock was breaking out based on a  volume increase to over 100,000 shares for the first time in a month. On Thursday the stock traded 526,200 shares, and hit a post crash high of $8. Friday the stock traded 422,300 shares and hit the $8.50 mark.

We can only hope that many of our members acted on our observations about the stock earlier in the week and our now positioned to take a reasonable profit should you choose to do so. Unlike the time frame from September 1999 through March of 2000 when we profiled several outstanding winners on behalf of our members, profits in micro cap stocks have been few and far between since the end of March.

On Friday before the market opened Blue Zone announced that it had been granted a NASDAQ National Market listing, and on Monday it will begin trading on the NASDAQ. This makes Blue Zone the third OTC Journal Profiled company to make the jump from a more obscure exchange to the NASDAQ, the exchange widely considered the most attractive and liquid of any market in the world for technology companies.

In the press release Blue Zone notes that "Its proprietary software, NewsBz(TM), has been chosen by CTV, Canada's largest private broadcaster, to launch the world's first fully interactive news service in fall 2000. With the launch of CTVNEWS.com, viewers worldwide will access and personalize award-winning news reporting." Click Here to read the full text of the press release.

Blue Zone has been developing software which facilitates the homogenous blending of radio, TV, and Print Media onto the Internet. Their first target market is news organizations which need software which allows them to create content on the fly during breaking events. 

The story was picked up and featured by both Dow Jones news and Canada's National Post, the Canadian equivalent of USA Today. The story in The National Post is particularly informative about the company, and we strongly recommend that you read it. Click Here to be taken directly to the Internet version of the story.

The question on investors' minds is where does the stock go from here. If you are a long term holder and are focused on where the stock will be six months or a year from now it doesn't matter.

If you don't own the stock and are looking for a sensible entry point please take a minute to read our trading strategies section. You can find it on our home page on the button entitled OTC BB Info And Stats. There will be a lot of publicity surrounding this event over the weekend, and the stock might gap up on Monday. Please read the bottom of the section on defensive strategies for trading the gaps.

If Blue Zone can keep its momentum going with new contract signings in the coming weeks this breakout might be the catalyst that vaults the stock back to its all time high of $15.375. However, if the near term brings no news to keep this momentum going, the stock will probably will hit a short time high in the next day or two and drift back down to an attractive entry level. We have no idea which way it will go.

However, these issues are not important to investors with a six month to one year time horizon. It will make little difference if you own the stock at $6, $8, or $10 one year from now if the company becomes the dominant player in its field.

Don't be surprised if your on-line quote service does not have the quote on Monday morning. Many data providers are slow to pick up an exchange change. You can always check the scrolling ticker on this newsletter for a current, fifteen minute delayed quote anytime you open it.
 

$10,000 Referral Contest Moves Full Steam Ahead

Congratulations to several of the contestants in our $10,000 referral contest. ID #10157 is currently in the lead with 948 as we write this edition. ID #10071 is close behind with 888. We are only one week into the contest, and it will run to the end of September.

For those of you who wish to get out and compete, here's an idea. You can use our new Daily Swing Pick Feature as a tool to go out on the Internet and tell investors about our newsletter. Friday's pick was a short sale of Dell Computer. There are hundreds of chat rooms on the Internet where investors are discussing Dell Computer and other companies in the same industry group. Every one of those investors will probably would probably want to know what the OTC Journal's technical analyst has to say about Dell Computer. They can find out by clicking your personal link and signing up. Then you get a referral credit. Each day there will be a new pick to work with.

We are looking forward to giving out $10,000 in prize money at the end of September. We hope to be able to give some of that prize money to you.

If you haven't started competing in the contest simply go to our home page and click on the $10,000 contest button on the home page to learn the rules and begin competing.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com.   We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm.   Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.