To OTC Journal Members: 

Count 'em- one, two, three of my ideas are just smokin' right now, and it's time for a review and a look at some upsides.  For starters- check out Cel-Sci (AMEX: CVM)- absolutely rocking. CalAmp (NASDAQ: CAMP) and Xinhua (NASDAQ: XSEL) are right behind.
 

Cel-Sci (AMEX: CVM) Makes 3 Year High

The market is buying into Cel-Sci having an effective therapy for Swine Flu and the stock has gone absolutely ballistic. According to a release today, Bio-Med Reports.com- a bio tech online advisory, is a big believer in the future of the company's L.E.A.P.S.™ technology- a patented, T-cell modulation, peptide epitope delivery technology. Click here to read their article.

In English, the means CVM is developing an immune system related treatment for Swine Flu. The stock has gone nuts, up 50% today.

If you look at the right hand menu bar at the home page, you will note I published a buy recommendation on this stock back on June 13th at $.36, with a short term target of $.75, and which point I suggested lightening up.

My bad. This past week the stock blew through $.75 and is now trading at about $1.60 for a net profit of 344% since the June publication. Just rocking. 

Here's my 30,000 ft overview. This action in the stock will be huge for the company. The rumor and innuendo concerning some sort of Swine Flu therapy has the stock trading like crazy. But- here's the real story.

They aren't that close to any sort of real Swine Flu therapy. However, the action in this stock will allow them to raise more money and move them closer to beginning Phase III trials for their very exciting Multikine Therapy- this is a cancer therapy shown to be highly effective.

Clinical results from Multikine could lead to a much higher valuation on CVM in the immediate future. It could be a billion drug, which would put the stock at something like $4. However, this short term surge should be viewed as a profit taking opportunity- locking in at least partial profits is suggested.
 

CalAmp (NASDAQ: CAMP) Off To the Races

August 21, 2009- that's the date I published a strong buy recommendation on CalAmp- the company that makes the amplifier boxes for Satellite TV. Here's a description of their core product: "The Satellite segment develops, manufactures, and sells direct broadcast satellite (DBS) outdoor consumer premise equipment for digital and high definition satellite TV reception. The segment?s DBS reception products include reflector dish antennae, feedhorns, and electronics that receive, process, amplify, and switch satellite television signals for distribution over coaxial cable to multiple set-top boxes inside the home."

This has been a boom and bust company over the years, making meteoric runs followed by ugly periods in time. The stock is now in the midst of an Oprah like make over- it's rapidly transforming from ugly to pretty.

They had a severe problem 18 months ago- one of their circuit suppliers loaded up their boxes for faulty circuit boards causing a massive recall and huge losses. More on this in a future edition.

CAMP has fixed the problem, once it eats through this write down, big earnings are coming.

The stock is trading very well now- on August 21st I published a strong buy recommendation at $2.16 with a price target of $5. This past week the stock has started to get some legs, and we're off now and trading at $2.80. So far, a 30% return on invested capital in less than a month.

I believe this one has a long way to go, and I wouldn't be afraid to pile in now. CAMP is using its positive cash flow to pay down long term debt, and one analyst I know has the company earning $.27 in EPS in fiscal 2010.

This one is just getting underway.
 

Xinhua Sports and Media (NASDAQ: XSEL): Trying Again to Break the $2 Barrier

Of the three stocks you are reading about today, I believe XSEL is the one with the most upside. I have a $5 price target on this stock as well, this is another fallen angel that's just getting its rebound started.

XSEL came public at $12 per share. Armed with $400 million, the company went on a media company buying spree in China, and became a bit too unwieldy and unfocused.

In the past year, XSEL has been divesting some of these companies, and has become laser focused on becoming the ESPN of China. It is uniquely positioned to bring sports programming to the largest audience on Planet Earth, and the model is really getting traction.

In Q2, XSEL delivered $39 million in revenues, up from $25 million in Q1. That's a 56% improvement over a mere 3 months. I wouldn't expect that kind of quarter over quarter growth to go on- that would be absurd. 

On the cash flow front, XSEL delivered about $5 million in positive cash flow, and a small EPS loss after a lot of divestiture related non cash write downs.

I love the long term future here, and short term the stock is getting traction once again. It's trying to get through that $2 mark, and starting another mini rally after a one week, rather short lived correction.

Technically, it's tough to say where this stock will end up in the next few weeks. It appears to want to work higher. Here's the inside scoop. Last week there were 500 small companies presenting at a NY conference sponsored by brokerage firm Rodman Renshaw. 

XSEL caught a lot of attention and many were taken by surprise at the company's revenue growth. Look for some institutional participation to come out of that.

Looking for some new ideas right now. Will keep you posted. These three are all doing very well.

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