To OTC Journal Members: 
 

You Asked For It; You'll Get It

As expected, lots of you read about my Interclick (NASDAQ: ICLK) idea over the weekend, and sent me the same comment: Why didn't you tell us about this one back in May when it was still under $1 on the Bulletin Board?

Point taken- after all, isn't that the goal of investing in microcaps? Find them while they are cheap and no one knows about them. Hold them until they grow up and become biggger, more profitable companies with upgraded listings, trading NASDAQ or NYSE AMEX or the NYSE. Look at UTA- just this year the company has made it from the BB all the way to the big boy New York Stock Exchange. Not the AMEX NYSE- the real NYSE.

Holding stock in companies that make these kinds of transitions is the way to make huge returns in microcaps. 

While there's still lots of money to be made in ICLK, for those of you who want the next ICLK while it's still about $1 on the Bulletin Board, I believe I have it.

Here's what I'll tell you. This company is trading at about $1. No one knows about it. Based on their progress through the June quarter, they'll probably deliver about $10 million in annual revenues in FY '09- which ended at the end of September. They'll no doubt report a loss. With about 19 million I&O- seems reasonable at $1.

Are you ready for the really exciting stuff? Here you go- this company just signed a deal to do work for a Fortune 100 company- the amount of the contract - $27 million to provide services in 39 different countries around the world.

And, for their next act, they're going to announce a contract of similar magnitude. Wow. No one knows about this one, and I'm taking on the task of spreading the word for the benefit of investors looking for a great idea while it's still unknown.

You'll have all the details Wednesday after the close, so stand by for more information. This test of the emergency broadcast system will provide emergency relief for your portfolio. Santa is coming early to microcap investors this year.
 

The Cel-Sci (NYSE AMEX: CVM) Saga; Entertainment At Its Finest

There's lots of emails on Cel-Sci (NYSE AMEX: CVM), so I thought the best way to address the issue would be to simply publish an update, especially since this story is making for some very entertaining content.

CVM had its way in the markets this year until a free lance writer named Adam Feuerstein starting publishing some pretty scathing stuff about the company through Thestreet.com.

Here's a couple of facts that aren't controversial- CVM has used the new found massive interest in the stock to load up its treasury to levels never experienced by the company in 20 years. Since June, CVM has raised about $40 million in equity capital, and now has the strongest balance sheet in its history. The company is capable of getting a ways down the road in terms of therapy development with that kind of cash war chest.

CVM is trading by far the most massive volume it has ever traded. 11 million shares now daily, with spurts to 25 to 30 million shares. This stock has never seen this kind of volume. 

CVM has captured the interest of investors by openly discussing the possibility of it's L.E.A.P.S. platform as a possible therapy for the H1N1 Swine flu.

All this volume and publicity has attracted the interest of Mr. Feuerstein, who seems to be on a one man mission to discredit the company any way he can. 

This is all pretty transparent and entertaining stuff. While I have no evidence of any kind to support my thesis, an animal that walks like a duck, quacks like a duck, and has feathers like a duck, is probably a duck.

My guess- the duck is someone who is short a lot of CVM, and Feuerstein is the guy they're using to try to talk it down. Take his Nov 4th article wherein he accused the company of doing a deal with a non existant entity. Look at the chart as it relates to his scathing revelation.

I have absolutely no idea if the allegations in his article have any merit. Here's what I do know- the stock was really coming down hard the entire week before his smoking gun was revealed. To me, this suggests someone is very short this stock and needs an exit strategy. They're beating the stock down, hoping investors panic on the "expose" news and drive it down.

Apparently, the investment community of biotech speculators has really warmed up to this idea, as the stock made its low just prior to the hatchet job, and has since rebounded with a vengence.

CVM followed up by disclosing the venerable John Hopkins University School of Medicine would conduct an initial study. Specifically, it will involve taking blood from hospitalized, laboratory-confirmed H1N1 patients and activating their cells with the LEAPS H1N1 investigational therapy in order to assess the cells' response as the basis for the planned future treatment of this patient population under a next-stage clinical trial protocol.

The market loves it, and CVM is right back to about $1.40. Their credibility was challenged, but the Johns Hopkins thing seems to have righted the ship. It's pretty tough to make a case against Johns Hopkins in the medical world. Lest you think CVM will have a cure for H1N1 next week- think again. This is very preliminary stuff.

The bottom line- people keep asking me if CVM is the real deal, and I don't know. I don't have the technological background to even hazard a guess. I know they have a lot of cash, huge volume in their stock, a legion of fans who believe, and I'd bet a substantial amount there's a huge short in the stock.

Here's my advice. If you want to trade this idea, wait for the next drop, wait for the hatchet job article, then buy. I've been a target once already, which demonstrates a certain level of desperation. It had nothing to do with CVM today, yet he tried to make the equivalent of a regulatory parking ticket sound like I was an axe murderer.

Buy on Bashing. I'll bet they're going to keep trying. Long term- the technology will either prove out or it won't- I won't even guess.

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