Newsletter

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To OTC Journal Members:

Have You Noticed?

Pop Quiz. What do the following stock symbols have in common? CEU, CREG, NFEC, CAMP, BEAC, and TPI have in common? Two things. First- each and everyone of these stocks has made a new all time high in the past week.

Second- they were all strong buy recommendations in my December 2 edition entitled "The Most Important Edition of 2010". Click Here if you want to go back and read it again. I personally am making an absolute killing in CREG.

Right now, 2010 money is pouring into these undervalued hot China stocks, and if you've been paying attention, you should be making a lot of money from the OTC Journal ideas.

If you haven't been listening, don't worry. I have a few new ideas coming, and there's still lots of upside in every stock listed above. China Education Alliance (NYSE AMEX: CEU) was my #1 pick for 2010. The stock has broken out of a multi month base just as I predicted this week, and now there's no telling how high it can go. We're now up 29% on CEU since October 14th- double that ROI if you traded on margin.

More on the environment in the weekend edition. Here's an update on a small stock trading idea I offered up in December.

ID Watchdog (OTC QZ: IDWAF: TSX: IDW) Invades Miami

This is the idea I first featured on December 19th at $.35. It's an unusual trading situation- their primary market is the Canadian Venture Exchange where it trades as IDW. In the US markets, it trades on a relatively new exchange- the OTC QZ which has been set up to facilitate trading for foreign issuers.

Despite being domiciled in Canada, the operations of the company are in Denver, and their service is getting big time traction. As I discussed in the original presentation, this is the only Identity Theft protection company on planet earth that offers active monitoring of your identity on an ongoing basis. They get out in front of a problem- they don't wait for it to happen.

Did you know that if your identity is stolen, on average it requires about 116 hours to repair the damage, and 600 hours for particularly tough cases? Oprah Winfrey, Warren Buffet, Ross Perot, Ben Bernake, and Michael Jordan have all had their identity stolen, so no one is safe.

The simple purse snatching you see here is not the simple purse snatching of our parent's generation. This used to be about stealing a little cash and maybe using a credit card for a short time. No more. A stolen purse equates to a stolen identity, and there are many ways this information can be used to commit crimes over a long period of time.

Only 20% of Identity Theft is credit card fraud. The other 80% can be used for fraudulent medical care, fake IDs, government benefits, gaining employment, getting utilities, etc.

It happens every 3 seconds. 10 million cases have been reported in the US this year alone.

Rapid Expansion Continues

Today, just after the market closed, IDWAF announced another big affiliate program which will result in more top line growth.

As you can see from this chart, IDWAF has demonstrated very significant growth throughout 2008 and 2009. The company stopped advertising through traditional channels, and instead has focused its efforts on marketing through affinity groups that are now offering their service as part of a benefits package.

Today, IDWAF announced their service will be offered by the Miami-Dade public school system. 70,000 employees and their families will now be offered IDWAF's services through their benefits program, and the program will no doubt equate to thousands of new customers.

I'm sure today's post close news will put a charge into this stock. I'm looking for a rebound and perhaps a breakout over the $.40 level. This would send a signal to the market this stock is ready to make a significant move up.

I'm expecting considerable additional positive news as we work further into the year, and strong sponsorship for this particular idea. I'm not going to provide ongoing coverage for all their events- this is more of a penny stock trading idea for me than a long term situation.

Since I first reported on the company, I've become a customer. So far, the service has been great. As soon as I enrolled I received a phone call from their customer service. I got a report with every item my Social Security number has been attached to for 20 years. They sent me the report to see if anyone was using my SS# without me knowing.

Here's the chart from the Canadian version where there is far more activity. The stock traded up a bit when I first brought it out- from about $.35 to $.40. It has since pulled back on quieter volume.

I believe the stock could easily gun for the $.45 level - 25% above today's level. If that gives way, look out. It's the 200 day Moving Average, so a break above that level would suggest a long term uptrend.

Since this is a pre profit penny stock, I also suggest a very firm stop loss of $.28 in the event the stock moves against you.

Here is the complete text of today's news for your review:

ID Watchdog Commences Partnership with Miami-Dade Public Schools to Launch ID Theft Protection Services to Members

Strategic Alliance Expands ID Watchdog’s Reach to 70,000 Employees and Retirees as New District-Wide Benefit

DENVER--(BUSINESS WIRE)--ID Watchdog, Inc. (TSX.V: IDW) (OTCQX: IDWAF) the most comprehensive consumer identity monitoring service available, is pleased to announce today a strategic alliance with Miami-Dade County Public Schools (M-DCPS) to offer ID Watchdog identity theft protection services as a new benefit to employees of the District, retirees, and their families.

Through this partnership, more than 70,000 M-DCPS employees, retirees, and their families will have the option to select ID Watchdog’s patent-pending identity theft protection, detection, and resolution services as a part of a robust employee benefit package offered by the fourth largest school district in the country, alongside traditional benefits such as health, dental, vision and life insurance. The M-DCPS participants can rest assured knowing that their most important asset – their identities – are protected through ID Watchdog’s full-service monitoring and resolution coverage.

Explaining the importance of this strategic relationship, ID Watchdog’s President and Chief Operating Officer Daniel Mohan said, “ID Watchdog is excited to join forces with the M-DCPS to offer superior, comprehensive identity theft monitoring and resolution services as an additional employee benefit. Given the 10-12% conversion of employee benefits offers that we experienced in our pilot programs in Texas, we have high hopes that school districts in general, and specifically our efforts in Miami-Dade as one of the largest districts in the country, will become a significant catalyst for our growth strategy going forward.”

While M-DCPS evaluated several other heavily-marketed identity protection services, ID Watchdog was selected based on the completeness of their product offering. ID Watchdog is the only company that provides consumers with comprehensive, 360-degree identity theft protection services, backed by a 100% resolution guarantee. Going far beyond simple credit and financial monitoring, ID Watchdog scours thousands of databases including criminal history, DMV, medical, tax, social security, telephone and utility records, internet surveillance, and much more, offering the earliest possible detection of potential identity crimes. Certified, in-house Identity Specialists ensure that any identity theft issues that may arise during their customers’ enrollment are resolved at no extra charge, guaranteed.

ID Watchdog developed its patent-pending identity theft monitoring technology in conjunction with consumer advocates, consumer protection agencies, law enforcement agencies, banks, privacy experts and technology professionals. ID Watchdog’s technology searches a broad range of data sources for signs of identity theft and provides immediate containment and resolution services, which differentiates it from competitors that package credit monitoring as identity theft protection.

“Identity Theft continues as the fastest growing crime in America, and given the current state of the economy, shows no signs of slowing down any time soon,” said Rosa Novo, Coordinator of Benefits at M-DCPS. “ID Watchdog will be an invaluable tool for keeping our employees, retirees, and their families safe. We owe it to our employees to provide them with only the best service, and we found ID Watchdog to be the most comprehensive service and the best overall value.”

ID Watchdog will be available to all eligible M-DCPS employees and retirees during their annual open enrollment period.

About ID Watchdog, Inc.

Headquartered in Denver, ID Watchdog is the only identity theft detection and resolution company that provides patent-pending, three-tiered comprehensive monitoring, detection and resolution for identity theft. Unlike its competitors, ID Watchdog proactively detects identity theft problems at their source. Developed with the assistance of national consumer advocacy groups; the U.S. Postal Service; federal, state and local law enforcement agencies, and state and local Attorneys General, ID Watchdog's service is focused on detecting the source of identity theft problems as early as possible, in as many places as possible, and taking immediate corrective action on behalf of the consumer.

For comprehensive investor relations material, including fact sheets, research reports, interviews and video (when available), please follow the appropriate link: Investor Community, Investor Relations Portal, and Corporate Overview Video.

For additional information, please visit ID Watchdog’s corporate website: www.IDwatchdog.com.

Forward-Looking Statement

This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact:

Company Contact:
ID Watchdog, Inc.
Justin Yurek, Senior Vice President
303-339-8011
InvestorRelations@idwatchdog.com
www.idwatchdog.com
or
Financial Communications Contact:
Trilogy Capital Partners
Darren Minton, Executive Vice President
Toll-free: 800-592-6067
info@trilogy-capital.com