To OTC Journal Members: 
 

Consider This

I have completed my due diligence, have the information I need, and am going to present you the 411 this weekend. I am very excited about this idea, and I believe you will be as well. This is easy money- A hands down double in my view just by looking at the numbers.

Here's a little preliminary teaser. China's Health Care Reform Plan includes the "New Rural Medical Care Cooperative Program". It's aim is to provide medical coverage and village clinics for all rural citizens by 2011. More tinder for the health care fire that is materializing in China. In short, you have to invest some of your growth capital in quality, profitable, growing China health care stocks. 

There's a virus plaguing the Chinese populous. It is estimated 130 million Chinese citizens have contracted this virus, and it isn't going away anytime soon. About 10% of the population has it, and the worldwide infection rate has doubled since 2000.

Obviously, this is a plague that needs treatment. 

Now, imagine you owned shares in a company that has a highly effective and clinically proven therapy for halting the spread of the virus in the body. It's an Over the Counter treatment, the only one of its kind, and this company is printing profits off the sales.

In fact, I expect this company will deliver about $.60 in EPS this year- about 50% top line growth, and 100% bottom line growth. It's only trading at about 6x'10 EPS. I've started accumulating this one for my own account, and you'll get the opportunity to learn everything you need to know in the weekend edition. 

This might be the best one I've found yet. Check it out this weekend. Decide for yourself if you think it's a no brainer for an easy double as I do.
 

Earnings Season- For Us

Most public companies have their fiscal year on the calendar. Here's what I mean. Public companies all have to file their annual Form 10k with the SEC- that's the year end report that includes their audited financial performance.

A company's year end doesn't have to coincide with the calendar- they can declare it to be pretty much whenever they want. However, most pub cos have a year end that coincides with the calendar. A pub co has 90 days to file it's 10K after the end of the year, and there's a two week grace period after that. Therefore, most pub cos will file the annual 10k by the end of March- 90 days after the end of the year.

The 10k is generally a monster huge filing, and serves as the financial platform for the coming year. Most of the companies I follow- my big 3 must owns- CEU, CREG, and NFEC are all on calendar years. XSEL and CGYV (my two losers) are on calendar. BEAC is not- that is one exception. TPI is not- their year end is June, along with LEGE. This weekend's new idea is December as well.

The large caps tend to get their 10ks filed quickly- a month or two into the year. The smaller companies take a bit longer- they will all generally report in the back half of March.

Expect lots of reports on the year end results for these companies in the back half of March. I'll try to bring you updates in a timely manner, and might even throw out some ideas as to which ones will provide an upside surprise. Once the filings are in, the activity tends to pick up, and the companies become much more vocal about their future.
 

Quotes Corrupted? You Might Not Even Know It

There's been a major change in the way microcaps are quoted by the market makers this year, and you might not be getting the right information when you look at a live quote.

There's a revolt by the largest market makers against the NASDAQ and its fees on trading in microcap stocks, and here's what's going on. 

The NASDAQ implemented a fee it is now charging Market Makers for $4 per day for every stock they make a market in. Whether they are making a market in Microsoft (NASDAQ: MSFT) or the most obscure, thinly traded BB stock, they pay $4 per day to make a market.

Now, if you a small Broker Dealer, and you make a market in 50 stocks, it's no big deal. $200 per day. However, if you're NITE Securities, and you make a market in 6,000 small stocks, it adds up. That's $24,000 per day, 200 trading days per year. That's $4.8 million per year- I assume the fee is only paid on days the market is open.

Here's NITE and many other's solution. They now make a market in many of the smaller stocks in the Pink Sheets- the lowest level of publicly traded company. The Pink Sheets are open to companies that don't report their financial condition, so I've always recommended staying away from those stocks. They don't pay the daily fee if they trade it in the Pinks.

If you're looking at the quote of a Bulletin Board stock, you might not be getting a real quote. If your quote provider is only showing the Level I quote from the Market Makers on the bulletin board, you might not be seeing the real market.

Here's the solution for now. To double check a current quote, go to www.pinksheets.com, and input the symbol. The site will give you a live, snapshot quote of the Level II market for the stock. If you're placing a limit order on a bulletin board stock, you should check there first to see the whole picture pricing wise.

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