To OTC Journal Members:
 

Pending Profile

We have been following an exciting technology company since March of last year when one of our editors was invited to Detroit and visited the top secret experimental facility of a big three auto manufacturer.

Our editor test drove a vehicle that had been fitted with new technology that has the potential to be the greatest automobile discovery since anti lock braking. This top secret vehicle was described as a "Proof of Concept" automobile. The technology provides 38% better mileage, 32% faster acceleration, 51% less pollution, and extends brake life by 77%. It works and can be added to any newly manufactured vehicle without significant structural change.

This technology is ideally suited for fleets with heavy vehicles that need to stop and start frequently: i.e. FedX trucks, UPS, Postal Vehicles, garbage trucks, etc. The market for this technology is the sixty million vehicles that are produced annually world wide.

Despite the current climate of fear surrounding potential War with Iraq, we are considering introducing this company. If a big breakthrough comes, the war won't matter. 

However, you might want to delete this one when it appears in your inbox because it will be too risky for you. The risk factors include:

• No sales
• Very few tangible assets
• A very thinly traded stock with little liquidity which nobody knows about yet

• Very low overhead and minimal need for capital.
• International patents on all its technology- its assets are intellectual property.
• Three years of development time with one of the big three auto manufacturers- very close to commercial deployment.
• Technology which could be applied to every motor vehicle in the world from cars up to subway, trains, and buses.
• A licensing business model by which the company will receive a cash payment for every vehicle using this technology with no cost- all the upfront costs have been absorbed.

Comment on the State of the Union and the Markets

Regardless of your political beliefs you have to admit George W. Bush can really deliver a speech. In fact, if he weren't so good at it, Al Gore would probably be President.

After the State of the Union is there any doubt we are going to war? For market investors, this can't start soon enough if it's going to happen. We continue to recommend avoiding short term trading opportunities on the long side until the war starts. Get your trading money ready for ideas.

The specter of war is not only hurting the markets- it is causing corporate America to adopt a very conservative stance towards investing in growth. Consider this excerpt from the Fed's policy meeting statement Wednesday:
 

This excerpt from the statement says oil prices will drop and business will pick up after the war, which bodes well for improving stock prices. Today GDP figures came in stronger than economists expected, but still less than 1% growth. Barely above recession levels. The minimal growth in the figures was primarily fueled by an 11% increase in government defense spending. 

In this climate, don't forget about Irvine Sensor (NASDAQ: IRSN). As our military and homeland security expenses evolve to new technologies, Irvine Sensors is positioned to benefit. If the contracts come you could do extremely well off current levels. Accumulate while the market still sucks. It's a great speculation on increased defense spending.

The momentum towards war was derailed a bit this past week when France and Germany, both staunch US allies, came out in vocal opposition to Bush's war.

Many Europeans simply don't believe the war is necessary. They believe there will be substantial human toll. They also believe Saddam Hussein could be unseated from power by vigorously enforced economic sanctions which would include an oil embargo. Iraq still sells oil to the Russians and Chinese. If their ability to sell their oil were cut off, Saddam would have no money to fund the development of weapons of mass destruction. Of course, pursuing this course would lead to great suffering by the Iraqi people as jobs are lost and their economy grinds to a stand still.

Many also believe a war against Iraq could trigger a wide spread Middle East war, which no one wants.

Nevertheless, all signs point to war. After all, eight countries, including Great Britain, Italy, Spain, the Netherlands, Hungary, the Czech Republic, Poland, and Denmark all signed a letter in support of President Bush. Stand by for one of the greatest trading opportunities of all time. As the President said today, Saddam only has weeks left, not months.

The Iraqi war has the markets and the economy frozen to a stand still. Uncertainty not only keeps investors out of the market, it also keeps companies from making plans for expansion. Look for pent up demand to get back to business as usual help put the markets back on the path to recovery after the war, especially if oil prices decline. Until then, we will continue to drift down as buyers remain on strike. As we have mentioned in the past, this is a great environment to accumulate your favorite microcaps for sales into surging buying on news.

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts.

MarketByte LLC has been paid a fee of $25,000 by Irvine Sensors for coverage through December 31, 2003. As part of the agreement, one of the prinicipals of MarketByte LLC has been pledged 75,000 options, with an exercise price equal to the closing price of Irvine Sensor's stock on March 4, 2003, contingent upon stockholder approval of the option plan to be voted on at the annual meeting of March 4, 2003.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

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