Newsletter

November 27, 2006

Volume VII, Issue 93

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

To OTC Journal Members:

Commerce Planet (OTC BB: CPNE) Puts Money Where Is

This morning I was going through the BLOG comments from the past few days. One member asked for an updated chart on Commerce Planet, still the #1 most widely held and followed OTC Journal idea- also still my #1 idea for price appreciation.

I thought it was a good idea to provide a technical update, and was starting to look at the chart just this afternoon when news hit the tape.

As it turns out, the chart you will see in this edition might be old news by tomorrow morning if CPNE responds appropriately relative to today's news. Almost as if on cue, the company is actually doing what a number of OTC Journal subscribers have suggested already. Mr. Hill must be reading and taking your ideas to heart.

Today, just after the close, CPNE announced the board has authorized the buy back of up to $2 million worth of stock either through private transactions or in the open market.

Stock buy backs are tricky, but they are always good for shareholders. There are regulatory restrictions which make them more complicated than they appear at the outset. For example, the company can't just decide to start buying as much as they want tomorrow. There are restrictions. I believe they can only match the highest bid price. They can't sweep out the offers in the open market.

In the case of CPNE, the idea of buying back stock in a private transaction might be far more interesting. The supply of stock coming from early financiers has been well chronicled, and perhaps the company can buy a number of shares at a discount to the market and then retire them. This would reduce the number of shares I&O, and therefore increase the value of your ownership (assuming you are a shareholder).

I suspect this move will get the stock moving up nicely. Here's the chart as of today's close:

Let's take a little longer term look at what has happened with this stock. This chart goes back to $.50- when the June numbers were released. The stock surged to a high of $1.80 by mid October.

The drop back into the $1.50 in anticipation of the Q3 earnings release was a normal trading pattern. Investors got confused with this stock when it sold off just after releasing the Q3 numbers- which were spectacular. Common sense suggested the stock should have gone higher.

Many theories concerning the sell off have been bandied about- regardless of the reason this fact remains- there was more supply than demand at that moment in time.

The longer term picture right now is quite bullish. The post Q3 numbers sell off sent many momentum traders scurrying for the exit door. I advised traders to sell the stock if they weren't prepared to hold it down to $1- on the third day it traded down to $1.11.

Now the stock seems to have found a level it likes- $1.30. Based on today's news, this level should act as a spring board for the stock to try to surge higher.

Two things jump off the chart- 1. The stock is trading right on the 38.2% retracement level of the move off $.50- a great level to accumulate, and 2. Volume has dried up considerably since the crazy week post Q3 numbers suggesting supply is diminishing.

Technically, this all bodes very well for this stock to start behaving better this week. If it does start behaving better, the next edition will cover "measured moves".

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

Press Release Source: CommercePlanet, Inc.

CommercePlanet Announces $2,000,000 Stock Repurchase Program

Monday November 27, 4:33 pm ET

GOLETA, Calif., Nov. 27 /PRNewswire-FirstCall/ -- CommercePlanet, Inc. (OTC Bulletin Board: CPNE - News) announced today that its Board of Directors authorized a stock repurchase program pursuant to which up to $2,000,000.00 of its outstanding common stock may be repurchased from time to time. The repurchase plan will be effective through December 31, 2007, and may be extended by the Board of Directors. Under the program, CommercePlanet, Inc. may purchase shares of common stock through open market or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under this program will depend on market conditions and corporate considerations, and will be made in compliance with applicable federal and state securities laws and regulations. The purchases will be funded from available working capital. As of November 27, 2006, CommercePlanet had approximately 47.5 million shares of common stock outstanding.

"The Board of Directors believes our Company's shares are undervalued in relation to other industry competitors, especially in light of our past three quarters of growth. We believe the stock repurchase program also provides the Company with a vehicle to deliver value to our existing shareholders based on the past financial performance of CommercePlanet. We strongly believe in the future of our Company and that the repurchase of shares is a sound use of our operating capital," stated Chairman, Michael Hill.

About CommercePlanet

CommercePlanet, Inc. (OTC Bulletin Board: CPNE - News) is a publicly traded, internet-based media company. The Company offers online media products, lead generation services and direct marketing tools to its client partners. CommercePlanet offers an internet turnkey media solution through its network of wholly owned subsidiaries, which include Consumer Loyalty Group, Inc., Legacy Media Inc., OS Imaging, Inc. and Interaccurate, Inc.

Each subsidiary of CommercePlanet specializes in a specific niche of the online media industry. Their combined services are designed to address the needs of client partners, including membership loyalty programs, direct response consumer marketing, affiliate list management, email deployment, live chat software-based services, direct phone sales and customer service, and printing services.

To find out more about CommercePlanet, Inc. (OTC Bulletin Board: CPNE - News), visit our website at www.commerceplanet.com. The Company's public financial information and filings can be viewed at www.sec.gov.

Forward Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements as to management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements include that CommercePlanet believes its shares are undervalued in relation to other industry competitors, especially in light of its past three quarters of growth, the stock repurchase program provides a vehicle to deliver value to its existing shareholders, including the maximum amounts that may be purchased under the program, and the repurchase of shares is a sound use of operating capital. These statements are based on management's current expectations, estimates and projections, are not guarantees of future performance, and are subject to certain risks, uncertainties and other factors, some of which are beyond CommercePlanet's control and are difficult to predict, including, but not limited to, changes in the market price of CommercePlanet's common stock, legal and regulatory, and changes in CommercePlanet's financial results, financial condition and cash requirements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. CommercePlanet, Inc. undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Various factors could cause actual results to differ materially, such as the risk factors listed from time to time in CommercePlanet's filings with the Securities and Exchange Commission ("SEC"), including Forms 10-KSB and 10-QSB.

Source: CommercePlanet, Inc.

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