To OTC Journal Members:

We've got our ear to the ground for potential money making opportunities during this exceedingly quiet August. Here's one idea worth having a look at. You make up your own mind.
 

NetSol International (NASDAQ: NTWK)- Possibly Higher in the Short Term

Long term members know this is our favorite stock and biggest winner of all time. Our profile was launched January 15, 1999 at $3.85. Today the stock is trading at $26. Back in March the stock traded as high as $80.

Since May the stock has established the pattern of dropping into the $20 range near the end of each calendar month, and rebounding to over $30 by the second or third week of the next month.

The stock has been highly controversial. Wall Street guru Jonathan Iseson owns over 2 million shares of NTWK in Blue Water Partners, a hedge fund he manages. This position represents about 2/3 of the public float. Most of the remainder is held primarily by long term, loyal shareholders.

Last month's Wall Street Journal reported that there was a 469,000 short position in the stock. Short sellers have a legitimate valuation argument on the stock, but no exit strategy because the stock is so tightly held, and insiders are not sellers.

Recently there was an effort in court to force Blue Water Partners to divest themselves of shares in the open market. The complaint was thrown out by the judge, and the stock has been trading up ever since. The Raging Bull message board has a lot of information about this situation, and might be worth having a look at.

We are hearing rumors of very positive fundamental developments in the near term. These are only rumors  that we cannot confirm, but the stock has been behaving very well. This stock trades so thinly that any volume surge could push it up dramatically. If the pattern of the last three months repeats itself the stock is destined to trade above $30 in the near term, so it could be good for a short term trade. Take a look at it and make up your own mind.

In the interest of fairness we should point out that one of our editors owns 1500 shares of NetSol International in his own personal account. Any purchases should be viewed as a conflict of interest. Our editor may buy or sell NetSol International at any time at his discretion.
 

Blue Zone (NASDAQ: BLZN)

Blue Zone closed today at $6.375 x $6.44 today on 105,500 shares. The stock appears to have topped out temporarily. Volume is diminishing, and the stock is not surging as we hoped it would.

However, the last several days of action in this stock has led us to the conclusion that somebody believes Blue Zone is headed higher. The volume indicates heavy accumulation. Remember, it took nearly a full month for the stock to go from $6 to $9 in July.

From here it will probably drift down a little on lighter volume, but the next surge could take us to much higher levels. The stock's behavior leads us to believe that a little patience will pay off in a big way. Stay tuned for further updates as information becomes available.
 

Quintalinux- Our Current IPO Alert

Quintalinux has been priced and opens for trading tomorrow. If you put in an indication for the IPO shares, you should contact Karl Birkenfeld at 888-454-1998 to confirm your participation.

The last two IPOs we featured from this underwriter both opened a nice premiums, but did not hold their gains over the longer term. Good luck if you are in the IPO. We will not be covering the stock once it opens for trading.

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