To OTC Journal Members:
 

Mentor Graphic (NASDAQ: MENT)- UP Nicely From Friday

We hope you all participated in Friday's trading alert which did well on the first day. We issued a trading alert on Mentor Graphic (NASDAQ: MENT) in the weekend edition. The stock closed Friday at $23.44 and hit a high of $24.44 today for a reasonable $1 gain despite the poor market conditions.

The market traded poorly today. It started out strong, and then the NASDAQ collapsed ending up down over 62 points. However, after the bell PALM came out with its earnings release, and we believe this will be the catalyst to push the market higher for the remainder of the week.

Palm's numbers were very strong compared to analyst's expectations. Revenues were much higher than expected, and earnings were double the anticipated number.

The stock has been trading extremely well for the past five weeks in anticipation of this earnings release. PALM was trading at $33 in mid August, and hit a high of $57 today, so we expect this stock to come back down. However, the strong numbers we saw today should act as a catalyst to push the NASDAQ higher for the remainder of the week.

Therefore we expect MENT to push higher during the week and hit the expected short term price target of $25 or $26. If the market goes the other way all bets are off.

On Wednesday after the close we will be issuing our next Trading Alert.  It is very important to not over pay for the stocks we cover in our Trading Alerts. If you decide to invest for the short term you must use a stop loss in case the stock goes the other way, and you must adhere to the rules for Trading Strategies we cover in the MicroCap Investing Strategies section on our home page.

Wednesday's trading alert will go out if the stock closes at a good entry level. This one could be a double over the next 30 days, but there are no guarantees, which is why you need to set a stop loss.

Stay tuned for Wednesday's edition. If you don't want to wait for the newsletter to get to your Inbox, you can read it at our archive page which can be found at the following URL: http://listserv.otcjournal.com/.

The web page version should be up on the Internet by 2:00 Pacific Time on Wednesday.
 

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