To OTC Journal Members:

Our most current profile, Energy Power Systems Ltd (OTC BB: EYPSF) released their December half-yearly  numbers today after the market closed. Along with the rest of the market, this stock has behaved poorly since releasing our profile back on February 12th. Our starting point was just under $3, and the stock saw $4 on the first day.

However, since that time the stock has come down in sympathy with the NASDAQ. From the $4 high, the stock has seen a low of $1.50, and closed today at $1.75 on very light volume.

Today's earnings release was a big upside surprise for investors. The company announced its first profitable quarter since 1996. Today's news serves to strengthen our belief this stock should trade at the five year industry average for the group of 2.8 times book value, which would put the stock at $5.50.

Our three main focus stocks for 2001 are Envoy Communications (NASDAQ: ECGI), MedGrup (OTC BB: CODX), and Energy Power Systems (OTC BB: EYPSF). These companies represent three diverse groups. Most importantly, all three companies are now all profitable. All three have positive cash flow. This minimizes the downside risk in these tough market conditions.
 

Use a Sensible Trading Strategy

When the Bull Market comes back these profitable companies will be the first to climb the charts. In the meantime, caution should be used when putting risk capital to work in stocks.

Market Makers and shareholders alike are using volume surges in small stocks to short and liquidate positions. Their weakness can be your opportunity. However, you must use good judgment and patience when investing. In this Bear Market environment you must wait for periods of inactivity and dips to accumulate. As we pointed out in this past weekend's edition, don't invest the entire amount you have allocated for a stock on the first trade. Look for low volume pull backs for good entry levels.

If you like Energy Power Systems today's closing price represents an excellent entry point in light of today's earnings release. However, if the stock surges in early trading tomorrow, wait for a pull back.

If you missed the original profile now would be a good time to review it. With the stock down nearly 50% in the last two weeks and the company announcing its first profitable quarter in six years, a rebound in share price may be forthcoming. To read our original profile on Energy Power Systems, either Click Here, or go to our home page and click on the Current Profile button on the left hand menu bar.

Many small companies will be profiting from high energy prices. We hope this profitable earnings release from Energy Power is just the beginning of a multi-year growth spurt for the company.

Here is the complete text of the Press Release for your Review:
 

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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 125,000 shares of free trading stock of Energy Power Systems Limited for representing the company for one year. The fee has been paid by Fieldston Traders LTD acting on behalf of the company. Please review our policy on selling shares found within our Mission Statement at our home page.

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