Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Important Announcement: Trading
Alert released after the close on Thursday pending market
conditions and potential news announcement.
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Market
Comment |
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The last 10 trading days have been
brutal. The NASDAQ has given back nearly all of its January gains
which were triggered by the surprise drop in interest rates.
This is the perfect environment for
Market
Makers to profit from weak investor mentality. Market Makers
are whipsawing small investors, allowing stocks to trade up temporarily
so they can get short, and taking them right down to frighten investors
into selling at lower levels. It's an old trick to line their pockets on
the backs of investor fears in a weak market.
Most individual investors make the
fundamental mistake of thinking they own a good company if a stock is going
up, and wondering what's wrong if a stock is going down. This is the psychological
game the market makers are playing to convince you to sell them your stock
when it's low.
This is an environment to accumulate
on dips. The bear market is not going to last forever. The Fed is more
aggressive towards stimulating economic growth than at any time in the
last ten years. Stocks are priced for a full blown, long term recession.
The market has already discounted
stock prices for a recession in the first half of the year. If we get economic
indicators showing the economy picking up the bull market will return in
this decreasing interest rate environment.
Investors accumulating stocks on
dips in this environment have a high probability of making excellent returns
over the next one to four months. Stick with the companies you like and
add to positions on low volume dips. Take some money off the table on high
volume rallies. Most of all, have patience in this market environment.
In today's issue we have news from
three of the companies we follow. Each of these companies is reporting
outstanding corporate performance. However, this progress is not efficiently
reflected in the price of their stocks. In each case a little patience
should pay off.
Leading off is Envoy Communications
(NASDAQ: ECGI), a company with tremendous momentum right now. Eventually,
the price will follow. We strongly recommend accumulating this stock on
dips.
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Envoy Communications
(NASDAQ: ECGI) |
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Last Thursday night's earnings release
from Envoy was nothing short of spectacular. The stock closed that
day at $4.375, and early the next morning only found its way to
$4.53.
From there it starting dropping on light volume.
We were very disappointed to see
the stock trade so poorly. We really felt the stock would get to $5
off the news. However, the old adage "Buy on Rumor, sell on News" seemed
to dominate the stock's behavior.
We believe investors selling this
stock at these levels are making a big mistake. In fact, if you've been
following the stock and wish you had gotten involved at lower prices you
have another chance.
Coming off the news of outstanding
financial results at Envoy, today after the market closed the company
announced more major contract signings. This company is continuing to gain
momentum, and eventually the stock will follow.
Today's announcement covers three
new contracts signed at their newly opened offices in Sweden. The Watt
Group, their retail design division, announced they have already signed
three clients in Sweden, including the largest food retailer in the country.
As the CEO Geoff Genovese pointed out in last Thursday's conference call
"There's
no recession at Envoy".
Those of you who follow charts should
note the stock has drifted back down and filled the gap perfectly that
was created on February 2nd when the company announced the Sage contract
signings. This suggests a good technical entry point.
Here is the complete text of the
news release for your review:
Tuesday February 13, 4:05 pm Eastern
Time
Press Release
SOURCE: Envoy Communications Group
Inc.; Watt International Inc.
Envoy's Global Growth Strategy
Continues into Scandinavian Market
Watt International opens Stockholm office to
support new business wins
TORONTO, Feb. 13 /CNW/ - Geoff Genovese,
President and CEO of Envoy Communications Group (NASDAQ: ECGI / TSE: ECG)
today announced that Envoy subsidiary Watt International, one of the world's
leading brand strategy and design companies, has opened an office in Stockholm
to support major new account wins in Scandinavia.
Watt International will provide brand
strategy, retail design and consulting services for ICA, Sweden's largest
food retailer; Coop Elektro, a leading Scandinavian electronics retailer;
and LFV, the Swedish airport authority. These wins will help to ensure
that the Scandinavian office will be profitable in its first year of operation,
and represent a further demonstration of Watt's organic growth rate capabilities
on an international scale.
"The tremendous success of Watt's
rapid development in the Scandinavian market is good news for Watt, for
the entire roster of Envoy companies, and indeed for Envoy shareholders
as we expand and diversify our presence around the world," Genovese said.
"We are excited to be working with
such well respected and powerful brands in a new market," Watt International's
Vice President, Global Marketing, Patrick Rodmell added. "These new accounts
serve as strong endorsements for the branding and retail design expertise
that Watt International has demonstrated across a number of industries
around the world."
Watt International Inc. (www.wattinternational.com)
is one of the world's largest brand strategy and design consultancies,
with offices in North America, the United Kingdom, Europe and Scandinavia.
For the past thirty-five years, Watt has applied its strategies to drive
client profitability in more than two dozen industries, spanning 35 countries
for companies like Wal-Mart, PETsMART, Home Depot, Kraft, Bell Canada,
Borden Foods, General Electric, Virgin, Duty Free Stores Worldwide and
Shell Oil.
About Envoy
Envoy (www.envoy.to) is an international
company, committed to delivering "best-of-breed" services in each of its
core disciplines: design, marketing and technology. Through the convergence
of its core disciplines, the Envoy Communications Group of companies provides
innovative business building solutions for marquee, international clients
that include adidas-Salomon, BASF, CIBC, Castrol, CDNOW, FedEx, Hewlett
Packard, Honda, Panasonic, Pizza Hut, Prudential (USA), Safeway, SalomonSmithBarney,
Sprint Canada, Steelcase, TD Waterhouse (USA) and Wal-Mart.
Cautionary Statement
Certain statements contained in this
press release may constitute "forward-looking statements" within the meaning
of Section 21E(i)(1) of the United States Securities Exchange Act of 1934.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause Envoy's actual results to be materially
different from any future results expressed or implied by these statements.
Such factors include the following: general economic and business conditions,
changes in demand for Envoy's services, changes in competition, the ability
of Envoy to integrate acquisitions or complete future acquisitions, interest
rate fluctuations, currency exchange rate fluctuations, dependence upon
and availability of qualified personnel and changes in government regulation.
In light of these and other uncertainties, the forward-looking statements
included in this press release should not be regarded as a representation
by Envoy that Envoy's plans and objectives will be achieved.
For further information
Corporate Investor Relations contact
- Jason Mandel, (416) 599-2256, jasonm@envoy.to
Media contact - Julie Gyorgy, (416)
593-4181 x 404, julieg@communique.to
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PhotoChannel
Networks (OTC BB: PHCHF; MNI: PNI) |
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Those of you following this stock
should take note of several positive announcements recently. Last week
the company announced a marketing arrangement with Pixel Magic which
expands the size of their target market considerably.
Yesterday the company announced the
completion of a $3 million convertible bond funding, which will
provide the company with capital to continue its aggressive expansion program.
Click
Here to PhotoChannel's most current press releases.
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Udate.com,
Inc. (OTC BB: UDAT) |
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Udate was one of our successful
Trading
Alerts back at the end of October. We published the alert at $3.50,
and the stock hit $4 four days later. We don't normally publish follow-ups
on Trading Alerts, but one of our members brought yesterday's press release
to our attention.
Yesterday, Udate announced
it had turned the corner to profitability in January. This is an extraordinary
feat for a pure "Dot-Com" microcap. Click
here to read the full text of the press release.
The stock has traded up nicely on
this news, finding its way above $2 for the first time this year on higher
than normal volume. If you are still holding this stock, this is welcome
news.
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