To OTC Journal Members:

We are continuing  our efforts to seek out more Trading Alerts as successful as last week's NTRO. We had a great result for your on that one, but with the market looking so weak we are waiting for a retest of the previous lows.

In the interim today's edition features our year end wrap up on Envoy Communications (NASDAQ: ECGI; TSE: ECG).
 

Important Announcement

This weekend's edition will feature our first MVP Program in several months. During the summer we brought you a free, no strings attached trial subscription to the Wall Street Journal. The program was so successful we asked Santa to bring it back. 

Don't forget to read the weekend edition and sign up for a free subscription to the Wall Street Journal. You can also sign up friends and relatives. This would make an excellent Christmas Present.
 

Envoy Communications (NASDAQ: ECGI; TSE: ECG)

Envoy released its fiscal year end financial results this past Monday, and after the market closed hosted a conference call to address investor concerns over the state of the Leagas-Delaney merger and the price of the stock.

Here is the company's year end financial results:
 

Investors should note that despite a 40% increase in top line revenues earnings did not grow. This is because Canadian accounting methods differ from the US. Envoy is forced to take significant non-cash write downs related to acquistions. If this company were domiciled in the US, acquisitions could be treated as a "Pooling of Interest", and these non-cash expenses would not hurt their profits.

The $4.5 million in Income before Depreciation and Amortization is the real measure of their growth, which coincides with the revenue growth.

If you are a shareholder of this company we strongly recommend you listen to the replay of Monday's conference call. Management explains events at the company in great detail, and this call will help you make an informed decision as to whether to buy, hold, or sell this stock.

The replay of the conference call can be heard following these directions:

• Dial 416-626-4100 
• Conference Reversation number: 17181875 followed by the # sign.

We view this as a major negative for the immediate future of the stock price. We still believe the stock is worth double its current levels. However, the company desparately needs Wall Street exposure, and this will not be accomplished with a Canadian brokerage firm leading the financing for the Leagas-Delaney merger.

Look for more Trading Alerts next week if this market continues to sell off. We will try to find some good short term trading ideas if the market nears the 2600 level.

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