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OTC Journal Newsletter
August 17, 1999	Volume II, Issue 37

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Three quick updates for you today. News on Envoy Communications (TSE: ECG), US Microbics (OTC BB: BUGS), and the Stock Game. Don't forget to check out our Day Trading Section. It has content now.

The Stock Game

Many of you have e-mailed us about some of the bugs we are still working out in the Stock Game. Thank you for your comments. It looks good for a September 1st roll out of 1st Net's $36,000 Stock Challenge, which we be played monthly for $3,000 in prize money. Cash will go the three best performing portfolios, and on the 1st of the month all portfolios will be automatically reset to $100,000 in cash. Keep practicing.

US Microbics (OTC BB: BUGS)

This stock has been very quiet for the last couple of months hanging right in the mid $3 range. Management informs us that after a long R&D phase, commercial contracts are just around the corner, and a series of press releases over the next couple of months is likely. Now would be a good time to go back and review the original profile which can be found by clicking here. We plan on getting very active with this Company if and when they provide us with positive fundamental developments.

In the meantime, yesterday the Company announced the successful launching of the the Bio Raptor Green Waste Process. We have been waiting for a while for this stock to get some legs. It seems as if we might be near a breakthrough, so this is one to keep an eye one for the foreseeable future. Here is the press release the Company issued yesterday:

Monday August 16, 1:20 pm Eastern Time
Company Press Release
SOURCE: U.S. Microbics, Inc.

Debut of Bio-Raptor Green Waste Process Cuts Cost and Compost Time

CARLSBAD, Calif., Aug. 16 /PRNewswire/ -- U.S. Microbics, Inc., (OTC Bulletin Board: BUGS - news) announced today that the company's Bio-Raptor(TM) process and proprietary microbial mixtures for shredded green waste have successfully accelerated the composting process from sixty days down to fourteen days and reduced bulk density by fifty percent. By significantly reducing the costs of production and product storage, the Bio-Raptor(TM) allows municipalities and landfills operating green waste composting operations, to increase profits, production or return on invested capital.

Most large green waste composting operations are operated by municipalities or at regional landfills. Traditionally this process of taking raw green waste and turning it into a viable soil conditioner takes time and space. Under traditional methods of composting green waste the material is shredded, placed in windrows, watered and aerated; a process that takes at least sixty days to achieve a mature compost. Depending on the volume of the green waste stream the area to process the raw material into mature compost can be expansive. Due to these two constraints the making of good compost is incompatible with maximizing profits, until now.

The Bio-Raptor(TM), a shredder, conveyor, and microbial application system, is ideally suited for green waste operations. With a nominal speed of 100-300 tons per hour, the Bio-Raptor(TM) can process large quantities of material in short periods of time. The Bio-Raptor(TM) process pulverizes, aerates, and sprays the green waste with a proprietary microbial blend. The lab analyses proved that the treatment will accelerate the degradation rate of the green waste. The bulk density rates showed a 50% volume reduction in just 14 days with the carbon:nitrogen ratio achieving an optimum level for best results as a soil conditioner.

This decreased processing time obtained with the Bio-Raptor(TM) system and microbes means the green waste operator can convert additional green waste into mature compost in the same amount of time, significantly increase the production in the same amount of physical space, or substantially decrease the amount of acreage to process a given amount of green waste. All three benefits can decrease costs or increase revenue to the green waste processor. With the addition of treated animal manure, a rich soil amendment can be created and is often in demand by landscape contractors for commercial and residential developments. The resulting soil amendment, with the additional microbes, may enhance plant growth, appearance, and yield, and reduce water consumption, pumping charges and fertilizer requirements.

Robert Brehm, CEO of U.S. Microbics, states, ``We have achieved a composting process which surpassed our own scientist's expectations and we now plan to continue our own manure and green waste processing operations and offer the product and process to other operators including landfills, municipalities, farmers, landscape contractors, ranchers and topsoil producers, who want quicker, cheaper non-chemical alternatives to green waste conversion into sellable products.''

For further information about U.S, Microbics, Inc., contact investor relations at 760-918-1860 or visit the website at http://bugsatwork.com.

The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain the words ``estimate,'' ``anticipate,'' ``believe,'' ``expect,'' or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's status as a startup company with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the ``Risk Factors,'' ``Management's Discussion and Analysis or Plan of Operation'' and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission. The Company will provide you with copies of this information upon request.

SOURCE: U.S. Microbics, Inc.

Envoy Communications (TSE: ECG)

Back on July 17th we released our profile on Envoy Communication (TSE: ECG). This little known Toronto Stock Exchange company has become a powerhouse in the new Digital and Internet oriented advertising world. The company's annual sales were $23.5 million in 1997, $37.8 million in 1998, and $64.5 million in the first half of 1999 (fiscal years). Impressive growth by any measure.

When we released the profile, we had no way of knowing the July 16th would prove to be the top for the NASDAQ market, followed quickly by a huge drop in the Internet Sector prompted by interest rates and valuation concerns.

Friday's action in the markets seemed to suggest a short term bottom with fears of future interest rate hikes lessening. When we released our profile on Envoy, the stock was trading at $8.80 Canadian. The stock immediately started down with the rest of the Internet sector.

The recent rebound in this group leads us to believe that now would be an excellent time to revisit this stock, as we believe the current entry is ridiculously low. If you didn't catch our original profile we strongly recommend that you read it now. You can go directly to it by clicking here.

We also have some updated information for you from an analyst that follows the company. David Wong of Cannacorde Capital, one of Canada's largest brokerage firms, has a buy recommendation on the stock with a 12 month target price of $15.30.

Here are some excerpts from David Wong's recent Daily Letter which circulates internally at Cannacorde Capital:

Published August 11th- DailyLetter and Cannacorde Capital

Comments on the Internet Sector

The summer is definitely not hot on technology stocks. To follow up on our comments in the July 28 Daily Letter, we had mentioned the short-term and medium-term volatility in this sector but at the same time we also had statistics to support continued growth in this new industry. We expect this volatility to continue into the rest of the summer and maybe into early fall, as the trading patterns look similar to what happened in the IT sector last year after the Y2K hype. We believe that after the negative sentiment and panic selling subsides, companies with good fundamentals will have the opportunity to redeem themselves. We see the summer and early fall months as a period where there may be opportunities to take positions and buy these companies.

Envoy Communications

We do not have any fundamental explanation regarding the pullback of the stock. We are waiting for the Q3 results, which are expected during the third week of this month. From our discussions with management, Q3 should show continued signs of growth in both the top and bottom line. We do not attribute the major pullback of the stock to fundamental issues. Q3 results are expected to reflect the best quarter to date in the Company’s history.

The recent weakness in the stock can be attributed to the summer doldrums. On a technical basis, all the Internet stocks showed downward pressure. Also, in late April there was a price gap created between $5.60 and $6.00. We were concerned about this gap earlier on and mentioned it during our morning calls, but the momentum for Internet stocks caused prices to surge upwards, delaying this correction. According to technical analysis, this gap traditionally fills in. We believe the opportunity to fill this gap has come, fueled by the negative sentiment towards Internet and technology stocks. The other factor that may have helped to fuel this decline was some profit taking from free trading stock that came from the recent special warrants financing at $5.50. We see this downturn as an opportunity to BUY the stock. We are maintaining our 12-month target price of $15.30.

Next week we will be discussing this Company further with Steve Misner, a fund manager at BPI Mutual Funds which has a position in this stock. We will keep you up to date on further developments.

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Disclaimer

The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net"). While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with which they are affiliated, may own stock in and have other financial dealings with the companies who appear in the publication. To that degree, this newsletter should not be regarded to be an independent publication. OTC Journal Management has received the following compensation for representing US Microbics for a period of one year: $50,000 in cash, and 50,000 options convertible into restricted stock, exercisable at $1 per share. In a related transaction, OTC Journal Management intends to exercise its option by signing a promissory note to US Microbics for $50,000. SSP Management has been paid a one-time fee of $50,000 for representing Envoy Communications for a period of one year. The fee has been paid by BG Capital Group acting on behalf of Envoy Communications. SSP Management has not been retained by, nor has any formal relationship with Envoy Communications. The OTCjournal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein.

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We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.