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What
A Week! |
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The end of one of the most volatile
weeks in history is finally here. Investors are breathing a sigh
of relief despite the fact that most speculative stocks purchased in the
last 30 days are likely to be 1/2 to 1/3 of their former value. Many
of the small companies that we follow are beginning to drift back up on
light volume. We will need a confirmed resurgence in the NASDAQ before
many of these smaller stocks trade back up on volume.
Those of you that have a one to two
year time horizon on your speculative investments have nothing to worry
about. If the companies we feature execute their business plans successfully
you will probably make money. You might consider adding to your favorite
stocks at these levels if you can afford the risk.
As we noted in our mid-week edition,
we believe that this market correction sets us up for great market conditions
for the remainder of this year. Market technicians will tell you
that the NASDAQ will probably need to retest the 4,000 level once or twice
more to confirm the support level. However, we believe that inflation
is benign, the price of oil will come down, and we are near the end of
interest rate increases from the Federal Reserve. It should be a
good environment for growth stocks.
In light of the lowered entry
levels in many of the smaller stocks we will be releasing a new profile
every two to three weeks.
Our next profile will probably come out next Friday. We are interviewing
a number of candidates right now. Be prepared for a lot of new ideas.
We have been receiving a lot of E-mail
questions about Envoy Communications (TSE: ECG). We will provide
you with an update in this weekend's edition.
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Envoy
Communications (TSE: ECG) |
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This particular stock has really
tested our patience. The company has been growing at a dramatic clip
but the stock has not performed over the last nine months.
Those of you that have been following
this story are aware that we have been expecting this company to have been
dual listed on both the Toronto Stock Exchange and the NASDAQ by now.
The stock is still trading only on the TSE.
We learned from second hand sources
this week that the company's efforts to get through this process are as
a aggressive as possible. Answers to SEC comments were filed earlier
this week, and there were direct conversations with the SEC. We cannot
predict when they well finally get through this process, and there is no
guarantee that it will ever happen.
The company is hopeful that the end
is in site, and based on what we heard today our guess is that it will
take at least another 30 days to obtain the dual listing on the NASDAQ.
We also continue to believe that the company will get a much larger audience
once it makes the transition to a dual listing.
If you are interested in learning
more about a company that has great earnings, and has gone from $37.8
million (CDN) to $144 million (CDN) in revenues in one fiscal year, please
take some time to review our coverage of the company. You can find
everything we have ever released on this company in the archive section
of our home page. Click
Here to go directly to it.
You will also find great coverage
on this company at www.stockhouse.com.
Click
here to go directly to their coverage page.
That's all for this week. Hopefully
we'll have some exciting news for you next week. |
