To OTC Journal Members:
 

Family Room (OTC BB: FMLY): Cautious Optimism is Warranted

It's been an eventful week for long suffering shareholders of Family Room Entertainment. Earlier this week Family Room made several announcements. The most exciting came Wednesday when FMLY announced the first profitable quarter in company history as previously promised. FMLY nearly hit the $1 million market in the September quarter, and for the first time in corporate history reported a profit of about $45,000.

The market responded with a nearly 3 million share day, and the stock attempted to break out of its long term regression channel you see pictured between the red and blue lines. 

Alas, a subsequent news release derailed the break out, and the stock has settled back into the high end of the channel. FMLY also announced later the same day that it had completed a $1.75 million financing. These annual toxic financings are the reason the stock has traded so poorly over the past two years, and this news was not welcome.

The terms of the financing will be important in understanding the upside potential of the stock at this point. The company has not publicly disclosed the terms at this time. I have learned the general terms in a conversation with management, and this financing might not be as potentially negative as others in the past. When I get the accurate details I will share them, and share my views on what they could mean to the stock.

Today, just before the market opened, FMLY announced it had finished filming its most recent effort: THE TENANTS, starring Dylan McDermott (TV's THE PRACTICE) and Snoop Dogg (STARSKY AND HUTCH).

FMLY expects to go into production on at least six major movies in 2005, the first being 88 Minutes starring Al Pacino.

The volume is certainly encouraging. The corporate performance in the September quarter is very exciting. The slate of productions for 2005 offers good upside. The financing is troubling. Therefore, a little cautious optimism is warranted at this time.
 

BrandPartners (OTC BB: BPTR) Delivers Big

BrandPartners was out with news before the open today. The company announced it had recently signed over $10 million in new business. Go here to read the press release.

I'm quite sure they will hit the $50 million target in calender '04, and deliver at least $.16 in earnings off operations. As stated in the past- simply a no-brainer. In my view, it is a question of when, not if the stock will hit $1.50. One of the greatest turn around stories I have ever seen.

Go here to read our archived editions on this company. 
 

Torrent Energy (OTC BB:TREN) - Commences Drilling Program

For those who are following the Torrent Energy story as their Coos Bay CBM project unfolds, the company was out with news earlier this week. Torrent Energy has begun drilling as promised, and the stock has been trading strong volume this week. Go here to read the news release.

The stock has made a perfect 33% retracement from its strong leg up. It ran from $.66 to $1.37 before retreating to $1.05. The stock has begun to climb again, and volume is picking up. Technically, this looks very bullish. For those who like start up domestic natural gas plays, this one has significant upside. Go here to read our original presentation on Torrent Energy.

Go 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 $30,000 by Torrent Energy for coverage of the company.  MarketByte LLC has been paid a fee of $25,000 by Family Room Entertainment for coverage through January 31, 2003. An additional 150,000 free trading shares have been paid by a third party. On February 1, 2003, Family Room extended its contract with MarketByte LLC for coverage through the remainder of 2003 for a fee of $30,000 in cash and 300,000 shares of restricted stock. In December 2003, Family Room extended its contract with MarketByte LLC through 2004 for an additional 2 million shares of newly issued, restricted common stock. The 2.3 million shares are now registered and free trading. On June 6, 2004, Family Room extended the contract in return for an additoinal 1 million restricted shares. The aforementioned shares are now free trading due to an effective registration statement. Please review our policy on selling shares found within the Mission Statement on our home page. MarketByte LLC, the owner and publisher of the OTC Journal, has purchased 100,000 shares of BPTR at a cost of $.60 per share. 

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