To OTC Journal Members:
 

Comment on Calypte Biomed (OTC BB: CALY)

Thursday morning's press release from Calypte sparked a dramatic turn around in the stock price on huge volume. The stock traded 8.6 million shares on Thursday, and began a rebound phase much more prolific than we anticipated.

As we informed you in previous editions, the company has issued free trading shares to institutional investors at a discount to the prevailing market in order to raise much needed capital.

It is believed those investors have been quick to pull the trigger, causing the need for an excess supply of stock to be absorbed by the market. Hence, we had a falling stock for several weeks.

Prior to Thursday's action we may have had capitulation. This excess overhang probably precipitated sales from short term investors who were in panic mode and wanted to preserve capital.

In fact, it turned out buyers at the low are now being rewarded. Thursday's announcement was simply not substantive enough to explain the high volume and rapid rise in the stock. Calypte closed at $.09 on Wednesday night, and closed at the $.14 level last night. While this may seem like no big deal, in reality it was a 55% move- very dramatic in any market environment.

It is rumored the institutional investor who was issued stock at a discount to the market simply sold it all and run out of supply. There is no way to confirm this rumor. However, if it is true, this stock could once again gain momentum, particularly if the company can follow up with some more substantive corporate events over the next couple of weeks.

Don't invest because the supply has dried up. Invest if you like the idea of owning a piece of the only company in the world with an FDA Approved AIDS test using urine. A rapid version of the test, which works like a pregnancy test kit is now developed and ready to begin the approval process. International sales to areas where the AIDS epidemic is raging out of control seem to be imminent, which could also lead to higher stock prices. Don't invest more than you can afford to lose- it is still a risky situation, but gaining momentum to the upside.
 

Attention Bargain Hunters: Janel World Trade (OTC BB: JLWT) Could Begin Rebound Phase

We issued a trading alert on Janel World Trade August 14th at $2.10. It was a loser, popping up slightly on minimal volume and then turning around. In the last thirty days the stock has drifted down on very light volume, and found a bottom at about $.75.

Janel is a 27 year old company in the freight processing and custom brokerage business. They enjoy over $50 million in annual sales. Their client list includes names like Colgate Palmolive and Ralph Lauren.

In our Trading Alert we suggested a stop loss of $1.50. Therefore, anyone who chose to participate in this idea should have gotten out with a reasonable loss.

Based on Friday's closing price, the stock is only trading with a market valuation of $12 million. With $50 million in annual sales and profitability, this stock seems very undervalued, especially in light of the industry average being being 1.64 times sales.

Just before the open of the market on Friday, the company made it first major news announcement in weeks. Janel announced a $4 million contract with Rohn Products International to handle all their shipments to a major telecommunications project in Thailand which could last up to three years.

The stock responded with its highest volume day ever, and appeared to begin a rebound phase. Any follow through on Monday could potentially yield much higher prices as the stock is thinly traded, and therefore could be volatile to the upside as well as the downside.

This stock could easily be good for a trade. From these levels your risk is minimized by the company's 27 year history, $50 million in annual sales, and profitability. With a market capitalization of $12 million, upside seems good. In light of the stock's recent poor performance, a tight stop loss would be appropriate in this case. After watching Calypte rebound 55% in the last two trading days we didn't want our members to miss a similar opportunity.

Here is the complete text of Friday's press release for your review:
 

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Click 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 47,500 free trading shares of Janel World Trade common stock by Bulls Eye Capital for coverage of Janel World Trade for thirty days. MarketByte LLC has been paid a fee of 250,000 free trading shares of Calypte common stock by First Stage Capital for coverage of Calypte Biomed. On August 12, 2002, MarketByte LLC entered into an agreement directly with Calypte Biomed to continue coverage of the company through October 31, 2002. Calypte Biomed has paid $25,000 cash as compensation, and an additional 300,000 shares of free trading stock were paid by a third party on behalf of the company. Please review our policy on selling shares found in our Mission Statement on our home page.

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