To OTC Journal Members:
 

The BLOG and the Future

In order to maximize the benefit you derive from the OTC Journal, you are going to have to start using the BLOG. The BLOG (short for Web-Log), is an online journal we use to provide you with the most current information as stocks are trading.

Simply go to www.otcjournal.com. On the right hand menu bar you will find the BLOG. Click on the "General Market" tab to see all the  entries. You can also visit the individual sections for each stock to see if there is a current comment.

The home page of the site has also been redesigned.  The middle section of the home page is now divided into two sections. The upper part will be the most current BLOG entries- the lower part will have the most current editions in chronological order.

Monday morning's BLOG entry on Markland Technologies was not prophetic in the short term. I cautioned subscribers to wait for a pullback under $.80 as an entry point. The stock pulled back to just over $.80, but yesterday came roaring back as the company announced a follow up contract with the Army. The stock has officially broken out above its former resistance, clearing the way for higher levels in the future. It doesn't mean the stock is going straight up. However, it suggests the stock will have an easier time on high volume days. As I write today's edition, the stock has pulled back under the $.80 level. Now it the time to jump in.

If you visit the individual stocks within the BLOG you will find a link to comments and questions. I am going to start posting most of the comments along with replies where appropriate, so check it out. There are a number of comments up on several stocks. You should read what people are saying.  I will post both positive and negative comments as long as they have value to readers.

For those of you who know how to use an "RSS" feed, both the BLOG and the individual editions are available. If you have a Yahoo! home page, search for OTC Journal and OTC Blog in your RSS feeds. You can add them to your home page. For those who don't understand what this is, more in future editions. The RSS feeds update live.

Also, I am formally announcing I will not be covering GPS Technologies (OTC BB: GPSN) in the future. This is the golf course management technology company that golfing icon Greg Norman recently invested in. Needless to say, I covered it at the high when Norman's involvement was announced. The stock sold off shortly thereafter. It should have started to recover by now, but has shown no signs of doing so. The company's financial challenges may be worse than I originally thought. Therefore, I won't be covering this stock in the future. Apologies if you participated and it didn't work out. I made a mistake. It's not the first and won't be the last. It's a part of microcap investing. Go ahead and send the hate mail to editor@otcjournal.com. 

Here's an outstanding news announcement from the company the OTC Journal has followed longer than any other:
 

Family Room (OTC BB: FMLY) Signs John Travolta To New Movie

Family Room has been a source of great frustration for me. The company keeps improving, but the stock is going nowhere.  For the last two years the company has engaged in toxic financings that have collared the stock's ability to move up. It simply needed to trade much higher volume to absorb the excess supplies associated with raising money. When I first wrote about FMLY in November of 2002 there were 21.6 million shares issued and outstanding. Today there are about 90 million.

I was on the fence as to whether I would continue to cover the stock. The company did another financing in December, and I was anxious to avoid Deja Vu all over again this year. However, the current financing is five year debt that is paid monthly in 60 installments. It could be converted to shares, but no shares underlying the debt will be free trading for about four months. According to a recent 8K filing with the SEC, the debt can convert to shares at a cost of $.15- over twice where the stock is trading.

On the plus side, Family Room has an enormous number of new films going into production in 2005. The first, 88 Minutes starring Al Pacino, is scheduled to go into production this month. FMLY has not announced production has started, so there could be a delay.

I am informed by management that FMLY could produce as many as 10 films in 2005, starring some very high profile names. As if to prove the point, FMLY announced the signing of a major new film today.

FMLY mad a huge announcement after the market opened today. They will going into production in 2005 on LONELY HEARTS starring box office super star John Travolta.

In the past I have compared FMLY to a biotech company. In biotech, projects take many millions of dollars and many years to bring to fruition. The average new drug takes 12 years and costs about $700 million to bring to market.

One hit movie could be like a new drug introduction to this company. Sometime later this year Edison, starring Justin Timberlake, Kevin Spacey, and Morgan Freeman will hit the box office. If the movie is a big hit, it could mean substantial profits to Family Room.

If 10 movies are produced in 2005, FMLY increases its chances of significant profits looking out to 2006 and 2007 on other people's money. In the interim, the company has recently turned cash flow positive from producer fees, and looks like it will stay that way in 2005.

Technically, FMLY remains trapped in the long term regression channel you see pictured here. However, the stock is trading near the high end of the channel, and has been a couple of attempts to break out in recent months.

Perhaps this new movie with John Travolta will put some life back into this stock. I would love to see this stock break out to the upside.

You need long term faith to stay invested in FMLY. Faith, for our purposes, is defined as "Belief in the Absence of Data". Perhaps this new movie announcement will reward the faithful. Other than those who have lost patience, there should be minimal supply of stock around at this time. No dilution from capital raising is out there at this time. Perhaps this one is finally going to break out of it malaise.

Here is the complete text of today's news for your review:
 

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 $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.

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