To OTC Journal Members:
 

Economic MegaTrend

Stock market losses over the past two years have investors frozen like a deer in the headlights. After 18 months of nothing but downside in the markets, investors finally capitulated after September 11th, and the bottom was established.

Economic indicators started improving in November, and recent evidence on the economy suggests the end of the recession is in site. It looked like a baby bull was emerging, and stock market profits were possible once again.

Then Enron collapsed, and investor psychology took a nasty turn to the downside. The media is blanketed with stories of accounting irregularities, 401K losses, and fraud on the part of our most trusted institutions. Investors are now questioning whether any companies actually have earnings, or is it just one giant scam?

In the midst of all this fear and uncertainty, Americans are still the wealthiest consumers on earth. In the last two years they have been taking the money they would have put in the stock market and investing in new homes and upgrades to existing homes. Can you blame them?

January existing home sale numbers jumped a record 16.2%, the highest monthly increase in history. Stocks of home builders like KB Homes (NYSE: KB), Pulte Homes (NYSE: PHM) and Centex Corp (NYSE: CTX) have rocketed off the charts over the last year.

Other, smaller companies are benefiting from the MegaTrend of investing in the home. If you buy a new home you need new furnishings and new appliances. The same is required for upgrades of existing homes.

The OTC Journal has identified a company which is growing dramatically as a result of the money we are investing in our homes. We plan on issuing a Trading Alert on this company in the next ten days. More information as we get closer to the release date.
 

Larry Abraham's Insider Report Rates Diomed (AMEX: DIO) a Strong Buy Recommendation

Diomed, a stock we believe will make our members a lot of money this year, pulled back this week after an initial strong surge. The stock traded to a high of $8.60 on Monday just after making its debut on the American Stock Exchange, and closed the week at $6.30. With Equity Securities and others including the OTC Journal setting a price target of $10 later in the year, at $6.30 your profit potential is even stronger. For those members in at higher levels, we suspect the coming week will be better.

If you followed our ideas in 2001, you will recall that we launched our profile on Energy Power on February 10, 2001. The stock was $2.95 that day. Our price target of $5.60 was hit for the first time until November 12th, for a net 89% return. Had you accumulated a substantial position in that stock and sold when it hit our price target, you would have been richly rewarded in a very tough year in the market.

Moreover, had you been a buyer of Energy Power on sharp dips throughout the year, you could have made a killing on that one stock alone.

Thanks to one of our members, we have learned that the OTC Journal is not alone in its strong buy recommendation on Diomed. During the month of February, Larry Abraham, publisher of the monthly newsletter Insider Report, published a Special Situation Report on Diomed.

Larry Abraham has been publishing his monthly newsletter for 27 years. Subscribers pay a monthly fee of $10 to receive it. His focus has been primarily on the Biotech sector, and according to his publication has hit four grand slams over the past several years as follows:

• Supergen (NASDAQ: SUPG) Up 270%
• Immunex: (NASDAQ: IMNX) Up 300%
• AVI Bio Pharma: (NASDAQ: AVII) Up 250%
• Hollis Eden Pharmaceuticals: (NASDAQ: HEPH) Up 150%

He begins his Special Situation Report with the following statement:
 

The report goes into detail about the company's business model, and there are several other excerpts we believe should be brought to your attention as follows:

• "With Diomed, the timeline is now and the science if fully funded, thus eliminating the two biggest considerations any investor ever faces with any stock in any sector: Time and Money."
• "The profit potential for just EVLT is enormous considering that Diomed offers a one-stop-shopping solution to the phlebologist."
• "PDT usage in the fight against cancer is estimated to be growing towards a $2 billion market over the next several years and Diomed's contributions to these applications are conservatively estimated to be no less than 15 percent of that total and growing."
• "As to the competition, Diomed's position is very well protected with its laser and optics patents and regulatory approval as a modality required by the FDA."

Mr. Abraham's Conclusion

The OTC Journal is attempting to get permission to provide copies of both Larry Abraham's Special Situation Report and Equity Securities recent research report on Diomed in a format available to members on the Internet. Hopefully, we will have both for you next week.

To subcribe to the Larry Abraham monthly Insider Report, please visit his web site at www.insiderreport.net.
 

Market Comment

By now you should all recognize there is substantial money to be made in the stock market when investor mentality is negative, and outside events cause short sighted investors to flee to cash for psychological reasons.

If you had had the courage to buy Airline stocks in the third week of September when the media tried to convince us the entire industry was going out of business, you would have doubled your money before the end of the year.

It looked like market conditions would improve after a strong November and December, but the Enron disaster has investors back in a negative mindset.

As with all negative events of this type, its effect on the psychology of investors diminishes with time. At the end of September we all thought the world was coming to an end. Five months later the Attack on America is still embedded in our memories, but it no longer dominates our daily thoughts.

Over time the Enron disaster will lead to postitive reforms for investors. It will prove to be an isolated incident in its magnitude. The economy will continue to improve, and investors with the courage to act now will enjoy substantial profits while average investors are just starting to think about getting back into stocks. Above average returns require above average courage and the foresight to act when no one else will.

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

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 $100,000 in cash and 250,000 options convertible into free trading shares, exercisable at $3.50, by the Mohammed Patel, an individual, for publishing information on Diomed Corp for a period of one year. Please review our policy on selling shares found in our Mission Statement on our home page.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. 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.

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