To OTC Journal Members: 
 

Lots To Talk About

By the time you read this edition, which I'm writing on Wednesday afternoon, one very important event will have occurred. Biostar Pharma (OTC BB: BSPM), my most recent idea from March 13th at $4 has delivered its audited 2009 financial results. I was hoping to see EPS in the mid $.50 range, but anything close to $.50 will do nicely. 

I don't know what the stock is doing now, but it's been hot the last couple of days. Depending on financial results, if the stock were to pull back on the earnings news which is quite common, it might be time to really load up. I believe the stock is going to $7, and at the time of this writing have accumulated 14,000 shares with my personal funds with an average cost just below $4.

If it's surging, I might sell some. If it's pulling back and the numbers were strong, I might accumulate more. I'll let the stock tell me what to do. 

I'm working on a very important edition for the weekend you might find valuable. It's about looking for the steepest part of the growth curve to invest in stocks for maximum returns. I'm looking at four specific examples I've written about. Stay tuned- I believe it's an extremely important read, and will help you make more money on these ideas.
 

Legend Media (OTC BB: LEGE) Rockets On Record Volume

Did you catch the action on Legend Media yesterday? Wow- someone has decided to pack that one away. I have been advising accumulating at no more than $.25, and if you've been listening and watching, you're getting paid for your powers of observation.

LEGE traded 2.1 million shares yesterday, and closed at $.34. If you followed my lead, and accumulated the stock at $.25 or less, you're now sitting on a minimum of 36% ROI- all since I reincarnated this idea in late February.

I'm not sure the stock will pull back to that $.25 level again. Yesterday's volume was over 2 million shares. That's double the highest volume day in the stock's history. In fact, looking back at the entire history of this stock, there has been only one day the stock traded over 1 million shares. Yesterday, inexplicably, LEGE traded over 2 million shares.

Today, just prior to the open, LEGE announced another advertising contract in the amount of about $375,000. This time, the advertising is for the Beijing Fortune Real Estate Development Group. They are marketing a very high end real estate development using Legend's radio and airline magazine assets.

This is the 4th contract of this magnitude announced in the past 6 weeks, and there's a pattern forming here. These contract signings suggest there is indeed growth burgeoning at LEGE, and this one might be a penny stock who's time has come.

I'm looking for as much as 50% top line growth and the emergence of a real bottom line here throughout the remainder of 2010. The company should have strong gross margins, and it's just not that expensive to operate. 

I don't know if this one will come back down to my suggested entry level of $.25. Yesterday's action suggests there's a change of character, and this one just might get hot.

Clearly, if you accumulate on dips, you're going to be in a position to make money on the surges. If you want to pile in and see if the momentum continues, stay disciplined and use a stop loss. Perhaps there's something much bigger on the way. 

At times, the way a stock trades tips you off to pending developments. This one is trading as if something big is in the wind.

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