To OTC Journal Members:
 

Market Comment- Confidence Crises Takes Fear Level to New All Time High

Samuel Waksel, former CEO of Immclone (NASDAQ: IMCL) was hauled off the jail today by the FBI for alleged insider trading violations. According to the charges, Mr. Waksel was said to have advised two undisclosed to parties to sell their shares of Immclone just prior to the announcement that the FDA would deny approval of their cancer drug, which resulted in the stock being decimated. Click Here to read the details.

Despite nine consecutive months of improving economic indicators and earnings reports for the first quarter that weren't all that bad, this is the kind of news dominating the main stream investment media everyday.

Negative news used to be a buying opportunity for growth companies, and good news took stocks higher. In today's environment, good news and positive corporate developments are viewed as selling opportunities, and bad news yields lower prices. Momentum to the downside in this unparalleled climate of fear is the norm, and short sellers are in complete control of the markets.

Winston Churchill understood the mentality. Take two captains of industry and two Wall Street powerhouses, put them at the same table, and the discussion will turn to the negatives which dominate our psyche today.

In the words of the late Franklin Roosevelt; "We have nothing to fear but fear itself". The public is demanding aggressive behavior from the regulators, and they are delivering. If you think Sam Waksel is the first CEO to whisper sell advise, you are sadly mistaken. He just got caught in a regulatory climate where the public and the media are demanding heads in payment for all the money we lost in this bear market. Just like everyone who drives home from the party after drinking too much, he's the one who got arrested for a DUI because he wrecked his car (in this case, his company). 

However, clear headed investors who can filter out the noise should take comfort in the words of the late Franklin Roosevelt: "We have nothing to fear but fear itself"

Take a look at each of the stocks you own, and remember why you bought them in the first place. If nothing has changed, don't sell because prices are going down. If fact, if the reasons you bought in the first place are still intact, buy more if you can afford the risk. 

The American free enterprise system is not collapsing from the excesses of the last Bull market which are now coming to light. We may try to trade lower in the short term, but in the coming days, months, and years, investors will wonder why the couldn't see the value when Fear ruled the day.

Here is some news from a couple of the companies we have been reporting on recently:
 

XML Global Technologies (OTC BB: XMLG)

Yesterday XML Global reported it has hired new management. John McAughtry has assumed the role of President, and is assigned the task of marketing the XML software this company has spent millions of dollars developing over the last four years.

According to the press release, Mr. McAughtry spent the first ten years of his career in sales at IBM. He has devoted the last twenty years to launches of smaller software companies, many of which were eventually bought out.

Those who have been following this story know the company needs capital to survive. There has been no public disclosure concerning any new financing, but one has to wonder why a seasoned pro would take the reigns of this struggling software company if a rescue strategy were not in place. 

The stock has dropped into the $.15 range, a new all time low. Stand by for further updates, we don't believe this company is dead, but the market is pricing the stock as if it already was. Click Here to read the full text of yesterday's press release.
 

Calypte Biomed (OTC BB: CALY)

We introduced you to this company on May 31st at $.138. We found the company intriguing because they have the only urine based HIV test in the world. 

The company announced it was closing its doors several months ago, but new management came in, raised capital, and put the company back on track. Our short term price target was $.20, and so far it has only gotten as high as $.174. Stand by for further progress.

Yesterday the company announced it had acquired the rights to market a urine based test for liver function from a Japanese company which does nearly $100 million in annual sales.

Since urine tests are considerably less expensive than blood tests, and Calypte is already marketing its urine based HIV tests to many large life insurance companies throughout the US, this marketing agreement makes perfect sense and should enhance Calpyte's sales going forward. Click Here to read the entire text of the press release.

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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 pledged a fee of 250,000 free trading shares of Calypte common stock by First Stage Capital for coverage of Calpyte Biomed. MarketByte LLC has been paid the following fee by XML Global for a year of representation extending from February 2, 2001 to February 2, 2002: $100,000 cash, 60,000 shares of free trading stock, 60,000 shares of restricted stock which are now free trading, and 60,000 options exercisable at $2. The 60,000 shares of free trading stock have been contributed by a third party on behalf of the company. MarketByte's contract to represent the company expired February 2, 2002. The contract was renewed for another year, and XML Global has paid compensation of $20,000 in cash and one million shares of newly issued restricted common stock. Please review our policy on selling shares found in our Mission Statement on our Home Page.

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