Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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Market
Comment- The Bear Market is Over- The Bull is Back!!!!!!!!!!!! |
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Depicted here is a six month chart
of the NASDAQ index. The Yellow line is the 10 day moving average, and
the red line is the 50 day moving average. The NASDAQ is camped above both
lines indicating we are in a solid uptrend.
Corporate performance has been dismal
as the economy continues to wrestle with the current slow down. One wonders
why stocks would begin to come back with no sign of an economic rebound?
The answer is simple and can be found by examining events of the past year.
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Understanding
The Past To Predict The Future |
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One year ago the NASDAQ was testing
3000, down from the high of 5200 in March. This drop correctly reflected
the "irrational exuberance" priced into stock values.
The market retested 4200 twice during
the summer of 2000 as stocks trended higher. The nastiest Bear in the history
of NASDAQ sunk its teeth into the wallets of investors from September of
2000 into early April of 2001 leaving many portfolios decimated.
Stocks prices were destroyed in the
4th quarter of last year, but news of layoffs, earnings disappointments
and lack of visibility did not surface until January. Downgrades were coming
in hordes from Wall Street analysts after stocks had already gotten clobbered.
The market knew the business climate was terrible long before investors
heard it from Wall Street and the financial media.
Stocks are now beginning to trend
higher in the absence of corporate performance, which is puzzling to many
investors. We are experiencing the inverse of last year's bear. The market
is a forward looking mechanism, and today's prices are moving based on
the market's perception of where companies will be in six months.
Experienced money managers know the
aggressive interest rate cuts from the FED will eventually lead to an upturn
in corporate performance. Excess supplies of technology from the overfunded
tech sector are being absorbed, and once we arrive at increasing demand
for decreasing inventory companies will rebound.
The market won't go straight up.
There will be some pullbacks and hiccups along the way. We have arrived
at the point where pullbacks will be met with buyers, and you should now
put your sidelined capital to work. Just as analysts were behind the curve
in the Bear Market, they are behind now. Don't wait for them to come out
with buy recommendations after stocks have already appreciated 40%. The
BULL
is back, and the next economic expansion could be the most prolific in
history.
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Coming
Events For the OTC Journal |
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It is the continuing theme of the
OTC
Journal to provide our members with microcap investment ideas they
would be unlikely to discover on their own. If you want ideas in larger
cap stocks there are hundreds of other sources. It is our mission to be
the best source of microcap ideas.
Everything we cover is extremely
risky. Unless you like to invest in small, risky companies this newsletter
is not for you. Please unsubscribe by using the link at the bottom.
We have only introduced two new companies
to our members so far this year. Now that the market is demonstrating clear
signs the Bear is dead, the idea flow will increase.
Everything we covered in 2001 has
given our members an opportunity to take profits at one time or another.
As a result, we are getting a lot of positive feedback.
We now have four new Trading Alerts
and two new Profiles in the pipeline. The first Trading Alert
could come as early as next Wednesday just after the market close.
If you intend to consider participating
in any of our ideas, it is very important to understand the two types of
coverage we provide.
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Trading
Alerts |
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We provide Trading Alerts
for those investors who like a short term trade. The time frame can be
anywhere from five minutes to five days. Setting the Stop Loss
is critical for these ideas. In these situations you should be prepared
to take a small loss in the short term if the idea does not work.
Large cap Trading Alerts are
based strictly on technical analysis. Small and microcap Trading Alerts
are based on a corporate event which we believe could propel the stock
higher. We often have to wait until a microcap company makes a significant
news release before issuing a Trading Alert.
Prior to investing it is very important
you take the time to read the section on our web site concerning Trading
Alerts. Click Here
to read the section. Click
Here to view our Trading Alerts track record.
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Profiles |
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We get nearly four requests every
day for profile coverage from small public companies. We have narrowed
down the choices to two we like right now, and will be launching the first
in June.
Our Profiles are considerably
different from Trading Alerts. We suggest our members accumulate
shares in companies we profile over the long term if you decide you like
the company. Always do your own due diligence and investigate any claims
we make. Confirm the facts through other sources, then make your decision.
We don't suggest a stop loss on a
profiled company and we cover substantive corporate events for one year
from the date of release. Please take the time to read our Mission
Statement found on our home page at www.otcjournal.com
before
considering investing in any of our profiled companies. Click
Here to view the Track Record of our profiled companies.
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Conclusion |
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We hope to provide our members with
great money making ideas over the coming months. Everything we do is risky,
and you should be prepared to lose 100% of your money if you participate.
You should also read the disclaimer on each of our editions.
The next several months could be
very profitable as many stocks are very oversold, and microcaps are bouncing
on light volume. The editors of the OTC Journal intend to be the
best source of ideas in the microcap arena. Stay tuned for an exciting
year as the Bull comes back.
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Envoy
Communications (NASDAQ: ECGI) 2nd Quarter Results to be Announced on Tuesday |
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Envoy will announce March
quarter results on Tuesday just after the market closes. If you wish to
listen in on the conference call dial 1-888-209-3767 at 4:30 Eastern Time.
Look for the company to announce earnings right in line with expectations.
The OTC Journal is a proud partner
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