To OTC Journal Members:

In this weekend's edition we will share some ideas with you on maximizing your potential to profit from ideas in the OTC Journal.  This tough market equals profits for investors with the ability to see past today's price. There are strategies you can employ to maximize your potential to make money when the market turns up. Timing and patience are the key factors in success.

In addition, there was more exciting news from Envoy Communications (NASDAQ: ECGI) released after the close on Friday. The company continues gaining corporate momentum. We also have a research report from an analyst with a Strong Buy recommendation on the stock.
 

Maximizing Your Profit Potential From the OTC Journal in a Tough Market

Our members should recognize the OTC Journal publishes two distinct types of ideas. Our Profiles are long term situation where we will follow a company for at least one year. In the case of a profile we believe investors should have a long term outlook and accumulate a position in the stock over time.

Trading Alerts require a completely different strategy. Trading Alerts are simply short term trading ideas we introduce where we feel a stock is positioned to move up quickly. We don't study the companies in detail, and we don't follow up with additional information.
 

OTC Journal Profiles

Our profiled companies are ones we feel warrant long term investments. We will profile about six companies a year. They are always small or microcap stocks- the types of opportunities you wouldn't be likely to find out about on your own.

Tougher market environments require different strategies. Here are some thoughts on investing in OTC Journal profiles in today's market.

First, only invest capital you view as your "risk" money. Every company we cover is risky. We have had some huge winners and our fair share of losers. Never invest money you cannot afford to lose.

Secondly, read the profile and decide if you like the company. Do your own research independently, and come to your own conclusion. If you decide you like the idea, have the courage to stick with it for at least six months to a year.

Thirdly, decide how much capital you are prepared to commit to the stock. Do not commit the entire amount on the first trade in these market conditions. These stocks should be accumulated over time. A good rule of thumb is to invest 25% of your capital in four trades to accumulate your position. Investing an equal dollar amount in four trades allows you to purchase more shares when the stock is lower, and less shares when it is higher. This positions you for enhanced profits when the stock runs.

If a stock trades up rapidly there is nothing wrong with using the opportunity to take some profits off the table with an eye towards going back in on the next dip.

Please take the time to visit our home page at www.OTCJournal.com, and read our Mission Statement. This explains our philosophies in much greater detail. The Profile Tracking button on the left hand menu bar has our Track Record.
 

OTC Journal Trading Alerts

Trading Alerts are entirely different from profiles. Our Trading Alerts are specifically designed for investors seeking quick trades anywhere from ten minutes to five days. A Trading Alert could be on an obscure microcap stock or a large cap. 

Stop losses should always be issued for Trading Alerts. If it doesn't work out, minimize your losses and get out. Brokerage firms do not accept formal stop losses on Bulletin Board stocks. Therefore, you must simply watch the stock, and if it hits your stop loss point, simply sell it. If you can't track the stock regularly don't invest in our Trading Alerts.

The left hand menu bar at our home page has a section describing Trading Alerts, and our Track Record on our Trading Alerts.
 

Conclusion

In the last Bull Market the entry levels for OTC Journal profiles and Trading Alerts were the lowest you might see for weeks. That was in a Bull Market. Today we are in a Bear Market. Conditions are different. Holding positions requires discipline and belief. Any volume surges in small and microcap stocks are met with sellers.

Much of the selling comes from Market Makers shorting stocks they don't own. Market makers make their living off trading stocks. Currently, momentum is to the downside. The NASDAQ has been down substantially six of the last eight trading days. It's no secret that market makers are shorting any volume rally in microcap stocks, looking to frighten short term investors into selling stock back to them at much lower prices.

Our recently released profile on Energy Power (OTC BB: EPYSF) was a classic example. Our timing was terrible. After a four for one reverse the stock had moved up on light volume from $1.50 to $3. We felt there was such a small supply the stock could move up from the $3 level. A $4 price with volume brought sellers out in quantity, driving the stock back down under $2 in a week. 

However, it now appears there is little for sale in the $2 range, and this might be a good level to continue accumulating if you like the company. 

Thursday's Trading Alert on SBID was a disappointment. The stock traded huge volume on Friday as a result of the news, but the stock couldn't find its way above $1.40. It closed at $1.25, and the trade was basically a non-event. In better market conditions the stock may have made $2 easily.

Despite tough market conditions we will keep the ideas coming, and we will find winners. We will keep publishing updates on our Profiled Companies. After many years of involvement with the market, we know investors will look back at this period sometime in the future and wish they had been more courageous, aggressive, and patient.
 

Envoy Communications (NASDAQ: ECGI) Back In The News Again

Envoy Communications is a stock we feel should be accumulated as a core position in your portfolio. This stock is much less risky than most of the stocks we cover due to growth and profitability. Therefore you can be more aggressive with the amount of capital you invest.

We are all disappointed to see the stock pull back from the $4.50 range back to $3.50. However, you should note the last time the NASDAQ was at 2425 (Friday's close), Envoy was trading at $2.50. Therefore, this stock is outperforming the NASDAQ by a substantial margin. 

Bob Leshchyshen, the analyst at Northern Securities who follows Envoy, has a Strong Buy recommendation on the stock. His price target for this year is $9 (CDN). If he is right, investors will get a 68% return on invested capital based on Friday's closing price on the Toronto Stock Exchange.

For those of you who wish to learn more details about the company, we have Bob's full research reports and one of his recent comments on current developments at the company. They are in Adobe Acrobat format. If you don't have this free plug in on your computer you can download the most current version. Here is Bob's research for your review:

• Click Here to Read the Full Research Report
• Click Here to Read Bob's notes on Envoy's recent quarterly earnings report
• Click Here to download Adobe Acrobat if you can't read the reports.
• The following URL will take you to a web page with these reports and the Adobe download: http://www.otcjournal.com/news_images/

Friday's News

Yesterday, after the market closed, Envoy made an important news announcement. Sage Consultants, Envoy's wholly owned subsidiary, has been named a member of Microsoft's new Gold Certified Partner Program. Sage is one of only 26 companies worldwide to achieve this prestigious accreditation.

This news is important because it sets the stage for an enhanced relationship with Microsoft, and should lead to larger contracts.  We expect this news release to be a precursor to major accomplishments which could have a prolific effect on the stock price.

Envoy is a classic example of a stock to accumulate for a huge win. Is is currently trading at about 12 times this years' after tax earnings, with a 100% plus growth rate. It is grossly undervalued. The upcoming acquisition of UK based Legas Delaney will make this company world class, and put the annual revenue base up near $200 million.

Investors at these levels should be amply rewarded in the next Bull Market. However, with the momentum this company enjoys, we might not have to wait that long. 

Accumulate this stock. Click Here to read the full text of he news release.

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.

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.

The editor, members of the editor's family, and/or entities with  which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.