To OTC Journal Members:

Great news after the close today from XML Global Technologies (OTC BB: XMLG), our current profile. If you used last week's pullback in the stock to establish a position you should be very happy about this development.
 

Market Comment

It was the ultimate dream week for the Bulls. On Monday night Cisco (NASDAQ: CSCO) announced they would be laying off 8500 employees, and painted the bleakest possible picture going forward. Cisco, along with companies that supply products to Cisco, all gapped down dramatically on Tuesday morning.

Shortly after the open buyers surfaced in all of these stocks. Jabil Circuits (NYSE: JBL) derives 20% of its sales from Cisco. The stock opened at about $25 on Tuesday, quickly ran to $27, and finished the day up along with all the other major suppliers to Cisco. Shares of Cisco dropped from $17.20 to $15.80 on Tuesday morning. The stock is now at $18.90, higher than it was when they announced the worst possible news on Monday night.

Intel (NASDAQ: INTC) beat estimates by $.01 on Tuesday night, and the stock traded up nicely carrying the market higher first thing Tuesday morning. Then the bomb got dropped when the FED announced a surprise 1/2 point cut in interest rates. The NASDAQ went crazy on Wednesday, up 156 points on the highest real volume day in history.

IBM (NYSE: IBM),  and Apple Computer (NASDAQ: APPL) beat earnings estimates on Wednesday after the close, carrying the NASDAQ higher at the open on Thursday. The short term target we suggested in our weekend newsletter of 2100 NASDAQ came more quickly than expected thanks to the surprise action by the FED.

All this positive price activity suggests Wall Street is becoming cautiously convinced the worst case scenario has been priced into the technology sector, and this sector is likely to improve in the second half of the year, which should bring back the Bull Market.

A pullback from these levels is imminent, which will provide an excellent entry point for your favorite large cap technology stock. Many thanks to all the complimentary mail we received from our March 17th edition where we pointed out Apple Computer, trading at $19, had $12 per share in cash and an exciting new product line on the shelves. We got a lot of mail from members thanking us for pointing this out with the stock now over $25.72.
 

XML Global Technologies (OTC BB: XMLG)- Major News

XML was down last week. The stock traded as if there were a large seller on one day. Considering many investors need to raise cash for the dreaded April 15th tax day, this was not surprising. In light of today's news release, those sellers may have done you a favor if you don't own the stock yet and are thinking of participating. We believe today's news will take the stock back to last week's levels of near $1, up from today's close of $.73.

As we pointed out in our original profile, XML Global is making the transition from a technology start up to commercial success. Management has predicted they expect to achieve at least $10 million in sales during the fiscal year which begins July 1, 2001. Their first major commercial contract came from the US Government.

Today, just after the market closed, XML Global announced their second major commercial contract. The contract is important because it helps validate the value of XML's software solutions. The contract is with MedChannel, a private company which was formed in 1999 and funded by Johnson & Johnson (NYSE: JNJ), Goldman Sachs (NYSE: GS), and numerous other high profile names in the investment banking world and health care. MedChannel recently announced a second round of funding of $42 million. Click here to read the press release.

MedChannel is committed to reducing health care supply chain waste by building a collaborative health care network that will provide technology and value added services to increase efficiency, drive value and reduce costs for all participants in the health care industry. Annual health care waste due to inefficiencies in the supply chain are estimated to be $11 billion.

This contract helps confirms XML Global has leading edge technology in the exploding XML revolution, and the company will get its fair share of the XML market. Hopefully, this is the first in a series of similar news to come out.

If you didn't get a chance to read our original profile, now would be a good time to do so. You can go there by clicking here. This news release could take the stock back to last week's levels of near $1, which would be 26% above today's closing price.

Here is the complete text of the news release for your review:
 

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