Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
Special
Announcement |
 |
The Month of July is going
to be very exciting for members of the OTC Journal. We are
introducing three new features that you can use to enhance your investing
experience. We are going to start the month off with the launching of the
new OTC Journal Referral Contest. We will be giving out $10,000
in prize money for the top ten referring members between July 1st
and September 30th.
The home page of the OTC
Journal will change this weekend. There will be three new feature buttons
with exciting new content. The following is a list of new features we are
introducing in July:
 |
The OTC Journal
Referral Contest |
|
Pending any unforeseen technology
problems, when you visit the Home Page of the OTC Journal (www.otcjournal.com)
on Saturday you will find a new button on the left menu bar for our
$10,000 Referral Contest.
The contest will begin on Saturday,
July 1st, and run to September 30th. At the end of the contest
we will award $10,000 in prize money to the members that refer the greatest
number of new members. The top 10 competitors will all received cash. $3,000
will go to first place, and the remainder will be allocated based on the
schedule found in the rules section.
You can visit the new section of
the site to learn all the rules. To compete you will need to get an ID#
so that you can be credited with each referral you generate. You can obtain
your Referrer ID by simply inputting your e-mail address. From there, we
will provide you with a link that you can use to allow your referred members
to go to a web page to sign up.
Creative contestants will want to
go out on the Internet and recruit new members from chat rooms and other
forums where there is a lot of traffic. You can use your personal link
to recruit sign ups. Directions will be included in that section of the
site.
|
Daily
Swing Trading Ideas |
|
Another new section will go up over
the weekend. We are going to start providing a daily pick in a large cap
stock with an entry level, stop loss, and short term target price. Active
traders will want to visit this section daily. This content will not be
provided by e-mail. You must go to the site to get it. You can also use
this new feature to help bring new members in the referral contest. These
ideas will be based strictly on technical analysis, and we have brought
a new analyst on board to make the stock selections. The first pick will
go out on Wednesday, July 5th.
|
Live,
Real Time, Streamed Quotes |
|
This new feature will be available
about July 15th, and we will be the first site on the Internet to bring
you this exciting new service. You will be able to go to a new page on
the OTC Journal, and set up your own custom designed real time monitor
grid with dynamically updated quotes.
To our knowledge there is no place
else on the Internet you can get this service For Free!!!! Once
launched, you will be able to visit the OTC Journal and set up your
own stock quotes page. You will be able to set up your own list of stocks
on a monitor grid, and the quotes will update dynamically in real time.
You will also be able to receive
real time stock charts and free, real time, dynamically updating Level
II quotes directly from the Market Makers. Some brokerage firms offer this
to active customers. Many services charge as much as $200 per month for
this. The OTC Journal will be the first to make it available on
the Internet for free. You can also use this new service as an incentive
to bring new members to the site.
We will have more information as
we get closer to the July 15th launch date.
|
Market
Comment |
|
As widely expected by analysts, the
FED did not raise interest rates today, bringing an end to eight straight
interest rate increases totaling 1 3/4 points in all.
The market sold off a little on the
announcement and the rebounded. Most analysts feel that the NASDAQ will
certainly find its way back above 4000, and hopefully a lot higher over
the summer.
We have been toying with the levels
we started the year at, but there is still of lot of damage to repair from
the April/May sell off. We should be entering a period of declining interest
rates which is good for stocks, but there is a lot of churning to come.
No one seems prepared to declare that the Bull Market has returned. Time
will tell.
We know that an economic environment
of rising interest rates is bad for stocks. Conversely, an economic environment
with decreasing interest is good for stocks. We hope to see some of the
beaten down secondary start to perform well now.
|
NetSol
International (NASDAQ: NTWK) |
|
Our long term members should know
this stock well. It has been a super star for us, and the testimonial
section on our home page bears that out.
Our original profile was launched
on January 15, 1999 at $3.81. At the time the stock was trading on the
OTC Bulletin Board. Since that time it has traded as high as $75 on
the NASDAQ.
The stock was solidly in the $50
range in March when the markets sold off. Subsequently, the stock fell
all the way to $16.25 on May 30th, but since has rocketed back up.
An large short position of approximately
500,000 shares was recently reported in the Wall Street Journal. However,
these short sellers must be demoralized by the recent performance of the
stock.
The stock rebounded from $17 three
weeks ago to a closing price today of $45 1/2. We may be witnessing what
traders describe as a Short Squeeze. According to recent SEC
filings, Blue Water Partners Hedge fund still holds 2.2 million shares
of NetSol. There are only approximately 3.7 million shares publicly
traded. Other fund managers hold blocks, but not enough to require an SEC
public filing.
The short sellers are going to have
difficulty finding the shares to cover their short position unless existing
shareholders are willing to sell. There has been no indication of any willingness
to see over the last several weeks while the stock has been making an extraordinary
run.
Furthermore, another fact may further
confound the short sellers in this stock. There is a possibility
that NetSol International (NASDAQ: NTWK) will be added to the Russell
3000 index on July 1st. NetSol is on the list of potential candidates,
and its addition will force fund managers with Index funds to purchase
the stock. We will not know if it has been added until July 1st, but we
have confirmed that it is on the candidate list.
The dramatic decline in the stock
in May was precipitated by negative comments on the both the Company and
the Fund Manager in two separate editions of Barron's. Barron's is generally
considered the National Inquirer of the securities media, and is often
exploited by short sellers to put forth and agenda of fear and panic investors
into selling.
Unfortunately for these short sellers
their efforts have failed as of today. From a valuation stand point, it
is hard to make a case for the stock having a great deal of upside from
today's levels based on trailing financial performance. The company will
end fiscal 2,000 (June) with about $5 million in sales. They are forecast
to achieve over $20 million in fiscal 2001. The stock currently has a $450
million market capitalization. Growth is dramatic. However, in March we
saw many growth stocks trade to valuations far beyond any levels that made
sense by any traditional analysis.
We know this- Increasing Demand
when matched with Decreasing Supply always adds up to price increases.
This stock may go a lot higher simply based on technicals at the expense
of short sellers that can't find stock to buy without driving up the price.
Time will tell.
|
