Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
We would like to take this opportunity
to thank all our members that gave us feedback on the new format this past
week. 95% of the e-mails we received favored the new look and scrolling
ticker bar, so we will keep it. The new format will not entirely
appear for AOL subscribers, web based e-mail addresses, and plain
text browsers.
If you have any difficulty reading
or seeing the newsletter in our new format, simply click on the link above
the OTC Journal header bar, and wait for the web page version to
open. This will work for AOL, Web based e-mail addresses,
and most plain text users. Subscribers at large institutions may
still have some problems if your main server strips or corrupts our message
in any way. Of course, you must be on the Internet when reading the
newsletter for the scrolling ticker to work. If you are reading off-line,
it will not work. The scrolling ticker continues to give an accurate
15 minute delayed quote as long as you keep the message.
This weekend's edition will cover
a variety of subjects. We are at least two weeks away from our next
profile, so this will give us some time to get caught up on issues we are
always asked about.
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Company
Coverage Selection Process |
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We receive a lot of e-mail requests
from our members to provide updates or coverage on certain of our profiled
companies. Our policy in this area is simple. We release our
monthy profiles on Fridays after the market closes. This gives the
largest number of our members the opportunity to read it prior to the next
trading day.
Once we release a profile it is up
to the company to perform in order for us to continue providing updates.
Many of you have probably noticed that the best trading stocks are the
companies that provide the greatest number of substantive press releases.
The others tend to languish.
Blue Zone (OTC BB: BLZN) has
given us a number of contracts and alliances to report on since the first
of the year, and the stock has appreciated 206% since the release
of our original profile on November 12, 1999. Other companies
have given us nothing to report on, and this lack of progress tends to
be reflected in the price of their stock.
Occasionally when we feel that a
stock may have drifted down to an outstanding entry level we will contact
management for an interview when there is no news. We will only do
this if we feel that fundamental developments are close at hand and there
is substantial upside from current levels.
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NetSol
International (NASDAQ: NTWK) |
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Our coverage of this company formally
ended on January 15th, but we have a soft spot in our hearts for this one,
and we will continue to cover them as long as we publish. This has
been a dream stock for us, and by far the best performing stock we have
ever covered. We released our profile on January 15, 1999 at $3.88.
It closed Friday at $63.25 for a 1510% return over 14 months.
This company provided us with a constant
stream of positive fundamental developments throughout 1999, and the good
news continues. This past Thursday the company announced a new relationship
with CFS Group LTD, and UK company which trades on the London
stock exchange. Click
Here if you wish to read the entire text of the news release.
This new relationship will be worth substantial future business to NetSol.
Embedded in the news release is a
clue to this company's potential that most investors would have missed.
At the end of the press release their Investor Relations contact is listed
as Lippert Heilshorn and Associates Inc. This might not mean
much at first glance, but professionals know that this is the same IR firm
that represents some of the best Silicon Valley public success stories
including Red Hat, Inc, one of the hottest IPOs of 1999.
Lippert will be taking them to many institutional investors.
In addition, NetSol will be
looked at by an entirely new audience of investors this week. On
Friday, NetSol's shares quitely began trading on both the Hamburg
and Frankfurt stock exchanges thanks to their potential acquisition
of an ISP in Germany. Click
Here to read the press release.
Sometimes the best just keep getting
better.
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IPO
Alert |
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The first company in our IPO alert
program opened for trading on March 17th. New China Homes LTD
came public with one share of common stock and one warrant. The common
stock was priced at $5, and the warrant was priced at $.125.
Their ticker symbols are NEWC and NEWCW respectively.
On Friday the common stock closed
at $8.25 bid, and the warrant closed at $3.1875.
This represents a net profit of $6.3125 for the two combined, or
123%
in six trading days.
We understand that a large number
of our members opened accounts with Barron Chase Securities and participated
in this IPO. Congratulations on getting into a winner. The
next IPO alert will be coming soon, so keep on reading. Check the
IPO alert on our home page for current opportunities. We will not
feature one unless the underwriter allows our members to get stock in the
IPO.
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Pawnbroker.com
(OTC BB: PBRR)l |
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Last Friday's edition on Pawnbroker.com
sparked quite a bit of interest in the stock. It closed at $7.50
last Friday, and saw a high over $17 during the week. It then pulled
back into the $11 range and finished the week at $13.625.
We reported on the soft launch of
their e-commerce site which was scheduled for last Wednesday. The
site has not opened for business as of today due to technical problems.
We have not been able to reach management for a comment. However,
we think they handled the situation very poorly. They should not
have announced the opening until they knew it was ready to go. Hopefully,
this will turn into a short term problem, and the company will not make
any formal announcements in the future until they know what they are doing.
In last Friday's edition we reported
that 3,000 Pawnbrokers have signed up to sell merchandise on the site.
We have since learned that statement is not entirely accurate. 130
Pawnbrokers are programming merchandise into the site for the soft launch.
3,000 have verbally expressed that they will participate, and those applications
are being processed now. Our apologies if we inadvertently misled
anybody. We were reporting the facts that management gave us.
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MicroAccel
(OTC BB: MIXL) |
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We released our original profile
on MicroAccel on January 21st at $4.50 per share. Since
that time the stock has been as high as $8.19, but has since retraced
all the way back to the original profiled price.
In our original we made it clear
that there was a great deal of risk in this situation. MicroAccel
needs to complete its acquistion of NV Memory before they even have
a business, and that has not occured yet. We made it clear in the
original profile that this was a risk factor.
As of the close of business on Friday,
this acquisition has not yet occured to our knowledge. The stock
has been drifting down on light volume awaiting the completion of the merger.
If for any reason the merger does not occur, MicroAccel will be
a corporation with $4 million in the bank, no debt, no business, and the
stock will probably trade lower.
We are disappointed that the merger
has taken so long. This is taking longer than our original expectation.
We haven't spoken with management directly, so we don't the state of the
negotiations.
The purpose of this update is to
remind shareholders of the risks. Let's hope that the issues slowing
down this merger can be resolved quickly, but there are no guaranttees.
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Our
Member Survey |
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On the right hand menu bar of our
home page at www.otcjounal.com,
you will find a new Member Survey button. Please take the time to
fill this out. It is designed to help us improve the newsletter for
your benefit. Click
Here to go directly to the survey.
That's it for this weekend.
We hope to be back to you next week some with exciting news and stocks
that are trading well. |
