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To
OTC Journal Members:
New Profile: We have
decided to introduce our new profile next Friday, February
14th in honor of Valentine's Day. Be prepared to check your inbox if you
want to read about revolutionary new technology which could end up widely
used by automobile manufacturers.
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The Price of
Freedom |
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The price of freedom comes in many
forms, and stock market investors are paying right now.
It doesn't matter if you agree or
disagree with President's Bush's inevitable march towards war with Iraq.
War is coming. George Bush is our President, and as such he is the man
charged with making these tough decisions. There is no doubt he has decided
to attack Iraq and put Saddam Hussein out of business.
Colin Powell's compelling presentation
to the UN Security Council this past week erased any possible doubt. The
only thing left to do is wait for the political process to run its course,
followed by strategic bombing and CNN coverage. We believe the war will
begin sometime in the next several weeks.
The pre-occupation with the pending
war and geopolitical events has led to complete disinterest in the stock
market. Like a wounded animal in hiding, the market is slowly bleeding
to death everyday. Buyers are waiting for virtually risk free entry levels
to step up to the plate, and volume is nonexistent.
In the meantime, commodities prices
are rising steadily, and the dollar continues spiraling downward. All in
all, a tough environment for investors who still believe in growth companies.
This is a small part of the price of freedom.
The chart of the NASDAQ since mid
January tells the whole story. Price erosion everyday resulting from fear,
lack of interest, rising commodity prices, and uncertainty about the war
has led to a slowing declining and low volume market.
Volatility is absent from the current
market, but volatility will come back, and it will be a welcome change.
The editors of the OTC Journal
continue to believe the beginning of the war will offer one of the most
exciting buying opportunities of all time. Stocks will undoubtedly free
fall as bids disappear and prices drop in a vacuum. Market makers will
try to suck sellers in at lower prices, whipsawing investors into trading
blunders.
Do not be fooled. Do not panic and
give them your stock. We believe there is a high probability this war will
be very swift and decisive. When Iraq attacked neighboring Kuwait a decade
ago it took two weeks for the United States to turn the tide. This time
we have been building our forces and preparing for this war for months.
Troops, munitions, and high tech weapons are in place. Targets have already
been identified. We will be ready.
We'll offer trading ideas when the
time comes. Look for us to identify a couple of trading ideas in stocks
that fall the farthest on the lightest volume. They will bounce the hardest.
You will have to act quickly. Opportunistic money is building on the sidelines,
getting ready to pounce like a mountain lion.
Since the beginning of the Bear Market
in March of 2000, there have been three periods when it looked like the
cycle might be complete, and we could return to a growth economy and a
bull market:
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The market looked like it would improve
near the end of the summer of 2001, then we had 911.
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The market looked like it would improve
near the end of 2001, then we had Enronitis and the crisis of confidence.
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The market looked like it would improve
at the end of 2002, and now we have war with Iraq along with spiraling
oil prices and a falling dollar.
Six months of economic activity without
any external events to derail an economic recovery would put us back on
track. We are convinced economic expansion will return if we can avoid
horrific terrorist attacks, massive corporate fraud, and an outbreak of
war for an extended period. Declining oil prices would be the best short
term medicine for our economy. This would be the best tax cut we could
get, and the best economic stimulus. Lower oil prices would be the most
immediate result of a quick and decisive war in Iraq.
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Next
Week- Calypte Biomed (OTC BB: CALY) and Irvine Sensors (NASDAQ: IRSN) in
the News |
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Calypte Biomed: Calypte
Biomed is one stock
which has been trading extremely well as of late. The stock doubled last
week on the heels of President Bush's State of the Union address where
he put the AIDS epidemic in Africa squarely back in the public spot light.
This coming Monday, February 10th,
Chairman Tony Cataldo and President Nancy Katz will be presenting at the
Wall Street Analyst Forum 47th Institutional Investor Conference at The
Roosevelt Hotel in New York City, New York on Monday at 9:00 AM eastern
time.
The presentation will be webcast
live, and interested parties should register for the broadcast at the investor
section of Calypte's web site, found at www.calypte.com.
In addition, Chairman Tony Cataldo
has agreed to be interviewed by the OTC Journal. The date of the
publication is to be scheduled soon and will be announced. Mr. Cataldo
will be answering questions concerning fundamental corporate developments
and the potential dilution surrounding Calypte Biomed's plan to
increase the authorized number of shares from 200 million to 800 million
in a special shareholders vote on the 14th. Mr. Cataldo will be
addressing this issue specifically.
Irvine Sensors:
Irvine Sensors should
be releasing December quarterly earnings sometime next week. For the first
time in several years, management plans to conduct a conference call in
conjunction with the earnings release. Stand by for more information as
dates are finalized.
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