To OTC Journal Members:
 

Comments in the BLOG

For those of you who haven't been paying attention, OTC Journal favorite BrandPartners (OTC BB: BPTR) printed at a new all time post coverage high of $1.10 on Friday. The stock has been quietly creeping up the chart. I'm planning a BLOG update over the weekend, so those with an interest should check the site late Sunday. FMLY might also enjoy a new BLOG posting. Please submit your comments or questions. 

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets.
 

New Ideas At Hand

2005 has to date, been characterized by a lack of new ideas from the OTC Journal. So far, as promised in the '04 wrap up, this year I have been much quicker to turn negative when things were not going according to plan, i.e. MRKL and GPSN. 

Even though there are 4,000 microcap stocks, it's hard to find the right companies to cover. After a lot of searching, I have finally found two or three new ideas I believe you will love. 

The first idea will come early next week. The hard part will be buying the stock at a reasonable price. This company has such a dramatic development the stock will no doubt trade much higher from one day to the next. The event will kick off a major multi year expansion, so don't despair if we pay up a little for the stock. You will want to consult the BLOG before trading the next day.

The second idea will be more akin to BPTR- it will be an undiscovered gem already generating significant sales and earnings. The stock will probably allow you some time to accumulate as more investors get exposed to this undervalued situation.

Behind that there are a couple other ideas brewing. Stand by- it's going to get exciting. 

Now, on to some breaking news from the company we've been covering the longest:
 

Family Room (OTC BB: FMLY) Announces New Film With Nicolas Cage

After the close on Friday Family Room announced another new film slated to go into production in the next several months. This film is entitled Wicker Man, stars academy award winner Nicolas Cage, and will begin filming on July 15th.

Like the doggie in the window, are you confused? I am. I don't really know why this stock can't get going. After all, here's their slate of films going into production over the next six months:

• LONELY HEARTS, starring John Travolta and James Gandofini, is set to begin principal photography on March 24, 2005
• MERCENARY, starring Steven Seagal, is set to begin filming on April 4, 2005
• THE CONTRACT starring John Cusack and recent Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 5, 2005.

For those of you who are wondering, Family Room has a few more major projects on the drawing board which could come to fruition over the next several weeks.

The company really has a lot going on, and I know investors continue to be puzzled by the lack of upward mobility in the stock. No one is more frustrated than I.

We might have finally arrived at a point where this stock can behave better. This new slate of films should draw some attention, and there shouldn't be any big supplies from toxic financings to hold the stock back.

Here's a very long term look at a weekly chart of the stock. The daily chart isn't even worth looking at. If the stock can get going, I believe the first upside target would be $.098, with $.121 following behind. 

The stock has made several attempts to rally in the past, only to be sabotaged by supplies from toxic fundings. At this point in time, the market should have already absorbed the excess supplies, and there are no new supplies available for sale at this time to my knowledge.

The company is in registration on a convertible debt financing which could lead to dilution, however it will occur over a five year period. It is impossible to determine the level of dilution, because it will depend on where the stock trades and whether the company simply chooses to pay the debt in cash. Worst case- 40 million shares over five years if the stock stays above $.07- best case- zero shares. The financier stands to make a lot more money if the stock trades over $.15.

In any case, none of those shares is free trading at this time, so we might finally see some upside. 

Here is the complete text of Friday's news release for your review. It has a good recap of all the state of all their projects, so it's worth studying.
 

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