Newsletter

August 18, 2000

Volume III, Issue 69

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

We had planned a different and very important edition for this weekend, but we got a call this morning from the management at PawnBroker.com concerning the press release they were planning on issuing. We asked them to wait until after the close to formally make the release. We wanted to be able to cover this one over the weekend so that all of our members had an equal chance read this before the market opened on Monday morning.

We delayed this weekend's special subject until Monday evening. The edition concerns a new and unique source for ideas to help you make money in the market with short term trading ideas.

PawnBroker.com- In the News Again With More

We know that we have been devoting an inordinate amount of our attention to PawnBroker.com. In the last two weeks PawnBroker.com has provided us with news we have to focus on because it is substantive and benefits shareholders. When the other companies have events to report we will do the same.

In our last edition we suggested that it was possible for PawnBroker.com to return to its previous high of $17 and move higher from there. We still don't see it happening until 2001, but if the company keeps moving forward as it has in the last two weeks higher levels are near at hand.

The company only carries a $50 million market cap at today's level. Even in today's deflated market $50 million is in the low end of the range for companies of this type. There are dozens of stocks trading at $200 million market caps down from the billion dollar range in March. There is plenty of upside in this stock for a company positioning itself for its first major commercial holiday season.

Recent Volume in the Stock

As recently as the end of June this stock was still trading in the $4.50 range. On the first trading day of July the stock only traded 1,100 shares and closed at $3.625. It took until August 8th before the stock traded over 10,000 shares on any day during the month. On August 10th the stock traded 798,200 shares, and that signaled the first big turn around and resurgence. Today the stock traded over 170,000 shares: on a Friday in August. This stock is back on the radar screen of investors. Volume is increasing dramatically during the seasonally worst time of the year. September will bring a lot of action back to the market. Our members are getting the competitive jump on the post Labor Day surge.

It has had trouble breaking through the $3 barrier, but we have only had one week of serious volume. More press releases like the one we are covering in this edition and the sellers at $3 will wish they had a little more patience.

A simple return to the mid June levels yields about 70% profit from today's closing price. A return to the all time high yields over 600%.

Today's Press Release

PawnBroker.com announced today that it has entered into a vendor-partnership arrangement with uBid.com, the largest Business to-Consumer auction site on the Internet. uBid was one of the most successful Internet IPO's, having been priced at $15 and hitting $48 on opening day. The company was eventually bought out by Internet powerhouse incubator CMGI at a substantial premium to shareholders.

The relationship with uBid.com opens up PawnBroker.com's merchandise to 1.5 million more registered users. The companies are planning a 30 day trial period followed by full implementation of the partnership. uBid is a powerhouse consumer marketing site. Their sales sales went from $48 million in 1998 to over $205 million in 1999.

This press release should allay any fears that PawnBroker.com won't have an audience for the merchandise that will be made available tshrough their network of Pawnshops. This is the type of alliance that allows PawnBroker.com to access 1.5 million consumers without throwing money out the window on huge marketing campaigns. uBid.com has already invested the marketing dollars.

We interviewed the Chairman and CEO of Pawnbroker.com eight days ago. At the time we were favorably impressed with their level of enthusiasm and came away with a strong feeling that this company had turned the corner and was on its way back up. They are reaching out to shareholders with substantive and positive developments. We believe that this company is just at the start of a major turn around.

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

Friday August 18, 4:35 pm Eastern Time
Press Release
SOURCE: Pawnbroker.com, Inc.

Leading Auction Site uBid Partners with Pawnbroker.com

RENO, NV, Aug. 18 /CNW-PRN/ - Pawnbroker.com, Inc. (OTC BB: PBRR), the online provider of previously-owned, higher-value merchandise for immediate purchase, today announced a vendor agreement with uBid.com, a leading e-commerce auction site and majority-owned operating company of CMGI, Inc. uBid.com is the largest business-to-consumer auction site in the United States with product sales rising from $48 million in 1998 to $205 million in 1999 and more than 1.5 million registered users.

Under this agreement, uBid.com agrees to market and sell a broad based selection of Pawnbroker.com merchandise on its site. Initially, the partnership entails a 30-day test period and based on the success of this test, both parties expect a full implementation of the relationship. Full terms have not been disclosed due to competitive reasons.

``uBid.com's proven ability to sell merchandise combined with its reputation as a leading e-commerce sales outlet makes it the perfect partner for Pawnbroker.com,'' said Glenn Spiro, CEO of Pawnbroker.com. ``The amount of inventory we access is increasing daily and uBid.com offers us greater exposure to a vast cross-section of Internet consumers.''

About uBid.com

uBid.com, a majority-owned operating company of CMGI, Inc., is a leading online auction and e-commerce site that offers consumers and small-to-mid-sized businesses the opportunity to ``set the price'' on a wide range of brand name merchandise through live-action bidding using sophisticated auction technology. Consumers can browse in more than 13 different product categories, including: computers, consumer electronics, home and leisure, sports and recreation, jewelry and gifts, apparel, appliances, art, travel and events, home improvement products, monitors and printers, off-lease computer equipment, and Auction Community. With more than 1.5 million registered users, uBid is committed to providing all customers with the highest quality auction experience on the Internet and offers supplier warranties on most consumer products. For more information, visit the company's Web site at www.ubid.com.

About Pawnbroker.com

Pawnbroker.com, an emerging e-tailer of previously-owned, higher-value merchandise available for immediate purchase, is the world's first online network of pawnbrokers to sell in a global marketplace. Consumers can expect to find high-quality merchandise such as jewelry and gemstones, watches, electronics, musical equipment and collectibles. Pawnbroker.com offers the pawnbroker industry powerful services including a global online sales channel, industry information and news, and communication tools. Pawnbroker.com was founded in April 1999 and the Company headquarters are located in Reno, NV. For further information about Pawnbroker.com, Inc., visit our website at www.pawnbroker.com.

Pawnbroker.com and the Pawnbroker.com logo are trademarks of Pawnbroker.com, Inc. All other company and product names are mentioned for identification purposes only, and may be trademarks of their respective companies.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the Company's financing arrangements, future business plans, product and web site offerings, business opportunities and expectations. All forward-looking statements are subject to certain risks, uncertainties and assumptions, including the Company's ability to complete the registration of the common stock issuable under the equity line for resale in a timely manner, the trading volume of the Company's stock, the market price for the Company's stock, dilution caused by issuing stock to the investor at a discount to market, changes in market conditions in the industry in which the Company operates. Some of these risks are more fully described in Pawnbroker.com's registration statements and reports filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

SOURCE: Pawnbroker.com, Inc.

Look for Monday nights' special edition- you will read about an exciting new investing resource.

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