Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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NetSol
International Trading Alert- Red Hot |
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We are finally rolling into November
and small stocks are beginning to trade consistently well for the first
time in months. Our last two Trading Alerts have both been winners,
with NetSol International (NASDAQ: NTWK) closing above $11
from Thursday's alert at $9.18, and Udate (OTC BB: UDAT)
having found it way above $4 from $3.50 in just one week. Don't be in any
hurry to take your profits on NetSol. This stock has the potential
to trade back into the mid 20's where it was on September 1st. You
might want to consider raising your stop loss to $10.00 in case it goes
the other way. A real short squeeze may be forming here. This stock might
be on its way to much higher levels. We will keep you up to date regularly
as the story unfolds.
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Envoy Communications
(NASDAQ: ECGI; TSE: ECG) |
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Envoy Communications is one
of our favorite stocks for a big winner in the next bull market. We have
stated before, we believe this will be a $20 stock some day.
We have been hearing rumors of major impending news from Envoy which
were reinforced yesterday.
One of the Toronto newspapers, the
Financial Post, leaked a story on Friday stating Envoy Communications
could be on the verge of buying London-based advertising agency Leagas
Delaney. The article went on the state the formal news release could
come out as early as Monday.
According to their web site which
can be found at www.leagasdelaney.com,
the agency has combined billings of over $1/2 billion annually,
and handles advertising for such high profile customers as Adidas, Barclay's,
Coca Cola of Europe, and Porshce, just to name a few. You can find
a complete list for each of their divisions at their web site.
If the report in the Financial Post
article is true, this acquisition will double the size of the company overnight.
With the recent announcement that Merrill Lynch has become the company's
strategic advisor for their acquisitions, all the pieces seem to be falling
into place for Envoy to develop the Wall Street following the stock
so desperately needs to achieve a reasonable valuation.
With the cat out of the bag we would
expect Envoy to release the news prior to the open on Monday. We
wouldn't be surprised to see this stock trade higher almost immediately.
An acquisition of this magnitude would be a key component and major stepping
stone towards true Wall Street recognition. If the news release comes out
on Monday we will publish a special edition after speaking directly with
management.
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Upcoming
Events- November Profile Next Friday |
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Next Friday's edition will probably
contain our November profile. Stand by for a final decision mid-week.
The mid week edition will have an
update on the trading activity in both NetSol and Envoy.
We will also review the September quarterly earnings release from our current
profile, MedGrup Corporation (OTC BB: CODX), which came out
yesterday and were right on target.
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PhotoChannel
Networks (OTC BB: PHCHF; MSE: PNI) UPDATE |
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Photochannel was our May profile
at $1.58. We released it just as the market crash was beginning. The stock
has yet to perform since our release in early May, but the corporate developments
have been outstanding during this tough market. We spoke at length this
past week with Geoffrey Briant, the president and CEO.
We believe PhotoChannel has
an outstanding business model for fulfilling the developing needs of consumers
in the digital photography world. Since releasing our profile the company
successfully provided the following corporate developments:
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Raised $15 million in
a private placement.
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Retained Soloman Smith Barney as
its Strategic and Financial Advisor.
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Announced a merger with Motofoto,
a publicly traded company with 422 Retail Stores, 2 million customers,
$190 million in annual revenues (company owned and franchise stores combined),
25 installed Fuji Minilabs and 85 new ones on order. The merger is expected
to be completed in the 1st Quarter of 2001.
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Begun operations of their on-line
film development business on the Internet.
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Announced a deal with Genuity (NASDAQ:
GENU) to install a Virtual Private Network with an eye towards becoming
the FTD of the online digital photography world.
In a future edition we will bring you
details on the way this business will unfold over time. We are working
on a special free offer exclusively for members of the OTC Journal
to use their services. This offer will come in very handy for digital photographers
during the holiday season. Details in a later edition. In the meantime
you might want to visit www.photochannel.com
to familiarize yourself with their services.
Look for a special edition early
Monday Morning if there is Breaking News on Envoy Communications.
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