To OTC Journal Members:
 

Santa Comes in January for Shareholders of XML Global (OTC BB: XMLG) and Cross Media (AMEX: XMM)

Today is a red letter day for OTC Journal members who have invested in XML Global Technologies and Cross Media Marketing. Both stocks have been tearing up the charts over the last two months, up 260% and 70% respectively since the first of November. The OTC Journal has been very bullish on both stocks, and profits are being enjoyed by investors. We're very pleased to provide our members with profitable ideas on a par with our performance before March of 2000.

Today both companies issued block buster press releases, suggesting that both stocks are poised for much higher levels. Here are our thoughts on both press releases.
 

XML Global Technologies (OTC BB: XMLG)- News After the Close

This stock was trading at a mere $.18 on November 1st, down from a 2001 high of $1.21. It is now up 260% from the bottom, and well on its way to recovering to its former high.

XML Global is a software company specializing in the revolutionary new programming language referred to as XML (extensible markup language). This "language" has the ability to act as a universal translator which allows huge computer systems to talk to each other efficiently.

Their latest product, "Xtract", has been receiving unprecedented media coverage. Both Business Week and Investors Business Daily had feature articles on Xtract in December editions. Click Here to visit a web page with links to recent media coverage of XML Global.  Xtract provides law enforcement organizations new technology for identifying and tracking stolen goods.

We feel XML Global is headed back to the $1 level, and possibly higher from there as a result of today's news. The stock has been climbing rapidly in the last week in advance of this news, so investors can assume rumors have already been circulating. Today's news is absolutely huge, and could have a major impact on the investment community's view of this company.

After the market closed, XML Global announced it was awarded the Open Applications Group contract for implementing the Standards for Technology in Automotive Retail, or STAR project using ebXML technology.

Nearly all major automobile manufacturers are members of the The Open Applications Group (OAG: www.openapplications.org). This organization has been assigned the task of implementing the STAR project (www.starstandard.org). The goal of STAR is to create solution for all members of the automobile industry's computer systems to communicate with each other through the Internet and other means.

In short, XML Global has received a contract to create the environment by which the entire automobile industry's information will flow between manufacturers, suppliers, and dealers. This contract only covers designing the system and providing "proof of concept". Once the system is proven out, XML Global will have the opportunity to implement multi million dollar systems at individual automobile manufacturers and other peripheral industry related businesses.

Although not mentioned in the press release, the editors of the OTC Journal have been informed that the contract was awarded in competition with about 8 other major vendors.

Conclusion: Since the stock has traded up dramatically over the last week it may actually pull back as short term investors take profits into this news release. However, the news is so strong the stock could go straight up. We feel the stock is headed back to $1 in the near term, and any weakness would be an opportunity to accumulate. Click Here to read the full text of the press release.
 

Cross Media Marketing (AMEX: XMM) Announces Major Acquisition

Today, just prior to the market open, Cross Media announced a major acquisition. Cross Media announced it will be acquiring National Syndications, Inc, the largest print advertiser on Sunday in the United States, reaching 62.5 million households weekly in over 1500 newspapers. The acquisition is expected to close within seven business days. NSI expects to report 2001 revenue of $55 million with pre-tax income of approximately $4 million.

While National Syndications is not a household name, their publication is. National publishes Parade Magazine, the weekly we all have seen and our read in Sunday papers all over the country for many years.

As disclosed in the press release, Parade Magazine reaches 62.5 million households every week. Based on 2001 performance, National will add over 50 million in revenues to Cross Media's performance, bringing their annual revenue stream to over $200 million.

It was also disclosed National expects to make $4 million in pre tax profits in 2001. Investors must take into account that private companies are generally managed to create the least amount in profits to avoid significant taxes. One can expect National to be more profitable as a subsidiary of Cross Media.  Public companies are managed to generate maximum profits.

The OTC Journal's editors have been recommending purchasing Cross Media up to $10 per share with a price target in the first half of 2002 of $15. As a result of today's press release we now believe the stock can be purchased up to $15, with a price target of $20 to $25.

Higher levels could also be attained further down the road. The current average PE in the advertising sector is 39.01. If the company earns $1.25 per share in 2002, as projected in today's press release, the stock could trade at $48.75 if it can attain the average PE Ratio assigned to the group by today's market. Click Here for a table of this information.

The stock is still a buy, and any dips in price should be used as opportunity to accumulate. Cross Media is our number 1 pick for 2002 so far. Click here to read today's press release.
 

Last Friday's Trading Alert on DIRX- An Uncooperative Market

As many of you know, we published a Trading Alert on Dupont Direct Holdings (OTC BB: DIRX) last Friday. The stock closed at $.70 that day. In the alert we specifically recommended that shares be purchased up to the $1.00 level, looking for a short term move to $1.20 and a longer term move to $2.

The stock opened on Monday at $1.39, 100% above Friday's close. The market responded with enthusiasm to the press release. In our Trading Alert we stated our opinion that the stock should be purchased up to $1. However, it never traded that low. If you bought the stock above $1 you made a mistake if you were looking for a short term trade. Sometimes the market doesn't cooperate, and it is always wiser to err to the side of caution in these cases. The stock opened too high for a favorable trade.

If you did buy the stock near the $1 level we believe you still have a good chance to make a profit on this trade. We still believe this stock could challenge the $2 level in the next several months.

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts.

MarketByte LLC has been paid the following fee by XML Global for a year of representation: $100,000 cash, 60,000 shares of free trading stock, 60,000 shares of restricted stock, and 60,000 options exercisable at $2. The 60,000 shares of free trading stock have been contributed by a third party on behalf of the company. MarketByte LLC has been paid a fee of $55,000 by Cove Hill Consultants for coverage of Dupont Direct Holdings.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.