To OTC Journal Members:
 

What, Me Worry?

Anybody out there remember this guy? Alfred E. Neuman, the fictional mascot of the 1960's pop culture fad Mad Magazine, is never worried. However, in typical fashion the market has found something to worry about, and the annual Armageddon type sell off is in full swing.

I've been out of touch with reality for the past 10 days, much like the venerable Alfred E. I was traipsing around in a unique part of the world in the very far reaches of northern central British Columbia where you can still drink the water right out of the lakes. Totally removed from TV, telephone, the internet, and even roads- I enjoyed the pause that refreshes.

I am now ready for battle, and ready to re enter the six to nine months that seasonally yields the best profits in the microcap world. And I'm as optimistic as I have even been- why? Because the market is setting up for another great Fall to Winter rally just like last year. Bull markets are characterized by violent, irrational sell offs. Take a deep breath, buckle up, and remember better times are ahead. You also might consider a couple of antacids.

How badly has the market sold off? Market tech guru Adam Olensis says his mid term oscillator index has only been this low twice since 1993- the immediate low after 911, and the absolute low of July of '02 (Enronitis). If you were a buyer at that time for a six month to one year time horizon, you made a fortune in your favorite stocks. This sell off is setting us up for a great six months.

So- you want a few items to worry about? Here you go:

• The sub prime melt down (Friday's big drop-Bear Stearns funded these exotic loans- now their clients are paying)
• Recession in the housing market
• Soaring Oil and commodity prices
• Near record debt service burdens
• Slower consumer spending due to all of the above

I have returned from the visit to another world where collapsing stock prices don't get noticed. The only bear to worry about was the grizzly looking for lunch in the peanut butter and jelly in the lunch box, and that bear was much scarier.

Next week we will see some earnings reports from a few of our favorite (or currently not so favorite) microcap ideas. I suspect there will be some surprises. PNWIF could sell off a little more as investors are reminded the company is rather small despite the high valuation. I believe, despite the drubbing the stock has taken, CPNE will deliver better earnings than the market expects, which won't be difficult at this price. NIHK- holding up beautifully. It could have a great August.

A drop below 2500 on the NASDAQ Comp would have me taking a shot at some calls on the QQQQs. Apple Computer (NASDAQ: AAPL) has finally corrected a bit after eclipsing my initial target price of $140 as called at $95 in March. I still believe the stock is going to $200. A BLOG on my guess on a good entry level next week.

I was hoping the summer of 2007 would be absent the typical violent sell off. However, it seems the market affords us this kind of big drop about twice a year during a bull market- this year is no different. It's been a doozy, but it sets us up for a strong six to nine months.
 

Subscribe

Information is power and timely information is profitable. Become informed and profit from OTC Journal Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the OTC Journal Email Newsletter on a regular basis.

To ensure newsletter delivery, you can add any additional email addresses you may have to the OTC Journal Member List. Receiving the OTC Journal Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the OTC Journal recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery.

Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the OTC Journal, simply follow the instructions located at the bottom of every OTC Journal Newsletter Edition.

Go 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.

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.

From time to time MarketByte LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.

The editor, members of the editor's family, and/or entities with which they are affiliated aside from MarketBtye LLC itself, 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. Some of the companies featured in the OTC Journal pay a cash ESP fee to an affiliated technology company ranging from $2,000 to $5,000 per month for internet related technology services.

The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $310,0000 in the Longview Fund (“the Longview Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Longview Fund.  Longview ocassoinally refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter. Longview may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Longview owns any shares in the companies that it refers to MarketByte LLC.  The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies. 

The profiles, critiques, and other editorial content of the OTCjournal.com may contain statements that appear foward 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. Disclaimer ID:$subst('Recip.userid') 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.  MarketByte LLC's mailing address is 4653 Carmel Mtn Rd Suite 308 #402, San Diego, CA 92130.