To OTC Journal Members:
 

Market Comment

The NASDAQ finally dropped below 1400 today for the first time since September 21, 2001 on the heels of WorldCom's admission it overstated last year's cash flow by $3.8 billion. More fraud in the news.

The media was in a frenzy, suggesting minute by minute that our entire economic system about to completely unravel. Traders were expecting a cataclysmic sell off at the open, and were disappointed by the lack of sell side volume.

Certainly, the NASDAQ's drop below 1400 keeps the steady erosion of value in place. However, aside from the Telecom sector, there was very little volume associated with this continuing selling pressure.

For example, our favorite idea for 2002, Cross Media Marketing (AMEX: XMM), closed flat today, but it was only on 37,500 shares of volume. The stock trades an average of 120,000 per day. Therefore, volume was 1/4 of normal, suggesting there were no real sellers.

In fact, most investors have already sold if they were going to, and short sellers have already sold all they could borrow. A buyers strike is keeping the bias to the downside, but there doesn't seem to be any real sell pressure, especially in the small cap arena where accounting fraud in rare.

WorldCom was already trading under $1 per share, so how much lower was it going to go?
 

Special Announcement- New Profile To Be Released This Friday

Do you know what the following companies have in common? Answer below.

• eBay (NASDAQ: EBAY)
• 1800Flowers.com (NASDAQ: FLWS)
• Overture Services (NASDAQ: OVER)
• Expedia Inc. (NASDAQ: EXPE)
• Hotels.com Cl A (NASDAQ: ROOM)
• Priceline.com (NASDAQ: PCLN)

While everybody talks about eBay as the dot com that worked, there are many others. Overture Services is a startling example of a successful dot com business model. The company provides pay-for-performance search services on the Internet. Here is their historical revenue performance:

• 1999- $26 million
• 2000- $103 million
• 2001- $288 million
• Last quarter: $142 million

We had a spectacular ride on Cross Media for you from the time we introduced it. It ran from $6.70 when we found it on November 5th 2001, and saw a high of $14.89 on April 8th (up 122%) on the back of strong fundamentals. We are expecting a repeat performance here, as this idea is based on rapid growth in both sales and earnings, not start up technology. Stand by to read an exciting new profile this weekend.
 

Special Alert: Calypte (OTC BB: CALY) Nearing Alert Target Price

On May 31st we published a Trading Alert on Calypte Biomed, the only company with an FDA Approved test for HIV using urine. The stock was just under $.14 at the time.

We placed a price target of $.20 on the stock in our Trading Alert. In case you hold the stock and are following the situation, it has been appreciating steadily on the back of several positive announcements.

The stock closed today at $.189 (up 37%), fast approaching our $.20 target. More on this micro cap in future editions.

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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 pledged a fee of 250,000 free trading shares of Calypte common stock by First Stage Capital for coverage of Calpyte Biomed. Please review our policy on selling shares found in our Mission Statement on our home page. 

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