Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
It is our mission to find opportunities
in the small and microcap world that you might not be able to find on your
own. We know there is tremendous interest in IPO (Initial Public
Offerings) because there are so many high profile IPOs that
we hear and read about from the Main Stream Wall Street Media. On behalf
of our members we have been trying to find these opportunities. We will
only feature it if you can actually get the stock. Before covering our
current IPO alert, here is an update on StockGroup Holdings (OTC BB:
SWEB).
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StockGroup
Holdings Ltd (OTC BB: SWEB) Update |
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Stock Group has been a very
frustrating situation for us and shareholders alike. We have been getting
a lot of questions about the company lately, so we invited Marcus New,
the CEO of the company for an audio interview. He immediately agreed.
We launched our original profile
on this company in August of 1999 at $3 per share. The stock traded up
to $5 in September and it's been downhill ever since. Last week the stock
was trading below $1.
At the high risk end of the market
we know that some of the companies we profile will perform poorly. StockGroup
is particularly frustrating because the company has been delivering solid
results. Their business is growing dramatically, and the losses are shrinking.
The company is delivering as promised. Shareholders are frustrated by the
stock's poor performance.
To compound the frustration, there
have been numerous buy recommendations on the stock from brokerage firms.
The latest coverage was announced on Monday of this week.
On Monday, First Colonial Securities
issued a "Strong Speculative Buy" Recommendation on the stock, and gave
it an 18 month price target of $14.
This news put a little life back into the stock. Click
Here to read the news release.
Yesterday we had the opportunity
to interview Marcus New, the CEO. He was very forthcoming about the company's
struggle for recognition and what he views as their failure to help investors
understand their business model. We strongly recommend that you listen
to the interview. The stock could be a screaming buy at these levels. Listen,
and make up your own mind.
Click
Here, and the interview will automatically
begin to play.
Alternatively, you can copy and paste
the following web address into your browser.
http://www.vcall.com/NASApp/VCall/ConsoleFrameset?ID=26517
Hit enter, and the interview should
begin to play.
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Quinalinux
Limited- Our Third IPO Alert of 2000 |
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In December of 1998 we presented
an IPO opportunity to our members. We made the mistake of publishing
a contact and phone number at the brokerage firm, and we jammed up their
switchboard for three days. No one could get through on the phone.
This time we have automated the process on the Internet, and it will be
much smoother if you follow the simple steps we have laid out for you.
IPOs- How They Work
Most public companies begin trading
through an Initial Public Offering (IPO). Here is the sequence
of events that leads to an IPO:
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A Private Company which would like to
go public gets together with a Brokerage Firm and plans to do an IPO.
The Brokerage Firm's corporate finance department reviews their business
plan, and together they work out an Investment Banking arrangement by which
the Brokerage Firm agrees to raise them a pre-determined amount of capital
through an IPO. The company then uses those funds execute its business
plan.
-
The Company files a registration statement
with the SEC which is meticulously reviewed, and several versions of it
may be generated prior to the IPO. The document is known as
a Preliminary Prospectus or Red Herring.
-
Once the SEC completes its review, the
company is cleared to go public. The Underwriting Brokerage Firm
then negotiates the final price of the stock with the Company, and just
prior to the stock opening for trading, clients of the Underwriting Brokerage
Firm are allowed to purchase the IPO stock at the predetermined
price. No commission is paid by investors, it is paid to the brokerage
firm by the Company. After all the stock is placed, the stock opens
for trading. The money from the sale of shares which investors purchase
goes directly to the Company.
-
There are a finite number of shares
available for investors in the IPO. If there is extremely
high demand for the shares and a limited supply, the stock will generally
open for trading at a higher price that the original IPO price.
If demand is weak the stock may go down.
-
You must have an account with
the Underwriting Brokerage Firm to be allowed to purchase the IPO
shares. Once the stock is trading, it may be purchased through any
brokerage firm in the open market.
Over the last several years there have
been IPOs that were priced in the $15 to $30 range that actually
opened for trading between $50 and $100. Those fortunate investors
that were given the IPO shares enjoyed substantial profits almost
immediately. However, very few IPOs trade this well immediately.
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Quintalinux
Limited |
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Quintalinux Limited
is scheduled to begin trading next week. The company is principally engaged
in the provision of information technology services, interior design and
contracting services, and marketing technology products in Hong Kong and
China.
Contracting services accounts for
56% of the company's revenues, and technology products account for the
other 44%. During the fiscal year which ended on March 31,
2000, the company experienced $26 million in revenues and made $2.9 million
in net profits ($.37 per share).
In our opinion, there is a certain
amount of excitement surrounding this underwriting because the company
is focused on offering the Linux Operating System in its technology products.
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How
to Participate |
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Mr. Karl Birkenfeld,
Vice President of Sales for Barron Chase Securities, will be handling
the transactions for our members that wish to participate in this IPO.
Karl is located in the Barron Chase branch in the World Trade
Center of New York's financial district.
At the bottom of this section is
a link which will take you directly to a sign up page that we have created
to facilitate this process. Sign up on this page if you are interested
in this or any future IPOs we may cover. A copy of the form
will be forwarded directly to Mr. Birkenfeld.
After you have filled out and submitted
the form, your browser will take you directly to a web site owned and maintained
by Karl Birkenfeld for the purposes of streamlining the process
of requesting shares in an IPO. There is a simple six
step process which includes reading the preliminary prospectus,
which you can find at the site. Very Important- Follow the simple
six step procedures that you will find at the top of Mr. Birkenfeld's
home page.
It is very important that you take
the time to read the Preliminary Prospectus. Pay particular attention
to the risk factors. We want you to know exactly what you are investing
in.
Click
Here to be Taken to the Sign Up Form
Web Address: http://www.otcjournal.com/quintalinux.html
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Conclusion |
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Please do not misconstrue the information
on Quintalinux as a buy recommendation on this IPO. Read the preliminary
prospectus and make your own judgment. This is the fourth IPO we have featured
from Barron Chase, and each one of the previous three opened for trading
at a premium of at least 24% above the IPO price, so the underwriter has
a reasonably good track record.
We have no formal relationship with
Quintalinux, so this is the only information you will receive on
the company from us. Once it is trading we will not cover the company.
However, to our knowledge we are the only financial portal that actually
features IPOs that its members can get at the IPO price if they so choose.
Invest with caution. It is your money,
and you will ultimately enjoy the gain or suffer the loss.
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