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OTC Journal
November 24, 1999
Volume II, Issue 61

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

It's the Holiday season, and stock market investors have a lot to be thankful for over the last 10 years.  This bull market has created enormous amounts of wealth for investors.  Please share some of the wealth with those less fortunate during this season.

Recent market action has us more convinced than ever that the first half of 2,000 will be great for small and micro cap investors.  Small stocks that are pulling back from recent rallies seem to have the strength to rebound, and volume is picking up.  All in all, it looks great for the remainder of the year and the first half of next year.

In this special Thanksgiving edition we have very important information to share with you about our parent company, 1st Net (OTC BB: FNTTE), and StockGroup Holdings (OTC BB: SWEB).



StockGroup Holdings (OTC BB: SWEB)

We have had a lot of requests for an update on StockGroup as the stock is currently trading just above a 52 week low.

We had a long conversation yesterday with Marcus New, the President.  We could not reach management last week as they were in Europe on business.

If you did not read the original profile or do not currently own the stock, now would be a good time to read it.  Click Here to be taken directly to the original profile.

Since launching their new small cap supersite, www.SmallCapCenter.com ,they have gotten a great deal of good press on the quality of the site.  Two to Three hundred new investors are registering on it every day, and a major nationwide advertising campaign is in progress.  They are in discussion with potential International joint venture partners to expand their concept to other regions around the World.

From a technical perspective, the stock is beginning to behave much better.  The stock was trading an average of about 20,000 shares a day last week, and hit a low of $1.88.  This week the stock has been averaging closer to 50,000 shares per day this week, and has already rebounded to $2.50.  The stock is moving higher on higher volume suggests that a good bottom has been completed, and the rebound could continue.  Today's action, with 204,500 shares traded and a closing price of $1.94 probably represents the last of any stock that might be for sale.

We would like to remind all of our members of the OTC Journal that we originally profiled NetSol International (OTC BB: NTWK) at $3.75 on January 15th.  On May 26th the stock traded at $1.68.  Today it is trading at $8.50.  There is no reason that this pattern could not be repeated with StockGroup.



1st Net Technologies (OTC BB: FNTTE)

Followers of the OTC Journal know that 1st Net is our parent company.  Therefore, you should always consider everything we say about 1st Net to be self-serving and a conflict of interest.

The final commercial version of the Crayon Crawler was unveiled at the COMDEX computer show in Las Vegas last week.  It was greeted with a great deal of enthusiasm, and management feels that a number of new commercial arrangements will come out of the convention.  As contracts are signed we will keep you up to date.  The local FOX affiliate TV station came out to the convention and did a short segment on the Crayon Crawler which was broadcast on their late news.  We heard that it was also broadcast in Los Angeles.  We are trying to get a tape of it to archive up on the Internet so that you can see it.

On November 5th 1st Net's symbol changed from FNTT to FNTTE.  On or about December 2nd the symbol will change back to FNTT.  These symbol changes relate to the Form 10SB which 1st Net filed with the SEC back in August to become a fully reporting company.

In early 1999 the SEC and the NASD approved a new rule requiring all companies which trade on the OTC Bulletin Board to become Fully Reporting Companies.  In order to comply, companies needed to file a Form 10SB, and complete a comment period with the SEC in order to maintain their listing on the OTC Bulletin Board.  We believe that this is a very important step in legitimizing the micro cap market, and it is an important step to help protect investors in an end of the market that is vulnerable to scams.

A schedule was published for 1999 and 2000 by which companies would be delisted from the OTC Bulletin Board if they had not achieved full reporting status by a certain date.  The schedule goes in alphabetical order based on the first letter of your symbol.  According to the schedule, 1st Net must be through the full comment period with the SEC by December 2nd in order to maintain its listing, and an "E" was placed on the symbol 30 days prior to signify this event.

In keeping with the typical cumbersome regulatory process, 1st Net filed its Form 10SB in August, but just received its first comments last week from the SEC.  They must be answered, and then the SEC must respond again until they have no further comments.  We have been told that the SEC is currently receiving approximately 700 Form 10SBs monthly, and they have about 30 examiners reviewing them.

We believe that it is highly unlikely that 1st Net will be able to complete the comment process by December 2nd, and as a result will probably begin to trade in the "Pink Sheets" as opposed to the OTC Bulletin Board.  This does not mean that the stock will no longer trade.  The stock can be bought and sold as it always has been.

This event affects shareholders in the following way:

  • The stock may not be quoted in the places you have gone for quotes in the past.  We will send everybody Internet locations for obtaining a current quote until the process is completed.
  • The price may or may not be effected, and we have no idea whether it will or not.
  • Management at 1st Net will do everything possible to complete to process as quickly as possible, but they are dependent on timely replies from the SEC to speed up the process.
  • Management will eventually complete this process, and the stock will return to trading on the Bulletin Board.
  • Despite what you may have read on Message Boards, this process is no way effects 1st Net's ongoing business.
  • It is impossible to predict the amount of time it will take to complete the process.  It could take one week, it could take several months.
  • Many companies that have been trading on the OTC Bulletin Board are going through the same process.
We will do our best to keep all of our members and shareholders of 1st Net fully informed during the regulatory process.  If you have any questions feel free to send them.

In the meantime, have a great Thanksgiving weekend and remember that we all have a lot to be thankful for.



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Disclaimer

The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net").  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, may own stock in and have other financial dealings with the companies who appear in the publication.  To that degree, this newsletter should not be regarded to be an independent publication.  SSP Management, the owner of the OTC Journal, has been paid the following fee by Incite Marketing Group acting on behalf of Stockgroup.com: $50,000 in cash, 40,000 shares of restricted stock which will not become free trading until at least August of 2,000, and 100,000 options with an exercise price of $4.  The OTCjournal.com critiques 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.gov and/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.



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