To OTC Journal Members:
 

Comments in the BLOG

The only new BLOG I posted towards the end of the year had some comments on Apple Computer (NASDAQ: AAPL), and that was it for the vacation week. As 2008 progresses, new stories will unfold, and older ones will either make progress or fall by the way side. At the end of the weekend, I will be publishing an outlook for 2008 with some information about the microcap world you aren't reading anywhere else.

The BLOG is your opportunity to ask questions and offer comments. I will make an effort to answer every legitimate question. If I don't know the answer, I will contact the management and get the answer. Alternatively, if you have questions you don't want publicly displayed, you can always email me directly at editor@otcjournal.com. If you submit a comment or question, it will not appear on the site until I have responded.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG scrolls down from the upper right hand corner. The most current journal entries appear on the right hand side of you screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.
 

TraceGuard (OTC BB: TCGD) Management Moves Towards The Money

As I mentioned above, I've been planning an outlook for 2008 as the first edition of the year. However, the folks at TraceGuard are not wasting any time reversing course from last year's news vacuum in the last couple of months, and today's post close event deserves a hard look.

TraceGuard was introduced to OTC Journal members in mid October at $.87, and the stock had a rough 4th quarter in a sea of silence. A few of you have reached out to me individually on this idea, noting I hadn't set up a BLOG for questions or commentary. I'll have a BLOG up on the company by Monday.

My published SSL for the stock was $.65, and it traded down to the $.50 in last year's tax selling season. If you are still holding the stock, and you have read my writings on how to use the SSLs, you have decided to become a long term investor in this idea. As it is a pre revenue company, there is nothing wrong with taking a long term approach. This stock will not trade up and down on quarterly numbers- it should improve in value as investors start to believe their technology will be widely adopted at airport security checkpoints world wide.

Here's what the hoopla is all about. The device you see pictured here can check your carry on bag for explosives in about 30 seconds vs the current very lengthy and inexact "swabbing" being used at airport checkpoints today. There are a number of other devices under development by the scientists at TCGD, including a cargo version of this machine.

They have an LOI for a development and marketing agreement with British based Smiths Detection, the second largest security device manufacturer in the world (second to GE, who bought their way into the business).

Today, the company announced a change at the top, specifically designed to move them from a technology development story to a sales oriented and commercially viable entity- the exact move this company needed to make to get investors to take notice.

Retired Major General Avi Kostelitz of the Israeli Military, formerly a consultant to the company, has taken the reins as CEO. Kostelitz has an impressive resume in airport and border security, having been the CEO of the Israeli Airport Authority. The Major General was responsible for all the airport and border security for Israel. In my view, that would make him one of the foremost experts on terrorism and security in the entire world, and probably one of the best connected guys in the field. After all, who knows more about security than the Israelis?

In case you are wondering, here's what's happening at TCGD. In short, the scientist who was previously CEO and is now the Chairman of the Board, has been replaced with an well connected expert in the field who can get the product sold and into airports. Scientist out, business man and field expert in. A welcome move in my view.

I expect this to be the first in a series of corporate events which moves TCGD into commercial sales in 2008. In the original presentation, I asked you to imagine owning the stock as your carry on bag was checked for explosives in your travels. With Kostelitz running the company, that vision is one step closer to reality. 

Here's the chart, and after looking at it a couple of observations come to mind. I'm looking at the longer term picture, and noting the stock did poorly in the December time frame last year as well. In comparison, last year the stock traded below the $.50 level. This year, the stock held that level- it seems to be support for the stock at this time.

Secondly and more importantly, look at the big surge the stock had in February of last year as it motored from the $.50 level into the $1.25 range on big volume.

The last year has been spent in product development. This year should be spent in commercialization in conjunction with worldwide powerhouse Smiths Detection and new CEO Major General Avi Kostelitz.

If you didn't participate in this idea the first time around, the tide could be turning and the timing might be great. Consider most investors are still winding down the Holiday season as vacations extend to when the kids go back to school next Monday.

Snapping up a few shares on this news while few are watching could put you in a favorable position as the stock regains ground in the new year.

Here is the complete text of today's post close news for your review:
 

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