Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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Upcoming
Trading Alert- Leading off the New Year |
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As previously announced, we're starting
off the New Year with a Trading
Alert next Friday, January 4th. If you take a few minutes to review
our Trading
Alerts Track Record, you will note that we have never failed to get
some appreciation within the five day window for an Alert. Click
Here to view the track record. The last two Trading Alerts were up
18%
and 27% respectively.
If all goes as planned, we will be
introducing you to a virtually unknown company which is making the transition
to the big leagues through major fundamental developments. Members of the
OTC
Journal will be the first to learn of this, giving you the competitive
investing edge. We expect to start out the New Year out with a short term
money maker.
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Year
in Review |
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Aside from our short term Trading
Alerts we had on-going coverage of six stocks in 2001. In terms of price
performance it was split down the middle- we have three winners and three
losers as compared to either their launch date or the first trading day
of 2001. The losers included Envoy Communications (NASDAQ: ECGI), XML
Global Technologies (OTC BB: XMLG), and Astralis LTD (OTC BB: ASTR). Winners
were MedGrup (OTC BB: CODX), Energy Power (OTC BB: EYPSF), and Cross Media
Marketing (AMEX: XMM). Visit our Profile
Tracking Page for statistics.
With the NASDAQ down 20% in 2001,
this performance is acceptable but not as exciting as we would like. Our
two shining stars for 2001 were Energy Power and Cross Media
Marketing. If you were astute enough to buy Energy Power on
dips, and sell it on price surges, you could have made a fortune. Almost
as if to give us one more trading opportunity, Energy Power sold
off to a low of
$3.06 on December 27th, only to rebound to $4.50
three days later- the last trading day of the year.
We have proved many times over that
we can identify winners. In 2002 we are going to focus our energies on
avoiding losers, and being more aggressive on the sell side when we feel
the fortunes of featured companies have turned negative. We will also try
to be more aggressive when developments at featured companies look extremely
positive, and let you know you should be adding to positions.
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Looking
Forward to 2002 |
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As the market has been telling us
for the last two months, signs are on the horizon for an improving economic
climate. The NASDAQ and the DOW were down in both 2000 and 2001, so it
is unlikely we will have a third straight losing year. We don't expect
to return to the frenzied market conditions of 1999 and early 2000 for
several years, but we are expecting an improving climate.
Earnings will have to drive the market
from here. Comparisons will be favorable going forward as most companies
have used poor market conditions as an opportunity take massive write downs
on their balance sheets, paving the way for enhanced profits with incremental
increases in revenues.
The OTC Journal plans to introduce
about five new featured companies in 2002. At least two or three will be
in the biotech arena, where we believe recent technology breakthroughs
will result in prolific new treatments and cures for diseases and ailments
that plague mankind. Human Genome mapping is providing bio-scientists with
revolutionary new tools. We will be publishing an edition later this month
on the future of the biotechnology group, which we believe will lead the
NASDAQ in the first decade of the 21st century.
We also plan to do many more expose
type editions, similar to the one we did on the analyst following of the
Enron disaster.
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Cross Media
Marketing (AMEX: XMM)- Our Best Idea for 2002 |
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We launched our formal coverage of
this company in conjunction with our Trading Alert on
November 5th at $6.70. With today's closing price of $9.14, this stock
has appreciated 36% in just two short months, which is an annualized return
of 216%.
As you can see from the chart, the
stock provided a brief highly favorable entry point in late December. The
stock sold off as certain fund managers, who formally were shareholders
in the recent Lifeminders acquisition, sold indiscriminately for year end
portfolio restructuring.
A December 18th press release reaffirming
guidance turned the stock around quickly, and the stock rebounded two points
in several days. Click
here to read that press release.
Of the companies we covered extensively
in 2001, Cross Media is our number one pick for 2002 as far as the
risk/reward ratio. We believe the 2002 market will be earnings driven,
and fund managers will be seeking good values in young companies at reasonable
levels.
In the December 18th press release,
Cross
Media reaffirmed its previously disclosed guidance for 2002 of $150
million in revenues (up 50% from an estimated $100 million in 2001),
and earnings of $15 million, or $1.15 EPS. With that news
the stock shot up nearly two points.
As we previously stated in past editions,
we believe the stock is a strong buy up to $10, with a price target
over the next six months of $15. If they earn $1.15 next
year, you are still paying less than 10 times next year's earnings with
a 50% growth rate.
As more fund managers focus on this
company we believe the stock will move higher, and $15 in easily
attainable in the first six months of 2002. We believe this is our strongest
risk/reward stock for 2002. Other, riskier companies may end up with stronger
apppreciation, but none with the limited downside risk associated with
the company's projected profitability.
To learn more about Cross Media
visit their web site at www.xmmcorp.com.
In the interest of
full disclosure we inform you that one of our editors owns 3000 shares
of Cross Media in his own account with an average cost basis of $8.28.
Our editor may buy and sell the shares at any time at his own discretion.
This should be viewed as a potential conflict of interest.
Charts Provided Courtesy
Of TradePortal.com
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