To OTC Journal Members:
 

Val Com Inc (OTC BB: VCMI) Makes Major News Announcement

On February 16th we issued one of our Trading Alerts at $1.31 on microcap stock SBI Communications (OTC BB: SBID). It was not one of our best efforts as the stock only saw $1.41 that day, and then settled in about $1.25 the next day. The following week the stock dropped into the $.75 range where it found support.

This past week SBI Communications (OTC BB: SBID) changed names and symbols to more accurately reflect the company's business. The company is now Val Com Inc. (OTC BB: VCMI), reflective of Valencia Entertainment, the company's core business.

Today, just prior to the market opening, Val Com issued a press release which leads us to believe the stock could rebound to the $1.25 level where we started with it. Based on yesterday's closing price of $.84, investors could see a short term gain of 48% if this plays out.

Valencia Entertainment is an entertainment company that includes television production for network and syndicate, theatrical motion pictures, new media services, automobile and antique auctions, and real estate holdings. Valencia owns 30 acres of land located on both the east and west coasts, and approximately 300,000 square feet of commercial buildings.

The CBS hit series JAG and Fox Family show Power Rangers are both produced on Valencia properties. Their clients include Warner Bros., Universal, MGM, HBO, NBC, Twentieth Century Fox, Disney, CBS, Sony, Showtime, and the USA Network.

Prior to the merger with dormant company SBI Communications last Fall, Valencia Entertainment had been profitable and cash flow positive for the last five years. In our original release we stated management informed us the company was profitable. Several of our members pointed out in SEC Filings the company was demonstrating a loss. We asked Vince Vellardita, President and CEO to explain this discrepancy. Here a direct quote from Vince on this issue:
 

Today's News

Just prior to the open today, Val Com announced the contracts to begin the production for four new shows for release in the Fall 2001 television season.

This news represents substantial new business for the company. Based on the trading pattern established by the stock over the last six weeks, it seems there is strong support at $.75, which minimizes your downside risk to less than $.10 from yesterday's closing price. Upside is a return to $1.25, which would be a 48% profit on invested capital from yesterday's close.

If you decide to invest, please waste no time in limiting your downside risk by taking a small loss if this stock trades against you. However, it appears the stock is ready to rebound. If it gets through $1 this morning, it could continue straight up from there.

Here is the complete text of the news release for your review:
 

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