Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Sorry if you were disappointed there
was no Trading Alert mid-week as previously announced. The target
company was unable to issue the press release we felt had the potential
to drive the stock higher, so there was nothing to cover. This was probably
the most undervalued situation we have ever encountered. Our editors have
been drooling over this one for some time, and we hope to bring it to you
soon. With luck we will have a couple days notice, allowing us to give
our members advance warning.
In the interim, here's an idea of
what's coming up, some comments about current market conditions, and more
of XML Global (OTC BB: XMLG) in the main stream financial media.
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Upcoming
Events |
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Aside from the previously mentioned
Trading
Alert, we have made a commitment to release our third profile of 2001
next Friday just after the market closes. Both Energy
Power (OTC BB: EYPSF) and XML Global Technologies (OTC BB: XMLG)
have traded to excellent premiums of 50% and 20% respectively since
being released. Both companies have robust and growing businesses.
Our next profile is a very unique
company. These days we are looking for solid, undervalued business models
with positive cash flow, earnings, and growth.
Our upcoming profile has all of the
above and more. This is the only business we have ever evaluated which
already has its next thirteen years of sales in the bank, virtually
guaranteeing ongoing profits. The company has a demographic advantage which
will last for the next thirty years. Sound interesting? Set some time aside
to read next weekend's edition featuring our third profile of 2001.
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Market
Comment |
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If you are getting seasick following
this choppy market you are not alone. We have seen the worst, but we are
in a long term consolidation phase with a range bound market.
We are in the middle of earnings
pre warning season which is putting a damper on any upside potential. Business
and profits are weak for many companies and they are warning about it.
Money managers are waiting for the smoke to clear.
Once we get past the month of June
we will be in the earnings release season. Stocks of companies that warned
should have bottomed, and companies that didn't warn may release surprises
to the upside. This happened last week with Oracle (NASDAQ: ORCL).
They came in $.01 ahead of expectations pulling the stock $2.50 higher
and the NASDAQ along with it. In the introduction of our June
16th edition we mentioned Oracle might be a good stock for those
interested in bottom fishing.
The chart we have chosen to present
this weekend demonstrates the choppy, sideways action on the NASDAQ
over the last two months. The top and bottom red lines on the chart represent
the most recent high and low range. The three middle lines help us predict
how much the market might move, and where good entry levels exist.
Technicians would love to see a pullback
to the bottom red line of the three in the center, and then a turn back
up. However, the pullback to the middle red line may be the best we get.
If the market pulls back to the lowest
of the three red lines in the middle and then turns up, this will be extremely
bullish. If the market hits the low mark and goes down further we are in
trouble. If we get past the 4th of July with no major damage, we may move
on to higher levels as we get a few positive earnings releases and lower
interest rates from the FED.
While the nasty bear market of the
past is virtually dead, the new bull market is a very wobbly new born calf.
We need the interest rate declines to stimulate a new economic boom for
the young bull to become strong and predictable.
This market lends itself to accumulating
the stocks you like on dips. In our OTC Journal features, stocks
that temporarily trade well are falling back to support levels on low volume.
These are ideal entry points. Volume surges are being met with sellers.
The same thing is happening in larger
cap names. The B to B sector got clobbered this week along with select
software stocks. In this sector stocks like Commerce One (NASDAQ: CMRC),
Arriba (NASDAQ: ARBA), and Art Group (NASDAQ: ARTG) might be worth
looking at. They are cheap and could rebound if the market improves in
July.
Keep accumulating on dips during
low volume periods. As the Bear gets further behind us, the next strong
Bull gets closer.
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XML GLOBAL (OTC
BB: XMLG) in Investor's Business Daily Again |
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Since releasing our original profile
on March 20th at $.92, XML Global has seen a high of $1.09, and
a low of $.81. The company's fundamental performance continues to improve,
but the stock is trading at the low end of its trading range right now,
having completed a light volume pull back to support since the last significant
news pushed it back above $1. The stock is at a low risk entry
point, so you might have a look at it in light of today's news.
The company was once again featured
in an article in Investor's Business Daily today, June 22. Entitled
Health
Care Firm Turns To Accordus' XML Software, it can be found on page
A5. We will have a PDF version of it on the internet for you sometime next
week.
The author summarizes the problem
which XML will solve in the following excerpt from the article:
| While Virtua and most
of its suppliers use computers, few of them use the same type of system.
So it's hard for them to communicate electronically. That's common in the
industry. Data can be shared electronically within a hospital or within
a supplier's organization, but not between the two. |
When referring to the potential solution
to both the health care industry and Virtua's computer communication problems,
the author mentions the following:
| Vancouver, British Columbia-based
XML
Global Technologies Inc. makes the component of the Accordus software
that translates the suppliers' EDI data to XML.
"Private EDI networks are expensive
and archaic, like snail mail," said Lawell King, an XML Global vice president.
XML, he says can replace outdated EDI systems in health care or any industry. |
This is unusually positive press
for obscure XML Global Technologies in the main stream financial
media. Look for this one to explode at some unforeseen and unpredictable
time in the future.
The first publicity on this XML revolution
is beginning to feel like when we first heard about the Internet and AOL,
Netscape, and Yahoo! were just getting started. Look for a lot more main
stream coverage.
Next week: Our Third
Profile of 2001 will come out on Friday, and we will have some sort of
mid week edition- perhaps a Trading Alert.
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