Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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Special
Announcement |
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We remind you to set some time aside
to read our June Profile which will come out Friday. Our featured
company has unique characteristics you won't find in any other situation.
Imagine a company that already has it's next 13 years of sales pre-paid
for and in place. Positive cash flow, a growing market, and undervalued
as compared to its peers. It's an ideal stock to own in today's market
environment.
Readers should take note of a fundamental
change in the nature of companies we feature for substantial appreciation
for long term investors. Like many of our fellow investors, we were caught
up in the technology/dot-com craze of the late 1990s, and we had failures.
With Friday's release, four of the five companies we feature will have
positive cash flow (meaning they are taking in more money
than they are spending) and substantial growth rates.
These stocks may go up and down,
but as long as the companies continue to make money and grow, eventually
the stocks should work out for investors. Profitable companies have much
lower downside risk than companies losing money. This philosophy represents
a change from the 1998 through 2000. We have learned from the mistakes
of the past, and we are presenting ideas with much less downside risk than
in the past.
Stay tuned for an exciting situation
in the weekend edition.
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XML Global (OTC
BB: XMLG) in the News |
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As mentioned in our June
22nd edition, XML Global Technologies, Inc (OTC BB: XMLG) was
featured in an article in Investor's Business Daily last Friday.
To read the entire text of the article,
simply click
here, or go to the investors section of their web site found at
www.xmlglobal.com.
This stock has had a range of $.80
to $1.10 since we began coverage in March. The stock is at the low
end of its range right now in sympathy with the whole B to B sector which
has taken it on the chin in the last two weeks during earnings warnings
season. If you are impressed with the coverage they are getting in Investors
Business Daily, the stock is at a great level to accumulate for a potential
move back up in July after the holiday.
Of the four companies we have featured
in 2001, XML Global is the only lacking positive cash flow at this
time, making it riskier than the other situations. We expect the company
to turn profitable in the October/November time frame. This is the type
of company that could have one press release which would send the stock
flying. Investors who position themselves at today's levels could take
profits if and when these events occur.
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Market
Comment |
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The FED lowered interest rates a
disappointing 1/4 point today, but stated a very hawkish posture towards
further declines in corporate profitability and business capital spending.
All across the board economists believe the FED is behind the curve in
stimulating an economic recovery as they were in 1990 when we last had
a credit crunch and the aftermath of the Gulf War.
Here are two paragraphs from the
FOMC press release today which clearly demonstrate the FED's concerns about
the economy:
| The patterns evident in recent
months--declining profitability and business capital spending, weak expansion
of consumption, and slowing growth abroad--continue to weigh on the economy.
The associated easing of pressures on labor and product markets are expected
to keep inflation contained.
Although continuing favorable
trends bolster long-term prospects for productivity growth and the economy,
the Committee continues to believe that against the background of its long-run
goals of price stability and sustainable economic growth and of the information
currently available, the risks are weighted mainly toward conditions that
may generate economic weakness in the foreseeable future. |
When the FED began lower interest
rates in late 1990 to stimulate the most prolific ten year expansion in
US history the process began slowly. However, recent studies demonstrate
in the past investors who waited for the economy to improve missed the
first 18% move up in the stock market.
The NASDAQ is now 9% lower than it
was when the FED announced its first of six interest cuts on January 5th.
The FED's moves will work eventually. Earnings visibility will improve,
the economy will pick, and a strong bull market will come back
Now is the time to position for this
inevitable rebound. Slowly accumulate positions in companies you like for
profit taking later in the year.
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