To OTC Journal Members:
 

XML Global Technologies (OTC BB: XMLG)- Risk of Owning Stock Down Considerably With Today's Announcement

After several months of nothing but tough sledding and eroding values, the OTC Journal can finally report something is down, and it's good news. What's down?- The Risk!!!!!!! In short, the news out of XML Global today will be welcome to shareholders who have hung in there and could yield profits for investors who had the courage to roll the dice while the stock was at the bottom.

Here is an excerpt from our April 20th edition, where we asked members to consider the turn around potential of this stock:
 

Based on today's news, we can now formally withdraw our viewpoint that you should be prepared for the possibility you could lose all your money in the short term.

Today, just after the market closed, XML Global Technologies announced they would be receiving a significant injection of capital, and its coming in the best way possible- From sales of their product instead of an equity financing which would have been dilutive to shareholders.
 

Software Vendor Makes Major Commitment

One of XML Global's major vendors signed a multi year expanded contract which includes a cash payment of $500,000, and a minimum additional $250,000 in payments throughout the remainder of this year which satisfies XML's immediate need for cash. The name of the company has been witheld for competitive market purposes.

Since there are no cost of goods associated with the purchase, 100% of the capital can flow directly to XML Global's operations, which could be stretched to finance the company's needs through the remainder of this year.

With formally anemic revenues finally beginning to ramp up to about $150,000 per month, this contract assures XML Global could enjoy revenues in the range of about $2 million for the second half of the year. This is nearly 300% better than the run rate they experienced in 2001. This one contract alone triples revenues in the first quarter.

In addition, overhead has been reduced from cutbacks earlier this year. The company has decided to focus most of its efforts on its XML Transformation products where demand is finally surfacing, allowing it to cut its overhead in other areas.

As is evident in the chart, this stock is trading at the absolute bottom of its trading range. In fact, we believe this stock is priced for corporate failure. Today's announcement buys the company a lot more time to ramp up sales, and extends shareholders' potential for profits at least through the end of this year.

The support/resistance lines suggest the stock is entitled to rebound to the middle of its trading range, which would put it in the $.30 to $.40 range. Also, without substantial dilution, we believe the stock still has the potential to rebound to the $1 range with more announcements of this magnitude and improving market conditions.
 

Upside Potential

When we originally looked at XML Global Technologies in early 2001, we believed the company would be able to generate $10 million in annual revenues by 2002. No one could have imagined that IT spending by large corporations would come to a virtual stand still for 18 months.

However, we always felt XML Global would eventually enjoy success because adoption of their products saves companies money in the long run. Their software acts as a universal translator which allows the massive computer systems at different organizations to communicate with each other efficiently. Many thought this new language would end up being the Holy Grail of B to B software before they knew we would be in a full blown depression in the B to B space.

Adding to the newly revived upside potential in this stock is the recent revelation of XML 's association with Sun Microsystems (NASDAQ: SUNW). In a press release issued by Sun today, XML Global is featured as a "Leading system integrators and strategic ISVs that support the Sun ONE platform vision". Click Here to read the press release.

There are early signs this market is finally turning up, and the fortunes of XML Global should turn up with it. If this agreement leads to many of this magnitude, you will eventually make a substantial return from these levels. This announcement gives us the luxury of being long term investors in this stock from today's levels. With the stock at $.15, odds are we go higher from here.
 

Special Announcement- Trading Alert Coming Friday Just After the Close

We had a lot of positive comments about our last Trading Alert on Calypte Biomed (OTC BB: CALY). Many stocks are trading at nearly risk free entry levels, and positive fundamental developments are occurring every day at young companies. This stock is still trading above our recommended entry point.

We continued to be very positive about the Medical Device group, where fundamental breakthroughs are occurring regularly. If everything goes according to plan, next Friday you will be reading about an unknown medical device company with a unique FDA Approval, burgeoning order flow, and serious demand thanks to new government regulations.

Stand by for an exciting story at the end of next week.
 

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

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts.

MarketByte LLC has been paid the following fee by XML Global for a year of representation extending from February 2, 2001 to February 2, 2002: $100,000 cash, 60,000 shares of free trading stock, 60,000 shares of restricted stock which are now free trading, and 60,000 options exercisable at $2. The 60,000 shares of free trading stock have been contributed by a third party on behalf of the company. MarketByte's contract to represent the company expired February 2, 2002. The contract was renewed for another year, and XML Global has paid compensation of $20,000 in cash and one million shares of newly issued restricted common stock. Please review our policy on selling shares found in our Mission Statement on our Home Page. 

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Disclaimer ID:xG1jf4ll Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.