Newsletter

May 12, 2001

Volume IV, Issue 42

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Making Money With OTC Journal Profiles

Now that we seem to have made it past the worst of the Bear Market small stocks are looking up again. There is a pattern emerging on the four stocks the OTC Journal has featured this year. Astute investors should recognize this recurring pattern and take advantage of it to enhance their potential for profits.

The four companies we continue to believe will perform well are:

Envoy Communications (NASDAQ: ECGI)
MedGrup (OTC BB: CODX)
Engineering Power (OTC BB: EYPSF)
XML Global (OTC BB: XMLG)

Each of these companies is growing rapidly. Three of the four are profitable. All are trading at reasonable market values which allow for upside potential. Each has had brief high volume spurts of activity associated with positive corporate developments.

We have excellent communication with senior management at each of these companies, and we believe all four will provide more positive corporate developments as the year moves along.

Each time we have had major news from these companies the stocks have traded well, followed by prolonged periods of pullbacks on light volume. Astute investors choosing to use the low volume pullbacks as entry levels to accumulate positions have been rewarded with price surges.

Case in Point: When we released our 2001 profile on Energy Power Systems LTD (OTC BB: EYPSF) on February 10th the stock closed at $2.95. It briefly surged to $4, then pulled back to $1.50 in early March. After announcing two property acquisitions the stock rebounded into the mid $3's, only to find its way back to $2.

Last week the company rewarded investors with a series of three positive developments, and the stock found its way to $4.90 after several days of high volume, only to pull back rapidly into the $3 range.

After reviewing the original profile in February, had you chosen to accumulate the stock during low volume pull backs you would have had three opportunities to take short term profits in the last two months.

Conclusion: Review the original profiles of all four of these companies. You can find every edition we have ever published on each of these companies in our Profile Archive section on the left hand menu bar of the OTC Journal home page.

Decide which company you like and fits your investment philosophy. Track the stock and accumulate during periods of low volume and lower prices. If all of these companies continue to provide positive corporate developments you should have opportunities to take short term profits. However, you must be prepared to buy when the stocks are cheap and no one is paying attention to them. This is when the risk/reward ratio is most favorable. This is when you will make the most money.

We have written that we felt a good target for Energy Power is $5.60. Last week when the stock traded to $4.90 it was not a good buy. If your upside potential is only $.75 on a $4.90 priced stock it is hardly worth the risk. However, from the current $3 level, a move to $5.60 represents an 86% return on invested capital. This risk/reward ratio makes more sense.

XML Global (OTC BB: XMLG) in the News on Friday After the Close

This company has been quiet as of late, but Friday after the close they demonstrated their software tools are being viewed very favorably by the software development community. In a demonstration in Vienna Austria, XML Global provided POC (proof of concept) to the Healthcare Industry performed in conjunction with Sun Microsystems (NASDAQ: SUNW), BEA Systems (NASDAQ: BEAS), Fujitsu, and Samsung.

We wouldn't be surprised to see this stock surge on Monday after followers have the weekend to digest the news. Here is an example of a stock which has been drifting down on light volume and could have been accumulated.

Look for the stock to surge on Monday. If management performs as projected in our original profile, we believe the stock is destined for $2 this year. Here is the complete text of the news release for your review:

XML Global Participates in End-to-End Business Scenario Based on EbXML
VANCOUVER, May 11 /PRNewswire/ - XML Global Technologies, Inc. (OTC BB: XMLG), a product focused, XML powered, e-business platform company, announced its participation in the most extensive ebXML Proof of Concept (POC) demonstration to date and the first one to showcase ebXML's security specification. The POC demo took place in Vienna, Austria on May 9th and 10th at the final meeting of the 18 month ebXML (electronic business XML) initiative sponsored by UN/CEFACT and OASIS. The POC demonstration consisted of two end-to-end tracks, electronic business and healthcare. XL Global collaborated with 28 global vendors, as well as international standards groups, to show how ebXML can meet the requirements of today's electronic business.

In Vienna, XML Global teamed with BEA Systems, Bowstreet, Fujitsu, WebMethods, Sun Microsystems, Commerce One, IONA, Samsung, Sterling Commerce and others to demonstrate ebXML at work in B2B and healthcare. For the B2B track, the simulation began with the buyer discovering the seller through the ebXML registry. It then highlighted a seller catalog update through the e-marketplace, followed by the buyer's purchase order request. A credit request was sent by the e-marketplace for authorization, which responded with an invoice. Following an advance shipment notification, the credit agency transmitted messages to the financial institutions of both the buyer and the seller to reflect the completion of the end-to-end business scenario. POC participants played the roles of buyer, supplier, registry, marketplace, credit authorization agency and financial institution.

The healthcare track of the POC used Health Level Seven (HL7) messages and documents as payloads within ebXML transport and routing envelopes. The demo began with a patient visit to a physician's office. This was followed by the office sending a registration message pre-admitting the patient to a hospital for testing. At the hospital, the patient was examined and lab work was ordered and then transmitted via ebXML to a remote lab. The record of the original patient appointment at the physician's office, as well as the registration message, lab order and lab results were all sent to two clinical information portals where the virtual patient record is stored and accessed.

"We are very pleased to be again supporting the ebXML initiative and the proof-of-concept demonstration," said Duane Nickull, CTO of XML Global and Co-Editor of the ebXML Technical Architecture. "For 28 vendors to demonstrate the ease of use of ebXML, especially on this scale, is a fabulous achievement and bodes well for the future success of ebXML. Our company is working hard," continued Nickull, "to incorporate all key ebXML components, as they become available, into our product specifications. For example, GoXML(TM) Central is being positioned as an early entrant into the ebXML compliant e-business platform market and is already using ebXML methodologies and protocols."

    About ebXML
    -----------
    ebXML (www.ebxml.org) is an international initiative established by UN/CEFACT and OASIS in late 1999 with a mandate to undertake an 18-month program of work to research and identify the technical basis upon which the global implementation of XML (Extensible Markup Language) can be standardized. The goal of ebXML is to facilitate open trade between organizations regardless of size by enabling XML to be used in a consistent manner to exchange electronic business data.

    About UN/CEFACT
    ---------------
    UN/CEFACT (www.uncefact.org) is the United Nations body whose mandate covers worldwide policy and technical development in the area of trade facilitation and electronic business. Headquartered in Geneva, it has developed and promoted many tools for the facilitation of global business processes including UN/EDIFACT, the international EDI standard. Its current work program includes such topics as Simpl-edi and Object Oriented EDI and it strongly supports the development and implementation of open, interoperable global standards and specifications for electronic business.

    About OASIS
    -----------
    OASIS (www.oasis-open.org) is the world's largest independent, non-profit organization dedicated to the standardization of XML applications. OASIS sponsors include Adobe Systems, Aerospatiale, Data Solutions, Arbortext, B-Bop Associates, BEA Systems, Boeing, Bowstreet, Bridge, BroadVision, Chrystal Software, Cohesia, Commerce One, Corel, DataChannel, Dataloom, DMSi, Documentum, Dun & Bradstreet, eCredit.com, Enigma, eXcelon, Extensibility, Extricity Software, First Call, IBM, InformIT, Informix, InterCAP, Interwoven, ISOGEN, ITEDO, JetForm, Keyfile, Logistics Management Institute, Mercator Software, Microsoft, NextPage, NII Enterprise Promotion Association, Nimble Technology, NIST, Oracle Corporation, Pick Systems, ProNet Technology, Reuters, Sabre, SAP, Sequoia Software, SoftQuad, Software AG, STEP, StreamServe, Sun Microsystems, Synth-Bank, Visa, Wavo, Webb Interactive Services, webMethods, Whitehill Technologies, XML Global Technologies, Xerox, XMLSolutions and XyEnterprise.

    About XML Global Technologies, Inc.
    -----------------------------------
    XML Global Technologies, Inc. provides an XML-based data integration platform, GoXML(TM) Foundation, and an application-to-application integration platform, GoXML(TM) Central. These products form a core framework for additional expansion as the enterprise builds or enhances its infrastructure.
GoXML(TM) Foundation includes:

    Searching:         GoXML(TM) Search, a scalable, context-based XML search engine that delivers precise results.
    Transformation:    GoXML(TM) Transform, a transformation engine for dynamic exchange of XML, EDI, and other data formats.
    Storage:           GoXML(TM) DB, a native XML database with a high performance query engine.

GoXML(TM) Central is anXML platform for global participation in electronic marketplaces. It uses ebXML methodologies and is designed for
interoperability, allowing businesses to find each other, form trading partner agreements, and conduct business electronically. XML Global empowers its clients to build and manage technology platforms for web services, net markets and e-business initiatives. For more information please visit our website at
www.xmlglobal.com or call the numbers below.

    Forward Looking Statements
    --------------------------
    All statements are based on XML Global Technologies, Inc.'s current knowledge and specific assumptions with respect to future business decisions. The actual results of XML Global Technologies, Inc. may differ materially from those indicated by these forward looking statements as a result of various important factors, including, but not limited to, those discussed in the Risk Factors section of XML Global Technologies' recent registration document, SB- 2/A, which is on file with the Securities and Exchange Commission.

SOURCE XML Global Technologies, Inc.
    -0-              05/11/2001
    /CONTACT: PR Contact Information Contact: Anthony Dutton, Phone
604-717-1100 ext.112, 800-201-1848 ext.112, Fax 604-717-1107, Email
anthony.dutton@xmlglobal.com, Web www.xmlglobal.com/
    (XMLG)

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The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features. Likewise, this newsletter is owned by MarketByte, LLC. To the degrees enumerated herein, this newsletter should not be regarded as an independent publication.

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