Well I have received quite a bit of request for the Newsletter. So I am attaching it to this post. In no way am I involved with this firm. I just went to the wallstreetwest.com site and signed up for it when I saw the mention of them purchasing DGIV shares...
I did notice on the bottom there is a disclaimer of being paid for promotion, however DGIV was purchased on open market.
WALL STREET WEST NEWSWIRE December 06, 1998
This is an electronic newsletter highlighting what our members feel are outstanding worldwide investment opportunities. We hold positions in some of the companies and others we are preparing to take positions in or are currently undergoing due diligence. The purpose of the newsletter is to create worldwide dialog about various opportunities in an open forum and to establish lifelong friendships and cooperation among investors. We also want to make money. We encourage your comments as to our format, stories, etc. We also invite you to visit our website at wallstreetwest.com. We welcome all of our new members as well as our older friends!
COMMENTARY: HOW TO PROTECT YOURSELF FROM SUBSTANTIAL LOSSES
It was a horrible week for Internet stocks. Last week's high flyers came down to earth in a very dramatic fashion. Many experts believe speculation has driven that market. So how do you protect yourself in a situation where you think something is going up but it turns against you?
The answer is that you have to watch these stocks, as with any stocks, very carefully. Before going into any stock you should always decide how much you can afford to lose. Is it $100, $1,000 or $10,000? We believe you should always give the stock some room to “play”, as stocks do fluctuate in any given day. But always be prepared to sell if you don't like what a stock is doing or feel uneasy about it.
Cutting losses and knowing when to quit is important. Don't be afraid to save your money for the next trade. If for whatever reason, you could not sell in time for a major loss, consider holding the stock. A vast majority of stocks move in cycles. Waiting for the next spike could be well worth it. The problem is, most small investors only have a limited amount of capital to risk. So by holding they feel left out of other opportunities that arise. It may help if these people remind themselves that being patient can mean a nice recovery at some point in the future. There will always be other opportunities.
Investment styles often reflect different personalities. There are basically two extremes when it comes to investment styles: Gamblers and Long Term Investors.
Gamblers will often blindly go in and out of many different stocks. Unfortunately, this style will lead to substantial losses in the end, as they “roll” their money in and out of many different stocks.
Long Term Investors are patient. They don't risk everything they have in one stock, they don't roll profits. They will buy and HOLD no matter what happens. If these Long Term Investors pick good stocks they will be very successful in the end, even if it takes years. These are the two extremes. All Investors fit in somewhere in between these extremes.
The world of Bulletin Board stocks has attracted short term investors. We would venture to say that most of our subscribers are interested in the short term. They want to make money in a week or a month. There is nothing wrong with this strategy, as long as you know beforehand how much you can afford to lose. You also should know how much you want to profit.
One of our subscribers recently reported that he regularly bought into our STOCK ALERT picks and then sold out after a 20% gain. This person doesn't let greed get in the way of his common sense. Others would argue that this investor should be somewhere other than Bulletin Board stocks if all he wants to make is 20%. But the reality is, it doesn't matter how much money someone wants to make. The point is that investors should always have an entrance and exit strategy. How much am I willing to pay for this stock going in? How much can I afford to lose? How much do I want to make? These are the questions investors must ask and be able to answer. If you can answer these questions and use your common sense you will know when to get in and when to sell.
TYPOGRAPHICAL ERROR
We wanted to apologize for a typo that we made this week in a STOCK ALERT. We had just bought in DGIV and stated that earlier in the year the stock went up to $8 in a week. That was an error. DGIV did not go up to $8 in a week. It did go up to $8, but over several weeks. The statement should have read that way. Sorry. We try to be as accurate as possible, but do make ocassional mistakes when we are in a hurry. We did get a nice gain with DGIV however, more about that later.
STOCK OF THE WEEK: THE CHILDREN'S BEVERAGE GROUP
The Children's Beverage Group, Inc. (OTC-BB-TCBG-$1.56) We think this week will be HUGE for this stock. We put out a STOCK ALERT on this one on Friday. This stock is starting to show HEAVY VOLUME and a steady and persistant upward movement with the stock price. We have been watching this for the past few weeks and didn't want to bring it to anyone's attention until we were sure it appeared to be breaking out. A broker brought it to our attention at the time when the company had just announced that it had a distribution deal with Wal Mart. Here is the story:
The Children's Beverage Group (TCBG) is a manufacturer and marketer of unique products for the children's beverage market. The Company currently produces two product lines:
BrainforestTM plain and flavored spring water varieties and BrainslushTM , a flavored drink that doesn't fully solidify even when placed in the freezer, producing a slushy liquid that appeals to children and adults alike. Both of these products are sold in a "stand up" aseptic pouch package. Made of PET film, TCBG's packages are see-through and flexible, able to be stored for long periods of time at room temperature, eliminating the need for refrigeration or frozen storage facilities.
These unique pouches include a built-in "Rip it sip itTM " straw, a patent-pending drinking system. TCBG's process consists of inserting the straw directly into the product-filled pouch during the manufacturing process. The straw is then accessed via a laser score line. The consumer simply tears the film and pushes the straw up from the bottom of the package. Not only is this system convenient, but it eliminates the spillage problem inherent with other drink pouches.
TCBG offers all the key aspects necessary to make significant inroads into the Children beverage marketplace: innovative, kid-friendly packaging, an excellent "flavor profile", a low price to the consumer, and a desirable profit margin to the retailer.
TCBG has positioned itself with unique packaging and products within the PET packaged segment of the juice and bottled water marketplaces. With double-digit growth in the last few years, projected total industry sales are expected to total $6 billion by 2001. TCBG has plans to continue to make significant inroads into both the direct-to-retail and private label marketplaces.
Earlier in the year the Company made an unsolicited cash offer to purchase Nestle's “Juicy Juice” product line. It also announced that it had a deal with Wal Mart to produce that companies value brand of 10% juice drink. Shipping is expected to begin December 20th. On Friday, the Company announced that it had a distribution deal that will put its products in the hands of the following:
Apple & Eve Nantucket Allserve Aqua Vie Beverage National Beverage Aqua Penn Spring Water National Grape Co-op /Welch's Cadbury Schweppes Nestle Campbell Soup Company Northland Cranberries Celestial Seasonings Ocean Spray Chiquita Brands Orange Co. Chock Full O'Nuts Pepsi Clearly Canadian Procter & Gamble Citrus World Starbuck's Coca-Cola/Minute Maid Smuckers Cott Beverages Tree Top Disney Triac Companies Dole Food Company Tropicana Ferolito, Vultaggio & Sons (Arizona Ice Tea) Unilever Lykes Bros. Viacom McCain Citrus Virgin Group
We see this company as a stock ready to MOVE UP dramatically. The total number of shares issued is 24 million, with the float at around 9 million. One of our sources told us that the active float in circulation is only around 2 million shares. If this figure is correct, we saw half of that number trade on Friday. Our short term target on this one is $2.50 to $3 shortly and $5 to $7 thereafter. We see this company getting more and more publicity. It is expected to report revenues of $3 million for 1998 and $35 million for 1999. If these numbers are correct the stock price should start to reflect that. For more information on TCBG visit stockprofiles.com . A discussion board is located at Subject 21339.
DIGITCOM INTERACTIVE VIDEO NETWORK: AN INTERNET COMPANY READY FOR A BREAKOUT
Digitcom Interactive Video Network, Inc. (OTC-BB-DGIV-$1.75) We saw this one move up dramatically this week. We bought in again at $1.44. This was one of our picks early this year that ran up to $8. Lack of interest and the company failing to acquire SEC reporting status seems to have brought it way down. We have been watching it for months. When it broke out of a lower sideways trading pattern we notified you by STOCK ALERT. We are not sure what is happening here, except that the sellers seem to be out and renewed buying interest seems to be driving the stock price up. It hit $2.38 during the day yesterday, but then pulled back slightly. Here is the story:
Digitcom is a company that is attempting to establish a global long distance telephone network using Internet IP protocol on a proprietary gateway. It's goal is to capture a significant portion of the long distance telephone overseas market. Long distance rates are outrageous over there. DGIV can charge much lower rates. One of our sources tells us that Jimmy Chin, CEO has been traveling overseas attempting to sell deals on various continents. The Company recently announced a deal with the country of Mordovia of the Russian Federation.
We are not sure what is pending, but something seems to be happening here. The volume has increased dramatically in recent days, and the stock price has really started to move upward. We see $2.50 to $3 in the short term, and possibly a longer term move up to the previous high in the $8 area. The Company has announced that it is working on acquiring reporting status so that it can apply for a NASDAQ listing. If an announcement to something to this effect is pending, that could explain the increased activity. A pending contract announcement could also explain the activity. The company has not put out a press release since September. Any positive press release would undoubtably push the stock higher, as many investors have watched this stock on the sidelines.
IJNT INTERNATIONAL: THE NEXT INTERNET SUPERSTOCK?
IJNT International, Inc. (OTC-BB-IJNT-$3.68) We featured this stock earlier this year, and it ran from the $3.50 area to $12. The stock price has since come back down to earth, but the company itself has grown substantially. The company has made a couple of significant acquisitions that make it even more attractive. IJNT is a high-speed wireless internet access provider and website developer.
For more information on IJNT visit the profile and link to their website at wallstreetwest.com. We think with all of the attention that Internet stocks are receiving these days this one may be headed back up. We expect the company to apply for a listing on a major stock exchange here in the United States shortly (they are already listed on the Berlin Stock Exchange). As soon as they do, we expect major media coverage from television programs like CNBC. This would lead to a following by analysts and brokers. When this happens, the stock price could go up and stay up. We like the fact that unlike many Bulletin Board stocks, this one never became a penny stock. Right now it is trading in the area of its all time low. For more information about IJNT visit their website at ijnt.net. Stock related information can be found at wallstreetwest.com.
HOMELIFE, INC. STARTING TO RECOVER
Homelife, Inc. (OTC-BB-HMLF-.52). We are starting to see some recovery in the stock price. It was at $1 a month ago and .30 last week. It went as high as .68 this week. If the volume comes in, we are looking for the $1 area by the end of this coming week. One of our sources tells us that Homelife recently set up a website in Germany.
Homelife is a worldwide real estate franchisor that intends to compete with other names such as Prudential, Remax, and Better Homes and Gardens, etc. Andrew Cimerman, chairman and chief executive officer, recently announced that Homelife has filed with the SEC to be a fully reporting company. On November 5th the company reported that revenues were $2,055,000 for the first quarter versus $318,000 for the same period last year, and $2,001,000 for all of fiscal 1998. Net income was $38,000 for the quarter or $.008 per share, versus a loss of $21,000 or $.004 per share for the same period last year.
Cimerman commented, ''Our plan has always been to become a fully reporting company and ultimately be listed on Nasdaq's Small Cap Market.''
Incorporated in 1995, HomeLife and its affiliates are full-service real estate and mortgage financing service providers. The company is one of the largest real estate organizations in North America with approximately 200 offices and an estimated 3,000 licensed real estate agents.
The company operates under the trade names HomeLife Realty Services, Red Carpet, National Real Estate Service, Network Real Estate, MaxAmerica Financial Services, Guardian Home Warranty and Builders Realty. To learn more about this fast growing company read our profile and RESEARCH REPORT at wallstreetwest.com and follow the links over to their website. We think this stock will be huge once it gets discovered. Our short term target is still the $1.50 to $2 range, and $5 to $7 longer term.
NAVARRE CORPORATION: CRASHES ALONG WITH OTHER INTERNET STOCKS
Navaarre Corporation (NASDAQ: NAVR: $7 7/8). NAVR is engaged in the distribution of prerecorded music and personal computer software in the U.S. NAVR's products include compact discs, cassettes, personal computer software and interactive CD-ROM software. NAVR holds 85% interest in Netradio, a website whereby surfers can listen to a wide range of music broadcasted over the Internet. Many believe that Netradio will soon announce an IPO. We think this company has huge potential, although it didn't move in the direction we thought it would this week. For more information about the company visit its website at navarre.com. For more information about the stock visit quote.yahoo.com.
PLATINUM ENTERTAINMENT REVOLUTIONIZES ONLINE CD SALES
Platinum Entertainment, Inc. (NASDAQ: PTET: $6 7/16) Platinum Entertainment produces, licenses, acquires, markets, and distributes recorded music for Gospel, Country, Adult Contemporary, Blues, Classical, Urban and Compilation genres. PlatinumCD.com lets you create custom made CDs of your favorite songs that are quickly sent to your home or downloaded onto your computer - up to 75 minutes of music on one CD. You can also choose from over 200,000 finished CDs mailed directly to you - including Platinum Specials which are all priced at 30% below suggested retail.
We think this company holds huge potential. The Company recently reported an increase in hits to the website from a few thousand to the millions. You can visit their website, which has just been launched, at platinumcd.com. Stock related information can be found at quote.yahoo.com. One brokerage firm is recommending the stock as a STRONG BUY. We expect other brokerage firms to discover this stock and start putting clients into it. As the Internet sector recovers, as we think it will, this one should follow along.
Be sure to visit our website at wallstreetwest.com. Watch for our STOCK ALERTS, where we will sometimes release breaking information. As always, have a great week everyone.
Daryn Fleming Editor in Chief
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