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December 21, 2000
21stcenturymarkets.com
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BREAKING NEWS -
ThermaFreeze™ Inc. (OTCBB:THFZ)
Joint Development Project for Critical Medical and Pharmaceutical Shipment Packaging Announced by ThermaFreeze™ Inc.
ThermaFreeze™ Inc. (OTCBB:THFZ) announced a joint development project with a second innovative company with which it plans a joint venture company combining ThermaFreeze™ refrigerant in an innovative new product set.
The new, patentable packaging system, based on existing and proprietary technologies, will actively protect temperature sensitive critical shipments such as routine clinical laboratory specimens, blood and human organs during transits up to 2-days. This new, re-usable system is designed to replace current 2.5" thick coolers that require tooling charges in excess of $50,000 and one-way unit costs in excess of $12.00. ThermaFreeze™ refrigerant will replace less efficient gel packs or dry ice that is considered a hazardous material by carriers. Initial tests have been 100% successful. The proposed joint venture company will market this new temperature sensitive pharmaceutical protection system to all worldwide pharmaceutical, medical and biotech companies, replacing more expensive and less efficient methods.
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NEWSLETTER INDEX
"Who is the most powerful individual in America?"
Grand Slam Treasures, Inc. (OTCBB:GRST) signed a contract with Roy Lerman to guide it to listing with AMEX
DP Charters Inc. (OTCBB:DPCH) symbol changed from DPCI to DPCH as a result of a forward split of its common stock five for one
Forefront Technologies, Inc., bring you up to date
A WebCast featuring Advanced Optics Electronics Inc. (OTCBB:ADOT)
BuySellorHold
Small Cap Corner - As Advertised
In The News
The Smart Investor - Short-Selling
Important Disclaimer
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Now that we finally have a president-elect, a question comes to mind. "Who is the most powerful individual in America?" My vote goes for Alan Greenspan, the Fed chairman. We live in a time where, for the most part, there is world peace and little social un-rest. So what is left, but the economy?
Mr. Greenspan still holds the greatest influence over our economy. One would think that with the uncertainty of the election over , the market would rally. While there has been some positive moves since Mr. Gore's concession last week, all it has taken is words of caution from the Mr. Greenspan to begin a downturn.
The Federal Reserve said today that it was shifting its sights from fighting inflation to steering the economy away from a possible recession. The Federal Reserve refrained from cutting interest rates, returning investors' focus to the earnings worries that have dented the market lately. In holding off on a rate cut today, the Fed disappointed some investors, who had hoped for news that might send stock prices up.
The Federal Reserve left short-term interest rates unchanged, but signaled that it stood ready to cut rates if necessary to keep the economy out of a recession. But worries the economy may contract before the Fed can rescue it, coupled with another round of earnings warnings, sent stocks to lower across the board.
Some market participants had called for a rate cut today as the only way to stop the economy from spiraling into a recession. But economists were skeptical of that view from the start, saying the central bank can take its time and make a careful decision.
Although the Fed has been trying for a year and a half to cool down what had been an overheated economy, the abruptness of the slowdown over the last month or so has clearly caught the central bank by surprise.
In closing, we wish you all a happy and safe holiday season!
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COMPANY UPDATE - Grand Slam Treasures, Inc. (OTCBB:GRST)
In a recent news release, Grand Slam Treasures, Inc. (OTCBB:GRST) announced that it had signed a contract with Roy Lerman of the American Stock Exchange to guide it to listing with AMEX. Roy Lerman (www.askroy.com) has been called the "Dear Abby" and "Mr. Fix It" of the financial community. He is one of the few people in America who has almost 40 years of experience in the brokerage business and on the Stock Exchange and is considered by some as a financial guru.
This is exceptional news for The Company. Mr. Lerman is highly respected throughout the financial community. To us this development bodes extremely well for Grand Slam and its investors. As we all know, a primary goal for all companies listed on the OTCBB is to "move up" to one of the major exchanges. By doing so, the company is much more likely to receive institutional investing and stock analysts at the various financial houses begin to review the company. Increased exposure to more investors provides for increased demand in the equity of a sound company.
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COMPANY UPDATE - DP Charters Inc. (OTCBB:DPCH)
DP Charters Inc. (OTCBB:DPCH) informs us that its symbol changed from DPCI to DPCH as a result of a forward split of its common stock five for one, pursuant to approval of its board of directors. This split will increase the total number of outstanding common shares to 38.33 million.
The company recently announced that it has agreed to acquire TriLucent Technologies Inc., a developmental resource firm that specializes in the exploration of oil and gas. Shareholders of the company, of record on Nov. 29, 2000, will receive an Information Statement that will provide additional information with respect to this transaction. The Preliminary Information Statement was filed with the Securities Exchange Commission on Dec. 14, 2000 edgar.sec.gov.
TriLucent has announced that it has finalized the agreement to secure worldwide, exclusive rights to a component of its hydrocarbon location tool that is integral to the company's overall technology. This particular technology relates to the micro-wave processes that assist in the identification of hydrocarbon molecules. The agreement also has a provision that allows the company to purchase the technology at any time during the term of its 15-year license.
The company plans to change its name to TriLucent Technologies Corp., or a substantially similar name as well as change its trading symbol.
For additional information write dpci@thestockadvisor.com or visit the Company’s Website: www.trilucent-technologies.com and 21stcenturymarkets.com.
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COMPANY UPDATE - Forefront Technologies, Inc. (OTCBB:FFNT)
We have not updated you on Forefront Technologies, Inc., a wholly owned subsidiary of Forefront, Inc. (OTCBB:FFNT) for some time and wanted to bring you up to date.
In late November, The Company moved its offices to 1413 South Howard Avenue, Suite 104, Tampa, FL, and changed its phone number to 813-253-2267.
The Company moved to Tampa because it is emerging as a technology hub and the move allows Forefront to benefit from the synergy, which can only come from working with other technology companies. Forefront, which has customers located in Tampa, will also experience significant cost saving and easier access to capital. In addition, the Tampa move gives Forefront access to a larger labor pool, especially in the area of qualified technology professionals. Santu Rohatgi, President of Forefront said: "We have reached that transition point in the life cycle of a start-up company where the initial location of the company which was determined by the location of the founders is no longer adequate to meet the needs of a growing business. We are most fortunate to be able to meet these needs by moving to Tampa while retaining most of our current employees and achieving substantial cost reduction."
*** For the full story, please go to 21stcenturymarkets.com
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COMPANY UPDATE - Advanced Optics Electronics Inc. (OTCBB:ADOT)
A WebCast featuring Advanced Optics Electronics Inc. (OTCBB:ADOT) and its products advancements, management team and background was featured in an Internet chat sponsored by Tribe Communications Inc.
The WebCast was broadcast live at 11 a.m. PST on Monday, Dec. 11. Shareholders and other interested parties who missed the live broadcast are invited to listen to the archive at epowow.com.
We found the WebCast to be very informative and urge everyone to take the time to listen. Featured in the WebCast were:
Strengths and Features of ADOT's large-scale flat panel displays
ADOT's patented and patent pending technology
Market applications for the large-scale flat panel displays
ADOT's ownership of approximately 22% of BioModa Inc.
BioModa's TCPP technology for lung cancer detection
BioModa's market potential
ADOT's management team
ADOT will be featured weekly at epowow.com with a new broadcast each Thursday. This will provide investors and other interested individuals an opportunity to stay abreast of the activity at this leading edge company.
To learn more about ADOT you can also visit adotsite.com, 21stcenturymarkets.com and 21stcenturymarkets.com
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SMALL CAP CORNER –
As Advertised
Early in the day, all major indices were up in anticipation of the Fed meeting. "The news we should be hearing today from the Fed -- whether they shout it or hint at it -- ultimately will be a positive catalyst for stocks," said David Sowerby, a portfolio manager at Loomis Sayles, with more than $65 billion in assets under management.
The Fed issued a statement after the meeting. "The committee ... believes that the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future," the statement said. Recent data, the Fed said, "suggest that economic growth may be slowing further." At the same time, while inflationary pressures persist, "they are diminished."
The indices all plummeted after the news, giving up all the gains, and then some, that were made earlier in the day. The Russell 2000 closed at 460.14 down 3.11.
"Perhaps there was some disappointment that the Fed didn't move right away," said Alan Skrainka, equity strategist at Edward Jones, of the market's dour tone after the Fed's statement was released.
Now begins the speculation as to action the Fed may or may not take in January.
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Internet advertising has gone through its own down-cycle, but that could be changing. MediaPost Communications 2000, recently wrote:
A new report by Forrester Research spells good news in these pessimistic times. The research firm predicts that if Web companies can hang on for just two more years, profitability will arrive. And the oldest media revenue source – advertising – once again will step in as the savior.
There is no doubt that the current picture is bleak, but analysts say patience will bear fruit. The number of households coming online has grown steadily by about 50% a year - a figure that can't hold up. In fact, by 2005, the number of online households in the US will number about 80 million, only 20 million more than currently have access. That is exactly the kind of stability the ad market needs to create high-priced demand for online advertising, a market Forrester projects will reach $27 billion by 2005.
As advertisers continue flocking to the Web, they will be forced to compete for many of the same ‘super-target’ online content pages – search-query returns on Yahoo and the shopping-bot results on the MySimon.com. But not all advertisers will be able to schedule ad campaigns on those pages, nor will they wish to pay the high price those ad slots will fetch. Instead, the trickling will begin.
Just below the "super- target" site grade lie "premium" site pages, well-contextualized pages of content designed to work with targeted ads. As these high-grade Web pages fill up with high-priced ads, advertisers will be forced to the last trickle-down stage, into the lowest Web receptacle, which the report labels "mainstream pages." Report authors say there are not that many new people coming online, and they're not generating that many new page views over the next few years. It's really the dollars that are starting to come into online ad spending that are driving the picture.
"Right now, the moment we're sitting in is the moment at which the supply of consumers and the demand of ads are uniquely far apart from each other," report authors say. ‘It has never been so bad in the past and it is never going to be so bad again. We've reached the bottom, and things are only going to get better from here."
Two of the companies that we follow are directly involved in Internet advertising.
Unico, Inc. (OTCBB: UICO) is a holding company focused on acquiring local independent newspaper businesses and other media companies, helping them to maximize advertising revenues through creative use of the Internet. Unico also aids non-Internet companies in the media industry seeking to establish a Web presence. Visit The Company’s website at www.unicoholdings.com.
Forefront Technologies, Inc. (OTCBB: FFNT) Forefront Technologies has a family of technologies that allow the rapid deployment of online 30-second commercial spot advertisements - CyberSpot™. This new technology allows for very rapid complete loading of dynamic rich media web content, full screen, using any popular web browser and requiring no media players or plug-ins. A second Forefront Technologies product, Delivery Verification Technology (DVT™), gives advertising and media managers the first reliable standard for online audience measurement. DVT™ measures whether web pages, banner ads and the newest platform, CyberSpot™ commercials, have been fully downloaded and displayed on the user's terminal. Forefront Technologies' web site (www.forefrontinc.com) contains examples of other CyberSpots™. Additional financial information can be found at dejong.org.
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I have just recently begun coverage of International Foam Solutions Inc. (OTCBB: IFOS). Here’s what BuySellorHold.com tells us:
IntraDay Opinion (as of 02:24 pm) : BUY
This afternoon's very Bullish bar with high volume (162% of average as of 02:24 pm) suggests that if the stock closes here it will continue higher on the next day.
Short-Term Opinion: OUTPERFORM
On a short-term technical basis, the trend is Bullish and the stock is slightly above its 50-day moving average at 0.16, which also confirms its Bullish trend. The stock is slightly overbought according to the stochastic indicator (71.34).
Long Term Opinion: HOLD
On a long-term technical basis, the stock (IFOS) is trading above its 200-day moving average, but has broken through an important support level, which implies it is in a neutral trend.
The stock has support at 0.17 and 0.16. If the stock breaks down through support at 0.17 then it will probably continue lower to 0.16. The stock has resistance at 0.23 and 0.24. If the stock breaks up through resistance at 0.23 then it will probably continue higher to 0.24. The 200-day moving average is at 0.17. This will also act as support. The stock's long-term up trend has changed into a sideways or downtrend. In this case, the stock will either go sideways for a while or sell-off back to where it started prior to the latest big up move. This is a risky time for the stock, so be careful. Use caution during times like these, as the stock will be more volatile. Pay close attention to the Short-Term and Daily Opinion. The stock is slightly overbought according to the Stochastic Indicator (65.03).
© 1997-2000, Buy Sell or Hold Company
For a free 30-day trial of the BuySellorHold.com software, go to buysellorhold.com
What is your opinion; tell me what you think and any stock suggestions you may have for 21stcenturymarkets OTCBB Index, by writing me at SCCorner@21stcenturymarkets.com.
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IN THE NEWS
Dec 14
Roy Lerman Becomes Advisor to Grand Slam – biz.yahoo.com
Forefront Technologies, Inc. Announces Leading Edge ASP/Marketer, Provider Technologies, Inc. As A New Reseller – biz.yahoo.com
Dec 15
CEO Dr. David Gane Appointed to Chair Board and COO Mr. Donald L. Williams To Be President (Dicom Imaging Systems, Inc.)– biz.yahoo.com
Dec 18
Independent Research Report - DAC Technologies Group International, Inc. – biz.yahoo.com
Dec 19
Dicom Imaging Systems Inc. Announces Plans to Release Multi-Lingual Versions of it's Dental Imaging Software Suite – biz.yahoo.com
IFS Finalizes Exclusive Distributor Agreement – biz.yahoo.com
DP Charters Inc. Announces Appointment of Oil and Gas Executive – biz.yahoo.com
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THE SMART INVESTOR - "An educated investor is a smart investor"
Short-Selling
"Don't Just Say 'I Told you So", Make Some Money!"
Your friends, co-workers and now even your wife are all talking up the latest hot-stock. They all know someone who just "made a million" on this sure thing. The stock has just doubled in price. In a mere month it climbed from $35 a share to $70. But, its going further they say. The common refrain is, "it’s going to be at $100 by year end."
You’re not one to blindly jump on anyone’s bandwagon, so you check out this "sure thing." Your research discovers that the company is indeed working on a promising new product. But you also are convinced that even if they bring it to market tomorrow and sell twice as many as your friends promise will be sold within the first year, there is absolutely no possibility for them to earn enough to warrant a $70 share price, let alone justify another move to $100.
What are you to do. Of course, you can sit back, do nothing and hope that in a few weeks you can tell your friends, (but especially your wife) "I told you so. Good thing I didn’t put our life savings into that bit of hype."
But there is an alternative that will allow not only the feeling of being vindicated, but to do one better, profit from what you are convinced is the inevitable end-result of your friends avarice. This is accomplished by a strategy known as short selling.
Short selling is an investment approach that involves the selling of a security with the intention of buying it back at a later date at a price below that at which you already sold. As with any transaction, the profit is the difference between the purchase and sales prices. Except that in a short sale the order is reversed. The sale price is locked in first and the purchase price is established when the stock is bought, hopefully at a price well below where it had been sold.
As with any foray into the equity markets, this strategy is not without risk. If your research was faulty and the company actually sells three times as many units as had been expected and makes profits well in excess of forecast, you may actually be looking at a $120 a share security. Had you sold this stock short at $70, you should have had a stop-loss order in place to buy the stock back below the $80 level.
But we want to be positive, at least as far as your profits are concerned. So we will assume your analysis is correct and the shares do head south. One of the first requirements is to define a price objective. There is a drawback with short selling inasmuch as the maximum movement is from the sale price, down to zero. Now let us assume this company is not going out of business so zero is not a logical price objective.
Each situation is different, and setting a price objective will depend upon the individual circumstance. The important point to keep in mind is that the objective be realistic. In the case we have created for this illustration, a logical starting point might well be the price of stock before all the rumors or hype surfaced. If the new product does indeed exist, but the growth projections are unrealistic, then the target price will have to be very carefully defined.
As the price of the stock declines, make sure to have stop loss orders in place above the current trading price to assure of not losing your gains if the shares suddenly reverse trend and go back up.
Do not wait for the last 1/8 point to materialize when finally buying back the shares, even if your analysis, knowledge or "gut feeling" are proving correct.
When one sells short, it is important to keep in mind that your broker has to borrow securities for you to deliver to the purchaser. The investor who buys the share from you under the short-sale, is not interested in how they come to him. He just knows he bought shares and he is entitled to them.
Your broker will borrow the shares for you, but you will be charged a monthly fees as long as your short-sale is not covered. These fees will be calculated on a monthly basis.
Before getting involved in short-selling you should discuss this with your broker and find out exactly what his fees are and how much interest you will have to pay for the borrowed paper. Procedures and financial requirements vary from one firm to another so it is best to be aware of your firm’s policies ahead of time. Remember forewarned is forearmed.
One should also be aware that the New York Stock Exchange, The American Stock Exchange and the NASDAQ issue monthly short-interest report for all the stocks on the exchange that are subject to some short selling. This list can held provide information as to how many other shareholders are doing a similar strategy. The reports also list the number of shares that have been sold short, which could help in developing some strategies.
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IMPORTANT DISCLAIMER
21stCenturyMarkets is an independent electronic publication providing information on selected public companies.
Any company profiled by 21stCenturyMarkets pay cash or stock consideration for the electronic dissemination of the company’s information for a specified time period and/or our comments about the company and/or our development of the company’s website. Section 17(b) of the Securities Act of 1933 requires that 21stCenturyMarkets fully disclose the type consideration (i.e. cash, free trading stock, restricted stock, restricted stock with registration rights, stock options, stock warrants, or other type consideration) and the specific amount of the consideration our company receives or will receive, directly or indirectly, from an issuer, underwriter, or dealer.
No information contained in our website or our publications should be considered as a solicitation to purchase or sell the securities of the profiled companies. 21stCenturyMarkets is not a registered investment advisor or a registered securities broker dealer. We do not undertake or represent to make investment recommendations or advise pertaining to the purchase or sale of the securities mentioned in our web site or publications. The information contained in our website and publications are carefully compiled by 21stCenturyMarkets based upon sources that we believe to be reliable. 21stCenturyMarkets, however, does not guarantee the accuracy of any information contained in our website or publications.
Moreover, 21stCenturyMarkets does not endorse, independently verify, or assert the truthfulness or reliability of any statements or data made by us or the profiled companies in our website or publications. Investors should not rely solely on the information contained in our website or publications. Instead, investors should use the information provided on the profiled companies only as a starting point for conducting additional research that will permit them to form their own opinions regarding an investment in the profiled company’s securities. The receipt of the information contained in our website or publications shall not create, under any circumstance, any implication that there has been no change in the affairs of the profiled company since the date of our comments regarding the company or the date of the profiled company press releases or other information disseminated via our website or publications.
The information contained in our website and publications may pertain to small cap and/or thinly traded securities which by their very nature involve an extremely high degree of risk. An investment in these type of securities could result in the loss of some or all of an investment in the company. In addition, due to the illiquid nature of some of these securities, an investor may find encounter difficulties in liquidating the securities.
21stCenturyMarkets may liquidate the stock consideration it receives at any time it deems it appropriate to do so. The liquidation of our stock may have a negative impact on the securities of the company liquidated, including decreased market value and/or dilution of the company’s securities.
The following companies have paid, or have agreed to pay the parent company of 21stCenturyMarkets to: distribute the company's information and reports in an email newsletter; post company links on featured companies page, and compile and distribute quarterly reports in an email newsletter.
ThermaFreeze, Inc. has agreed to pay 175,000 shares of free trading company stock. Grand Slam Treasures, Inc. has agreed to pay 9,000 shares of free trading company stock. The parent company of 21stcenturymarkets has received 10,000 shares of DP Charters Inc. free trading company stock from a non-controlling third party. Forefront, Inc. has agreed to pay $25,000 and 4,000 shares of free trading company stock. Advanced Optics Electronics, Inc. has paid 200,000 shares of restricted company stock.
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