Subj: XML Global and Energy Power Featured in Weekend Edition
Date: Sat, 17 Nov 2001 10:29:55 AM Eastern Standard Time
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November 16, 2001
Volume IV, Issue 100
Email : >info@otcjournal.com
URL : otcjournal.com
To OTC Journal Members:
Riskless Rebound Portfolio
Our November 2nd edition, titled the Riskless Rebound portfolio, continues to climb the charts. As of today's market close, the portfolio as a whole has now appreciated fully 36.75% over a brief two weeks. The Deutshce Bank Alex Brown IPO Endwave Corporation (NASDAQ: ENWV) is leading the way, up 52% from $.84 to $1.28. The company came public on October 17, 2000 at $14 per share, and still has $1.78 per share in cash.
Readers will recall we computed the portfolio would rise 88% if each of the five stocks simply appreciated to the level of cash they had in the bank. Therefore, we believe there is considerably more upside in this group of five stocks.
However, the NASDAQ market has rebounded dramatically off the September 21st lows, and is probably a little ahead of itself. Therefore, we would caution members who are looking for good entry levels to wait for a correction sometime between now and the end of the year before entering or adding to positions. If such a pullback occurs, we will try to help you choose a good entry level.
To view past editions of the OTC Journal in chronological order, put this web address in your favorites: listserv.otcjournal.com.
Energy Power (OTC BB: EYPSF) - September Quarterly Financial Results Strong
Short Sellers had to be a little demoralized by corporate performance when Energy Power released it's September (1st Quarter) Financial results on Thursday.
The stock staged a remarkable turn around on Wednesday when the bear assault forced the stock down from nearly $6 to a low of about $4. The stock turned around rapidly, and rebounded back above $5 when the company announced its year end audited results.
The stock continues trading over 1 million shares per day, which is historically unprecedented. The volume needs to quiet in order to identify a true support level for the stock. In the interim, based on historical trading patterns, that the next massive volume surge will take the stock above the $6 level. Members who chose to take profits when the stock traded above our target price of $5.60 should look to re-enter.
Another bear assault on the stock might be just such an opportunity. If the stock drops dramatically again as the result of another smear campaign we will get the word out as quickly as possible.
In the interim, shareholders should be heartened by September quarterly financial results, which are as follows:
Consolidated revenues were $5.5 million, up from $4.5 million last year (up 22%).
Consolidated gross profits were $1 million, up from $.70 million last year (up 43%).
Consolidated EBITDA profits were $.6 million, up from $.1 million last year (up 500%).
Consolidated profits were $.40 million, up from a loss of $.1 last year.
Earnings Per Share were $.05, up from a loss of $.07 last year.
all figures in Canadian Dollars
Improved financial results were attributed to revenue flow from the newly formed Oil and Gas Division, combined with increasing business at the Engineering and Offshore Division. The company's decision to take massive voluntary write downs of assets last year also positions the company for increasing profits going forward. Click Here to read the entire news release on their quarterly results.
The September quarterly financial performance is outstanding and should serve to reassure long term shareholders that management is performing. We expect the September quarter to be the first in a series of ongoing reports of growth in revenues and profits.
XMLG Global Technologies (OTC BB: XMLG) Turn Around in its Infancy
The recent dramatic rise in the price of XML Global, one of our featured companies for 2001, has finally quieted, setting the stage for another surge to the upside. XML Global is a leading software company developing tools for the revolutionary new XML programming language which is widely viewed as the "Holy Grail" of ecommerce.
Despite the most challenging climate imaginable for a B to B middleware company, evidence is building that XML Global's fortunes are turning back up. After making a 300% move in five trading days, the stock has pulled back a little and quieted down, providing an excellent entry level for investors looking for powerful turn around situations in the speculative end of the market.
Recent corporate developments support the notion that now is the time to accumulate this stock. Since the beginning of November the company has announced three major new contracts- One with the city of Vancouver, one with the Canadian Federal Government, and one with HomeSource Capital.
The OTC Journal believes the HomeSource Capital contract to be the most important. XML is viewed by many as the future of interserver communication between corporate computer systems. Corporate expansion has slowed to a crawl during this recession, but as soon as IT spending picks up XML Global is positioned to grab a significant market share.
While most large corporations are embroiled in a bottoming business cycle, home finance companies are booming in a strong refinance market fueled by low interest rates. The HomeSource Capital contract suggests many other companies will use XML Global software as the business climate improves. Click Here to read the entire text of the HomeSource contract.
While there is some risk of a slight pullback in this stock as a result of year end tax selling, we believe now is the time for bargain basement shoppers. The company is gaining the momentum we thought they would have before the recession, and as business turns up there is no telling where this company could go. If you want to own a $.35 stock that has a good chance of going back to $1, here's your opportunity.
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Disclaimer
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.
Click Here to view our compensation on every company we have ever covered, or visit the following web address: otcjournal.com for our full profiles and otcjournal.com for Trading Alerts.
MarketByte LLC has been paid the following fee by XML Global for a year of representation: $100,000 cash, 60,000 shares of free trading stock, 60,000 shares of restricted stock, 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 LLC has been paid a fee of 125,000 shares of free trading stock of Energy Power Systems Limited for representing the company for one year. The fee has been paid by Fieldston Traders LTD acting on behalf of the company. Please review our policy on selling shares found within our Mission Statement at 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.
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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 sec.govand the National Association of Securities Dealers ("NASD") at nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at sec.gov. 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.
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