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In today's volative markets, especially for penny stocks, information can be unreliable, complex to overwhelming and rather difficult to assimilate. The average investor is dependent on information based on hot tips from friends or from market professionals (i.e., stock and bond brokers, financial analysts, etc..). The purpose of our web site is to provide exposure and profile companies that we feel have the best stories to tell. We use our experience and knowledge of trading stocks and technical analysis as tools in our decision-making process. In some cases, technical analysis is not applicable, and we do our best using other available resources.

Sometimes our reports are released over the weekend so that our subscribers have time to do their own due diligence. If you decide to make a purchase of any of our featured companies, we encourage you to place an order at a limited price and not at the market price. If you place a market order it may be filled at a different price than what you expected, which can be costly. Remember that when placing an order at the market price only guarantees execution of the order and not price. Whereas, a limited order guarantees a price, but not an execution -- a very important difference. If you want to learn more about investing and trading stocks, please go to our resources section.

Beware, there are numerous stock picking web sites that attempt to fool the average investor with overhyped information. Some recommended companies profiled on other sites are based on hot newsbreaks and/or earnings projections that possibly far exceed a company's resources. We strongly encourage investors to read all disclaimer and disclosure statements that are supposed to be attached to their write-up, and make sure that they are in full compliance with the Securities and Exchange Commission ("SEC").

As a final suggestion, "Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known," said Nancy M. Smith, Director of the Securities Exchange Commission's Office of Investor Education and Assistance. "Assume that the information about these companies is not trustworthy unless you can prove otherwise through your own independent research." We encourage our readers to invest carefully and read the information available at the web sites of the SEC at www.sec.gov and the National Association of Securities Dealers ("NASD") at www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at www.sec.gov/consumer/cyberfr.htm. 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.




Approach
One of our approaches for selecting companies is through the use of technical analysis (i.e., if it is applicable to our profiled companies). Technical analysis is considered by experts in the new age investment field as the most powerful and reliable method of forecasting future trends in stock prices. There is no method and possibly will be no method in fully predicting tomorrow's stock prices. Picking the right stock is not a science and never will be. However, technical analysis is probably the most reliable technique used by some market professionals in predicting the future movement of stock prices. This technique is considered a potential method for predicting the short-term movement in stock price (one day to one month) and possibly applicable for the intermediate-term (one month to three months).

Our profiles are generally intended for short-term momentum trading and carry a high degree of risk. Subscribers and viewers are hereby notified to trade at their own risk. We believe technical analysis is not as reliable for predicting long-term trends (greater than three months). However, other professionals would disagree and say it can be applied to long-term horizons as well. We do not agree with applying technical analysis for determining long-term trends, since there are too many factors that can influence the future price of a stock, and especially when trading an OTC Bulletin Board stock or penny stock. The risks involved in trading penny stocks are clearly stated in every disclaimer on our reports.


Principles

There are numerous principles that can apply to the nature of how stocks trade. The three most basic principles are:
  • Supply and Demand - Our belief is that all information whether being economical, fundamental, political, etc.. are reflected in stock prices. The price movements are simply dependent on the shift in supply and demand. The analyst is not concerned of what these factors are, but is very interested in what actually occurs. If demand is greater than supply, prices will increase. The build-up of these relationships can be evaluated through technical analysis.

  • Trends - Stock prices generally move in trends "channels", which are based on supply and demand. Trends persist until the supply and demand changes. An analyst can sometimes foresee changes in the balance or supply and demand well before the stock price actually moves in that direction.

  • Repetition - Charts of stock prices can sometimes fall into repetitive patterns. Each stock has its own way of trading, which is reflected in charts. This is sometimes a favorable method of determining probable future stock movement.

  • Technical Indicators
    There are a wide variety of technical charting indicators the analyst can use in predicting future stock prices. The most basic tool is a technical chart of the stock's price movement. There are various types of charts (i.e., bar charts, line charts, and candlestick charts, etc..), which can be assigned various horizontal and vertical axes. The most accurate method of chart construction is by usage of percentage charts. Percentage charts have horizontal lines that are vertically spaced at equal distance apart (i.e., each line is the same percentage to the next line). Many charting services use arithmetic or log arithmetic charts. Both of these have their advantages and disadvantages. It is our opinion that of the two -- the log arithmetic chart provides a more meaningful concept of the stock price history. However, the percentage chart is by far the most accurate and reliable method of charting stock prices.

    There are numerous technical indicators the analyst uses or can devise to improve his selection and timing of stock price movement. The following are a few of the more common technical indicators an analyst could use: time segmented volume, stochastics, moving average, volume bars, price rate of change, linear regression, envelope channels, relative strength index, moving average convergence/divergence, momentum, balance of power, money stream, relative strength graphs and comparison graphs, and more. These indicators or oscillators are derived from mathematical formulas and are based on factors of the stock's trading history.

    The use and interpretation of these indicators/oscillators should only be used by professional technical analysts or by individuals with a clear understanding of their mathmatical development.


    We track numerous companies and constantly interpret their technical position and fundamentals. We attempt to profile companies that have the best stories to tell and have favorable technical positions. After a selection has been made, we then generate a comprehensive report on the company. Most of our reports begin with the topic "Significant Newsbreak". This section alerts our subscribers to the latest significant event or events of our profiled company. Our job as advertisers or profilers is to gather and compile information for our reports from what we believe is to the best of our knowledge are credible informational sources, such as: (1) press releases, (2) company web site, (3) SEC filings (if applicable), (4) company materials (i.e., investor relation package) that are sent to us from the company or from their investor relation firm, (5) any other public informational source (normally found on the Internet), and (6) technical charts.

    During the time we write our reports, it should be understood that the stock price will fluctuate due to the nature of penny stocks, so this method is not perfect by any means. Our reports are released to our subscribers through an e-mail blast and is featured on our web site. Most reports are redistributed to other financial web sites that are to the best of our knowledge are SEC compliant.


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