ENTRUST, INC. & INCREDIMAIL, LTD.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed two positions, our first for 2008.

Alphatec Holdings (6/20/07). Closed position 2/14/08 at $6.22 for a 73% GAIN.

American Micro Circuits (11/20/04). Closed position 2/13/08 at $8.03 for 42% LOSS.

Ever since we picked it last June, Alphatec Holdings has done nothing but virtually go up, which, in this market, seems like a major feat; helping to fan the flames, lately, was recent news that ATEC acquired a exclusive worldwide license for what it calls “dynamic” anterior cervical plate technology. A few months back, we said we would soon close American Micro Circuits because of its 1 for 4 reverse stock split, and these seldom benefit current shareholders.

Overall, the last week or so has seen a slight break from the carnage in the markets, but we are still leery; read our last five or six Newsletters to understand our apprehensions. Small stocks have mostly remained in place and our own Current Portfolio is still half blown apart, although not as badly as a month ago. Much technical damage has been done to small stocks and it will take time to repair, once the downturn is over, which, as we recently said, may be sooner rather than later. Time to bottom fish?

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GSI TECHNOLOGY, INC. & NEUROGEN CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

We have good news and bad news. The good news is that our Current Portfolio is pretty the same as it was a few weeks ago, although there have been some improvements. That’s also the bad news. Many of our picks have had upbeat news announcements only to see their stock prices mark time or even drop a little; of course, this has been the norm for the last several months (please see our Newsletters during that time). But this isn’t how it should be happening. Didn’t the Fed ride to the rescue? Isn’t Congress going to turn on the money spigot even more? Shouldn’t the markets be soaring, especially small stocks? Well, the markets did respond to the rate cuts, albeit tepidly, and before small stocks can refuel, their bigger brothers and sisters, namely the big caps and mid caps will need to get much healthier.

During the last part of January, the market showed it still had a pulse. However, there is a sense that we still have not seen the bottom of this, just yet. We now feel it will come sooner rather than later. Yes, it may be a good time to bottom fish, but long-term thinking may be in order.

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AMICAS, INC. & NANOPHASE TECHNOLOGIES CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

A few weeks ago, several pundits were crowing that the markets were “out of correction territory”. Well, excuse us for being a little trepid. To our new readers, we urge you to scan the last four or five Newsletters so as to understand our anguish. The small stock indicator Russell 2000 is now down nearly 10% for the year – that’s this year, 2008, which is not yet three weeks old. We have not seen small stocks take this sort of beating since the late 1980s, and, yes, we were around at that time. Our own Current Portfolio still looks as if it has been through a nuclear war, but, for the bravehearts, this may be a good time to do some bottom fishing. Why?

The market is usually a barometer for economic activity over the next six to eight months. Currently, the market is signaling that we will be in the doldrums at least through the summer. However, should oil prices go down and the Fed finally wakes up, the markets could turn on a dime, to be trite. This could happen sooner than people think. Trouble is who will be the first to catch a knife by the handle?

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HOLLYWOOD MEDIA CORPORATION & MOVE, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

New Year’s Greetings,

We had hoped to salute this Newsletter with “Happy New Year!”, but, as we enter 2008, there are a lot of BIG IFS hanging over the markets. And, again, we all know what they are, by now. The mortgage/credit mess continues to unfold with a new shoe dropping almost every day. Oil is nearing $100 and looks poised to go higher. The Fed is not accommodating the markets. Then, there is Hillary and whoever the other guy will be. And lately, leaders are being killed off in the Middle East.

As we have echoed for over the last month, our Current Portfolio is the worst it has ever been in our nearly eleven years of publishing. The simple reason being that small stocks have been totally trashed since August. To be trite, a lot of babies have been thrown out with the bath water. So, again, we ask ourselves the question, “Is it time to do some bottom fishing?”. We suspect it may be soon, because, at some point, the carnage will end. Let’s see how the markets trade during the first few weeks of January, which is usually a market barometer for the year.

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CATALYST PHARMACEUTICAL PARTNERS, INC. & HOLLIS-EDEN PHARMACEUTICALS, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, things have deteriorated more, and, again, we all know the reasons why. One of the main impediments to breathing new life into the markets is a sense that nothing is being done to resolve the credit crunch, however, that’s not true. Steps are being taken to alleviate the crisis, but most of us want this to be resolved now! In the words of a great philosopher, “Ain’t gonna happen”. In the meantime, small stocks keep getting pounded the worst, and even more technical damage is being done. To have a better understanding of this is that the Dow and NASDAQ averages are only down 5% from their July highs while the Russell 2000 index is down over 10%. In the previous Newsletter we said that our Current Portfolio hadn’t looked this bad since Fall, 2001, right after 9/11. Now, it looks even worse.

Are there any rays of hope? Maybe. The market usually forecast conditions six months from now, and how the market moves in January is a pretty good barometer as to its movement for the rest of the year. The unknown for this January are the primary elections. But, maybe, just maybe.

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AMERITYRE CORPORATION & DIGITAL FX INTERNATIONAL, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Despite the great market upturn last week, we are still somewhat skittish, because the underlying factors that caused the Fall carnage are still there. Much plowing remains on the mortgage front and let’s not forget about oil, hovering around $90 bbl. Now, having said that, we are still bullish for the long-term. What concerns us is that a lot of technical damage has been done, especially to small stocks, and that isn’t going to be repaired overnight. Also, investor confidence is chilly, to say the least. Our own Current Portfolio hasn’t seen this much red ink since Fall, 2001, right after 9/11.

So, is this a good time to bottom fish? Maybe, but you will need patience and learn to expect the unexpected. Once again, many of our picks had some good to great news over the last few months, only to see their stock prices mark time.

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SANTARUS, INC. & CONTINUCARE CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed one position, for a nice gain.

INNODATA (7/5/05). Closed position 11/14/07 at $6.00 for a 104% GAIN

In this market it feels good to get an Innodata, which jumped over $2.00 in one day on blockbuster earnings news, and yes, it took awhile, but the 104% gain was worth the wait.

Undeniably, the last few weeks has been real scary, and small stocks have taken the biggest pounding, as our Current Portfolio can well attest. The thing to remember is that this, too, shall pass. We all know the culprits that have caused the recent chaos, so, there is no sense in rehashing. The main question we must ask ourselves, “Is the country as bad off as the markets would have us believe?”. The answer, right now, is simply “no”.

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LINKTONE, LTD. & SUNSESIS PHARMACEUTICALS, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

The markets have had quite a carnival ride over the last several weeks, with the focus on big and mid caps. While money is gushing into these sectors, it is only still trickling into small stocks, grudgingly so. We still keep urging patience, but the watchword for now is caution. Things are getting a little too frothy as the markets keep climbing a wall of worry.

Here are the headlines since the last Newsletter about companies in the Current Portfolio. Dates in parentheses are when we first recommended them.

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RETRACTABLE TECHNOLOGIES, INC. & ORSUS XELENT TECHNOLOGIES, INC.

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we closed one position, for a gain.

SCOLR PHARMA (7/5/07). Closed position 10/5/07 at $3.58 for a 63% GAIN.

At first, nothing seemed to be propelling SCOLR, which had been on a steady uptick for over a month after sinking to under $2 back in August; but a few days after closing the position for a 63% gain, the company revised estimates upward, so, someone probably knew something beforehand.

Frankly, we are surprised that the markets have had such a great run since mid last month because September and October are traditionally bad months. The Dow and S&P have hit new highs, and, finally, we see money coming back into small stocks, albeit, not as much as we would like. Patience is the operative word, for now.

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NUCRYST PHARMACEUTICALS CORPORATION & AMERICAN TECHNOLOGY CORPORATION

***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***

Hello Readers,

Since the last Newsletter, we have closed five positions, three for gains and two for losses.

AIXTRON (7/5/04). Closed position 9/27/07 at $9.98 for 50% GAIN.

AMERICAN CARESOURCE (5/20/07). Closed position 9/21/07 at $2.58 for a 52% GAIN.

TARGETED LOGISITICS (11/20/06). Closed position 9/18/07 at $2.45 for an 11% GAIN.

GATEWAY (2/5/06). Closed position 9/18/07 at $1.89 for a 31% LOSS.

NEUROBIOLOGICAL (2/20/07). Closed position 9/18/07 at $3.95 for a 78% LOSS.

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