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Sunday, 03/21/2004 4:31:05 PM

Sunday, March 21, 2004 4:31:05 PM

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The OTC Journal has hundreds of thousands of members, which gives us the marketing leverage to negotiate free or special discounts for investment-related resources we believe you won't find anywhere else on the Internet. To date, on behalf of our members we have negotiated free trial subscriptions with Forbes Magazine, The Wall Street Journal, and Investor's Business Daily (along with a free book not found anywhere else on the Net). We have also negotiated substantial discounts and preferred rates with on-line brokerage firms and fee-based stock advisory newsletters for short-term traders. We frequently run contests with cash prizes, and try to find a special free offer each and every month.

It is estimated that there are 25 million small and micro cap investors in North America. There are approximately 4,000 small and micro cap stocks for these investors to choose from, yet there is very little published information on these 4,000 small companies. Therefore, research tends to be difficult and challenging. The editors of the OTC Journal develop a direct relationship with the senior management of the companies we cover, thus providing our members with an inside look at the progress of the companies. This strategy is aimed at giving our members the competitive investing edge. Conversely, we depend on management for much of the information we provide, and management often tends to focus only on the good news and be uncommunicative when there is negative news.

It is NOT our mission to "HYPE" or "PUMP" any stock. Our goal is to help a small or micro cap stock trade "EFFICIENTLY". We try to help a small stock maximize its market value based on the historical progress of the company and its upside potential by providing an audience for the company's progress. Most of the 4,000 micro cap stocks currently trading have no coverage or following. Investors are often frustrated when micro cap stocks trade poorly despite continuing good news from the company. This is often because there has been no audience developed for the stock.

In most cases, we are compensated for the coverage we provide on our profiled companies. Compensation comes in the form of cash, and sometimes stock and/or stock options. The specifics as to the compensation that we receive on behalf of any company that we cover are detailed in our Disclaimer.

We often accept restricted shares of company stock; by SEC regulations, restricted shares cannot be sold into the market for a period of at least one year from the time that the shares are issued. In such cases, we detail in the Disclaimer the specific term of any restrictions. We also receive compensation in the form of stock options, in which case we receive the right to buy shares of the stock of the company at issue, at a specified time and a specified price. In such circumstances, we specify on our Disclaimer the terms of the options received. On occasion, we also accept free-trading shares in a company that we cover. However, by policy we generally do not buy or sell any shares of a company's stock within three trading days after any such company's profile, commentary, or other company-specific information is disseminated in the OTC Journal. In cases where we do trade within the three day window, our volume will never represent more than 5% of the daily volume, thereby minimizing any effect we could have on the potential price movement.

While our policies as detailed above are designed to minimize any impact upon our members of a conflict of interest between our company and our members, each member should be fully aware that such potential and actual conflicts of interest may well exist due to the compensation structure detailed herein. For this reason, and because the information contained in the OTC Journal Mission Statement and Disclaimer is updated on a regular basis as circumstances change, each member is strongly encouraged to periodically review both the Mission Statement and the Disclaimer.


We choose companies to profile on the basis of several important issues and criteria. The most important of those is our subjective evaluation of management's ability to successfully execute their business plan. Other factors include a company’s inclusion in an industry group Wall Street favors, a market capitalization offering substantial upside potential as compared to other publicly traded stocks in the same group, and the potential for the company to develop a Wall Street institutional following.

Occasionally, we will publish numerous editions repeatedly featuring or mentioning one company . This generally means the company is making substantial fundamental progress, and we believe the stock is poised for short term appreciation.

At the time of a profile's release, most of the companies we cover will be trading on the OTC Bulletin Board. To be profiled, the company must demonstrate to our reasonable satisfaction the potential to qualify for a full NASDAQ listing over the coming year. We believe this remains one of the only areas where the individual investor has a competitive advantage over Wall Street money managers.

When a company retains our services, we believe that its management is demonstrating a focus on legitimately maximizing shareholder value. We make every effort to avoid situations where insiders are simply looking for an exit strategy because they have failed to successfully execute their business plan and/or wish to line their own pockets with unearned wealth.

However, our members should be aware that the majority of companies we feature will be young and unproven. Therefore, these stocks are inherently VERY RISKY; members must expect that many of the companies we profile will either fail or achieve very little success. Investors in our profiled companies must be prepared to accept the potential loss of a high percentage of their investment in any of the companies we feature.

We believe investors should only commit a small percentage of their investment dollars into small and micro cap stocks. Each member should consult a professional licensed advisor to help you allocate the correct amount of capital for the high-risk portion of your portfolio based on your personal needs and goals.

In order to be a successful investor in the small and micro cap arena, you must have a long-term investment outlook. You must be prepared to hold an investment for at least six to eighteen months, in order to allow the company an appropriate timeline to achieve corporate success and then have that success reflected in the price of the stock. Our recommendations are not at all geared toward short-term traders (those with an investment horizon of less than the six to eighteen months).

In addition, overall market conditions can be unfavorable for small stocks over extended lengths of time. Therefore, you must be prepared to demonstrate patience during market downturns. In fact, bear markets often provide low-risk entry points and opportunities to add to already established positions in companies which constitute demonstrate sound fundamentals and well-conceived business model.

We strongly recommend that you review our “Trading Strategies for Small and Microcap Stocks". Additionally, we direct your attention to our monthly column from our contributing editor, Dr. Richard Geist, a Harvard Ph.D. in Psychology. Dr. Geist provides our members with unique insight and useful information as to the psychology of successful investing; his observations are specifically tailored to the small and micro cap arena.

Please take the time to carefully evaluate an investment decision in any company we feature. Ultimately, it is your money, you take the risk, and you experience the gain or loss on any investment. We do not benefit in any way if you decide to invest. Therefore, you must take personal responsibility for the investment decisions you make. If you have any doubts about the merits of a company we are featuring, please exercise caution by either not investing in the company, starting with an extremely small position, or at the least doing your own research or seeking the advice of an investment professional prior to committing your funds.

Click here to view our Disclaimer followed by a list of the companies we cover, accompanied by the compensation we have received as it relates to each respective company. This company-specific information, required by SEC Regulations, is intended to be updated whenever a material change in this information occurs. Please review this important section.

View Disclaimer
http://www.otcjournal.com/mission_statement.html

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