Amigula Inc. (AMJL)

[dapoopa]

A Tale of Two Sessions for AMJL

Yesterday was a tale of two sessions for AMJL. Despite the late trade on Monday at $0.43, the market opened flat to lower and stayed there for much of the day. Volumes were rather weak, but in the last hour of trade interest began to pick up significantly. The catalyst may have been Ashcroft's congressional testimony, which revealed that one of the Justice Department's main priorities for 2001 was the "war on drugs" and not counter-terrorism. The LA Times then published an article entitled "Drug War Led Bush Astray Before 9/11", since one of Ashcroft's main concerns that year was apparently to raid medical marijuana co-ops in California. It will be interesting to see if the media seizes on this story to point out the misplaced priorities of the nation's top law enforcement officials. That, in turn, could encourage Kerry to speak out and make this a larger political issue.

On the heels of this heated testimony, late buying interest saw several deals at $0.40 to $0.50, and even one at $0.55. The largest deal on the day, barely three minutes before the close, was for 20,000 shares at $0.385, but the final deal of the session was back up at $0.45. So the gain on the day for AMJL was a whopping 29%, and the volume of 212,000 shares was much healthier compared to Monday, but this of course comes after several weeks of declines. The year-to-date return on this name is an abominable -97%, and -18% over the past five days alone. So it is clearly premature to say that the downward trend has reversed - it will take several more such sessions before we can make any such conclusion. But yesterday's gain was a welcome respite nonetheless.