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Joemoney

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Joemoney

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Monday, 09/24/2001 12:20:09 AM

Monday, September 24, 2001 12:20:09 AM

Post# of 423
Weekly OTC-BB Analysis

By Joemoney
Sunday, September 23, 2001

This new column I will be writing is based on a selected list of OTC-BB stocks that I follow very closely. I believe watching stocks daily is not always a bad thing, especially when buying such volatile OTC-BB stocks. My analysis will include in depth business plan analysis, basic fundamental analysis, technical analysis, investor perspectives and sentiment, rumors, and other various aspects of research. I will write new columns following up with information that I found every week on the selected stocks on my list.

The stocks that I will cover will be as followed, CTVWF, NPCT, NRES, & USXP. If you would like to see a stock be added to my list for weekly analysis, please follow the instructions at the bottom of this article. I am currently looking for more stocks to cover, but I want stocks that have a wide audience of followers and that have a story to tell.

All right everyone; let’s get started with our first installment with this new series of articles!

It has been a rough week on Wall Street. With the stock market’s reaction to the terrorist attacks, investors and mutual fund managers have been selling off stock due to fears of a major correction and possibly a recession. When the general markets react in such a way as it did this past week, OTC-BB stocks are affected as well as large cap stocks. Most OTC-BB stocks are hit hard, because when investors get scared, the last place they want to invest is in small, risky stocks. However, small cap stocks with extremely low volumes are usually not affected because people are not trading them. It is the traders who sell the stocks to drive them down in bad market corrections. However, no matter what the market is doing, companies will still release news for us investors to analyze. But enough jibber jabber, let’s analyze the list.

CityView Corp. Ltd. (OTC BB:CTVWF)

Company Analysis
Cityview is involved in many different and unrelated ventures that could and should yield them profits in the near and long term. Among those are their drilling activities in Malaysia. They have a joint venture with PT Medco Energi Internasional TBK to drill for oil in Sebaya Malaysia. On September 18, 2001, they announced that they have accelerated their drilling activities and have set to spud on September 19, 2001. The total depth of the well will be 1230 meters below sea level and will target two zones: the Tawun sands at 200 meters and the Tuban sands at 900metres. At best, Cityview expects to profit US$14.6 million. This is only their first drilling project however. They also have plans for other drilling activities including a gas venture that could yield them over US$50 million in profits. The entire project is being funded at no cost or risk to Cityview by their parent company, Malaysia Mining Corporation.

More information on their oil ventures, and their relationship with Malaysia Mining Corporation can be found at this CEO interview taken during May of 2001: http://www.investorshub.com/boards/read_msg.asp?message_id=111499

Fundamental Analysis
Technically, Cityview has reached a situation that many OTC-BB companies have faced at least once in the past. They have fallen enough for them to reach a bottom that according to book value, undervalues them by 47%. Cityview is currently trading at .115 per share, but has a book value of .17. Their oil ventures will yield them a much high book value, which I will get more into depth with in next week’s column.

Technical Analysis
I have created two technical analysis charts for CTVWF. They can be found at this location:
http://www.marketreporter.com/commentary/commentary/technical_analysis/002.html

NanoPierce Technologies Inc (OTC BB:NPCT)

Company Analysis
NanoPierce is a highly innovative company that I believe has been overlooked by many OTC-BB investors. Many do not invest in NanoPierce because their product is difficult to understand for some people and if they do not understand their product and what it is used for, then they would not know the advantages and potential of the product. However, most people read a small bit about their product and think of it as extremely complex, but in actuality, it is quite simple to grasp if you take time to fully understand it.

The core of NanoPierce’s work is placed in their NCS (NanoPierce Connection System) technology. NCS is a very innovative way for electrical connections that will replace conventional electrical connection methods such as soldering, spring-loading or pin-in-hole connectors. Conventional connectors require large space because of their excessive mass. With NCS, space requirements lessen by nearly 90%. This is an important advancement in technology, and will be necessary for electrical components to become smaller in mass. This would create NCS as a standard in electrical connections, and this technology would be in great demand due to its revolutionary technology. NanoPierce holds the patents relating to this technology.

The NCS process is simple and easy inexpensive to produce. Microscopic particles of inexpensive materials such as industrial diamond dust and metal are simultaneously deposited onto a contact surface. This step can be performed in a simplified electro-plating-type bath.

Under slight pressure, the hard diamond particles contained in the mixture penetrate the contact beneath the electronic component, thus providing an electrical connection.

NanoPierce has 26 employees focused on exploiting this technology. Web interviews and shareholder newsletters have indicated that NanoPierce is in discussions and testing with global corporations such as IBM, Texas Instruments, Infineon, Motorola, Gemplus, Phillips, Schlumberger, Orga, and others.

Fundamental Analysis
NanoPierce collected revenues of $14,848 for the three months ended March 31, 2001, and $94,277 for the nine months ended March 31, 2001. They currently are not in the full process of selling their product. They know they have a good product, and are currently testing and providing investor awareness instead of selling their product. However, it is believed that since their product is ready and useable, they are on the verge of commercialization. It is claimed by investors of NanoPierce, that their NCS technology has the potential to bring in billions of dollars in revenue in the long term. NanoPierce is not an old company, but is only in its infant stages and needs time to get known its product. Patience is key with NanoPierce.

Technical Analysis
I have created two technical analysis charts for NPCT. They can be found at this location:
http://www.marketreporter.com/commentary/commentary/technical_analysis/001.html

Investor Perspectives and Sentiment
While browsing through the Raging Bull posts for NPCT, I found a new and interesting personality appear with the alias “MMMARY,” AKA Mary Cummins of Los Angeles, CA. She has been posting absolute garbage on the thread for weeks now. She is basher that is suspected of being compensated for her dirty work. Nothing she posts is true, and she is only causing trouble by angering longs and scaring aware potential investors. I would ignore this person at all costs and I would not take anything she says as true.

Besides the new basher situation, the NPCT investors still remain very bullish and have not lost confidence in NPCT at all. Investors are now gathering together to form a list of people who have promoted NPCT and are currently bullish on the stock. This togetherness is a big positive for the board and gives a very welcoming message to newbies.

National Residential Properties Inc (OTC BB:NRES)

Company Analysis
In 1999, National Residential Properties changed their business plan from remodeling deteriorated homes and selling them for profit to building residential communities from scratch. They are currently not making profit, but are in the process of developing several different projects including a housing sub division, a senior citizen’s home, three different apartment homes, a condominium, and a number of other projects that will yield this small company a sizeable profit. The only two projects that will yield profits in 2001, will be their housing sub division named “Eagle Terrance,” and a senior citizen’s complex in Connecticut. The sub division is expected to bring 1.5 million dollars in 2001 and 2002, and the senior citizen’s home will yield about 1 million dollars in the fall of 2001. The revenue of the remainder of their set projects will be collected in 2002. Here is a more in-depth list of their projects:

Building a 60 unit luxury apartment house in Miami known as GRANADA GRAND, upon sale the company will generate $7,000,000 revenues and $2,500,000 net income in 2002;
Building a 60 unit luxury apartment house in Miami known as CONQUISTADOR PLAZA, now under construction, generating $7,000,000 revenues upon sale, and $2,500,000 net income in 2002. The building is under construction at 2270 SW 32 Ave, Miami.

Now under construction, the company is developing a subdivision in Vero Beach, Florida, known as EAGLE TRACE. EAGLE TRACE is a heavily deed restricted, walled, gated community with a lake in the center. NRES will build houses and sell lots to other builders. The sale of the lots in EAGLE TRACE will generate $1,500,000 net income in year 2001-2002. Eagle Trace is a 62 unit subdivision that is being developed by the company. 1/3 of the lots are on the lake. NRES is being reimbursed by county for offsite sewers.

A 60 unit condominium project known as THE RESIDENCES AT BAY HARBOR, located on Bay Harbor Island, which will generate $12,000,000 in revenues and a $2,500,000 profit to the company in year 2002. The building is pre-sold to one buyer before being built, generating $2,500,000 profit to the company.

A 70 unit apartment house in Miami known as BARCELONA APARTMENTS, generating upon sale $8,000,000 revenues and $3,000,000 net income in 2002. ENCORE SERVICES, INC. is a licensed building contractor, and a wholly owned subsidiary, which is building the company projects thru its affiliate Encore Builders Inc. and subcontractors.

The company has a project of 6 sites in CONNECTICUT where the company would develop condominiums for Seniors of over 55 years in Hebron, New Milford, East Windsor, Granby, Watertown and Torrington, all in Connecticut. The company owns the land in Hebron. All the land in all the projects, before being developed have been contracted for sale to another developer wherein NRES will receive a $1,000,000 profit over and above its expenses incurred. The closing date for the transaction has been set in September, 2001.

Fundamental Analysis
As stated in their most recent Quarterly Report (August 17, 2001) “for nine month period ended June 30, 2001, the Company used net cash of $3,833,362 in operating activities, compared to net cash used in operating activities of $1,721,539 for the comparable period in 2000. The Company acquired $3,459,780 of real estate holdings in the nine month period ended June 30, 2001, compared to real property acquisitions of $1,731,674 in the comparable 2000 period, as the Company implemented its business plan to develop, construct and own multifamily housing. In the nine months ended June 30, 2001, the Company met its cash requirements substantially from net proceeds of $4,157,742 from the issuance of common stock and the sale of debentures and mortgages. The Company realized net proceeds of $2,193,930 from financing activities in the nine months ended June 30, 2000. At June 30, 2001, the Company had long-term mortgages and notes payable aggregating $3,831,015, compared to $1,836,000 at June 30, 2000. The notes and mortgages are secured by land and buildings held for development by us.”

NRES will not start to show profit until the fall of 2001. Their first project will give them positive earnings to show and will give them enough cash flow to operate until September of 2002. That is only including their first project. They have many more projects pending that will yield them much higher profits. I believe this company is not on the verge of any type of financial problem. They have enough project lined up to load them with cash for years, and the success rate of their projects is extremely high.

Investor Perspectives and Sentiment
The NRES threads are quite popular and almost basher free. Like every board, you’ll see a basher once in a while, but the NRES thread on RB is quite clean compared to other OTC-BB threads. Investors are very bullish, and very patient with NRES. NRES sets deadlines, and that leaves investors with a sense of awareness of when projects will be complete.

Universal Express, Inc (OTC BB:USXP)

Company Analysis
Universal Express provides a variety of services to the private postal industry through its numerous subsidiaries. These services include International air courier delivery through WorldPost.com, Luggage Transportation and Logistics through Luggage Express, and other benefits and programs negotiated with recognized suppliers and services to its members.

USXP's principal subsidiaries include the PBC Network.com, WorldPost Network.com, Packaging Plus, Inc., and Luggage Express.

The Company's goal is to become the largest provider of business services to the private postal industry in the United States and a leader in the private worldwide postal offices.

With WorldPost.com, our International Shipping Company, PBC Network store owners have the opportunity to resell International Shipping at a 40% discount from major carriers. With private postal stores throughout the United States totally approximately 15,000, WorldPost.com will be a nationally recognized entity in the Shipping Industry.

The main advantage of USXP is their $389 million lawsuit judgment that was rewarded to them on July 26, 2001. This values the company tremendously higher than it’s current price. The judgment may take time for it to be collected, but this judgment could take this company off the OTC-BB and onto the Nasdaq or NYSE. USXP is going to be able to venture out into new areas of business and fund their current businesses. A potential reward for investors is highly likely and risk is quite minimal and virtually non-existent if they collect the entire judgment.

Fundamental Analysis
As stated in their most recent quarterly report “Net loss from operations was $432,366 for the three months ended March 31, 2001 compared to a net loss of $828,062 for the three months ended March 31, 2000. Net loss from operations for the nine months ended March 31, 2001 was $945,274 compared to a net loss of $2,224,066 for the same period ended March 31,2000. A gain of $1,517,555 is recognized in this quarter for sale of a discontinued operation. Such operation carried a loss of $398,994 at March 31, 2001.

However, the most recent quarterly report is irrelevant to the main idea of why anyone would invest in USXP. Their quarterly report will be telling a different story if and once judgment is collected. Their book value, income, and spending will change drastically.

Investor Perspectives and Sentiment
Investor sentiment is mixed on this stock because some people do not believe they will receive their judgment. Others do not believe in their postal services and think they have no chance of competing with UPS and Federal Express. However, there are still many longs on the threads that look forward to seeing whether or not they will actually received their judgment. Investor sentiment is mixed.

Note: If you would like a certain stock to be analyzed weekly in this column, please send us an email at: webmaster@marketreporter.com

Written for MarketReporter.com
http://www.marketreporter.com/


Disclaimer: http://www.marketreporter.com/information/disclaimer/

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