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Good going, Lady.

I wanted to have my position established the day before the shakeout gyrations happen, so my full position is at $8.55.

This is one of the finest little companies I have ever seen, and the reason it has been doing what it has been doing, (i.e. taking you to the cleaners) is because it went up too far, too fast. The Elephants bought this one at one dollar 5 years ago, and their profit was in the 1500% range at the top of this stock's movement.

Now the time is ripe, the shorters are waiting for that poor earnings report, and you and I bought a bunch. What is really funny about the scenario which will be playing out for you over the rest of this week is the fact that the earnings report is immaterial.

This little fact seems to escape the Fundamentalists. Please write this down, because you heard it first here, before the fact. THE EARNINGS REPORT IS IMMATERIAL.

The reason the stock is going up after tomorrow is inherent in its good management, its product line, its fundamental profitablity, and its chart.

The only way this stock is going South from this position is if they all of a sudden announced that they had put 5 million shares on the tables in Vegas, acquired 5 billion in debt, and were no longer selling anything at all.

You are really, really, going to enjoy this week.

Dave Knecht
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