Date: Mon, 26 Oct 98 19:12:35 EST From: donn@email.de To: dawn@worldnet.att.net Subject: Stock Networking News # 9 Message-ID: <199810252035.FAA03663@omega.ibaraki-ct.ac.jp>
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October 25, 1998 StockNetworking News No. 9 (SNN) Table of Contents - SNN 9 1. Market Commentary 2. USDI - a player in the IRIDIUM Satellite project 3. NLAB and FLNK updates 4. Departments 1. MARKET COMMENTARY As predicted in SNN#8 the US equity markets have stabilized and begun to head higher again. Asian markets have had a nice rebound and some currencies have begun to strengthen against the US dollar. Hong Kong continues to show some weakness, but these problems can probably be traced back to the actions of the Chinese government in Beijing. During the last week European markets have also begun to move higher once again. Against this backdrop and more importantly to our subscribers, there is a groundswell of interest and commentary developing in and about the "small cap" sector of the market. The Russell 2000 small cap index has moved from a low of 303.87 in the first week of October/98 to close on October 23/98 at 367.05. This is an increase of over 17% in 2 weeks. We believe the market is entering a phase where interest will begin to increase in this long neglected sector of the market. There are excellent investment grade and speculative opportunities in this area, which have long been overlooked by the institutional money managers with their fixation on the Dow 30 stocks. The DOW is now beginning to look, if not a little tired, at least fully valued. The fund managers are now going to have to go to work and find new areas in which to deploy their client's money. Leverage is a bad word on Wall Street these days and without leverage these managers are stuck with relatively low returns in the bond and money markets (under 5% on 30 year US treasury bills). It is our feeling this will result in more money flowing into the smaller cap sector of the market - and remember - with the huge amount of money now in mutual funds and the market in general, it only takes a relatively small reallocation of assets by market participants, to have a substantial impact on the price of these smaller company's shares. 2. US DIGITAL COMMUNICATIONS INC. (USDI) We are profiling a new company in this issue of SNN: US Digital Communications Inc. Symbol: USDI Trades: OTC BB USDI is a proxy for one of the biggest events in the evolution of wireless communications - the IRIDIUM Global Communications System. USDI in conjunction with its subsidiaries SKYSITE <a href="http://www.skysite.com">http://www.skysite.com</a>, INSAT and PROJECT 77 <a href="http://www.project77.com">http://www.project77.com</a>, is a supplier of both the Motorola and Kyocera telephones and pagers and a resellers of air time for the IRIDIUM network. As such, expect to see their revenues and profits grow in lock step with the growth of the overall satellite network. The IRIDIUM satellite phone system consists of 66 low level satellites, which completely cover every point of the planet. This $5 billion dollar investment allows any point or individual on earth to access telephone, data transfer or paging service. The 19 members of this consortium, which has been spearheaded by Motorola, include some of the largest telecom companies in the world, as well as a number of very large Middle Eastern, Asian and South American private investment companies. The financial commitment is very large and IRIDIUM <a href="http://www.iridium.com">http://www.iridium.com</a>; will go into service A WEEK FROM TODAY, November 1, 1998. The "start" date for IRIDIUM service is one of the reasons that we are bringing this company to your attention now. As you can see if you look at a chart of the stock at <a href="http://www.bigcharts.com">http://www.bigcharts.com</a>; the USDI's share price peaked at $7.00 in early July of this year, in what we believe was anticipation of the original service commencement date of September 23, 1998. When it became obvious this date was going to be pushed back to November 1, momentum was lost by the stock. It then bottomed out on October 8 at $ 2.30. In the last week it has moved back to close on Friday (Oct 23) at $3.93 up 7/8s of a point or 28.5% for the day on 366,200 shares traded! See the October 23 USDI News Release at: <a href="http://biz.yahoo.com/prnews/981023/dc_fcc_us__1.html">; http://biz.yahoo.com/prnews/981023/dc_fcc_us__1.html</a>; The IRIDIUM name will be on a lot of peoples "radar" screens soon as a $100 million public relations, marketing and advertising program will help launch this service. This is definitely a "timing" and "momentum" play and there is no doubt that the very wealthy and smart companies and individuals that are part of the IRIDIUM consortium are going to work hard to make this THE wireless network of the future. Given the momentum that is building in the stock, USDI could easily see its old high of $7.00 between now and shortly after startup of the IRIDIUM service in the next week. Depending on a stable market and some positive news which we fully expect, and given the sophistication of the underwriters and companies behind the IRIDIUM project, USDI prices above $10 are quite possible over the next 90 days. (for more on USDI including their very impressive management team go to their site at: <a href="http://www.usdi.net">http://www.usdi.net</a>) 4. NUONCOLOGY LABS AND FUTURELINK DISTRIBUTORS CORP UPDATE We continue to believe both of these companies will be BIG WINNERS for our subscribers. NuOncology Labs Inc. (NLAB - OTC BB) continues to make progress on its business plan and have announced the opening of their new offices, predictive oncology testing and research building in Houston TX. (See October 15th News Release at: <a href="http://biz.yahoo.com/n/n/nlab.html">; http://biz.yahoo.com/n/n/nlab.html</a>). This new facility is capable of performing testing to the rate of 1000 comprehensive predictive profiles per month. SNN heard NuOncology is planning a road show in Europe that will include NLAB management starting early in November. These "show and tell" meetings are intended to attract additional funding, market sponsorship as well as institutional and broker interest for NLAB. We expect soon after this trip there will be further word on the Arglabin/FTI issue by way of publication of their research in a recognized medical journal. In addition there will be more results coming on the second large sample of patients who have been undergoing treatment for various types of cancer with Arglabin. The share price has fallen on relatively small volume and somewhat tracks the skittish market we have had for the last 2 months. It would not be inconceivable that this market rebounds right back to the $6.50 range in a day or two of trading - especially if there is some further news on the use of Arglabin as a successful cancer therapy. REMEMBER this is not a theoretical concept NLAB is working on - people ARE BEING TREATED with ARGLABIN today and their CANCERS ARE IN REMISSION. This company has the potential to be a $500 million - $1 Billion cap company and we believe you will begin to see some recognition of this in the marketplace BEFORE THE END OF NOVEMBER. For further information on NuOncology Labs Inc. go to: <a href="http://206.132.179.167/NuOncology">; http://206.132.179.167/NuOncology</a>; For a current quote on NLAB please go to: <a href="http://quote.yahoo.com/q?s=nlab&d=d1">; http://quote.yahoo.com/q?s=nlab&d=d1</a>; Finally, there is FutureLink Distribution Corp. (FLNK - OTC BB) This has been a torturous ride for all of us, but it is beginning to look like this stock has turned around. SNN believes the fundamental problem in this company from the beginning, was in the share structure - there was simply far too much free trading stock that was obviously in weak hands. It now looks like the stock has been repositioned into long term investors as well the company has come out with an exceptionally bullish press release October 21 which can be viewed at: <a href="http://biz.yahoo.com/n/f/flnk.html">; http://biz.yahoo.com/n/f/flnk.html</a>; The stock has rocketed from 30 cents to close at 80 cents in the last two trading sessions of last week and should continue to move higher. FutureLink has added some very strong and savvy finance and management people over the last three months, by way of Directorships and acquisitions. These people are so highly thought of in the computer/communications industry that they were able to convince an underwriter to do a $5 million Private Placement with them at $1.00 per share during a very turbulent time in the general stock markets of the world. We would therefore certainly expect the stock to go above this level in the near term. SNN thinks FLNK has turned the corner and although we are embarrassed about our early call on this company we have always felt they had a winning idea and concept and we expect better days ahead for the stock. For more information on FutureLink please go to: <a href="http://www.futurelink.net">http://www.futurelink.net</a>; DEPARTMENTS A. Stock Quotes B. Your Comments C. Disclaimer D. How to Subscribe/Unsubscribe A. STOCK QUOTES For stock quotes on any company please go to: <a href="http://www.bigchart.com">http://www.bigchart.com</a>; or <a href="http://quote.yahoo.com">http://quote.yahoo.com</a>; B. YOUR COMMENTS ARE ALWAYS WELCOME If you wish to make a suggestion or comment about SNN or its content please forward it to: <a href="mailto:commentsno9@cyberservices.com"> commentsno9@cyberservices.com</a> C. DISCLAIMER By being a subscriber of SNN you are acknowledging you have fully read and understand our disclaimer at: <a href="http://206.132.179.167/NuOncology/disclaimer.html">; http://206.132.179.167/NuOncology/disclaimer.html</a>; D. HOW TO SUBSCRIBE OR UNSUBSCRIBE TO SNN Please note SNN is delivered to our subscribers by an automated system that ONLY responds to e-mails sent to the following: To subscribe to SNN, send an e-mail to: <a href="mailto:subscribesnn@cyberservices.com"> subscribesnn@cyberservices.com</a> To unsubscribe to SNN, send an e-mail to: <a href="mailto:unsubscribesnn@cyberservices.com"> unsubscribesnn@cyberservices.com</a> SNN respects your privacy and will NEVER release your e-mail address to a third party for any reason. SNN No. 9 copyright 1998 SNN To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-doc" in the body of the message
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