Message-ID: <28373878.1075859418009.JavaMail.evans@thyme> Date: Sun, 23 Dec 2001 12:53:48 -0800 (PST) From: bounce-otcjournal-1011326@lyris.otcjournal.com To: mike.carson@enron.com Subject: Christmas Trivia and Envoy Year End Wrap Up Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: "OTCJournal ListServer" X-To: Carson, Mike X-cc: X-bcc: X-Folder: \Mike_Carson_Jan2002\Carson, Mike\Deleted Items X-Origin: Carson-M X-FileName: mcarson2 (Non-Privileged).pst If you are reading this message in plaintext or if you have an AOL address = you must click on this link: http://listserv.otcjournal.com/otcjournal/2001= 1223-1.html and wait for a web page to automatically open up to properly r= ead this newsletter.=20 [IMAGE]=09=09[IMAGE][IMAGE]=09 [IMAGE]=09 [IMAGE] December 23, 2001 [IMAGE] [IMAGE] Volume IV, Issue 109 [IMAGE] = Email : info@otcjournal.com URL : http://www.otcjournal.com To OTC= Journal Members: [IMAGE] "Twas the night before Christmas...." [IM= AGE] In December of 1822 a poem was written by a literature professor at C= olumbia College (now University) to amuse his children. The poem was orig= inally entitled "A Visit From St. Nicholas". One year later it was publishe= d anonymously in the Troy Sentinel, submitted without the author's knowledg= e by a house guest who obtained a copy. A New York publisher later issued= the poem, and was advised nearly universally by critics of the time that i= t was a waste of paper and ink. However, as usual the critics were wrong.= This unheralded verse managed to hang on, and after the author's death it = was illustrated with drawings from Thomas Nast and became very famous. Th= e author was Clement Clarke Moore, and the poem began with the phrase "Twas= the night before Christmas...." So much for the critics. Have a wonderfu= l Christmas. Remember, the gifts that are around you are more precious than= the gifts you unwrap. [IMAGE] Envoy Communications (NASDAQ: ECGI) Anno= unces Year End Results- Santa in Nowhere to be Found [IMAGE] Over the Lo= ng Term Market Price Action Always Tells You What's Happening Even When the= Company Doesn't, and the Market is Rarely Wrong. The Editors of the OTC J= ournal [IMAGE] Envoy Communications held a conference call this past week= to discuss its fiscal year end results (end of September). Santa was nowhe= re to be found. Based on what we learned from the call the stock has droppe= d from the mid $4 range to just under $1 in the past year because it deserv= ed to. The company revealed an abdominal 4th quarter where they lost $2.2= million EBITDA. Although they ended the year with just over $80 million in= revenues (up 38%) and about $7 million in EBITDA profits (down 30%), the t= rend towards losses is very disturbing. We have been in a tough market en= vironment for many companies, and Envoy has not been left out. Of the $2.2 = million the company lost in the 4th quarter, $.5 million is attributed to s= hutting down the Communiqu? division, and $1 million was attributed to Sage= Consulting, their technology division which will probably continue to lose= money. The only bright spot was the performance of Watt Group, their Int= ernational design and consulting firm. Watt is profitable and now represent= s 50% of the company's ongoing revenue stream. As seen in the chart, the = recent rebound in the stock has dramatically reversed course as a result of= this disclosure. In our last edition on Envoy we felt the stock was destin= ed for higher levels. In the short term, this past week's financial disclos= ure sabotaged our prediction. Sadly, we were wrong. It's not the first time= and it won't be the last. However, these financial results are a snapsho= t of the past. We are concerned with the future. In the conference call the= company indicated they expected to make $8.6 million in EBITDA profits nex= t year. December quarterly numbers are expected to be lackluster, and the= y are expecting improvements in the March and June quarters. The editors = of the OTC Journal are very disappointed that management never gave any ong= oing public disclosure concerning their 4th quarter performance. Many compa= nies are falling on hard times, but most of them are choosing to inform the= public as disappointments occur. It is evident from the performance of t= he stock that someone knew the company was doing so poorly. Unfortunately, = it wasn't us. We still believe the stock will rebound to the $2 level, al= though it may take some time. Recent new contract wins have resulted in sur= ges in the stock price, suggesting the market wants to believe again. In = the next week the stock may suffer from the final week of potential tax sel= ling. If you see the stock down near $1 it should be bought for a January r= ebound. Still to come: Year end wrap ups on XMLG (big stuff happening the= re), XMM (our favorite for 2002), and CODX. Charts Provided Courtesy Of T= radePortal.com The OTC Journal is a proud partner of the SwingWire.com O= nline Investment Community . A next generation Online Analyst Exchange prov= iding Members the ability to search, review, track and monitor some of the = Internet's best Online CAs (CyberAnalysts). Members have the opportunity to= potentially achieve higher returns by viewing top performing portfolios an= d receiving real-time alerts from favorite CAs. SwingWire.com also has = a lucrative incentive model for experienced investors and traders who consi= stently outperform the market. 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