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Not
me. I buy nothing that's not listed on the NYSE, AMEX or
NASDAQ.

My
second rule is...

Only Buy Stocks
That

Have The Potential To Gain

50% Or More In One Day!

I've
done a lot of research because I wanted to know what
made this small, elite group of stocks (there are 300 to
500 of…

Only 6.2% Were

Stocks Listed On

The AMEX Exchange!

No AMEX stocks for me.
At least, I don't spend any time researching them right now. Mushing on, I
also discovered...

Only 4.9% Of The

Top Daily Gainers Came From

The NYSE!

So, at
least currently, I don't research NYSE stocks either... because... the plain
fact of the matter is...

88.9%
Of All The

Big Daily Gainers

Come From The NASDAQ!

Now, let's talk about price. Of all NASDAQ stocks that gained
50% or more in price in one day...

Stocks priced at $1.99 or less represented 44% of the
big daily gainers.

Stocks priced from $2.00 to $2.99 represented 25.8% of
the big daily gainers.

Stocks priced from $3.00 to $3.99 made up 12.6% of the
big daily gainers.

Stocks priced from $4.00 to $4.99 made up 3.5% of the
big daily gainers and...

All
Stocks Priced

$5.00 Or More Represent Only

13.9% Of The Big

Daily Gainers!

So, here's what I've decided so far: I'm (at least for now)
only going to concentrate on stocks on the NASDAQ which are…

But, my friend, we ain't done yet. Not by a long shot. Just
because a stock is selling for less than $5.00 and listed on the NASDAQ
doesn't mean it makes the cut. Nope, all we've identified here is the
"preliminary pool" of stocks we are even willing to look at. There
are numerous other hurdles…

The first of the next hurdles is volume. If a stock has a very
thin daily volume, just the fact you invest in that stock will make it
skyrocket in price.

Conversely, if the daily volume is too high, way too
much of a mountain of money has to be moved to effectuate a 50% or more jump
in price…

If you are at all active in the stock market, you are already
aware of the success of a small group of stock market experts (they really
are) who have an informative website and write books on a how a "Motley
Fool" should invest in stocks. I recommend their material since it's very
informative. Here's an eight item…

1.

Sales of 200 million... or
less!'

2.

Daily dollar volume of trading three million dollars... or
less!

3.

Low share price between
$5.00 to $20.00. They maintain stocks priced at less than $5.00 are "junk." I disagree.

4.

Net profit margin of 10%
or more.

5.

Relative Strength (study
Investor's Business Daily to
learn what this means) of 90 or higher.

6.

Earnings or sales growth
must be 25% or greater this year than it was for the same quarter last
year.

7.

Insider holdings must be
at least 15%.

8.

Cash-flow from
operations must be a positive number.

All in all, this is a good checklist. My criteria are a bit
different but, not too much. However, there's something I consider much
more important than all of this put together. Namely:

I Want
The Companies I

Invest In To Be "Newsworthy"!

As I wrote in last month's issue of my newsletter it is...
NOT... some good or bad development which makes a stock price go up or down?
As I said, "It is the NEWS of some
development, not the development itself, that affects stock prices?"

You know what is so great about many of those smaller,
low-priced publicly-traded companies? Not only does a low-priced stock have
more "growing room," many of them remain unexamined by the big
institutional investors who are insurance companies, pension funds and mutual
funds. They can't afford to mess with those "little" stocks. First
of all, there…

By the way, I have not
invested in Longport because it is not traded on any of the three major
exchanges. But, if it was, I would invest in it... because... not only
do the stocks I invest in have to get through my price parameters, volume
parameters and all the other hurdles...

They Must Also Have

A Terrific And Mostly

Untold Story!

Plus, these have to be
stories... that... I have reason to believe the mainstream investment
publications are about to "discover."

OK, now that you know
all that, here are the stocks I've invested in this month:

STOCK
#1:

Company

Ticker

Exchange

Cortex Pharmaceuticals, Inc.

(An
Alzheimer's Breakthrough?)

CORX

NASDAQ

This is a neuroscience company focused on novel drug therapies for
neurological and psychiatric disorders. Recently, a patent application has
been filed entitled "Facilitation of AMPA Synoptic Transmission in Brain
as a Treatment for Schizophrenia."

One
of the three inventors is Gary Rogers, Ph.D. who is the
Vice President of Pharmaceutical Discovery at Cortex.

AMPALEX(R)(CX516)
is the first compound in the AMPAKINE class to be
administered to humans. The drug is currently the
subject of three Phase I/IIa clinical trials. Anyway,
here's what I, Sir Gary of Halbert, find especially…

AMPAKINES Are Also Being

Investigated For Potential Utility

In The Treatment Of Alzheimer's!

In
fact, there is currently in progress a Phase I/IIa
clinical trial at the NIH for that
indication! And, according to numerous scientific papers
AMPAKINES can increase performance on memory tests in
humans and animals. Plus, these memory enhancing effects
can be measured... within
minutes…

I
don't know about all this. I'm not a scientist. However,
this company seems to be dead serious about their
research... and... if their research pays off, I think
there's gonna be a world-wide news flash that will skyrocket
the price of the stock.

Maybe
it'll happen; maybe not. All I can tell you is, after a
lot of research, I'm convinced their stock is a good
bet.

We'll
see.

STOCK #2:

Company

Ticker

Exchange

Endocare, Inc.

(Prostate Disease
Relief!)