The Gary Halbert Letter

From:

North of Jewfish Creek

Friday, 3:47 p.m.

June 12, 1998

Dear Friend & Subscriber,

No time for chit chat. Let's get right down to business.

Later this month, a few days after you receive this newsletter, the following ad is going to appear in Investor's Business Daily.

Here Are 3 Very Low-Priced Stocks You Must Know About Before Midnight On Tuesday,

June 30, 1998!

All of these companies have made new and amazing bio-med-ical, technological breakthroughs. All are listed on the NASDAQ. Here are their ticker symbols:

(1) CORX (possible Alz-heimer's breakthrough!)

(2) ENDO (prostate disease relief and minimally invasive surgi-cal technology which literally freezes cancerous tumors!)

(3) SLIC (most efficient laser ever developed which can be used at operating room temperatures! Potential for automotive, dental, medical, telecommunications, optical data storage, DVD printing and military operations)

For exciting, free info go to...

www.GHLstockalert.com

Now, as you notice, the people who read that ad will be directed to go to a website, namely www.GHLstockalert.com. Here is what they are going to read when they get to that website:

Welcome to...

GHLSTOCKALERT!

My name is Gary C. Halbert and I am about to reveal the details to you of three low-priced stocks I believe have a tremendous upside potential. I, myself, have purchased shares in each of these companies.

However, that does not mean you should invest in these stocks. Just because I believe the price of a certain stock is going to go up, doesn't mean it is a dead certainty which will turn out to be true. There are always factors in the near and distant future which are virtually unknowable before they manifest themselves. Therefore, you should never invest any money in the stock market if the loss of that money would cause you undue discomfort or inconvenience. If you invest in any of these stocks, you could lose part or all of your investment.

But, you could also make a bundle!

I'll reveal the names and details of my three stock picks for this month just a few paragraphs from now. But first, it will be useful if you understand a little about why I have chosen to invest in these particular three stocks.

First, I have a rule for myself and, that rule is...

Buy Only Stocks Listed

On One Of The Three Major

Stock Exchanges!

The reason for that rule? Simple: You see, I realize I'm never going to make any money by buying stocks. I'm only going to make money when I sell my stocks. And, when I'm ready to sell, I want to make damn sure whomever wants to buy can easily find quotes and other details of the stocks I want to sell. In other words, I have no interest (at least currently) in messing around with any stocks... unless... they are listed in the Wall Street Journal, Barron's or Investor's Business Daily.

Believe it or not, that rule alone eliminates hundreds of thousands of stocks. Here in America, aside from the three major exchanges, you can buy OTC (Over-The-Counter) stocks, "pink sheet" stocks (ask your broker if you're interested) and stocks from all sorts of other sources. You can also buy stocks listed on the Toronto Exchange and all the European and Asian exchanges.

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 them every year) different from all the thousands of other stocks which have never enjoyed this type of spectacular daily gain. Here's what my preliminary research seems to indicate: Of all stocks which gained 50% or more in one day of trading...

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 selling for less than $5.00. This selection criteria alone has eliminated me having to examine 99.9% of all stock market investment opportunities.

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 even these stocks have to overcome before they qualify as a "pick."

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 checklist they use to select stocks worthy of further examination:

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 are more mutual funds than stocks (I find that rather amazing) and often, one day's trading in a given mutual fund is more than ten times the entire value of a small or micro cap company. Many of those small companies have spectacular "news" relatively no one knows about. Like a company called Longport which has a portable skin scanner a doctor can use to detect skin cancer in seconds... before it is visible... and without a biopsy.

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. CORX NASDAQ

(An Alzheimer's Breakthrough?)

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 exciting...

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... of administration.

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. ENDO NASDAQ

(Prostate Disease Relief!)

This company develops, manufactures and markets innovative, minimally invasive surgical technologies which literally freeze cancerous tumors. It was recently revealed how this revolutionary temperature-based technology is being applied to treat prostate cancer, the second most common cancer in all men, and cancer of the liver. Recent study results from Douglas Chinn, M.D. of Southern California's Alahambra Hospital revealed...

96% Of His Patients Who

Have Received This Monitored

Temperature-Based Treatment

For Prostate Cancer Over The Past

Three Years... REMAIN CANCER FREE!

They're doing a lot of other incredible stuff but, this is the part that made me decide to buy their stock. Do you know how many men get prostate cancer as they age? It's up to 80%! Do you know how many "Baby Boomers" are turning 50 every day now?

Do you realize... aw hell... it's your money. Do what you think is best. Don't follow my lead (I'm a "controlled" risk-taker) if doing so will take you out of your own personal "comfort zone."

How's that song go? "We may lose or we may win... but... we'll never be here again..."

STOCK #3:

Company Ticker Exchange

Semiconductor Laser International Corp. SLIC NASDAQ

(A New Cutting-Edge Laser!)

CEO and President Dr. Geoffrey T. Burnham has been quoted as saying, "I believe we are on the verge of a sales-breakthrough which will lead to the placement of a number of very large production orders. We expect these orders will be received from some of the world's largest corporations looking to employ our unique technology in their product lines."

It's no wonder. At the 11th Annual Diode Laser Technology Review Conference (that sounds like a fun group, doesn't it?) held in Albuquerque, New Mexico, Semiconductor Laser International presented a poster paper showing overall conversion efficiency of 56% for an 808 nm high power semiconductor diode laser operating at 25 degrees Celsius, which represents... the highest efficiency ever obtained by anyone at these operating temperatures.

This is space-age technology with potential uses for automotive, dental, medical, telecommunications, optical, data storage, DVD Printing, and military applications. In fact...

This Company Has Reached

This Level Of Laser Efficiency In

Less Than One Year... Which...

Their Competitors With A Combined Total

Of 24 Years Of Research

Have Still Not Achieved!

Whatever. Once again, it's your call.

OK, that's it for now... except... for some legal stuff you ought to know. First, I am NOT a Registered Investment Advisor. I do not give individual investment advice. None of the info you've just read is an offer or solicitation of an offer to buy or sell any security. I believe the sources from which I got all this info are reliable... but... I can't guarantee that to be true. Even though some of this info came from the companies themselves, I have no personal or business connections to these companies whatsoever.

One other thing: I've been publishing a very elite newsletter continuously for the last twelve years cleverly called The Gary Halbert Letter. You might be interested in my newsletter but, probably not. First of all, with a subscription price of nearly $3,000 some people say it's the most expensive monthly publication in history. Secondly, I do not make info about my newsletter available via the Internet. If you want to know what it's all about, why it's so valuable and why it's read in over 50 countries, you'll have to call my office and give us your name, your real address and phone number. Then, after we are convinced you are a real honest-to-God human being who doesn't have to hide behind a computer, we'll send you a few sample issues and you can decide for yourself whether or not it's for you. Also, we don't use an 800# so you'll have to pay for the call yourself. If, after knowing all this, you are still interested, you can call us at (305) 534-7577 anytime, 24-hours-a-day, 7-days-a-week.

Please note this website is all text. No bells and whistles. No graphics. No photos. I hate all that crap. All it does is slow me down when I'm doing research. I hope you feel the same way. If you want great graphics, go to Disney. If you want great info, come to me.

By the way, the info on the three stocks will be removed from this website at midnight on Tuesday, June 30, 1998.

Hang in there. Just remember...

Things Always Look

Darkest Just Before They

Go Totally Black!

Now, of course, you're probably wondering if Guru Gary, the veritable "Prince-of-Print" will actually have the savvy to get that site up and running in the next couple of weeks. Well, guess what, you pessimistic, little prick: It's already up and running and, if you have a computer, you can check it out right now. The address is:

www.GHLstockalert.com

OK, now pay attention: If you're gonna be able to get away with referring to your readers as "pessimistic, little pricks" you damn well better have something of extreme value to lay upon them... else... the humorless twits amongst them will rise up and smite thee... and... I sure wouldn't want that to happen! (By the way, just for the record, I want you to know I realize some of you are pessimistic, BIG pricks.)

Hmn? I sense I may be stepping over the line into a "danger zone" here so, I think I better get to the good stuff zippidy quick. Here's the scoopola: You already know what's on the website. That means you've got maybe a week's head start before most of the rest of the world even knows of the existence of the site.

Not only that, at one minute after midnight on Tuesday, June 30, 1998 new content about one or more Nasdaq stocks will be uploaded to that site. However, if you are a Lifetime Subscriber or a paid-up current subscriber, you're going to receive the next issue of this newsletter about a week before I upload the new info... and... that issue will reveal unto you what's gonna be on the website.

By the way, do you realize Endocare, Inc. (Nasdaq: ENDO) has found a way to cure 97% of patients with prostate cancer and the news of that achievement has not yet caught the attention of the national media? You know, many of my readers are more savvy about PR than me... and... I hope, for humanity's sake, someone (I'd love it to be one of my readers) makes sure this achievement gets the attention it deserves.

It's not all just about money: Dozens (perhaps hundreds) of people with prostate cancer are going to needlessly die today because the media has neglected this breakthrough.

Come to think of it, maybe things are as they should be. After all, I for one, am very comforted that, because of Viagra, Bill and Monica will never have to worry about his ability to perform.

Please forgive me. Forget all that stuff I said about a cure for prostate cancer. I lost my head for a moment. Willie knows what's important and what's not. My apologies to the White House.

	Sincerely,

	Gary C. Halbert

P.S. I'm very proud of my son Kevin Clifford Halbert. A few years ago, he graduated from the toughest college on earth (they have the highest per capita stress-induced suicide rate among their student population than any other college) and he has now become the man to know if you need the best work possible in digital imaging. He's so good, when Sinbad (the comedian and talk show host) was doing his last special in Aruba, he paid Kevvy Baby to go with him just as "insurance" in case anything technical started to go wrong. He also does great fashion photography and you can see his work at www.pixelpipeline.com.

And, he's the genius who got his ol' man's website up and running without a hitch and in jiffy quick time. He's also my "insurance" that nothing goes wrong with my website (a lot can go wrong with a website) and, I highly recommend, if you are thinking about starting a website, going online, or doing anything digitally related, you hire him at least as a consultant. He's the cheapest insurance you can buy. Just ask me or Sinbad. Kevin's number is (213) 851-8275.

I love you son.

P.P.S. It might be to your benefit to spread the word about my website. Think about it.

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