Great letter from Jim Sinclair:

Dear Comrades In Golden Arms,

Let’s put on our practical thinking hats. I am inviting opinions from both our academic reader as well as those that believe answers are more accurate when derived by the “follow the money” concept.

The Fed says and statistics support that the majority of the $8.5 trillion in funds injected into the economy in many ways was to protect the US financial community. This has given comfort to the establishment intellectuals that there is no inflationary implication as a result of this massage and unprecedented liquidity injections.

Follow the money approach

The US Federal Reserve made $8.5 trillion available to Wall Street and other entities with OTC derivatives in their inventory. These “assets” have the potential for causing bankruptcy.

It is claimed that the majority of these funds will not have an inflationary impact because of the huge amount of T bills, bonds and note sales

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Despite a key endorsement by the American Cancer Society for EXACT Science’s (EXAS) stool DNA-based colorectal cancer screening test earlier this year, the stock continues to languish at multi-year lows on light average volumes. EXACT is expected to finalize its FDA protocol for the V2 technology of its test to gain the agency’s approval and also engaged Leerink Swan to explore strategic alternatives over three months ago. In April , the Company submitted its pre-IDE study protocol to the FDA for a de novo 510(k) filing of its V2 technology. I expect the FDA protocol to be finalized soon, resulting in the filing of a 510(k) application with the agency and the potential for a lucrative partnership deal for this test to alleviate funding concerns and bolster the dwindling cash reserves of $9.5 million.

Recent reports suggest that EXACT is now planning to make the latest version of its …

My Vintage Baby, Inc. (OTC: MVBY) recently announced that they have sold $250,000 of senior-secured, fixed-price convertible debentures to a New York institutional investor, Agile Opportunity Fund, LLC. My Vintage Baby engages in the design, production, and sale of clothing and accessories.

David Propis, Agile’s managing director, stated, “My Vintage Baby has undergone a significant balance sheet and operational cleanup over the past year. In my opinion the Company is poised for growth and sustained profitability. Our investment was based on our analysis that MVBY should become profitable within the next year. The Company’s design team, headed by Jessica Wiswall, has the resources necessary to fulfill its mission to create and distribute niche, high-end children’s apparel.”

“I am pleased to announce that we were able to complete the debt transaction convertible at a fixed price with no stipulated registration requirement,” said Jeff Walsh, CEO of My Vintage Baby.

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Steve Reeves' return on his portfolio is at a positive 8.73% as of May 29th, 2008.  Reeves is our OTC specialist and never pulls the trigger on a stock that costs more than $5.  Review his portfolio of stocks and decide for yourself if you'd like to become a subscriber. Fellow Masters, my articles and stock recommendations are now available on www.WallStNewsletters.com. I look for undervalued securities and the cheaper the price the better.  OTC stocks are my favorite hunting grounds and I never pull the trigger on a stock that costs more than $5 and is worth holding for at least ...