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To my fellow investors,

First of all, congratulations to the investors that participated in the PRXI opportunity (mentioned in my last report) in the 7.20 range. Regarding the recent chaos on Wall Street, was I the only one to notice that, during the 400 point market sell-off, micro-caps were the ONLY pillar of stability in a turbulent market? Like many of you, my large cap positions gave me nothing but a sea of red on my trading screen. Fortunately, my micro-cap positions were up (in aggregate) and helped to offset my large-cap losses.

So, without further ado, here are the four companies we like in the micro-cap area:


Encysive Pharmaceuticals (symbol: ENCY – NASDAQ)

Encysive is a cutting-edge biopharmaceutical entity developing and commercializing synthetic compounds that address unmet medical needs for which there are large and growing markets. This company currently has a drug, Argatroban, licensed to pharmaceutical giant GlaxoSmithKline and another drug, Thelin, which was recently approved for sale in the European Union, which is already sold in the United Kingdom, Germany, and Australia. Thelin will soon be sold in other EU countries and is awaiting regulatory approval in Canada, and the United States. There are already a number of other outstanding compounds in the pipeline. All together, a very promising long-term future!



Crosshair Exploration (symbol: CXX-V)

Crosshair has developed into a high-caliber specialist mining company focused on lucrative mining projects in the Newfoundland/Labrador region of Eastern Canada. Currently, the Company’s primary projects involve uranium from the Central Mineral Belt of Labrador (emerging as the next large uranium region in Canada), while continuing to advance its gold and Volcanic Massive Sulphide (VMS) projects in Newfoundland. The company's mandate is the creation of shareholder wealth through the exploration of world-class uranium, gold and VMS deposits.



Shumate Industries (symbol: OTCBB-SHMT)

Texas-based Shumate Industries is a holding company that, through its wholly owned subsidiaries, operates in several areas of the energy field service industry; contract machining, contract manufacturing, and a product line of high quality valves. The Company employs over 50 workers at its 2 Houston-area plants which, together, span over 85,000 square feet of space. Currently, Shumate is leveraging its current service and product lines to introduce new technologies to the nation’s booming energy markets.



Fronteer Group (symbol: FRG)

The Fronteer Group is among the most innovative discovery-stage mining entities in the world. The Company employs a proprietary scientific innovation to identity the most promising mining sites and quantify the size of their buried mineral resources. This enables miners to minimize risk and maximize the output of their mining resources. Fronteer has active exploration programs across the globe (currently exploring in Canada, Mexico, and Turkey) and has established strong relationships with some of the world’s leading mining companies. Vancouver-based Fronteer is listed on the Toronto Stock Exchange and is also cross-listed on the American Stock Exchange.

These are the four stocks we are bullish on near term. All but ENCY have held up well in spite of the turbulent market the last few weeks. ENCY has sold off some, but this gives investors a great entry point.



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EMC does not express any opinions, recommendations or viewpoints regarding the Profiled Companies or the Securities, and has not conducted due diligence of any data or information contained in the Corporate Information. The Corporate Information is based solely upon data and information provided by the Profiled Companies and EMC does not endorse, independently verify, or assert the truthfulness, completeness, accuracy or reliability of the Corporate Information. EMC conducts no due diligence of any type of the Profiled Companies or the Securities. Recipients should not rely on the data or information contained in the Corporate Information in making an investment decision and should conduct their own research of the Profiled Companies. The Recipients should not assume that material changes have not occurred since the publication and/or dissemination of in the Corporate Information. Each of the Recipients should consult with his or her legal, accounting, tax and financial advisers regarding any investment in the profiled companies or the Securities.

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