Market Timing

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October 29, 1998

Market Timing 

Table of Contents  

1.     Market Commentary
2.     USDI  - a player in the IRIDIUM Satellite project
3.     NLAB update
4.     Departments


1.     MARKET COMMENTARY

As predicted in our last issue the US equity markets have 
stabilized and begun to head higher again.

Asian markets have had a nice rebound and some currencies 
have begun to strengthen against the US dollar.  Hong Kong 
continues to show some weakness, but these problems can 
probably be traced back to the actions of the Chinese 
government in Beijing.

During the last week European markets have also begun to 
move higher once again.  Against this backdrop and more 
importantly to our subscribers, there is a groundswell 
of interest and commentary developing in and about the 
"small cap" sector of the market.  The Russell 2000 small 
cap index has moved from a low of 303.87 in the first week 
of October/98 to close on October 23/98 at 367.05.  This 
is an increase of over 17% in 2 weeks.

We believe the market is entering a phase where interest 
will begin to increase in this long neglected sector of 
the market.  There are excellent investment grade and 
speculative opportunities in this area, which have long 
been overlooked by the institutional money managers with 
their fixation on the Dow 30 stocks.  The DOW is now 
beginning to look, if not a little tired, at least fully 
valued.  The fund managers are now going to have to go 
to work and find new areas in which to deploy their 
client's money.

Leverage is a bad word on Wall Street these days and without 
leverage these managers are stuck with relatively low returns 
in the bond and money markets (under 5% on 30 year US treasury 
bills). It is our feeling this will result in more money flowing 
into the smaller cap sector of the market - and remember - with 
the huge amount of money now in mutual funds and the market in 
general, it only  takes a relatively small reallocation of assets 
by market participants, to have a substantial impact on the 
price of these smaller company's shares.


2.     US DIGITAL COMMUNICATIONS INC.  (USDI)

We are profiling a new company in this issue of MT:  
US Digital Communications Inc.

Symbol:  USDI     Trades:  OTC  BB

USDI is a proxy for one of the biggest events in the 
evolution of wirelesses communications the IRIDIUM 
Global Communications System.   USDI in conjunction 
with its subsidiaries SKYSITE (http://www.skysite.com), 
INSAT and PROJECT 77 (http://www.project77.com), is a 
supplier of both the Motorola and Kyocera telephones 
and pagers and a resellers of air time for the IRIDIUM 
network.  As such, expect to see their revenues and 
profits grow in lock step with the growth of the overall 
satellite network.

The IRIDIUM satellite phone system consists of 66 low-level 
satellites, which completely cover every point of the planet.  
This $5 billion dollar investment allows any point or 
individual on earth to access telephone, data transfer 
or paging service.

The 19 members of this consortium, which has been 
spearheaded by Motorola, include some of the largest 
telecom companies in the world, as well as a number of 
very large Middle Eastern,  Asian and South American 
private investment companies.  The financial commitment 
is very large and IRIDIUM (http://www.iridium.com) will 
go into service November 1, 1998.  The "start" date for 
IRIDIUM service is one of the reasons that we are bringing 
this company to your attention now.

As you can see if you look at a chart of the stock  
(http://www.bigcharts.com) the USDI's share price peaked 
at $7.00 in early July of this year, in what we believe 
was anticipation of the original service commencement date 
of September 23, 1998.  When it became obvious this date 
was going to be pushed back to November 1, momentum was 
lost by the stock.  It then bottomed out on October 8 at 
$2.30. In the last week it has moved back to close on Friday 
(Oct 23) at $3.93 up 7/8s of a point or 28.5% for the day 
on 366,200 shares traded! See the October 23 USDI News 
Release at:

http://biz.yahoo.com/prnews/981023/dc_fcc_us__1.html   

The IRIDIUM name will be on a lot of peoples "radar" 
screens soon as a $100 million public relations, marketing 
and advertising program will help launch this service.

This is definitely a "timing" and "momentum" play and 
there is no doubt that the very wealthy and smart companies 
and individuals that are part of the IRIDIUM consortium are 
going to work hard to make this THE wireless network of 
the future.

Given the momentum that is building in the stock, USDI 
could easily see its old high of $7.00 between now and 
shortly after startup of the IRIDIUM service in the next 
week.  Depending on a stable market and some positive news,
which we fully expect, and given the sophistication of the 
underwriters and companies behind the IRIDIUM project, USDI 
prices above $10 are quite possible over the next 90 days.  


4.     NUONCOLOGY LABS UPDATE

NuOncology Labs Inc. (NLAB  -  OTC BB) continues to make 
progress on its business plan and have announced the opening 
of their new offices, predictive oncology testing and 
research building in Houston TX.  (See October 15th News 
Release at: http://biz.yahoo.com/n/n/nlab.html).  This new 
facility is capable of performing testing to the rate of 
1000 comprehensive predictive profiles per month.  
 
MT heard NuOncology is planning a road show in Europe 
that will include NLAB management starting early in 
November. These "show and tell" meetings are  intended 
to attract additional funding, market sponsorship as 
well as institutional and broker interest for NLAB.  
We expect soon after this trip there will be further 
word on the Arglabin/FTI issue by way of publication 
of their research in a recognized medical journal.  
In addition there will be more results coming on the 
second large sample of patients who have been undergoing 
treatment for various types of cancer with Arglabin.

The share price has fallen on relatively small volume and 
somewhat tracks the skittish market we have had for the last 
2 months.  It would not be inconceivable that this market 
rebounds right back to the $6.50 range in a day or two of 
trading  - especially if there is some further news on the 
use of Arglabin as a successful cancer therapy.

REMEMBER this is not a theoretical concept NLAB is working 
on  - people ARE BEING TREATED with ARGLABIN today and their 
CANCERS ARE IN REMISSIOIN.   This company has the potential 
to be a  $500 million - $1 Billion cap company and we believe 
you will begin to see some recognition of this in the 
marketplace BEFORE THE END OF NOVEMBER.   For a current 
quote on NLAB please go to:

http://quote.yahoo.com/q?s=nlab&d=d1


DEPARTMENTS

A.    Stock Quotes
B.    How to Unsubscribe to MT
C.    Disclaimer


A.   STOCK QUOTES

For stock quotes on any company please go to:

http://www.bigchart.com


B.   HOW TO UNSUBSCRIBE TO MT

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