Describing herself as an athletic "cute blonde chick," Clare was way ahead of her time. She began by doing menial tasks like bringing men coffee at the New York Times. In that era of The Front Page reporters often came back after lunch smashed. Many were in no shape to finish the stories they had started before lunch or meet their daily deadline. So Clare often helped them finish up pieces or even write most of some. Gradually she received more responsibility for layout and helping select which were the most important stories to feature in the business section.During the Second World War while many men were away in the service, she also got an even bigger opportunity to grow and write more. She never stopped. Clare said she was upset that she did not get a higher title.

At first, because she was a woman, she did not even get a byline.Then she managed to get her last name preceded by two initials. Finally, she asked a top executive at the Times if she could use her first name and he said yes. However, her immediate boss made her spell ClaireClare so everyone continued to think she was a man.

A gutsy gal she often  stood up for women's rights. After a male executive joked making tea was all women were good for, some women of The New York Times went around wearing tea bags.  Clare defiantly wore hers too and afterwards, she gave it me to add to my campaign button collection.

She always pointed out that men used women and was proud she could turn the tables, boasting she was engaged to two (or was it three?) guys at the same time. When love with a wealthy suitor turned serious, she turned down his proposal of marriage. "He loved his money more than he loved me." Now that was an independent lady! Even today, how many women are that sure of themselves and their ability to make it on their own, that they would make such a decision?  

Here's to you, babe. You were one of the best!-RJF

Bob Flaherty Rides Again!  Welcome to our 23^nd issue ofFlaherty Special Situations. This issue we do a job everyone likes to put off:  portfolio housecleaning. Our stated goal is to offer stocks we believe can increase 50% to 100% within two years. The old timer's definition of a classic special situation is simple. If your assumptions are correct and you have identified $2 worth of value for each $1 of stock market value, your stock pick should rise regardless of the direction of the stock market.

   But everyone makes mistakes, and we do too. Failing to admit them creates a mediocre portfolio. Not every strategic plan goes as expected. The real world intervenes. Also it is easy to fall in love with a product like an artificial blood substitute or oral insulin and become so involved in the struggles of entrepreneurial management to overcome unexpected obstacles that we forget your own mission-to offer our most promising buys to you readers.

I want everyone to enjoy a good 2011. So, let us focus on and stick with our potential winners and advise tax sales for those with broken concepts. We all only have so much time and energy. It is wise to concentrate on the most promising prospects if we want a profitable harvest.  

In this issue we are adding four new stocks we like a great deal but have not written up. Why not share our insights on their hidden values while each is still a bargain BUY?  

If you have not already done so, please join our financial family. All of our recent Flaherty Financial News or Flaherty Special Situation Newsletters have been opened by over two million online investors and two over 8.2 million. We have an amazing open rate of over 25%.To receive our next FREE issues of Flaherty Financial News and also Flaherty Special Situations simply go to our website www.flahertyfinancialnews.com and opt in as a reader. You can opt out any time too.    

 Look beyond the crowd. The late Sir John Templeton felt the easiest way to prosper was to look out four years when everyone else had to look out only one year. If an institutional player had a bad year, most would be replaced in the casino like atmosphere our stock market has degenerated into. In fact, some feverish times when hedge funds make the long term   lunch, even just looking out one year is being long run.

Next, estimate or guess what a depressed stock which is selling at a bargain price today might be worth when the weather vane changes from fear to greed or if its situation brightens in the future. Observe what is happening to bring the undervalued stock back into vogue in the future. Improved management, an industry turnaround, new capital, a new product line, an acquisition,the list of catalysts which can improve a company is endless.  If the changes could result in a stock price which is 50% to 100% higher, then go for it.

Sir John believed, and I agree, that equities also should be widely diversified because various sections do better or worse each year. So in addition to owning stocks in various countries and no more than 25% in your own,  he felt it was wise to diversify by industry, by company size-micro cap, small cap, middle weight and giant.

Because of the dramatic reduction in independent research, Sir John felt there was greater opportunity in stocks which had little or no independent analyst coverage. Find and buy some good bargains, then as the stock became more popular unload at a profit and buy another bargain. 

 For all companies the most important thing is good management. Check out the track record. Past successes are the most important guide to future success.  So the key manager should be experienced, well educated, have good financial backers and a product or service which is unique enough or well placed enough to generate revenue.

Remember 90% of companies which lose money never become profitable. If you buy a profitable company which has proven it can increase revenues you will avoid 90% of the losers. You will also avoid a company which sounds great but never learns to market and sell and bring home the bacon.  A concept company is only an unproven idea until it makes a profit and repeats it. Then it becomes an emerging growth company.

   Less is More. Now I could write pages on each of the following 12 picks I am going to keep as an open BUY right now and the 4 new stocks I am going to add to the BUY category.  However, that would hurt not help you. We all get flooded with too much information, when a really good special situation can best be summarized in a paragraph or so. If it can't be, worry about whether the concept is too complex to work. In fact, often I find in the many pages about a stock the key facts which are going to drive the stock up if the concept is correct are lost in all the detail or sometimeseven missing.

Let us be clear on what I hope each of these picks can do for you. Remember over the long run the average gain for equities is about 9% annually.The ambitious goal of a Flaherty Special Situation is a gain of 50% to 100% over two years. Be patient. It can take time for the events to take place which will lift a stock. Progress must be reported in upcoming quarters so that new investors will see what you saw and become believers too.If a stock reaches the profit target, I suggest you sell. Why? I can think of so many times when my winners became losers when I wanted even more and put off selling too long. Except when we decide a stock is a rare keeper, our game plan is to try and walk away winners when we achieve our profit goals of 50% to 100%.

Buy #1:Universal Gold Mining Corporation:  UGDM.OB I honestly don't know of any other stock with this much potential for this period of potential currency deflation for the U.S. dollar.My lengthy Flaherty Special Situation #22 on this unknown start up spent space  on the probability of a higher price of gold which has been on target so far.  But why I like Universal so much is much simpler.  Here is a tiny junior miner with unusual substance:  two daring contrarian gold investments in newly pacified Columbia beside Anglo Gold Ashanti's 12 million oz discovery and in newly capitalist India reopening a newly privatized mine closed when the price of gold was only $300. Management in both countries is experienced, backers are top draw, and a network of experienced friends in the mining in crowd could be used to bring in new deals. Good management with a super track record of success, properties with huge potential, top draw backers! The odds of success are high. If the price of gold does continue to rise, that is just frosting on the cake.

If gold does not rise, UGDM shares still should soar. The combined 14 million oz hoard these two investments could be sitting on is enough make UGDM a winner. Why? Proving up reserves from the most inferior $20 inferred category to the $120 indicated category to the highest $320 measured category will take time and capital. But that is my kind of arithmetic.  UGDM's guesstimated 14 oz of gold times $20 = $280 million; times $120 = $1.6 billion; times $320 = $4.5 billion. It's a no brainer! Without anything else, proving up alone should result in a big payoff.

Buy #2: Mediware Information Systems, Inc. (Nasdaq: MEDW): The U.S. economy may be flat but not so this obviousbeneficiary of President Obama's already approved $19.2 billion to be spent on improving healthcare like  making patient and hospital medical records electronic to improve  accuracy, cut costs, eliminate mistakes and, above all, save lives. 

Back on February 25, 2010 in Flaherty Special Situation #l8 I recommended MEDW at $8.04 and it has taken a nice 39% jump to $11.26. But it is not too late for you to join the party.

In the fiscal year which just ended on September 30, 2010 Led by dynamic CEO Thomas "Kelly" Mann , who earlierwon praise  for improving  efficiency at 3M, revenues hit a new record of $47.6 million, up 17%, while earnings per share more than doubled to  $0.41 more in the fiscal year just ended on September 30, 2010.  Next year earnings per share of $0.50 look possible creating a projected P/E of about 22.

 Mediware is a prime acquisition target in a field which is filled with promise for tomorrow. It should be able to continue to profitably grow until it commands a rich price, perhaps even as high as $20.

That is because is Chairman Larry Auriana, who has had that title since l986 and was a director since l983,owns enough himself to prevent a hostile takeover from being successful.  Mediware was founded in Larry's venture capital days before he co founded the first of his three Federated Kaufmann Funds and Mediware has a small float so that it is not a holding in any of them.

A shrewd bargainer, Larry understands value to the buyer better than most outsiders. Some time ago, Mediware looked like it would be acquired for a very full price by a rich giant company. Suddenly, unrelated events caused the potential acquirer to change direction and back away. But they left this valuable knowledge behind them.When absorbed into the right kind of related company, because of cost efficiencies, Mediware's profits could perhaps double.

So to the right acquirer who wants to increase market share in electronic medical records Mediware would be even more valuable than it seems. 

If the price is right, Mediware could be acquired next year. If not, CEO Kelly Mann can keep making it bigger and better until the price is right.

Go online to www.flahertyfinancialnews.com and read my archived report #18. But you won't find the above insight in it. I didn't understand it then.

Financially- shrewd, shareholder-oriented Chairman, experienced solid operating CEO, lots of cash in the bank, a booming business in a growing field favored by government funding.   In August 2001 I recommended MEDW for the first time and closed it out with a SELL for a gain of 122%.  I think I have a good shot at an encore.

Buy #3. USA Technologies Inc.  (Nasdaq:USAT): Here is a company I have followed since it was a pup. I wrote one of the first stories on it anywhere. At a mid September Rodman & Renshaw conference where hundreds of companies presented I chose USA Technologies as one of the emerging growth stocks I liked a lot. Because I have been busy doing other duties like this house cleaning article, I haven't had the time to do a regular Flaherty Special Situation on it. But let me give you the idea which is the important thing.

One of the most exciting activities is to try and detect a turnaround before it is apparent to the rest of the world. If you are wrong, then you really have egg on your face. If you are right, your pick can enjoy sensational gains as the turnaround progresses and other investors catch up to your insight.

So you have been warned. This will be a homerun or strike out. Either way we won't be bored.

Many years ago I wrote about Chairman and CEO George Jensen after he had won an entrepreneur of the year award in Pennsylvania. He had an unsettling vision of providing technology so credit cards could be used in all kinds of silly places like vending machines,parking places and in machines for trivial amounts of under a dollar. The existing technology wasn't right for that to happen. Besides who would want to do that?

 "We were ahead of our times," George Jensen recalled. "Now the world has caught up with us."  For the younger generations  the old dream of the cashless society is coming true.

The stock of USAT has risen from about $0.60 when I heard George's presentation to $1.28. But if USAT keeps up its momentum, the parade is just getting started.

 In the quarter ending this December 30, 2010, Jensen anticipates his first positive EBITA. USAT is connected to a 1,000 customers and many are the most important names in credit card processing or marketing. He expects to achieve 100,000 retail connections soon.

USAT is a leader in an industry few have heard of yet "Cashless transactions in unattended locations such as vending machines, kiosks, commercial laundry, parking, etc." 

Getting to this point was harder than a salmon going up a waterfall. Numerous technical and legal problems and building relationships with powerful companies took years. As the acceptance for wireless cashless transactions in his markets moves mainstream he will continue to attempt to increase penetration of his target markets, apply his solutions to new markets and introduce new applications. George's objective is to solidify his market leadership position through increased revenue with existing customers, new customer relationships, new products and new channels of distribution. Right now Starbucks has taken their brand out of the stores and USAT is helping process the offstore transactions. That is a big deal for USAT.  

George has big dreams. His goal is to help provide the technology so that cell phone users can join in his processing of cashless transactions. For a tiny company USAT has a lot of valuable patents, technology and is in the right place at the right time.

Buy #4. RENN Global Entrepreneurs Fund: (NYSEAmex: RCG) Here is an entirely new idea I haven't shared with anyone yet.  It is just bursting to come out.

Over the last few weeks the investor flight from risk has accelerated and with it micro-cap stocks have taken a beating. A guest on the TV money show warned investors away from micro-cap stocks. So let us do what Sir John would do. Let us invest in micro caps when the experts are warning 201l will be a bad year for them. That means we can find bargains.

Here I am going to offer you an opportunity that I doubt any other financial newsletter writer will match this month- a chance to obtain a return of infinity.

Now let us turn the negative flight from risk into a positive for us. Most micro cap and small cap stocks are all depressed and have trouble raising growth capital.  When confidence returns, the survivors' stocks will again soar and become overpriced. Yet buying just one right now is risky. Why not buy the portfolio of an entire venture oriented fund, especially one where the discount between recent price and net asset value has exceeded 20%? What sells at a discount when investors are driven by fear often commands a premium when they are filled with greed.

The last time I recommended RENN Global Entrepreneurs Fund it consistently rose in price while annual dividends and capital gains reduced our purchase price until we had a gain of over 800%. Then more distributions completely erased our original purchase price and we had a return of infinity, which is what you get when you divide a positive gain by zero.

RCG is managed by my old friend Chairman Russell Cleveland, who is doing his best to sail through this year's choppy waters. But he has a portfolio filled with many undervalued bargains. Russ prefers companies that have achieved revenues and hopefully profits over more risky start ups when he invests. One example is our Flaherty Special Situation #21, PHC doing business as Pioneer Behavioral Health Group. See below.

In venture funds it is often not the number of winners you have but how big your gainers are. In the past some of RCG's gains were positively explosive. For example, we covered Laserscope, which rose from $3 to over $80 where it was acquired in a cash tender offer.  When the economy improves, there is no reason to expect RCG shareholders won't get some new fireworks.  Recently the stock of RCG sold at $1.98 down 35% from its 12 month high of $3.05. Look two years out and buy RCG now. For the patient few who stick around beyond that, who knows? You may get that return of infinity.

Buy #5: PHC, Inc., d/b/a/ Pioneer Behavioral Health Group (NYSEAmex: PHC):   Hope Treatment! Recovery!  A 100% + Profit Opportunity!  

This turnaround is a pure play on post 9/11 America, treating the ills for stress and violence in the U.S. and substance abuse from drugs, alcohol and smoking plus gambling addiction.    Back in October 2001 I recommended PHC at $0.35 and put a SELL for a nice gain of 137% on January 31, 2003. We still liked PHC but had exceeded our profit target. Now PHC is stronger, and more focused than ever. On 9/8/2010 our Flaherty Special Situation #21 on PHC at $1.27 archived at www.flahertyfinancialnews.com.  can be summarized.  Looking back, PHC's numbers are not so hot because of divestures and refocusing costs. Looking ahead, PHC is an easy double. In the fiscal year 201l which started last July 1^st, PHC should increase revenues to the $60 million to $65 million range and conservatively earnings per share to from $0.15 to $0.20. At a recent price of $1.42 that would be a P/E of 9.5 to 7.2.

Buy #6: Strategic American OilCorporation (SGCA.OB): Here is our Flaherty Special Situation #20 on SGCA a BUY at $0.20 issued on July 2, 2010 and updated on October 13, 2010. This tiny turnaround is a play on developing America's vast forgotten onshore oil and gas reserves.  With promising foothold operations in Texas, Louisiana and Illinois, management is knowledgeable about those local areas. The team should identify and acquire low/risk high/reward domestic oil and gas projects by using modern 3D seismic technology and develop mature projects to their fullest potential and bring hundreds of dead domestic wells backs to life. Many were shut down when the technology did not exist to recover energy economically and the price of oil was dramatically lower. With critical mass and a positive cash flow achievable hopefully by year end, SGCA stock should be able to hit $1 within the next two years for a gain of 400%.

Buy #7: Samson Oil & Gas Ltd. (NYSEAmex: SSN) President and CEO Terry Barr had an exciting story when he presented at the Rodman & Renshaw conference.  His stock, which has ranged from $0.18 to $1.50, had soared almost 300% over the last 12 months. Earlier Samson was a highly leveraged natural gas play and Barr had counted on higher natural gas prices when alas they went the other way.

Showing tremendous courage and transaction skills, Barr described 2009 "as a near death experience." But he had some unexpected success oil drilling success, sold part of a valuable property and paid down Samson's debt and recapitalized to start again. Samson now has over $70 million in cash.

Now turning away from natural gas, Barr has promising oil drilling plays in the part of the North Dakota Bakken prospect he kept and in another in Niobrara, Wyoming which he hopes will be equally rich. He also hopes to develop some onshore Gulf projects.

Sorry, you missed the action and that big stock gain with shares recently around $1.24. One comment Barr made as an aside woke me up.  It's not a formal company goal or anything.  Barr sighed, that personally he wouldn't rest until he saw his stock with a price of $10.

This is a sleeper to watch.

Buy #8:BioSante Pharmaceuticals Inc. (Nasdaq:BPAX) I caught up with Stephen Simes, CEO of our very first Flaherty Special Situation #1 issued back on December 28, 2007.  His goal is still enhancing sexual satisfaction for U.S. women. Men have three such products and it is unfair that women have been shamefully neglected and have none. Some even use male products which are too strong and inappropriate for them.

While his stock once over $10 recently sold about $1.63, his competitive situation appears to have dramatically improved. Procter & Gamble and a German company which already sell products in this market in Europe aren't in the race in the U.S. BioSante's Simes' ambitious goal: First to market in the U.S. with a product to alleviate Female Sexual Dysfunction. This is a huge $2 billion unmet medical need. Safety testing continues and is going well.

Patience is something most investors lack today. But Simes has so far met every challenge and done as much as anyone could have expected of him. Above all, he has raised the capital in this risk adverse market to keep BioSante going toward the finish line, approval by the FDA of the first commercial product.  

Buy #9: Titan Energy Worldwide, Inc. (TEWI.OB)   Here is another stock few others are watching. Its recent stock price was $0.38 and the 12 month range was from $0.16 to $0.89. Trading volume some days is under 1,000 shares. But a transformation is going on. For the second quarter of 2010 revenues were up over 90% and positive cash flow was achieved.  Chairman and CEO Jeffrey Flannery has big plans.

Titan's business at first sounds pedestrian: portable power generators, energy management and efficiency providers. Its uninterruptible power supply systems mean utilities can build less capacity and some big customers can get by in brownouts and blackouts. Titan wants a share of this $10 billion Demand Response Industry.

That is the local model. If momentum can be generated, the opportunity could be expanded to many other parts of the country.

Buy  #10:Bard Ventures Ltd. ( CBS.V), featured in Flaherty Special Situation #17 February 12, 2010 follows the Templeton idea of buying straw hats in winter and so finding a bargain. Bard has found what it believes is a huge 230 million pound molybdenum resource, which could even be more than doubled. Also recovering demand for moly, which makes steel stronger and more heat resistant, is rising for use in oil pipelines, aircraft, nuclear facilities etc. A possible shortage and a price leap to over $40 a pound by 2014 is projected versus over $15 recently for this volatile metal. Bard's property is not far in British Columbia from existing properties of Thompson Creek Metals (NYSE:TC). Currently P&E Mining is completing an Independent National Instrument 43-101 to determine economic feasibility. Positive results should help the company raise capital to further prove up, expand and exploit the resource. Success might mean selling the asset to a large wealthy entity for a sizable premium, especially if that anticipated shortage actually occurs. 

Buy #11 Grizzly Discoveries Ltd (GZD.V) is on the bargain counter with three ways to win.  See our Flaherty Special Situation #15 December 15, 2009 and our follow up in our issue of July 2, 2010. One only has to work out for a triple. In Canada Grizzly is next door-only six kilometers away from where Kinross Gold Corp. has opened a 1.6 million ounce gold mine across the border in the U.S. It's nice to have a wealthy neighbor! A potash spin off will also add value, and when diamonds are again a girl's best friend, GZD will sparkle.

Buy #12 Dynavac Technologies (Nasdaq:DVAX) is accelerating a Phase III trial of its Heplisav (liver-saver) vaccine to give results to the FDA six months early in the third quarter of 2011. A recent successful secondary stock offering gives management the muscle to keep heading toward commercial reality. Dynavax's hepatitis B vaccine promises faster more effective life-saving protection with fewer doses and injections. This disease can cause deadly cirrhosis of the liver and cancer. If the trial succeeds, this drug could be a blockbuster. In China alone 120 million people, about 10% of the entire population already is infected with Hepatitis B and there is a desperate need for an improved vaccination.  Featured in our Flaherty Special Situation #13 on October 23, 2009 Dynavax appears to be gaining momentum.

Buy #13 MELA Sciences (Nasdaq:MELA), featured in our Flaherty Special Situation #11 dated August 1, 2009, is backed by legendary venture capitalist  Dan Lufkin and is leading a crusade to detect  deadly melanoma skin cancer  earlier.  Its new product MelaFind has the potential for crucial early detection to save thousands of lives annually because one American is dying from melanoma an hour.  If MELA doesn't make it, it won't be because of lack of good backing.

Buy  #14 Tri-Valley Corp. (NYSEAmex:TIV) featured in our Flaherty Special Situation #10 dated June 8, 2009, has a strategic long-term plan to unlock a bonanza locked up both in its tight sands projects and its prolific upper Vaca Tar Sands project. Because much of the exploration in California's San Joaquin occurred years ago above 12,000 feet but sediments go as deep as 45,000 feet, TIV believes going deep can result in a bonanza. Also, TIV has valuable gold properties in Alaska which it is seeking a partner to develop.  Untapped domestic energy! Over time, TIV should be a winner.

Buy # 15 ITEX Corp. (ITEX.OB) featured in our Flaherty Special Situation #5 is in a jam. Raiders want to take it over and divert its cash flow. Déjà vu all over again. This nice barter core always just seems to be reaching breakout stage when some outsider intervenes  and sets it back.  A few ITEX  presidents ago, ITEX was booming and the then  CEO wanted to grow even faster. So he did a toxic convertible and ITEX not only lost its momentum but almost went under. Under the current management team, ITEX is back in the black, growing nicely again and even paid a dividend. Success should come from developing its wonderful position in the barter business. 

But outsiders, after being rebuffed when management rejected a deal they felt would hurt shareholders,   now have launched a proxy fight to take over. How can little companies like ITEX build for the long run if short termers keep coming in and interrupting the strategic game plan?  I hope this raid doesn't do as much damage as the toxic convertible raiders did.  We will see.

Buy # 16 USCorp. (USCS.OB) featured in Flaherty Special Situation #4 dated June 1, 2008 is a 38 year effort to hit pay dirt by mining executive Bob Dultz. His goal: 5.7 million measured and indicated ounces of gold properties in Arizona and California. His problem: failure to  attract the financial backing to make it work.  A few months ago  it looked like he wouldn't make it.  But it pays to have a never give up attitude. Recently, USCorp signed an agreement to form a joint venture with a Chinese conglomerate which would initially involve $25 million in loans and loan guarantees. The agreement also calls for the raising of $100 million in new public or private funds.  Hey, this is just getting interesting. Let us stick around for the end of the story. 

 SELL and take tax losses on any other old BUYS.   So often we look at companies simply as investments. But most are much more than that. For those pushing back the boundaries of health care their success or failure involves much more than money.  

While I am giving up on HemoBioTech, Inc. (HMBT.PK) I salute the valiant efforts of ex CEO entrepreneurial scientist Art Bollon, who is always trying to do great things even though some fail. At this moment of flight from risk, it is nearly impossible to raise the sizable amount of venture money from private investors to come up with a vitally needed artificial blood substitute.  Huge corporate giants sitting on billions in cash are more prone now to let others do the risky development work and buy the winners. I salute Art Bollon for trying to do what should be done in an impossible financial environment. Like a car without gas, a venture without adequate financing cannot go very far.

America wastes so much on silly things.Yet we didn't fork up a few hundred million to see if HemoBioTech's artificial blood substitute would work. To our wasteful Congress that would be chicken feed. In a tiny clinical study in Africa in l990, HemiBioTech appears to have no toxicity. All the previous huge 18 efforts did and had to be abandoned. But considering the military and public needs, blood shortages  and the contamination of our blood supply  this is one of the most important venture efforts anywhere.  

With great reluctance I also advise doing a tax loss sale on Generex BioTechnology, (GNBT.OB) which has been delisted from Nasdaq.  Outside of  the U.S. Generex appears to have commercialized on a very tiny scale, sales of its oral absorbed  through the mouth insulin. Success would bring huge relief to so many who take insulin other ways. Also, GNBT's unit Antigen Express is developing some promising Harvard research products on vaccines for several serious conditions. But doing a toxic financing led to too many shares. Perhaps GNBT was trying to do too much too soon.  Shareholders did not approve a reverse stock split to remain on Nasdaq. Generex's products are still promising, but let management solve its capital structure problems, raise capital and then we can always take a fresh look.

Most of our  other mistakes had intriguing stories but revenues did not come in as expected. Rather than searching for reasons and asking why, let us admit my original concept was wrong. Let the managements solve their own problems and if revenues or other positives perk up, we can always step in again. But time is money so let us say goodbye.

Next issue we will publish a  table of open BUYs. We will periodically update it so everyone can see how well or how badly we are doing. As we prepare for 2011, let us stick with our winners! -RJF

Disclaimer: This Flaherty Special Situations Newsletter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected. We caution readers not to place undue reliance on any forward-looking statements and to supplement this newsletter with specific company SEC filings and their own research. Please be aware that there is risk in every company stock that you buy. Coverage or other mention of a stock in this newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. We are not investment dealers or investor advisers registered with the SEC or State Security Authorities. We do not guarantee all the information in this newsletter is correct or will be updated. Remember some errors are inevitable. Reproduction without written permission is forbidden.  Flaherty Financial News Inc. is a shareholder of USCorp  featured in this Flaherty Special Situation, and Editor Bob Flaherty is a shareholder in Bard Ventures. Our policy forbids editorial from buying or selling a featured stock until this issue is out at least ten business days after its issue date of November 8, 2010.  Flaherty Financial News Inc did not  receive any compensation for naming our four new picks this issue or renewing our BUYs on the older 16 selections. For sponsored  payments received when some were originally chosen please see each individual  Flaherty Speicial Situation  report archived on our website www.flahertyfinancialnews.com   In cases where a report or profile is subsidized, readers should consider such subsidized articles as paid advertorials and understand that sponsored material will not be as objective as non sponsored editorial. As FNN editor I always reserve "Final Copy Responsibility" on what to include and what to leave out of every issue. We have tried to be objective, but may have failed. We are not security analysts or stockbrokers engaged in buying or selling, but financial journalists with all the many failings of that profession. You readers must decide the merits of each company yourself and whether to invest. -Bob Flaherty, Editor