THE STEWART REPORT HOTLINE

Thursday, July 27, 2006
(Next HotLine Planned for Tuesday, June 27, 2006)

Overview:
Most would agree that David Stewart is good at identifying significant new investment trends. And, more importantly, he’s good at picking small companies likely to profit from these trends well before they leap into public favor. His selections for Y2K gained world recognition for helping avert that global disaster. His picks relative to the first Gulf War, to solving the silicon breast-implant situation, to handling the asbestos abatement problem in the 1980s – all were noteworthy. The way he capitalized on the newly developed time-release drug-delivery systems; his response to the space shuttle Challenger disaster, in which he shorted Rockwell; his take on Internet gambling – every one was a success. Now, we’re well into his latest crusade: Aversion of Avian Influenza H5N1, a.k.a. The Bird Flu, and the role of Amarillo Biosciences in treating what may potentially be the greatest pandemic since the Black Plague. It’s a crusade launched fully six months before President Bush even announced Bird Flu as a real and potential disaster.

That list demonstrates a pattern of constant early identification of problems – both isolated and global – and accurate and profitable identification of companies capable of providing corresponding solutions.

The fact that he’s so good at providing top-notch stock ideas so early is actually somewhat ironic since he’s also notorious for delivering HotLine updates so late. And, as another point of general accuracy, David Stewart is apparently fond of referring to himself in the third person, perhaps because he’s arrogant – and perhaps because he’d otherwise forget his own name. Does all this cancel itself out? Probably not.

The thing to remember is that trends are trends … very long moments of socio-economic expression. So, for as long as there is correctness to the long-term wisdom, the interim bumps have little to do with your ability to reach the final destination. Remember as well that, if you buy a concept early, you will almost never buy it at the precise bottom. This is only to be expected. Even Warren Buffett and Sir John Marks Templeton admit to never having bought a stock at its absolute bottom – nor have they ever sold one at its pinnacle price.

So much for the pitfalls of perfection, price action and being ahead of your time at the precise moment you find yourself desperately behind schedule.

As for the current calendar anomaly – i.e., the reason I’m so late with this HotLine – I can only cite the fact that I’m currently short one attorney; one lawyer who’s totally ticked off because I swept his very talented paralegal off her feet, enticed her to leave his service and attend to me, then screwed up the whole situation by neglecting to marry her. It took the better part of three weeks for all that to transpire – not even counting a related brush with the law – and it was a real mess.

Now don’t get me wrong – it’s not like anyone was killed or anything. However, some excellent automotive machinery was confiscated, a class “D-Felony” speeding ticket was issued and there was a long moment of incarceration. The sad part is, we were so far ahead of the CHiP’s that we actually had to park the car and wait 10 minutes to for them to catch up, read me my rights and cuff me.

They weren’t polite about it, either. Not at first. After all, speeds exceeding 140 mph tend to raise pulses. For even the coolest of the cool, it takes a solid 20 minutes for adrenaline levels to subside and the brain to relocate its emotional center … the place where logic prevails. That’s about how long it took for officer Blackstone to level out. I respect him for that – and for knowing enough about race-car driving to appreciate the value of my IKF credential. In return, I think he liked me for not forcing him to chase me farther than he already had, for wearing Piloti driving shoes, for being 100 percent sober and for keeping my mouth shut while he calmed down (which wasn’t all that hard since my face was buried in gravel). So much for the law.

Then came the technological mishaps. First there were The Stewart Report HotLine’s audio difficulties, which were strangely commensurate with my legal issues. I don’t understand exactly what happened, but the problems have been repaired – in spite our recent record-breaking heat wave, which fried both wimpy Southern Californians and lots of computers and communications circuits. That perfect summer storm aside, TAB Answer Network, my HotLine provider for the last decade, is now back on-line – but my e-mail address book has sadly vanished. As a result, though I’m now back in the office, I’m burdened with a mountain of letters and a slew of e-mails from valued subscribers wondering why I went MIA. Each of your missives will be answered – individually, no excuses, no exceptions, personally, by me, J. David Stewart, Ph.D.

Yes, you heard right. Apparently, I now have a Doctorate of Something … Something yet to be determined. It’s likely an emeritus title of sorts, earned neither by education nor intellect, but by logical inference due to my obvious association with the legitimate erudite already in attendance at the recent annual meeting of Amarillo Biosciences’ Board of Directors and Shareholders Meeting. It went down like this:

When Dr. Cummins picked me up at the airport and delivered me to the hotel, everyone from the doorman to the receptionist was calling me, “Dr. Stewart.” Why? At first I didn’t comprehend – until they ushered me into the conference room.

That’s when I met the men. The people. And, since virtually everyone in attendance had a Ph.D., the vicarious assumption was that I was a doctorate of something as well. In truth, the only other person in attendance that day who wasn’t some kind of doctor was Philippe Niemetz, the man responsible for Amarillo’s financial public relations – who, with small irony, is himself the son of a physician.

I fully realize that I’m meandering a bit, but it’s critical for you to appreciate the credentials of those on hand for this annual meeting – the 15th since Amarillo became a public company. They were world-class professionals, leading medical experts from all over the globe – Russia, Taiwan, Australia and, yes, even Texas. Each is a firm believer in oral interferon and its potential as a preventative treatment in the pending pandemic, as well as in Amarillo’s potential as a major supplier of this important technology. No question, I was impressed – and that’s not easy to do.

Thus, my recommendation continues to be BUY this stock with reasonable impunity – not based so much on my seven-year belief in this Company, nor its 15-year operating history as a publicly traded company, but rather on the basis of the highly educated international collection of intellects who flew in from around the globe. Many of them are new to the Board of Directors, yet all worked hard to fully explain to the stockholder audience – to make the “amateurs” appreciate and understand – the value of all that’s at risk in a global pandemic and the potential Amarillo’s oral interferon has in addressing those risks. It’s an endorsement that should not be overlooked – or undervalued.

As always, thank you for subscribing – and for waiting so patiently for this communication.

J. David Stewart
Analyst and Publisher, The Stewart Report

Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. J. David Stewart owns 150,000 common shares of International Card Establishment, Inc. David has also subscribed to purchase an additional 100,000 ICRD shares Restricted under Rule 144. J. David Stewart and affiliates of The Stewart Report may also have long or short positions in these and other securities discussed herein, including warrants and/or options, and may buy or sell same at their own discretion. This report contains or may contain forward-looking statements within the meaning of the "safe-harbor" provisions of the US Private Securities Litigation Reform Act of 1995. This report is intended for informational purposes only and does not have regard for or take into consideration the reader's investment objective, financial situation or suitability for this security. Consult with your financial advisor and perform your own due diligence. Copyright © The Stewart Report, 2006.