ZerO's kleine Spam Stock Ecke

Hier packe ich mal all die Infos rein, die garnicht so uninteressant klingen die ich so aus der ganzen Welt täglich in mein Postfach gesendet bekomme. Teilweise sind ja äusserst hübsche Kaufbegründungen dabei, wie z.B. diesen Wert muss man einfach ins Depot nehmen, denn schliesslich ist der Wert schon 580 % gelaufen ... etc ;o)

Alle anderen können hier auch Ihren Stock-Spam reinpacken. Vielleicht ist ja mal eine Hikari ( Harakiri ) im Anfangsstudium bei die bei Veröffentlichung noch garnicht gelaufen ist ....

your money. You see, San Telmo is developing a total of 9 oil and gas projects in a part of Canada that’s known for huge reserves. And if those 9 wells contain the oil that recent preliminary tests show they have, it could launch San Telmo from a miniscule company to a mid-sized producer in a matter of weeks.

That’s why The Reaper is so high on San Telmo.

There’s no question the U.S. is very interested in Canadian energy. Oil exports from Canada to the U.S. have increased from $16 billion in revenues in 1998/1999 to over $28 billion in 2000/2001 (this is extremely bullish for San Telmo Energy)!

To top that off, on a recent trip to Calgary the U.S. ambassador to Canada, Paul Cellucci, said “we want to be less dependent on Venezuela…we want to be less dependent on the middle east.” No doubt that’s a sure-fire recipe for a dramatic bull market in oil & gas stocks, especially those that operate in Canada.

But that’s only half of the story.

You see, the real reason R.E. is so excited about San Telmo Energy… and San Telmo exclusively, is because they’ve assembled a dream team of management and geologists. They’re considered by many in the industry to be the best in the business at finding huge oil reserves in Canada.

One of the geologists, Dr.Marc Villeger, was a founding member of Peyto Exploration. If you’ve never heard of Peyto Exploration, pay attention.

Peyto was a tiny oil and gas exploration stock that was trading for just $0.16 a share in 1998. Then Marc Villeger made a huge find of oil. Today, Peyto trades at a market valuation of $375 million, or $13.25 a share. Early investors saw their stock increase 8,186% in just 5 years.

That’s not pie-in-the-sky numbers. That’s cold hard cash. And San Telmo is about to do the same thing.

As you read this, Marc Villeger and his crew are about to drill the Nisku Pinnacle Reef project. Like I said earlier, preliminary tests of the wells at Nisku show potential for 2 to 8 million barrels of oil. And Marc’s success rate in the area is incredible.

He’s already discovered six wells there.
How much is the oil worth? An estimated value of $60 to $100 million.

With that size discovery, shares of San Telmo could jump to $5 almost overnight.

You’re about to learn more about the Nisku property, in addition to the other 8 properties San Telmo is developing.
But first, let me tell you more about The Reaper. R.E.McMaster, editor-in-chief, has for years brought readers highly profitable investment advice in the pages of The Reaper.

How profitable? Last year, you could’ve made 400% following R.E.’s advice. Now, before you dismiss him as another newsletter editor who’s constantly saying what you “could’ve done” with this stock or that stock, I’m going to do something unheard of in this business: I’m giving you his most promising stock for the year, for free.

That’s why the enclosed report features San Telmo Energy.

You see, in the forecast issue for 2003, R.E. made 7 predictions on how investors like yourself could continue to make a ton of money while the Dow and NASDAQ continue to sink like a stone.

The #1 prediction was that crude oil was about to skyrocket before our eyes because of the likely war with Iraq. That prediction is coming true as you read this. Oil prices are now sitting at 2-year highs… and are expected to go even higher. Pretty impressive. And I think you’ll be very impressed indeed at what you read in this report.

But before you even consider becoming a member of this profitable service, I urge you to read the report on San Telmo Energy.

After you’re done, I think you’ll agree with me that San Telmo Energy offers what might be a rare opportunity to make money in something real—oil!

Sincerely,


Ron King
Publisher, The Reaper

Amnis is a pioneer in the technology of delivering video over any kind of broad band network. In a safety and cost conscious world, there has been an explosion of demand for video solutions which mitigate the need for expensive, wasteful, and dangerous travel.

Amnis is widely accepted as having the best real-time video solution available. Applications include remote training and class room environments, video surveillance for security purposes, and remote robotics control.

Amnis systems power virtual classrooms for the University of Hawaii, University of Alaska, Hughes, Pfizer, Daimler Chrysler, and many others. In a highly publicized demonstration, Bell Canada provided a video network over which robotics surgery was remotely performed by a doctor in a different location from the patient. Amnis systems provided the real time video stream over which the surgeon was able to perform the surgery.

Attack drones are remotely flown using Amnis video technology where a real-time video image in mission critical, as with remote robotics surgery. Traffic is monitored from a remote location by the police department in the City of Suzhou, China. There are over 4,000 Amnis systems installed world wide. I am told Amnis has the only system with no latency, meaning the video delivery is in real time with no jerky appearance or delay.

The "many to many"Amnis solution proves a perfect solution for a virtual class room environment. The University of Hawaii uses the Amnis system extensively to create virtual class rooms throughout the Hawaiian islands. I am told the virtual environment is akin to being in the same room. Conversations happen in real time as if the participants were standing next to each other.  

Pictured here are the components of the Amnis network. The broadband connection can be provided in many forms- the internet, intranets, VPNs, T1's, etc. The video quality delivered by the Amnis technology is second to none. If you're wondering- the word "Amnis" is latin for "Streaming".
  Amnis- The Potential For the Stock  




Here's the big picture on the history of Amnis. As you can see, in early 2002 Amnis was a very hot stock. On the heels of major contract announcements, the stock charged from the $.50 level to a high of $1.75. The stock traded nearly 14 million shares in one day. Investors had high hopes for the future as video streaming was identified as a market niche with huge growth potential.  

The company recently completed an additional round of financing for $1 million. A new President has been installed. Former management has been shown the door. Two turn around specialists are now consulting at the company on a full time basis, laying the groundwork for future fiscal growth and health.

Today, Amnis announced two new contracts on the same day the "E" was removed from the symbol. Amnis announced new systems have been purchased by the South Korean military and an undisclosed US Federal Agency.



A more current chart helps set up reasonable expectations for a rebound in the stock. The stock has collapsed from the $.50 level over the past nine months. In light of new management, new capital, new orders, and current SEC filings, I believe the stock is entitled to recoup 50% of the losses experienced in this downtrend, especially if new orders continue to materialize. Therefore, I believe this stock has the potential to rebound into the $.25 range.  

The annual revenue run rate of the company is about $2 million. There are 100 million issued and outstanding, giving the company about a $6 million valuation based on today's trading range.

Taking into account the quality of their technology, the installed customer base of over 4,000 systems, and the high caliber of their clients, I believe the company has significant growth opportunity.

Therefore, here are the parameters for the first trade on Amnis Systems on the strength of a potential turn around in the making:

Buy AMNM up to $.10. Don't forget to use a limit order.
Target price over the next 60 days- $.15- although there is potential for a rebound to $.25, a more moderate price target of $.15 is set pending sales getting more traction.
Stop Loss- $.05- A pullback is highly unlikely, but nevertheless you have to control loss potential. For the high risk end of your portfolio only.

( Dieses empfohlene Papier ist eine halbe Katastrophe .... das Teil ist bereits auf den Pink Sheets ... aua aua  - bloss von sowas die Finger von lassen, noch schlimmer als OTC-BB Werte ... )

Stock Watch posts volume alert for PITK

Stock Watch has been following Preferred Internet Technologies (PITK).
For the past two weeks, volume in the stock has been setting records
and the stock is gaining ground as rumors of increased business activity
have been circulating.

Yesterday PITK announced that it has letters of Intent to acquire
three companies which together could bring a net profit of more
than $2 million into the company. This press release seems to
substantiate the rumors of big plans for growth.

The stock has also tested the high water mark for volume
today. Very active recent trading history combined with positive
news yesterday could yield record trading volume today for PITK.

The Stock Watch Advisor

The U.S. House of Representatives recently approved legislation authorizing a national nanotechnology research and development program.  This three year spending plan totaling $2.36 billion will help fuel this industry and give birth to scores of new companies.  Now that the money has been budgeted the next step is to appropriate the funds.  The setup is reminiscent of how government organizations such as the National Institutes of Health (NIH) provide grants to biotechnology firms.

This is not the first time the government has opened its checkbook for nanotechnology.  Just last year the Army awarded The Massachusetts Institute of Technology (MIT) a $50 million dollar contract. MIT began research on subjects such as conductive polymers, germ resistant fabrics and enhanced medical sensors.  MIT and Army officials unveiled their new Institute for Soldier Nanotechnologies: a 28,000-square-foot facility that marshals government, academic and industrial resources to develop a new generation of equipment the average soldier will take into combat.  The goal is to utilize nanotechnology in creating a super soldier that could become invisible, leap over walls, and treat their own wounds.

"If you want to visualize the impact of nanotechnology, think about" the movie "Predator," U.S. Army Chief Scientist Michael Andrews told Reuters. "It's about the ability to have a uniform that protects you totally against your environment."  This predator, until he took his uniform off, he was the meanest SOB in the world," Andrews said. "Nobody could kill him. That suit is science fiction, but it portrays what might be possible."

Market Potential

The National Science Foundation projects that the nanotechnology industry will grow into a $1 trillion dollar business in the next 10 to 15 years.  Corporations have already put their big toe in the water and it is a matter of time before they take the plunge.  During the internet boom the big boys played catch up and allowed companies like Amazon.com (AMZN), eBay (EBAY), and Yahoo (YHOO) to become the dominant players.  The same may not happen with nanotechnology as some of the world's largest companies are already deep into this industry.

Here are just a few of the new innovations that we may see in the future:

General Electric (GE) is working on lighter and cheaper aircraft parts, more efficient medical imaging, and materials with better heat management for devices such as cell phones.
Daimler Chrysler (DCX) has already installed "Conturan" glass which had an ultra thin layer of anti reflective coating.  This may not be that exciting but what does sound very sci-fi is that the company would like to produce a car capable of changing colors.  A nanoparticle coating and an electric field would allow a driver to change the color of the car according to his or her mood.
DuPont (DD) is working on toilets, sinks, and tubs that would be self-cleaning.  The ceramics would be coated with nanoparticles that prevent dirt, grime, or other unwanted substances from binding.
There are plenty more examples but we will stop at the self-cleaning toilets.
So Now What?

Despite the fact that the large multinational companies are into nanotechnology there will be plenty of opportunities to make money.  The obvious question is who are these companies and what are their stock tickers.  The SmallCap MarketWatch has the names of nine companies that are publicly traded and involved in nanotechnology.  In the next few weeks we will conduct our proper due diligence and report the findings to our readers.

If any of our readers have nanotech companies they are familiar with be sure to let us know at editor@smallcapmarketwatch.com and we will add it to the list if they qualify.

Entremed & Corvas Identify New Target for Treatments of Cancer and Other Diseases

Shares of Entremed (ENMD), one of our ASCO basket stocks, had a terrific week closing at $4.65 per share.  That is a gain of 36% from when we published about the company in our May 29th edition at $3.42 per share.

The company, along with its collaborator Corvas (CVAS), published preclinical findings demonstrating that the growth of primary and metastatic tumors in animal models was prevented when scientists blocked the activity of a naturally-occurring complex of two proteins that activates blood clotting (tissue factor and factor VIIa).  This discovery may allow for development of new therapies that have antitumor activity without affecting the vital processes involved in normal blood clotting. The collaborative study is featured in the June 1st issue of Cancer Research, a scientific journal published by the American Association for Cancer Research.

Xenova Continues To Impress

We finally found out why shares of Xenova (XNVA) have been on a tear.  The company announced the signing of a significant, two-year manufacturing, development and clinical supply agreement with Pharmexa A/S for the contract manufacture of clinical supplies of a vaccine targeting the human HER-2 protein. Manufacture will take place at Xenova's Clinical Trial Manufacturing Facility in Cambridge.

Since we first featured the company in our May 27th edition, British Biotech Worthy Of Attention, shares of the company have gained a high of $2.18 and closed Friday at $2.03 per share.  That is a gain of 26.8% from our original mention at $1.60 per share.

The company has developed a revolutionary method for capturing the kinetic energy lost in the vehicle braking process.

It works as follows: When you apply the brakes in a SHEP fitted vehicle, the Ifield Pump grabs the drive shaft. The spinning drive shaft turns the pump, and it stores the energy in a hydraulic storage tank as the vehicle slows.  

When accelerating from a stop, the electronic control systems instructs the built up pressure to turn the pump, and the pump turns the drive shaft until the pressure is dissipated. The engine then takes over. Visit SHEP's corporate web site at www.shepinc.com for a virtual demonstration.

In a joint development program with SHEP, and after two years of experimentation using a "proof of concept" Lincoln Navigator, OEM Ford Motor and Tier I supplier Eaton Corp determined the SHEP system (stored hydraulic energy propulsion) was able create:

38% improvement in fuel economy.
32% faster acceleration from a stop.  
51% less pollution.  
77% longer brake life.
When one considers the long term commercial applications for this technology, combined with the profit model for licensing its use in the automotive manufacturing world, there is incalculable upside potential.
Therefore, I felt any investor with capital for a high risk/high reward situation should own shares in SHEP Technologies. I originally recommended you should be prepared to be "involved" with this company for at least two years to maximize your potential for a big win. You can always trade around a core position if you choose, but this is a long term situation.

I don't expect commercial deployment of the system to come this year, and therefore I don't expect the company to generate any revenues this year. However, I do expect that from time to time the company will be able to announce progress benchmarks, and the market believes one of these benchmarks is now on the horizon.
  SHEP Technologies (OTC BB: STLOF) Announces Intention To Apply for "AIM" Listing  




Just after the market closed yesterday, SHEP Technologies announced the company intends to apply for a listing on the "AIM" London Stock Exchange. The AIM (Alternative Investment Market) is London's version of the NASDAQ Small Cap/ Bulletin Board market. According to the press release, $11 billion has been raised for the 850 companies which trade on the AIM exchange since its inception in 1995.

At first blush, this announcement doesn't seem to have enough horsepower to explain a major 68% breakout in the stock on huge volume. However, sophisticated investors who understand the AIM market may be reading more into the news.

The announcement goes on to specify SHEP has retained a accounting firm to apply for a special tax status which makes an investment in SHEP Technologies very attractive to investors due to certain special tax advantages established by UK tax laws for companies in this category.

Based on today's performance in the stock, I believe the market has made of leap of faith that the AIM listing will lead to a significant financing for SHEP Technologies. This would be another factor which would help mitigate the risks associated with ownership in the stock.

I have not strayed from my initial suggested trading strategy for this stock. Take 10% of your high risk investment capital and allocate it for SHEP. Invest 25% of that allocation if you haven't done so already. Don't worry about the ups and downs of the share price. If this company succeeds, it will cost you more to be out of the stock.

Fund managers took a look at the company, and decided the problem was management, not technology. In early May financiers stepped up to the plate with new capital of $1 million and brought in a new CEO.

Since that time, the stock has rebounded to a high of $.125. The company has announced new product sales. Overhead has been slashed dramatically. Today the company announced nearing a new product introduction for the first time in several years. They expect sales for this new product to begin next quarter.

If new product introductions are followed with more new product sales, investors will take a leap of faith that the worst is behind, and this exciting technology will have the opportunity to grow and mature.

The stock has retraced almost exactly 50% of its run from $.06 to $.125. As long at the uptrend remains intact, this represents an ideal entry level. If you don't have this one in the high risk end of your portfolio, now would be a great time establish a position and wait for product sales announcements to take the stock higher. If and when we get to $.15 we can reevaluate, and decide if we should be looking for $.25.

Publicly traded venture capital funds are valued according to how much their holdings are worth.  The problem is without a public market to determine the true value of each portfolio company it is impossible to be precise.  However, at $6.73 per share the stock is considerably higher than what Harris & Harris considers their portfolio Net Asset Value  ($2.26 per share) to be.  We included this stock in our basket because if the IPO window ever opens for nanotech stocks then the upside to TINY will be huge.

Flamel Technologies (FLML) has one of the prettiest charts we have ever seen.  Too bad we didn't discover the company until now.  Flamel is a biopharmaceutical company engaged in the development of two polymer-based drug delivery platforms. The company's Micropump® and Medusa® technologies are involved in fifteen different development programs with eight different collaborations of which five are in clinical phases.  The company's partners include Merck (MRK), GlaxoSmithKline (GSK), Biovail (BVF), and four other nondisclosed parties.

The science involved in Flamel is absolutely incredible.  Currently patients take medication the usual "four times a day" but Flamel's Micropump creates microparticles that prolong the delivery of drugs in the small intestine making it possible for once daily dosing.  Imagine just one dose per day versus four with the same benefits.  The large pharmaceuticals are in desperate need of this technology and for good reason.  Patent expiration issues are forcing drug companies to innovate in hopes of protecting market share.  Reintroducing the same drug with a new delivery mechanism is one of the ways to do this.  Shares of Flamel closed at $12.05 per share and are up about 600% in the past twelve months.  Wall Street coverage is virtually nonexistent because it is a French company that obviously does very little investment banking here in the states.  Flamel stands to reap tremendous benefits from its partners off royalty payments once drugs start to receive FDA approval.



JMAR Technologies (JMAR) is included in the basket mainly because of valuation.  Shares closed yesterday at $1.26 per share giving the company a $30.2 million dollar market cap.  Sales for 2003 are expected to be in the range of $23 million and JMAR previously announced a $34.5 million dollar contract with the Department of Defense so there is a nice backlog of revenues.

The company is the originator of Collimated Plasma Lithography (CPL), a next generation lithography alternative designed to deliver affordable, sub-100 nanometer chip making capability in a compact format to the semiconductor industry. Its microelectronics division provides process integration and maintenance support for the U.S. Government's Defense Microelectronics Activity semiconductor fabrication facility.

This past year JMAR unloaded a money losing division but has made up for the lost revenue by increase in contract funding for its CPL Program.  If CPL continues to gain momentum then the company could be close to profitability in the near future.

Nanophase (NANX) engineers and manufactures nanocrystalline materials on a commercial scale (product list).  The nanomaterials are currently used in sunscreens, personal care formulations, abrasion resistant floor coverings, and catalytic converters.  The company is also developing several new emerging applications for nanocrystalline materials in multiple markets.  Nanophase was included in the basket because the company expects revenues of $3 million in the first half 2003 and more in the second half of the year.

Revenue is important because it validates that the company has something that customers will pay for.  Nanogen has passed the proof of concept stage and now needs to close large scale clients to win over investors.  The stock closed yesterday at a hefty $5.34 per share equaling to a market cap of $81.1 million.  Shares have gained 85.38% since May 1 and there are very few levels of support for the stock until the high two dollar level.  Waiting for a pullback makes a lot of sense on this one.

Nanogen (NGEN) was a company that initially attracted us because it traded under its cash value of $1.71 per share ($36.9 million) for quite some time.  Now at $3.54 the shares are considerably more expensive and subsequently much riskier.  Cash burn is per quarter is approximately $8 million but management is already trimming costs and bringing the losses down.  On the bright side, revenue has increased every year with 2002 bringing in $17.17 million.

The company is included on our nanotech basket because it has a large following and often trades well when the sector gets attention. In addition, the large cash coffer keeps the doors open for a long time. Nanogen hopes to establish its NanoChip® Molecular Biology Workstation and NanoChip® Cartridge as the standard platform for the detection of genetic mutations and is also developing its technology for forensic and biowarfare applications.

Westaim (WEDX) was brought to our attention by quite a few Canadian readers.  This company offers an indirect way to play nanotechnology because of its ownership in Nucryst Pharmaceutical Corp. Nucryst invented a nanocrystalline technology called Silcryst which is used in its wound dressing product called Acticoat.   The company has deconstructed the structure of silver and rebuilt it with smaller crystals, which the body can absorb faster.  Since its pure silver it also kills bacteria without damaging human tissue.

Our favorite stock in the nanotech basket has to be Westaim.  The company is sitting on $95.7 million in cash and cash equivalents while the stock closed yesterday at $1.65 giving them a market cap of $128.8 million.  Revenue for the most recent quarter ending March 31 was $16.66 million with Nucryst accounting for over 40%.  Losses came in at $984,000 for the quarter but it's possible for the company to reach breakeven very soon.  If Nucryst was ever spun off it would probably be worth more than Westaim as a whole.

That concludes our edition on nanotechnology and as an added bonus we decided to list the support and resistance levels for the stocks in the basket.  We look forward to reading your comments which may be sent to editor@smallcapmarketwatch.com.



 

Biomira (BIOM) announced last week that the results from their pivotal Phase III trial of Theratope for metastatic breast cancer patients did not meet the two pre-determined statistical endpoints of "time to disease progression" and overall survival. However, one subset of patients (approximately 32% of study patients or 330 patients currently on hormonal treatment following chemotherapy) appeared to show a trend to survival (a several month difference seen between the control and treatment group). Over the next 3-5 months, the company plans to complete a further analysis of this subgroup, with the intent of discussing the results with regulatory agencies, to pursue a registration.

Biotech stock prices are more events driven than any other sector.  When companies like Biomira announce that they failed a Phase III trial the relentless selling causes emotion to take over reason.  It becomes "get out of this stock at any price" mentality and savvy traders can really take advantage of the situation.  The fact that Biomira is partnered with Merck KGaA of Germany, a multi billion dollar company, means that Theratope must have shown some benefits that were compelling.

There are three paths for Biomira's Theratope and they rest on data obtained from a subset group which were women on hormonal treatment following chemotherapy.  The subset data could be deemed acceptable for registration, with a post registration confirmatory study to be conducted.  The second best case would be for another study to be conducted.  The worse case obviously is the company decides that the data does not warrant further development.  If either of the first two occurs then the stock could experience a quick pop.


Charts Courtesy Of StockCharts.com.

Biomira closed last Friday at $1.70 per share giving the company a market cap of $92.2 million.  There is approximately $33 million or $0.55 per share in cash.  The burn rate is estimated to be $1.6 million per month so Biomira's cash position should last the company till the end of 2004.  There is support for the stock at $1.48 all the way down to the 200 day moving average of $1.34 per share.  There are no real lines of resistance until the two dollar levels.

On Monday Dr. Alex McPherson the current President and CEO of Biomira will be participating in a panel discussion at the upcoming Biotechnology Industry Organization (BIO) meeting in Washington DC.  BIO describes itself as the world's largest biotechnology convention and this year President George W. Bush will be speaking on June 23 at 12:45 p.m.  Biotech may be back on the burner after a breather for the past week.  It would make sense for companies to make announcements this week to coincide with BIO much like the cancer companies did at the American Society of Clinical Oncology (ASCO) annual meeting.

Biomira has proven to be a good trading stock with little institutional shareholders and mostly retail activity.  We will be tracking the company closely for the next few days in hopes of finding an entry level we are comfortable with.  Ideally an entry point of $1.50 per share with a stop limit at $1.38 would be something we are looking for.

NBA Basketball

Unfortunately none of our readers correctly guessed the correct score of last week's final between the San Antonio Spurs and the New Jersey Nets.  However, due to the overwhelming number of submissions we received this may be something we do again next year.  Loyal Spurs fans pointed out that the last time the team took home the championship the S&P 500 gained 21.04% for the year.  Let's hope for something similar in 2003.

Irvine Sensors is developing a special version of the miniaturized camera you see pictured here in a special program for the U.S. Army's Research, Development and Engineering Command CERDEC Night Vision and Electronic Sensors Directorate. This is a Phase II award, meaning Phase I was successful, and commercialization is coming closer to reality.

The camera will be used for night vision weapons sites for infantry weapons. Because of the super computing component, the camera is very small, lightweight, and doesn't require the enormous power and cooling current infrared sites require. Once implemented, this infrared camera will reduce the weight and size of night vision weaponry considerably. Note the key sitting next to the camera for size comparison purposes.

This represents just one of many new technologies the military is developing with Irvine Sensors' technology.
  Perfect Entry Level- Right on the Trend Line  




As you can readily see in this 90 day chart, Irvine Sensors dropped the last couple of days in conjunction with the market's long overdue correction. It has dropped to the perfect entry level, right on the uptrend or support line. The stock will undoubtedly rebound from here on this news, and a break above the $2.13 level would put us into new high ground and be extremely bullish.

The stock is also at the lower end of its support/resistance channel, suggesting today's closing level is favorable for those who like a lower risk entry point.

I believe the stock has a shot at breaking above the previous high of $2.13 if the market continues trending higher and the company can deliver a few more fundamental developments over the next thirty days.  

This last time I called a Trading Alert on this stock was April 23rd at $1.19. The subsequent trading high of $2.13 represented an 80% gain over the ensuing thirty days. I'm hoping for an encore performance and like our chances from here.  

You should read our original presentation on Irvine Sensors if you are not familiar with the company. Click Here ( www.otcjournal.com/archive/listserv/20021217-1.html )to read the original profile.

Here is the complete text of today's press release for your review:
 

Press Release Source: Irvine Sensors Corporation
Irvine Sensors Developing Enhanced Night Vision Sensor

Monday June 23, 4:19 pm ET

Recent Awards Included $1 Million to Increase Resolution of Camera System

COSTA MESA, Calif., June 23 /PRNewswire-FirstCall/ -- Irvine Sensors Corporation (Nasdaq: IRSN, BSE: ISC) announced today that approximately $1 million of the aggregate value of contracts announced on April 23, 2003 is from the U.S. Army's Research, Development and Engineering Command CERDEC Night Vision and Electronic Sensors Directorate for the development and delivery of enhanced resolution versions of Irvine Sensors' miniaturized infrared cameras. The new contract is a follow-on to a Phase 2 Small Business Innovation Research award under which the Irvine Sensors' first generation camera was successfully developed last year. While the Army's primary interest in the camera technology is for use in a miniaturized, night vision weapons sight for infantry weapons, the new contract also involves delivery of several units for testing as helmet-mounted sensors for firefighters. Federal funding for the fire fighting application was due in large part to the strong support of Congresswoman Loretta Sanchez (D-CA), Congressman Chris Cox (R-CA) and Congressman Curt Weldon (R-PA).

Irvine Sensors' proprietary infrared camera technology is based on the use of stacked memory chips that store pre-calibrated sensor performance characteristics for a wide range of expected operating temperatures. Such an approach avoids the necessity of cooling the infrared sensor system, with corresponding reductions in camera volume, weight and power requirements. Irvine Sensors recently received two U.S. patents on its infrared camera technology, including one covering the fundamental approach of pre- calibration.

"We have already demonstrated a miniaturized, battery-powered infrared camera with extended operating lifetime that works by exploiting the capabilities of our chip-stacking technology. This latest funding is intended to further refine the operational features of that camera. In addition, by opening up an avenue for commercial application through firefighters, it potentially broadens the support base for this technology. We believe that multiple uses could lead to higher volumes, lower costs and corresponding benefits to both military and commercial customers," said Robert G. Richards, Irvine Sensors' Chief Executive Officer.

Irvine Sensors Corporation, headquartered in Costa Mesa, California, is primarily engaged in research and development related to high density electronics, miniaturized sensors and cameras, optical interconnection technology, high speed routers, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, the potential application for and success of our technology that is the subject of this contract and speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including our ability to successfully enhance our camera product to meet the specifications of potential military and commercial customers; our ability to successfully commercialize that product; our ability to raise additional capital; our ability to negotiate appropriate strategic relationships; our ability to control costs and expenses; and the general economic slowdown in the technology sector and semiconductor industry. Further information on Irvine Sensors Corporation, including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and our other SEC filings that are available through the SEC's website ( www.sec.gov ).
--------------------------------------------------
Source: Irvine Sensors Corporation

I have no idea why the stock has been on such an exciting tear. There is nothing going on behind the scenes that I am aware of. The recent announcement that the company plans to apply for an AIM listing on the London Stock Market doesn't seem to have enough fuel for this fire. This move may have been the result of a short squeeze.

I'm looking for more information in the near future concerning an investment banking relationship in London and a potential long term financing. When the news comes, I'll deliver it right away.

In the interim, let's wait for a more favorable entry level to add to the position. Regardless of whether this stock goes up or down from here, it is certainly on the radar screen of thousands of investors, which should lead to a very favorable valuation if and when the company delivers corporate performance.

In fact, Bill Gates said the following about StockGroup: "The Stockgroup solution allows us to continue to be a leader by providing our users with the latest up to date financial news, while providing the most cost effective solution," Bill Gates, Microsoft Chairman and Chief Software Architect. (Nov. 2002)

Despite all these positive developments, StockGroup's shares have been stuck in the mud, trading between the $.25 and $.30 level for four months.

It seems to me that everyone wants to buy stocks when they are hot and moving up. No one seems willing to just accumulate shares when the stock is trading quietly, with an eye towards selling when everyone is buying. If you had used this strategy and bought SHEP Technologies two weeks ago when it was trading quietly and no one wanted it, you could have watched the stock appreciate 300% in two weeks, and been in a position to take a substantial profit.
  Undervalued As Compared To Its Peer Group  


As compared to the stocks listed above, I believe StockGroup should be trading at about $.42. >From today's closing price, that is a 50% return on invested capital, if and when the stock appreciates to the equivalent level of its peers. The table below provides all the comparisons you need to make your own evaluation.

I don't know what event will kick this stock into high gear, but I didn't know what would do it for SHEP Technologies. It just happened. I know StockGroup is growing (about 50% annually), I know their balance sheet has improved considerably, and I know the Associated Press relationship gives them extraordinary potential for accelerating growth.

Why not invest in shares of StockGroup while it continues to be stuck just under the $.30 level? Then, when the stock finally breaks out, runs up the charts, and everyone wants it, you can be the seller for once.

Here is a table with the comparisons you need. Review, and let me know if you believe StockGroup is probably worth $.42 per share as compared to it peer group today. If you agree, drop back and punt the stock into your portfolio.

kann ich leider die Chartgrafiken nicht mit bei packen :( Sorry !

Regardless of what happens, there will be individual stocks that continue to do well. Here's one that's likely to continue moving to the upside:
  StockGroup Technologies (OTC BB: SWEB) - Analyst Says Company Is At Low End Of Range  




I was hoping our members would get a chance to accumulate shares of StockGroup as it held below the $.30 mark. In this past Thursday's edition (click here to read), I pointed out the stock was undervalued as compared to its peer group.

The opportunity to pick the stock up while it remained cheap was sabotaged by Investrend Analyst Ryan Fuhrmann. In a news release which came out early Friday morning, he published the first Investrend update on the stock in quite some time. SWEB ended up trading 1.3 million shares (the highest single volume day in two years) and closing at $.34 after making an intra day high of $.38, up net 17% on the day.

On Monday there will probably be strong follow through as the Investrend update gets circulated. I published a price target of $.42 on SWEB, assuming it became fairly valued as compared to its peer group.

Apparently, the analyst at Investrend does not agree. They have a price target on the stock of $.55 to $.65 and a "Speculative Buy" rating. Fuhrmann describes the stock as "trading at the low end of a comparable price to revenue multiple".

In light of this update, perhaps we should raise our expectations for the stock. Like myself, Investrend is looking to possibly upgrade the price target. In the news release Fuhrmann states "a target valuation and earnings model will be provided following the company's next earnings announcement."

There is still a 27% return left in SWEB when it hits the initial target of $.42. If the stock achieves the bottom of the Investrend projected range, there is a 66% move left.

A break through $.38 on Monday would be very bullish for the stock. This would be a new 52 week high.

Here is the complete text of Friday's news release for your review. There is some excellent information contained therein. After reading, decide for yourself if you want to target $.42 or $.55. You make the call.

StockGroup (SWEB)- featured last September at $.19, now $.34 (up 80%)
Family Room (FMLY)- Clobbered in February down from $.40, but since then off the low of $.07 to $.13 (up 85% since the bottom)
Amnis Systems (AMNM)- Introduced June 3rd at $.07- Now $.10- (up 43%)
XML Global (XMLG)- I view this one as a failed idea. Nevertheless, the stock rebounded from $.03 to $.09 in May and June. 300% return for the agile trader.
In recent weeks I have been looking at a lot of very low priced stocks. Call them microcaps, nanocaps, or penny stocks. These are companies that have survived the last three years, trading at very low historical prices, with a high probability for appreciation. I've even found one company generating about $200,000 in positive cash flow per quarter, currently trading at $.015.
Finding $.05 stocks that will be $.25 in the next six months is like shooting fish in a barrel. If they ain't dead yet, they ain't going to be- but they were priced as if they were dead. One or two might even find their way back to $1. One or two will probably still fail.

Look for some penny stock ideas in July as the market digests some of the 2nd quarter gains in larger cap stocks. There are a surprising number of microcap companies doing well, and their stocks will rise with the tide.

Members' Forum- Comments On Selected Stocks You Have Written About







  Level 3 Communications (NASDAQ: LVLT)  



My June 20th Trading Alert on LVLT at $7.37 completely bombed. The suggested stop loss of $6.37 was hit a couple of days ago, making this idea a loser.

The market loved it when a group of investors, including Warren Buffet's Berkshire Hathaway converted $1/4 billion in debt to equity. The market hated it when the company replaced that debt with a new round of $400 million in convertible debt.

I don't really get it. The $250 million in convertible debt had a 7% coupon and a $2.80 conversion price. The new debt has a 2.8% coupon and a $7.20 conversion price. Any way you slice the pie, this company is now able to obtain much better financing terms, which implies it is a much better company.

In this past March quarter analysts expected the company to lose $.67 per share. LVLT delivered $.22 per share in profits for a huge upside surprise.

The stock has a schizophrenic history. Last year on July 3, 2002, the stock was $2.75. On July 31, 2002, the stock hit $7.44. I believe there could be another upside surprise in the June quarter, which will be announced on July 24th.

Personally, I own the September 7.5 calls at $1. They are now trading about $.30. I will add to my position and perhaps buy a few shares of the common stock as I believe the precipitous drop you see on the screen is an emotional overreaction. This is the only "dot-com" with Warren Buffet for a shareholder. I'd rather bet on Buffet than the Bear Stearns analyst who has a "underperform" rating on the stock.

I put a one year window in time on this alert. If the company does well, the Bear Stearns analyst will be upgrading to a "buy" at $10, and a "strong buy" at $15.
  Irvine Sensors (NASDAQ: IRSN)  




Lack of reportable news is keeping this stock out of the limelight. However, there could be a lot going on behind the scenes. After the market closed on Wednesday the company announced it had completed another round of equity financing at very favorable terms. They raised approximately $1 million. An institutional investor purchased restricted shares at $1.40- representing a reasonable 15% discount to the prevailing market. They also received one warrant for each four shares purchased, which converts into common stock at $2.25, and can be called in if the stock trades over $3. Clearly a vote of confidence on the future stock price by this investor.

The military side of their business is well documented and growing. The private sector side of the growth prospects remains a bit mysterious. Look for some disclosure on this side of their business to put some life in the stock in the hopefully not too distant future. This stock remains an undiscovered gem as it stills sports a very low market cap despite rapid growth over the past two years. Something is bound to happen which will put this stock on the radar screen.
  QT5 (OTC BB: QTFV)  


Those who have been following this situation know the stock price was sabotaged by an obscure politician from Maine who didn't like their smoking replacement beverage.

Since that event the company has been dead quiet.

I have heard the legislative proposal in Maine has been dropped. Brooke's Pharmacies has restocked NicoWater. Distribution is picking up nationwide. However, this information comes from an unverified source. The company has made no public disclosure.

I have also heard the company is afraid to make any public disclosure on its distribution efforts. It seems each time they get high profile publicity, the anti-smoking lobby groups attack them.

I don't understand this attitude, as it seems like their product fits the needs of the anti smoking groups.

At any rate, the stock began behaving much better on Thursday. It rebounded to $.24 on 247,000 shares. Perhaps the rumors are accurate. Time will tell. My feet are firmly planted in the air on this one until we know more about what's going on.

Muscle cells, blood cells, and nerve cells, do not normally replicate themselves whereas stem cells may replicate many times. When cells replicate themselves many times over it is called proliferation. A starting population of stem cells that proliferates for many months in the laboratory can yield millions of cells. If the resulting cells continue to be unspecialized, like the parent stem cells, the cells are said to be capable of long-term self renewal.

One of the fundamental properties of a stem cell is that it does not have any tissue specific structures that allow it to perform specialized functions. A stem cell cannot work with its neighbors to pump blood through the body like a heart muscle cell.   It cannot carry molecules of oxygen through the bloodstream like a red blood cell and it cannot fire electrochemical signals to other cells that allow the body to move or speak like a nerve cell.  However, what unspecialized stem cells can do is give rise to specialized cells, including heart muscle cells, blood cells, or nerve cells.

It is the ability to "become specialized cells" that has caused so much excitement over the potential of stem cells.  Think of what modern medicine may become if we were able to repair any damaged cell in our body through the use of stem cells.

Embryonic Stem Cells

Scientists primarily work with two kinds of stem cells, which are embryonic stem cells and adult stem cells.  Embryonic stem cells, as their name suggests, are derived from embryos that develop from eggs that have been fertilized in an in vitro fertilization clinic and then donated for research purposes with informed consent of the donors. They are not derived from eggs fertilized in a woman's body. The embryos from which human embryonic stem cells are derived are typically four or five days old and are a hollow microscopic ball of cells called the blastocyst.  There is a lot of political controversy surrounding the use of embryonic stem cells.  This has been the cause for many companies moving some of their research and development overseas specifically to Europe.

Currently, under the Bush Administration policy, the National Institutes of Health (NIH) can only grant funding for research using already established stem cell lines.  Many scientists have complained that the lines are of poor quality.   Why can't they just use new stem cell lines?  To establish additional lines researchers need to use new embryos discarded by couples undergoing fertility treatment.  NIH grant money is like a Small Business Administration (SBA) loan that you don't have to pay back.  They have helped fund thousands of companies, universities, and researchers.  The reality is by not allowing NIH funded labs to use new lines effectively prevents the true exploration of embryonic stem cells.

Adult Stem Cells

An adult stem cell is an undifferentiated cell found among differentiated cells in a tissue or organ, can renew itself, and can differentiate to yield the major specialized cell types of the tissue or organ. The primary roles of adult stem cells in a living organism are to maintain and repair the tissue in which they are found.

The history of research on adult stem cells began about forty years ago. In the 1960s, researchers discovered that the bone marrow contains at least two kinds of stem cells. One population, called hematopoietic stem cells, forms all the types of blood cells in the body. A second population, called bone marrow stromal cells was discovered a few years later. Stromal cells are a mixed cell population that generates bone, cartilage, fat, and fibrous connective tissue.

Scientists in many laboratories are trying to find ways to grow adult stem cells in cell culture and manipulate them to generate specific cell types so they can be used to treat injury or disease. Some examples of potential treatments include replacing the dopamine producing cells in the brains of Parkinson's patients, developing insulin producing cells for type I diabetes and repairing damaged heart muscle following a heart attack with cardiac muscle cells.

Future Outlook

The specific factors and conditions that allow stem cells to remain unspecialized are of great interest to scientists. It has taken scientists many years of trial and error to learn to grow stem cells in the laboratory without them spontaneously differentiating into specific cell types. For example, it took twenty years to learn how to grow human embryonic stem cells in the laboratory following the development of conditions for growing mouse stem cells. Therefore, an important area of research is understanding the signals in a mature organism that cause a stem cell population to proliferate and remain unspecialized until the cells are needed for repair of a specific tissue. Such information is critical for scientists to be able to grow large numbers of unspecialized stem cells in the laboratory for further experimentation.

It is believed that in the future stem cells may become the basis for treating a plethora of diseases.  Whether it will be from embryonic or adult stem cells is something that has not been scientifically proven.  We are still too early in the game to know which source is going to be more effective.  The risks of just focusing on one type of stem cell and not the other are just too great.  There is just not enough data to assess whether embryonic or adult stem cells will work better and that is why research on both is essential.  It is truly disheartening for patients and their loved ones to sit idly when the potential for stem cell therapies is not being fully explored.

Celebrities such as Michael J. Fox and Christopher Reeve have championed stem cell research in hopes of finding a cure for Parkinson's disease as well as Spinal Cord Injury.  How far are we from actually developing cures?  No one knows the answer to that question but it is inevitable.  For those suffering today they can only hope it is sooner than later.

  Germany University Intranet Completes Testing On Amnis Technology  




Apparently, the German University system is nationally connected by several private broadband gigabit networks, which are operated by the Deutsches Forschungsnetz, the computer based communication infrastructure of science, research and education in Germany.

According to today's news release, extensive testing of the Amnis system has been performed at the Leibniz Computing Center at Munich University. The following quote comes from Dr. Victor Apostolescu, head of network planning for Leibniz: “Amnis systems rate the best of cost, performance and functionality for multicasting, content distribution and live streaming desktop player,” said Dr. Victor Apostolescu, Head of Network Planning and Management of LRZ.  “Their key advantages include the products small size and simplicity, low latency, remote camera control and web-browser management, which are all ideal for classroom environments.”

New management seems to be wasting no time in getting this company back on track. From today's press release, I believe it is fair to assume new product orders will follow for the German University system, which is already hard wired for significant broadband capability.

As you can see from the chart, the stock is stair stepping higher with each news release. Investors are getting more comfortable with the imminent turnaround in the fortunes of Amnis. The highs are trying to get higher, and the lows are definitely getting higher.

Today's news release came out just after the close. I wouldn't be surprised to see the stock break through the post June 6th high of $.125 and maybe challenge my $.15 target in the next day or two. Whatever the case, the support levels for the stock are definitely headed North.

However, I believe the biggest moves could be ahead. Look for progress in the homeland security arena to really put some serious legs in the stock. If that happens, you won't own enough.

q    SeaLife 100 XP, 15 years of research in the making, now introduced to the $8 billion market.

q    The SeaLife formula is “trade secret” protected like Coca Cola and KFC products, so that the formula cannot be reverse engineered through patent information.

q    SeaLife Corp. (OTCBB: SLIF), a BIOTECH company.

q    Management and insider ownership over 60%.

q    Research concluded there are over 86,000 sea going vessels with an annual usage of over 100 million gallons of paint.   Each vessel requires on average 1500 gallons per application.  

David Westover of Master Argonaut, marine management located in Marina Del Rey, CA stated, "This is absolutely the best anti-foul paint I have seen in my 25 years in the marine industry. SeaLife 1000 is easy to apply, goes on smoothly, and quickly dries to an even smoother surface. In overseeing a vessel painted with SeaLife 1000, I was amazed to watch the hull remain completely foul free -- despite sitting still in a stagnant part of the marina for over 8 months. There was no evidence of tubeworms or barnacles or any other type of fouling. I would highly recommend SeaLife 1000 to anybody who wants an effective, long lasting anti-foul paint."

CRUNCHING THE NUMBERS

IF SEALIFE COULD GAIN JUST A 2% MARKET SHARE, IT WOULD RESULT IN SALES OF 2 MILLION GALLONS OF PAINT PER YEAR. THIS WOULD GENERATE OVER $450 MILLION.

WITH LESS THAN 8 MILLION SHARES OUTSTANDING, THE COMPANY WOULD GENERATE $56.00 PER SHARE IN REVENUE WITH AN EBITDA OVER $17.00 PER SHARE!! THAT’S ON ONLY 2% MARKET SHARE!!

LESS THAN ONE HALF OF ONE PERCENT MARKET SHARE WOULD STILL GENERATE $4.00 PER SHARE EARNINGS.

COMMERCIAL & NAVAL COATINGS USAGE ESTIMATE


MERCHANT MARINE VESSELS              71,453                                       392,392,578

NAVAL & COAST GUARD VESSELS             12,832                                        22,338,750



TOTAL VESSELS / GRT (1) (2)          86,613                                      414,731,328



Basis for Estimates



1.  MERCHANT MARINE VESSELS               # of Vessels                       Approx GRT

                         Cargo vessels                                                    71,207                                       387,917,398

                         Passenger vessels                                            248                                               4,475,180

                                      Subtotals                                 71,453                                       392,392,578



2.  NAVAL & COAST GUARD VESSELS       # of Vessels                       Approx GRT

                         Submarines                 750 tons          945                                             708,750

                         Destroyers               4000 tons                  382                                          1,528,000

                         Corvettes & Frigates 2000 tons                  865                                          1,730,000

                         Aircraft carriers      70000 tons                    35                                          2,450,000

                         Battleships            60000 tons                     4                                             240,000

                         Cruisers                  30000 tons                   95                                          2,850,000

                         All other (3)                       1000 tons           12,832                            12,832.000

                                      Subtotals                                 l5,l58                                       22,338,750



(1) Gross Registered Tonnage

(2) Survey figures exclude nations with nominal tonnage.

(3) Patrol craft, torpedo boats, tankers, tenders, mine sweepers, auxiliaries.



For more information on SeaLife, go to www.SeaLifeMarine.com

Imaging Technologies used to sell digital imaging solutions. It was one of the high flyers in the last bull market. The company's fortunes took a turn for the worse when they shipped a $4 million order to a Japanese company that filed for bankruptcy shortly after taking receipt of the merchandise. IMTO took the loss on the order and subsequently defaulted on some bank loans.  

High flying IMTO immediately began spiraling towards the ground. Chairman Brian Bonar got control of the stick just prior to impact by creating an entirely new business. The plane is now climbing out slowly. Inside of one year this company could regain high altitude and just flip on the autopilot and cruise. According to Mr. Bonar, this turn around is being fueled by positive cash flow from the new business. I'm writing about it now because I'd rather give you the facts and let you make up your own mind while the stock is still trading under 2 cents.
  IMTO is Now A PEO  


Do you know what a PEO is? The market for PEO's was $5 billion in 1992. By 2000 it had grown to $26 billion.  

If you are a PEO you provide an outsourced service for small companies. PEO stands for Profession Employee Organization. Rather than have the extreme cost of a human resources department and all the effort and expenses associated with payroll, workmen's comp, insurance benefits, and pension plans, you can simply pay your labor expenses in one payment to a PEO. They take if from there.

35 million Americans work for companies with less than 100 employees. That is the size of the potential market.

Once you retain a PEO to replace your Human Resources Department, your employees formally become employees of the PEO. They just show up for work at your place of business.

Through the power of numbers the PEO has the ability to negotiate better pricing on many employee related costs like health insurance, pension plans and 401K's, workmen's comp, etc.

The business model is beautiful, which attracted me to the idea. PEO's have very high and consistent cash flow, which allows for simplistic evaluation.  

IMTO made a few mistakes in the early going, but the business has stabilized, and according to Chairman Brian Bonar performs as follows:

IMTO generates nearly all its revenues from the PEO business.
Currently, there are about 4,500 employees managed by IMTO.
Each employee creates cash flow of about $70 per day- this equates to $315,000 in daily revenue flow.
IMTO makes about 8% gross margins on daily revenue- hence $25,000 in gross profits per day.
At 20 working days per month- this equates to $500,000 in gross profits per month.
Hard costs to run the company are about $350,000 per month.
Therefore, the company is now generating $150,000 in positive cash flow per month, or $1.8 million annually. Not bad for a stock trading at $.015.
The Negative  

In a phrase- $12 million in debt- nearly all of it in default. Much of it with judgments against the company. They should have gone bankrupt several years ago.

However, the senior lender holds a $3 million note. No one can collect until the senior lender gets paid, and IMTO has negotiated an indefinite, interest free extension.

Most of the debt is nearing the statute of limitations. If not collected it becomes uncollectable, and the company skates. Chairman Bonar believes he can eradicate the entire amount of debt over the course of the next year through low ball settlement offers and expiring statutes. He now has the platform to achieve this goal.
  Today's News  




Today, just after the market closed, IMTO announced the acquisition of all the managed employees of Joint Employers Group. The acquisition adds 1700 more employees under management, bringing the total to about 6,200.  

This means the company will now have about $435,000 in daily cash flow, $35,800 in gross profits, and about $200,000 in monthly free cash flow. This equates to $2.4 million in annual positive cash flow.

From here forward the company will only be reporting the gross profit as revenue, not the amount of money it collects from the company for its employees. This will bring revenues down considerably, but bring gross margins up substantially. You end up with a low revenue/high profit margin company as opposed to high revenues/low profits. In either case, the positive cash flow remains the same.

A look at trailing financials does not reveal this performance. A good deal of new business was added near the end of March, and some unprofitable businesses were ejected.  

All of the figures were provided to me by Brian Bonar, Chairman of the company. I have actually trimmed his estimates considerably. You wouldn't believe the actual numbers if I told you.

The June quarterly performance will not be reported for some time as it is the company's fiscal year end, but they will show a dramatic turnaround.  

There is an advantage to writing a newsletter as opposed to being an analyst. I don't have to wait for the audited numbers. I can give you this information while the stock is still under $.02. There are 180 million shares issued and outstanding at this time. Therefore, the entire market value of the company is only $3.8 million. >From these levels, I think there could be a triple in the stock.

So, for you risk minded readers who want a lot of bang for the buck, here are my thoughts:

Buy up to $.03 (yes, that's 3 cents)
Stop Loss: $.015
Price Target: Short Term (60 days)- $.05. This is just a stab at a number- there is no telling where this one could go.
I included a chart. It only tells us there is support for the stock at about $.01 and overhead resistance at $.025. Not much you can do with a chart on this one.
The company has been extremely quiet about its progress. We are the first source to feature the turnaround situation. This gives you a competitive advantage over other potential market participants.

Family Room was a problem child in the early going, but in recent months has rebounded nicely off an oversold condition. Lack of news has kept buyers on the sidelines. The company made an announcement just after the close on Friday. This should put some life back in the stock, and it will probably eclipse the $.18 high made back in April in the near future.

For those who need a refresher, Family Room, through wholly owned subsidiary Emmet/Furla productions, is an independent film producer. The company has successfully produced about 15 movies. Last November they moved to a higher level with their first two theatrical releases- Half Past Dead starring Steven Segal and Narc starring Ray Liotta.

The stock was trading in the $.40 range on the expectations that Liotta would get an Oscar nod for his performance in Narc, which would put some serious life in the film and serious money in Family Room's bank account. It didn't happen, and investors knocked the stock down to $.07 before it began to rebound.

I believe Family Room is an ideal penny stock to own. Family Room is like a biotech stock without the biotech overhead. One hot product could put millions in the bank account. However, since they use other people's money to develop products, they don't have the huge expenses associated with biotech research. In fact, they run the entire company for about $750,000 a year. One hit movie and Family Room could earn $1 per share.

They are better positioned for a big hit than they have ever been in their six year history. They are currently developing the popular 1980's Micronauts brand along with Hollywood heavyweight Gale Anne Hurd (produced Terminator 1 and 3, the Hulk, and Armageddon). They are also developing the Abominable Snowman story for a movie along with producer Ilya Sulkind (Superman 1,2, and 3).

One hit and this stock will rocket up the charts.
  Family Room- Stock Is Poised to Try For Higher Levels  




Friday, just after the market closed, Family Room announced it would begin filming on a new project on August 10th. The company is unable to disclose anything about the movie until the casting is complete and all the proper disclosure to the Hollywood Press has transpired.

In addition, Family Room revealed there were two more major film projects it would be announcing in the near future. This company has a lot of product in the pipeline, giving us numerous opportunities for a major home run in the next two years. Below, you will find a list of all their properties in various stages of development.

As you can see from the chart, this stock has made nearly a perfect 50% retracement from the February levels of $.21. It dropped to $.07, rebounded to about $.19, and has been camping quietly in the $.12 to $.14 range for a couple of months.  

Management informs us Friday's announcement is the first in a series of announcements expected in the near future which will demonstrate significant progress towards the big home run.

I believe Family Room could easily roll up to the $.25 level. There are only about 20 million shares issued and outstanding. $.25 would only represent a $5 million market value, which is easily achievable. Long term I'm looking for $1. One hit movie and we will be there.

It is very difficult to find a compatible bone marrow donor with only 1 out of 3 patients ever finding a match.  HSCs from peripheral blood (patient's own blood) present a risk because of the possibility of injecting cancer cells into a patient who no longer has the disease.  This is why cord blood represents a potentially break through advance because it is a non cancerous source.  Additionally, as more cord blood is banked the pool of donors grows which increases the chances of finding a compatible donor.  The downside to HSCs obtained from cord blood is that the quantity obtainable is only sufficient enough to treat a person/child weighing approximately 100 pounds.  There are currently no cord blood expansion technologies available that can increase the number of HSCs without causing differentiation of the cells.  Once the cells differentiate they cannot be transplanted into the patient.  Could there be an answer to this problem?  Next week you will meet the company that may possess the solution.
 






Cord Blood - The Promising Source of HSC

One of the major efforts in developing HSC technologies has been to identify new and better sources for stem cells.  The majority of transplantable HSC in adults currently comes primarily from donor peripheral blood or bone marrow. It is now known that HSCs drift into the peripheral blood and can be induced to transfer rapidly into the blood system. This has led to the extensive harvest of peripheral stem cells for this purpose but finding a compatible donor proves to be very challenging and using one's own blood holds the risk of reintroducing cancerous cells back into the body.  Now another source of HSCs is becoming very prominent.

This source of transplantable and lasting HSCs is from umbilical Cord Blood (CB). Blood is drawn from the umbilical cord after birth, but before the discharge of the placenta.  The standard procedure at birth is that CB is discarded with the placenta making this option free of ethical controversy.  Its collection is simple and non-invasive to the mother and the baby.

There are other benefits to using cord blood that are listed below:

Use of CB is already FDA approved and does not require further clinical testing.
The HSCs drawn from CB can differentiate into primary hematopoietic precursors and create hematopoietic clones in cultures better than those cells taken from adult bone marrow.
CB has lower levels of contamination with common viral pathogens, such as Cytomegalovirus , and is more tolerant of alloantigens.
Due to the increased use of CB cells, it is expected that the number of CB banks will grow significantly.
CB cells have high tolerance levels, giving way to lower GvHD.
It is important to note that scientists have found no difference in the functionality of HSCs drawn from bone marrow, peripheral blood or CB.  However, the small amount of blood collected from umbilical cords is usually around 100 milliliters. The use of CB has been limited stem cell transplants in babies and children weighing less then 100 pounds.  There are no existing CB cell expansion technologies that can increase the number of HSCs without causing differentiation of the cells.  Once the cells have differentiated they cannot be transplanted into the patient.
Transplants

Hematopoietic stem cells are primarily used in transplant medicine to regenerate a patient's blood and immune system after they have been treated with chemotherapy and/or radiation to destroy cancer cells.  At the same time the chemotherapy and radiation destroys the cancer cells in a patient, they also destroy stem cells. Therefore, an infusion, or transplantation of stem cells is performed after the chemotherapy and/or radiation treatment, and these stem cells migrate to the patient's bone marrow where they will reproduce, creating a new blood and immune system for the patient.

For the sake of definition, there are several types of bone marrow transplants and they are categorized according to the source of the stem cells.

Autologus:  stem cells come from the patient.
Allogeneic:  stem cells come from a donor.
Syngeneic stem cells come from an identical twin.
The transplant procedure involves three phases.  In the first phase, lasting 5 to 14 days, the recipient is prepared for the graft (tissue).  In the second phase, HSCs are procured from a compatible donor and intravenously administered to the recipient.  The third phase is a period of waiting for the HSCs to engraft and function normally in the recipient.
Innovation in Practice

In February a boy named Dimitri Bonnville underwent a stem cell transplant to help him regain lost heart tissue after he was shot in the heart by a nail gun.  He then suffered a massive heart attack and underwent an experimental procedure using stem cells harvested from his own blood.   The stem cells were later infused into the damaged portion of his heart via a catheter.  The transplanted cells regenerated Bonnville's damaged heart and stimulated new blood vessel growth rapidly.  Bonnville's heart ejection fraction, a measurement of how much blood is pumped out the heart's main pumping chamber, is at 40%, compared to 25% following his injury. Normal ejection fraction is approximately 50% to 75%.

The future use of hematopoietic stem cells for therapies looks unbelievably promising.  The case of Dimitri is just one of many examples out there but stem cells are the future of medicine.

We have illustrated the shortcomings of harvesting hematopoietic stem cells from bone marrow, peripheral blood, and also cord blood.  Out of the three sources cord blood is the most viable because the cells are non cancerous and we are on the brink of creating an extensive database of cord blood donors.

The small amounts of HSCs obtained through cord blood are not sufficient enough for use in full grown adults.  This has been one of the challenges that cord blood banks face.  Without expansion technologies it has been argued that storing cord blood maybe useless although the hematopoietic stem cells derived from this source shows tremendous promise.  There is an opportunity here, a rather large one, that if solved could prove to help humanity and reap favor on shareholders.   Next week the SmallCap MarketWatch will be introducing a company to our readers that could help put order in what is now a very chaotic environment in the world of cord blood and HSCs.

Today, we are issuing a trading alert on Pluristem Life Systems (PLRS) because the company is close to developing a system that can expand hematopoietic stem cells.  Shares of Pluristem closed today at $1.60 per share which is a significant discount to what the company recently raised financing at.  On June 5 the company announced that they had closed a private placement at $1.80 per share.  This means that investors have an opportunity to own shares of Pluristem cheaper than what the institutions paid.  We are placing a target of $2.25 per share on the stock representing a potential gain of 40% from today's closing price.

Pluristem was founded after five years of cooperative research and development by Dr. Shai Meretzki, the Technion Israel Institute of Technology and the Weizmann Institute of Science.  These are two of the world's most respected research institutions.  The company has just recently become a publicly traded entity.  They know own the exclusive rights to this stem cell expansion technology and is working to bring this breakthrough into the market.  The expansion of HSCs from cord blood will enable the use of the stem cells for transplanting in adults where insufficient stem cells are available.

Pluristem's Breakthrough Technology

Pluristem has developed a bioreactor, called PluriX, which will bring about the expansion of CB to proportions that will be enough for several adult transplants. The company hopes to provide cell expansion services to transplant centers and CB banks in the US and Europe.

PluriXâ„¢ is designed to perform controlled multi-expansion of HSCs for bone marrow transplants. The general idea is to cause, by way of the bioreactor, self-renewal of early stage stem cells and prevent them from differentiating. The system creates an artificial physiological environment in which the cells grow and reproduce.  In other words the bioreactor tricks the hematopoietic stem cells into thinking that they are inside bone marrow.  This is what causes the stem cells to expand and proliferate.

Pluristem's technology means that one portion of CB can be expanded to quantities enough for several adult transplants.  Healthy autologus CB can be taken at time of birth, expanded into mature stem cells and stored by a cell bank in the instance that it may be needed by that specific patient at a later date.  This will eliminate the current practice of transplanting cancerous cells back into the patient.  These cells may also be used for transplants in other patients.

Increasing the number of sources for HSCs will reduce the cost for donor searches and also increase then chances of finding a suitable match.  It also doesn't hurt that the higher the number of HSCs the increased potential for faster more successful engraftment of the stem cells.

Market Size

There are presently more than 50,000 bone marrow transplants (BMTs) performed worldwide. However, only one in three patients actually find a compatible donor thus the number of potential BMTs is estimated to exceed 150,000. There are 250 transplant clinics in the US, and these are now being augmented by a growing number of cord blood banks located around the world.  It is expected that, in the near future, CB will be drawn at the time of every birth and stored for later use. This will provide a full base of donor opportunities to patients throughout the world.

There are currently over ten large cord blood banks in the world, most of them located in the US.  In 2001, they cryopreserved (froze) and stored cord blood from some 34,000 to 36,000 donors, and they project annual growth of over 15%.  Pluristem's cell expansion services have the potential to become a standard procedure when it comes to banking cord blood.

The SmallCap MarketWatch is issuing a trading alert on Pluristem Life System because it is on the brink of accomplishing something that has not been done to this day.  The capability to expand hematopoietic stem cells (HSCs) without having the cells differentiate could ultimately save thousands of lives and bring a wind fall to its investors.

Whatever happened to Virtual Reality? Five years ago it was everywhere. A favorite of Hollywood, we all believed suits, goggles, visors, and helmets could put us on the virtual ski slope, beach, or in a romantic encounter with our personal virtual fantasy.

Virtual Reality is all about using the interactive capabilities of computer driven environments to replicate an experience. Despite falling off the media's radar screen, virtual reality is alive and well. One Texas based company has had some commercial success with Virtual Reality products, and is now changing course towards a much more vibrant market than in past efforts.
  Virtra Systems- It's Out There Now  




Have you seen this truck at a NASCAR race or at the grand opening of a WalMart store? This is the Pennzoil "Vrooom" truck. Used primarily for promotional purposes by Pennzoil, patrons go in one door, have a virtual reality experience, and exit out the back.

The virtual reality experience takes you on a tour of the inside of a car engine. Hosted by Jay Leno, you enter the interior of the engine and look around. You actually squirt oil on various engine parts. Near the end, the whole experience transforms to you driving an Indy car around the track at the Indy 500.
 



The experience is complete with motion, sight, sound, and even smell. The odor of oil, exploding gases, and burning rubber actually invade your sinuses.



People enjoy a similar kind of virtual experience courtesy of the Red Baron Pizza chain. Red Baron fields a team of biplanes which performs at air shows throughout the country. A promotional virtual reality experience truck also follows the tour. Patrons experience flying the aerobatics aircraft.

Here are three kids enjoying the experience.
  Virtra Systems (OTC BB: VTSI) - What's Coming  


In addition to the Virtual Reality promotional products Virtra Systems sells, they have also been successful in the amusement market. They had installations at many of the major amusement parks like Six Flags, but have now exited that business. They provided the virtual reality experience at their own expense and maintained them with their own staff in return for a percentage of the gate. They found this business was unprofitable, and sold the rights to manage that division.

They continue to pursue potential new customers in the promotional market, but a new product line for a specific market is far more exciting.



Virtra Systems is aggressively entering the "Judgmental Use Of Force" market. Pictured here is the new IVR-360, introduced on the internet for the first time today, which is a virtual training environment for law enforcement or military who might find themselves in a potential "Use of Force" situation.

The virtual amusement market is estimated to be about $6 billion annually, but the Use of Force Training Simulator market is estimated to be about $36 billion. This market is growing rapidly, spurred by growing fears of terrorism and world wide conflict in our Post 911 world. The current budget has about $37.7 billion earmarked for homeland security and $400 billion set aside for defense.

The ''fixed" version provides a full, live, 360 degree training environment. No head sets are required, and the trainee uses the actual weapon which would be used in the field. This is not a screen at which you point a plastic gun. It is also the only full 360 degree training system available on the market today that truly simulates a high stress situation.



The hardware in the fixed system sells for about $750,000 without the custom designed scenarios that are created according to the client's instruction. Pictured here is the control panel where the trainer monitors the performance of the trainee and serves up the various training scenarios.

Virtra Systems has also developed a portable version of the Judgmental Use Of Force training system. Here is a mock up of the portable version, which sells for a mere $105,000. However, once purchased, Virtra still has to create training scenarios based on the customer's needs, which can lead to substantial add on sales after the initial purchase is made.
 




  Conclusion  



One year ago Virtra Systems was trading at $.40. Today it is about $.10. One year ago the company was focusing its efforts on the $6 billion gaming market. Today it is focusing its efforts on the $36 billion Judgmental Use of Force training market.

There are only 40 million shares issued and outstanding, meaning the company's total market value today is about $4 million. Based on March quarterly sales figures, the company is currently enjoying about $1 million in annual sales at this time.

This is another penny stock I believe could easily be trading at $.25 with a few positive developments and a more cooperative market environment. The stock is probably entitled to rebound to $.15 along with the penny stock market, but higher levels are in the cards with high profile sales of the new training simulators.

Virtra Systems is working diligently towards penetrating the training simulator market with Governmental Agencies and the military. If sales start to come in, this stock will grow wings and take off.  
 

Here are my thoughts on VTSI:

Buy up to $.14- I believe the stock is entitled to rebound to January/February levels.
Price Target- $.25 with a 90 day window in time. Let's give this company some time to deliver sales of the training simulators. One sale to the right high profile customer could send this stock rocketing up the charts.
Stop Loss- $.05- worth the risk of half your risk capital versus the upside potential.
Today, just after the market closed, Virtra Systems unveiled its new website devoted to the Judgmental Use of Force Training Simulators. You can visit the site at www.virtratraining.com.  
These products represent the future of the company, and considerable profit potential. If the government agencies start buying these trainers, you will wish you owned more.

Cyber Digital, Inc. Expects Venture Capital and Strategic Financing to Enter the $84 Billion Critical 'Last Mile' Voice and Broadband Access Market

Venture and strategic investors to directly invest in Cyber Digital as well as in the open market

HAUPPAUGE, July 16, 2003 - Cyber Digital, Inc. (OTC BB: CYBD), announced that it expects venture capital and strategic financing, in multiple rounds, to finance its growth as it enters the $84 billion critical 'Last Mile' voice and broadband access market. This market was just recently deregulated or opened up by the Federal Communications Commission (FCC). Venture and strategic investors are expected to directly invest in Cyber Digital as well as in the open market.

This strategic capital raise may permit Cyber Digital to participate in the metamorphosis of critical "Last Mile' local switching access market for both voice and broadband data as it begins. Cyber Digital's solutions eliminate reliance on Bells for critical 'Last Mile' connections to business customers of competitive service providers (CSP) such as long distance carriers (LDC), competitive local exchange carriers (CLEC), and Internet service providers (ISP).

FCC Chairman, Mr. Michael Powell stated, "The switch (such as Cyber's switch) is the brains of ones's network and to be without one is to be a competitor (LDC, CLEC or ISP) on life support fed by a hostile host (Bells)."

About Cyber Digital, Inc.

Cyber Digital, Inc., is a leading manufacturer and software developer of advanced digital voice switches and Internet Protocol (IP) systems for network operators worldwide. Website is www.cyberdigitalinc.com

This press release contains forward-looking statements, pursuant to the "safe harbor" provisions as fully described in Cyber's SEC filings