OISI

On March 10, 2000 Nasdaq closed at 5,048. It was the top
of all tops. Three years later not only are we down, but
closing in on new lows.

Nasdaq is at 1340 with support at 1200.
NYSE is at 4641 with support at 4500.
S&P500 is at 833 with support at 775.

If the upcoming war with Iraq ends quickly the
indexes will find support and most likely bounce.
If it doesn’t, and gas prices keep soaring, watch out below.
It could be worse. Japan’s Nikkei Index hit a new 20-year low.
To see a scary correlation between the Nikkei index and SPY
(S&P 500 tracking stock) see link below.

http://www.stockmarkettiming.com/nikkei-comparison.html

Pennyheaven Super 7 News
AllergyResearch Group ALRG spiked 67% Friday on news of
profits for the year ending 12/31/02. YTD, ALRG is up 58%.

H-Quotient, Inc. HQNT was a Pennyheaven Top 10 pick in
2002. After peaking at 1.50 in November 2002, the price has
dropped steadily and is now sitting near a new YTD low, .42.
HQNT announced a new multimillion-dollar contract in January,
a stock repurchase in February, and most recently (Friday
to be exact) the acquisition of Intelliservices, Inc., a medical
software company.

The management of HQNT believes the price drop is due to
naked short selling and went so far as to 1) sue Knight Trading
Group, Inc for $10 million, and 2) reincorporate in Nevada for
the purpose of becoming the latest company to vie for certificate
only trading.

They have since changed their mind on #2 because they feel
“… the SEC is currently addressing the subject of naked shorting,
which has been the impetus behind companies exiting the
Depository Trust Corporation (DTC) electronic trading system.”

27,804,483 s/o as of 10/31/02
http://www.hquotient.com/

Might be worth a look. Also,
Ophthalmic Imaging Systems OISI has numbers worth mentioning.
For the year ending 12/31/02 the company reported net earnings of
$565,000 or .07/share. OISI closed Friday at .29.

The company designs, develops and markets digital imaging systems
for the eye care market.
8.1 million shares outstanding
2.4 million market cap
4.14 P/E
http://www.oisi.com/