Category Archives: Uncategorized

To a stock picker each year presents its own unique challenges.

Last year we were mired in a down market, Nasdaq had just

experienced the worst December ever and consumer confidence

was down near a seven year low. I remember saying then that it

was not the best time to be a stock picker. I was dead wrong.

Pennyheaven Super 7 (2003), as an index, finished the year

up 135%. Interestingly, the YTD high came on the last day of

trading (12/31/03).

This year, Nasdaq is up 50%, the NYSE composite is up 30%

and the Dow had its biggest yearly gain since 1996. Many

companies on the OTCBB have already seen their stock prices

climb 300, 400, 500% and more. That is this year’s challenge.

We are no longer buying at the bottom.

Pennyheaven Super 7 (2004)

The #1 criterion this year is growth: sales, revenue, cash or

earnings had to be increasing; #2) No more than 50 million s/o;

#3) No convertible debentures or bridge loans (as far as I can tell);

#4) Under a buck; #5) OTCBB only.

Disclaimer: Yours truly reserves the right to trade in and out

of the these stocks at will. I have not been compensated by

any individual or company. I play with real money just like you.

Also, please be advised that past performance does not in any

way guarantee future performance.

Prices reflect close of business 12/31/03.

1) Basic Earth Science Systems BSIC (.305)

Basic Earth Science Systems, Inc. is principally engaged in the exploration,

acquisition, development, operation, production and sale of crude oil and

natural gas. The Company’s primary areas of operation are the United

States and Canadian sides of the Williston basin in North Dakota, Montana

and Saskatchewan, south Texas and the Denver-Julesburg basin in

Colorado. Basic’s oil and natural gas is sold to various purchasers in the

geographic area of its properties. During the fiscal year ended March 31,

2003 (fiscal 2003), the Company sold 63% of its oil and gas production

to two purchasers: Murphy Oil USA, Inc. (38%) and Valero Energy

Corporation (25%).

For the six months ended 9/30/03, revenues increased 19%

to $1.4 million. Net income before acct. change rose 60% to

$334 thousand.

16,530,487 s/o as of 11/10/03

Market Cap: $5.04 Million

YTD ~ up 100%

2) DataLogic International DLGI (.24)

DataLogic International, Inc. consists of two subsidiaries, DataLogic

Consulting, Inc. and IPN Communications, Inc. DataLogic Consulting, a

wholly owned subsidiary, is a professional service company dedicated to

solving its clients’ business problems with technology-based solutions.

The Company services include Information Technology consultancy,

project management, software development, Internet solutions,

telecommunications/wireless integration, value added reselling/training

and IT outsourcing. The Company also provides short and long term

staffing solutions to IT clients and healthcare/medical providers. The

Company clients consist of commercial enterprises and local and state

governments.

For the nine months ended 9/30/03, net revenue totaled $7.8

million, up from $1.4 million. Net loss totaled $472 thousand,

up from a loss of $198 thousand.

DataLogic International to Report Record Sales and Profits

for Q4 2003

http://biz.yahoo.com/prnews/031222/lam049_1.html

35,824,996 s/o as of 11/12/03

Market Cap: $8.6 Million

YTD ~ up 600%

Website: http://www.dlgi.com/

3) Electronic Systems Technology ELST (.59)

Electronic Systems Technology, Inc. specializes in the

manufacturing and development of wireless modem products.

ELST was a Pennyheaven Super 7 pick for 2003.

For the nine months ended 9/30/03, revenues rose 12%

to $1.6 million. Net income fell 43% to $88 thousand.

Long Term Debt $0

5,098,667 s/o as of 9/30/03

Market Cap: $ 3.01 Million

YTD ~ up 50%

Website: http://www.esteem.com/

4) H-Quotient HQNT (.72)

H-Quotient creates and produces state-of-the art computer software

systems that collect and act upon real-time information critical to

improving the delivery of healthcare.

HQNT was a Pennyheaven Top 10 pick in 2002.

Since 1/01/02 the stock price is up 177%, however

since 1/01/03, the stock price is down almost 50%

9-month revenue ending 9/30/03 up 60%

9-month net income up 80% to .13/share.

Triples Sales Force

http://biz.yahoo.com/bw/031211/115294_1.html

Record Third Quarter Earnings

http://biz.yahoo.com/bw/031201/15382_1.html

34,830,413 s/o as of 10/10/03

Market Cap: $25.1 Million

YTD ~ down 40%

Website: www.hquotient.com

5) Janel World Trade JLWT (.90)

Janel World Trade, Ltd. is a logistics services provider for importers and

exporters worldwide. It is primarily engaged, through its wholly owned

subsidiaries, in full-service cargo transportation logistics management,

including freight forwarding (via air, ocean and land-based carriers),

customs brokerage services and warehousing and distribution services.

In addition to its traditional freight forwarding and customs brokerage

activities, Janel offers various related, value-added logistics services,

such as freight consolidation, insurance. a direct client computer access

interface, logistics planning, landed-cost calculations, in-house computer

tracking, product repackaging, online shipment tracking and electronic billing.

For the nine months ended 6/30/03: total revenues rose 31%

to $40.5 million, Net income totaled $170 thousand, up from

$64 thousand, $1.2 million cash.

16,843,000 s/o as of 6/30/03

Market Cap: $15.16 Million

YTD ~ up 350%

Website: www.janelgroup.net

With the success of TFAI last year I am including two companies

who do nothing but sit on cash. Both have sold the majority of

their assets and are currently weighing options.

6) TGFIN Holdings TGFN (.055)

TGFN sold their assets back in March 2003.

From 10Q (11/14/03):

“Management’s Plans are to acquire, merge or otherwise combine with an

operating company. Management is currently seeking an entity with which

to affiliate. The Company is free to seek alternative businesses in its existing

or other industries. Management’s main objective is to seek to increase

shareholder value.”

22,431,168 s/o as of 9/30/03

~ $2.5 million cash

~ $1.23 million market cap

7) Tikro Technologies TKCRF (.33)

TKCRF, based in Tel Aviv, Israel, was formally engaged in

the design, development and marketing of digital subscriber

line (DSL) chips used by manufacturers of telecommunications

equipment.

“In the nine months ended September 30, 2003 net income was $11.8

million, including a capital gain in the amount of $12.7 million related to

the sale of its assets to STMicroelectronics.

Cash and cash equivalents and long-term investment amounted to $8.2

million at the conclusion of the third quarter. Cash in the amount of $1.4

million related to the agreements with STMicroelectronics in an escrow

account and receivables of $1.2 million are being held, pending further

discussion between the two companies.

Izhak Tamir, Chairman and CEO of Tikcro, said, “at this stage, the

Company’s primary goal is to determine the best course of action going

forward. For that purpose, we are evaluating several strategic investment

alternatives.”

~25 million s/o as of 9/30/03

~ $8 million cash

~ $8.25 million market cap

YTD ~ up 100%

Website: www.tikcro.com

Best of Luck and Happy New Year

I’ll keep you posted.

GP@Pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute

a solicitation or an offer to buy or sell any security mentioned

herein. Pennyheaven.com is neither a registered investment

advisor nor affiliated with any broker or dealer. All statements

made are our express opinion only and should be treated as

such. We do not accept any paid promotion. Please do your

own DD and trade only what is right for you.

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GP@Pennyheaven.com

The rally continues – the Dow held above 10000, Nasdaq is

knocking on 2000, and the S&P 500 is at an 18-month high.

With the capture of Saddam Hussein look for bulls to be out

in force Monday strutting their stuff.

Apropos of our 11/09/03 newsletter regarding TFAI,

two other OTCBB companies have sold assets and are

currently sitting on wads of cash.

TGFIN Holdings TGFN sold their assets back in March 2003

They have been seeking affiliation partner(s) ever since.

Friday the stock price spiked 100% from .035 to .07

22,431,168 s/o as of 9/30/03

~2.5 million cash

~1.6 million market cap

Tikro Technologies TKCRF (.32) used to develop

standard integrated circuits for broadband communications

applications. Substantially all of its assets and related liabilities

were sold to STMicroelectronics. Tikcro is based in Tel Aviv,

Israel.

~25 million s/o as of 9/30/03

~ 8 million cash

~ 8 million market cap

Website: www.tikcro.com

I’m away till the end of the year.

Pennyheaven Super 7 (2004) will be sent out on 1/01/04

Happy Holidays one and all.

I’ll keep you posted.

GP@Pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute

a solicitation or an offer to buy or sell any security mentioned

herein. Pennyheaven.com is neither a registered investment

advisor nor affiliated with any broker or dealer. All statements

made are our express opinion only and should be treated as

such. We do not accept any paid promotion. Please do your

own DD and trade only what is right for you.

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GP@Pennyheaven.com

OTCBB $Volume for October was even better than September.

It was nearly 400% better than October 2002.

If $Volume on the OTCBB is rocking does that mean

business is good or is wild speculation indicating a correction?

Perhaps it’s a little of both. After most indexes hit new YTD

highs last week (including Pennyheaven Super 7) a little

consolidation would seem likely.

A few of you wrote in inquiring about FADI which is now TFAI

Here’s the story thus far…

First Aid Direct FADI was a Pennyheaven Super 7 pick in

January. They were quiet most of the year never leaving

the .10 – .20 range. Then at the beginning of October they

sold nearly all assets and netted close to $1million cash.

http://biz.yahoo.com/e/031007/tfai.ob8-k.html

FADI then used said cash and some new financing to buy

Kishi Consulting, Inc, a Canadian IT company. They

changed their name and symbol in the process. First Aid

Direct is now Total First Aid TFAI. What’s interesting is that

it has the feel of a reverse merger.

http://biz.yahoo.com/bw/031105/55354_1.html

As a result of the acquisition and the private financing, management and

shareholders of the acquired companies will assume operating control of

Total First Aid. Kishi and Centos are information technology consulting

and outsourcing companies with extensive experience in the IT industry.

Audited financial statements of Kishi at June 30, 2003 and Centos at

March 31, 2003 reflected total sales on a combined basis of $8,047,000USD

and profits before taxes of $266,019. For the September 30, 2003 quarter,

Kishi and Centos had combined sales of $2,185,985 and profits before

taxes of $128,067. Kish and Centos are wholly-owned subsidiaries of

3323455 Canada Inc., which was acquired by the Company at the time

of the acquisition.

Someone certainly liked the deal.

TFAI was up over 100% Friday (.51)

Feels like we traded up.

I’ll keep you posted

GP@Pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute

a solicitation or an offer to buy or sell any security mentioned

herein. Pennyheaven.com is neither a registered investment

advisor nor affiliated with any broker or dealer. All statements

made are our express opinion only and should be treated as

such. We do not accept any paid promotion. Please do your

own DD and trade only what is right for you.

To Unsubscribe: Reply with Unsubscribe in subject heading

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GP@Pennyheaven.com

All companies flagged this week due to earnings have one

significant fact in common: they are all up a considerable

amount YTD. If nothing else, let this be proof to what we’ve

been preaching – If they did it once they can do it again.

JBP Express, an OrderPro Logistics Company, OPLO

(.26) Posts Record Revenues for the Quarter

http://biz.yahoo.com/bw/031023/235428_1.html

OPLO is up ~ 200% YTD.

33,778,072 s/o as of 6/30/03

Market Cap ~ $8.8 million

Website: www.orderprologistics.com

Eye Dynamics EYDY (.33) has 5th Consecutive Quarter

of Triple Digit Increase

http://biz.yahoo.com/bw/031021/215103_1.html

EYDY is up ~ 500% YTD.

17,850,313 s/o as of 6/30/03

Market Cap ~ $5.9 million

Website: http://eyedynamics.com

CoolSavings CSAV (.90) reports Second Straight Quarter

of Net Income and Positive Cash Flow from Operations

http://biz.yahoo.com/pz/031023/47035.html

CSAV is up ~ 700% YTD.

39,101,636 s/o as of 7/31/03

Market Cap ~ $35.2 million

Web Site: http://www.coolsavings.com

Robocom RIMS (.90) reports 4th Consecutive Quarter of Net Income

http://biz.yahoo.com/prnews/031023/nyth145_1.html

4,495,984 s/o as of 10/10/03

Market Cap ~ $4 million

Web Site: http://www.robocom.com

RIMS is up ~ 1000% YTD.

I’ll keep you posted.

GP@Pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute

a solicitation or an offer to buy or sell any security mentioned

herein. Pennyheaven.com is neither a registered investment

advisor nor affiliated with any broker or dealer. All statements

made are our express opinion only and should be treated as

such. We do not accept any paid promotion. Please do your

own DD and trade only what is right for you.

To Unsubscribe: Reply with Unsubscribe in subject heading

To Subscribe: Reply with Subscribe in subject heading to:

GP@Pennyheaven.com

OTCBB $Volume for July hit a new YTD high besting July

2002 by 270%. Pennyheaven Super 7 hit its YTD high in

July as well. Amazing how that works.

International Monetary Systems INLM (.49) announced its

best revenue month in corporate history.

http://biz.yahoo.com/bw/030807/75595_1.html

“Executive Vice President John Strabley reported, “June was by far the

best month in our history, but July even surpassed that total. We believe

that this trend will continue for the rest of the year, and we expect that

profits will be commensurate.”

Should bode well for their upcoming quarterly report.

“INLM serves more than 6,000 nationwide customers in the commercial

barter industry. Based in New Berlin, Wis., the company is one of the largest

publicly traded barter companies in the world with offices in 15 U.S. and 2

Canadian cities, and is continually expanding its exchange locations. The

company’s proprietary transaction network enables companies and individuals

to trade goods and services throughout North America.”

16,113,614 s/o as of 3/3/103

Market Cap: 7.9 million

Website: www.internationalmonetary.com

Keeping you posted

May/2003 we mentioned Eye Dynamics EYDY in regards

to 1st Quarter record sales and profits. The price was .12

at the time. Guess what? They did it again.

http://biz.yahoo.com/bw/030806/65162_1.html

“This is the fourth successive quarter that sales and profits

have been rising at a record pace.”

EYDY closed Friday at .19

“Eye Dynamics is in the business of producing and marketing products and

other services for the institutional, medical and government markets. Safety-

Scope™, the company’s latest product, is designed for the ‘fitness-for-duty’

screening of workers. SafetyScope™ is simple to use, takes only 90 seconds

and does not require any bodily fluids like urine-based drug testing. It is based

on the manual methods of evaluating eye responses of an individual to detect

neurological signs of impairment used by law enforcement throughout the

United States. These signs can be caused not only by illegal drugs, but also

reactions to prescribed or over-the-counter medications and/or physiological

states like fatigue.”

17,850,313 s/o as of 4/09/03

Market Cap: 3.4 million

Website: http://www.eyedynamics.com/

March/2003 we mentioned Hartville Group HTVL in regards

to record 2002 4th Quarter profits. The price was

.65 at the time. Since then, they announced record 2003

1st Q profits of .04/share, and most recently raised guidance

for 2003 2nd Q to .06/share.

http://biz.yahoo.com/bw/030806/65072_1.html

HTVL closed Friday at .82

“Hartville Group, Inc. is a holding company specializing in niche insurance

product lines with limited competition due to specialization, which afford

sizeable underwriting returns in insurance lines such as pet health insurance,

equine, farm/ranch and animal mortality. The Company, through its pet

insurance marketing subsidiary and provider of the Petshealth Care Plans,

is one of the leading pet health insurance companies in the United States.”

3,026,870 s/o as of 5/20/03

Market Cap: 2.5 million

Website: http://www.hartvillegroup.com

I’ll keep you posted.

gp@pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute

a solicitation or an offer to buy or sell any security mentioned

herein. Pennyheaven.com is neither a registered investment

advisor nor affiliated with any broker or dealer. All statements

made are our express opinion only and should be treated as

such. We do not accept any paid promotion. Please do your

own DD and trade only what is right for you.

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To Subscribe: Reply with Subscribe in subject heading to:

gp@pennyheaven.com