My Stock Winners

========= Undervalued Stock #1 ==========

——— Dominion Resources, Inc. (NYSE: D) ———

Insider Name: Mark J. Kington
Insider Position: Director
Insider Action: 2,000 shrs on 2/2/2007
Insider Total Holding: 13,699 shrs

——————————————————-
Undervaluation Merits…

P/E Ratio = 19.0 (Industry Average 23.4)
P/B Ratio = 2.28 (Industry Average 2.63)
P/CF Ratio = 9.80 (Industry Average 11.40)

Industry: Electric Utilities

——————————————————-
Other Merits…

Dividend Yield = 3.30%

——— Dominion Resources, Inc. (NYSE: D) ———
========= Undervalued Stock #2 ==========

———— Johnson & Johnson (NYSE: JNJ) ————

Insider Name: Charles, Prince
Insider Position: Director
Insider Action: 5,000 shrs on 2/2/2007
Insider Total Holding: 11,000 shrs

——————————————————-
Undervaluation Merits…

P/E Ratio = 17.7 (Industry Average 22.6)
P/S Ratio = 3.58 (Industry Average 4.22)

Industry: Major Drug Manufacturers

——————————————————-
Other Merits…

Dividend Yield = 2.30%

———— Johnson & Johnson (NYSE: JNJ) ————

========= Undervalued Stock #1 ==========

—— INTERVOICE INC (NasdaqGS:INTV) ——

Insider Purchases - Last 6 Months
Purchases 21,000 4
Sales N/A 0
Net Shares Purchased 21,000 4
Total Insider Shares Held 388.76K N/A
% Net Shares Purchased 5.7% N/A

——————————————————-
Undervaluation Merits…

P/S Ratio = 0.92 (Industry Average 2.92)

——————————————————-
Other Merits…

Dividend Yield = 6.40%

Net Institutional Purchases - Prior Qtr to Latest Qtr
Net Shares Purchased 1,441,060
% Change in Institutional Shares Held 5.8%

It was very interesting to read the conference call from Cisco Systems. The chief executive officer, Mr. John Chambers, basically said that the “killer app” is video. The part of Cisco that had the highest margins was Scientific Atlanta, which makes the set-top boxes for video.
To have video as the killer app means that there has to be a lot of bandwidth that is speedy.
Yesterday, as well, Steve Jobs said that DRM should be eliminated, so that all digital media can be interchangeable and used on all digital media players.
What we are seeing here, is a change of the foundations, of digital media.
The next generation of media players will need much more memory to be useful. That means, of course, that high density and quality NAND flash will have to be available and AFFORDABLE.
Steve Jobs, yesterday, also said that margins are improving for his products, because of the decrease in the price of NAND flash.
When you put all of this together with Eli’s presentation at Stanford, you realize what it all means.
In his presentation, he basically said that the digital photo business was only for the early adopters until the Internet became available. Then everybody wanted to get digital cameras, which in turn needed digital film, which was the flash card.
We are now at a very similar point in time. Now, however, as John Chambers said, the killer app is video. There will be a huge demand for quality high-capacity X4 MLC NAND flash.
Who will make this NAND flash? Well, it will be SanDisk Toshiba in Fab 3 and later on in Fab

4. These will be the most cost-effective fabs on the planet. Therefore, they will be the low-cost provider and that means that all the other manufacturers, will either have to license their technology or else switch to another type of memory.
You can now see why Eli was so proud at the CES to present all of SanDisk’s new products. The USB TV product as well as digital media players.
I think, that most of this media will be transferred by high-speed wireless. That probably will be a combination of cell phones, WiFi, Wi-Lan, and other transmissions.
Unless, you have fiber-optic cables, wires will not be able to do the job.
All of these products need encryption. It was clear at the RSA conference that encryption is a very big topic.
Remember, Rim started with an e-mail product about eight years ago and look where it is now. The encryption was done by another Waterloo, Ontario company called Certicom. They have ECC TECHNOLOGY which is now approved by the national security agency. The encryption is in the device.
All of these events are coalescing at the same time.
Therefore, I think we are about to see an order of magnitude change in the delivery and products for digital media. Eli had the vision and has set up SanDisk to be one of the most important cogs in that wheel.
The crash in NAND price, that we see now, is basically the liquidation of old technology NAND.
The high density quality NAND will be in great demand and that is the reason that the new fabs are being built. Per megabit, they are cheap because of the increased size of the wafer and 56 nm architecture.
Remember Moore’s Law and the fact that everyone thought we were at the limit. Both IBM/Toshiba/AMD, and Intel, have shown new materials which will make the flash chip architecture even smaller.
That means that the cost per megabit is going to be exponentially cheaper once again.
In summary, all the companies noted above, are probably very good investments to buy now. Analysts, as a rule, do not have a lot of vision and are always stymied by marked changes in technology. I am pretty sure that this will happen. We will see what is said today in SanDisk’s conference. I think we will see much more of the future at SanDisk’s investors meeting in late February.

Telecommunications (TTH)
Bullish

Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism continues to dominate the sentiment backdrop of the telecomm sector. The composite Schaeffer’s put/call open interest ratio for the sector currently rests at 0.79, down from its peak, but still higher than 86.4 percent of the readings taken during the past 52 weeks. What’s more, of the 166 analyst rating on the components of the sector, only 37 percent from in at a “buy.” This bearish configuration leaves ample room for potential downgrades.

Outlook:The Telecommunications HOLDRS Trust (TTH – 36.63) continued its trek higher last week, as it tagged a fresh annual high of 36.66 along with the broad market. As pessimistic sentiment toward the sector unwinds, the exchange-traded fund (ETF) should enjoy further technical upside as fresh buying power moves in to lift the shares.

The market was swept up in a wave of relief last week, as traders chewed their nails ahead of both the Federal Open Market Committee (FOMC) meeting and the January non-farm payroll report. The week certainly didn’t start off on the right foot as a number of large-cap companies (such as 3M Company, United Parcel Service, and Lexmark International) were taken behind the woodshed following their respective earnings reports. Even Procter & Gamble (PG) lost ground on Tuesday, despite the fact that it lifted its earning guidance.

Yet, some interesting things developed despite this weak start. First off, the small-cap Russell 2000 Index (RUT) finally conquered the 800 level. This region has been a nagging thorn in the side of the index since the beginning of December. On Friday, the RUT tagged a new all-time high of 810.35 and gained 2.7 percent for the week.

Of course, the RUT wasn’t the only one making gains. The Dow Jones Industrial Average (DJIA) hit a new all-time high of 12,683.9 on Friday, while the S&P 500 Index (SPX) notched a new multi-year high of 1,449.33. Meanwhile, the Nasdaq-100 Trust (QQQQ) is holding at support at its 80-day trendline and above peak put open interest at the 44 strike in the February series.

While the market continues to skip higher, we are still seeing signs of growing pessimism among investors. The New York Stock Exchange (NYSE) short-interest ratio popped in January from 6.3 to 6.8 as the number of bearish bets swelled. Furthermore, the odd-lot shorts coming into the past trading week hovered at six-month highs.

In addition, a recent article in The Wall Street Journal described a huge movement among investors into cash. This certainly raises the question of whether John Q. Investor or John Q. Planner moving heavy into cash is a good contrary indicator. I’d have to say “yes.”

Back in the early 1980s, when money market yields reached 17 percent and long bond yields reached 15 percent, fortunes were made by those who either bought long bonds or bought stocks. But the vast majority of investors stuck with money market funds and just sat and watched while their yields tumbled and their principal stagnated.

I’ll add that in the mid-1990s (right before bull market took off), a consensus developed that “stocks cannot compete with eight-percent bond yields.” Is anyone surprised that we are seeing big moves into cash? Average mid-year index targets from the various brokerage firm rest around two percent, while end-of-year targets are approximately six to eight percent. And this is with stock market risk! Based on forecasts, putting money risk-free into five-percent CD would be prudent decision if one is expecting such low-ball targets.

On other item I want to touch on is the CBOE Market Volatility Index (VIX). Clearly, there was serious concern about the Fed meeting built into the VIX. Within the first 30 minutes after the 2:15 p.m. announcement on Thursday, the index plunged sharply lower.

I know I keep hammering on this, but it is hard for me to imagine a true upside breakout without the VIX moving below 10 and the market accepting this. We managed to put on a small gain on Thursday as the VIX held barely above 10, but this only delays the time of reckoning.

Another possibility that can’t be dismissed and would surprise many players would be a rally that is so violent that it actually causes the VIX to rise. This is not without precedent (1996-2000) and if, in fact, the premium sellers begin to pull in their horns because the SPX is starting to provide the kind of returns that render premium selling unattractive, we could begin to shake free of the friction at the various strike prices that has had a huge dampening effect on volatility and price movement.

As we begin this week, one obstacle that remains ahead of the market is the 670 level hovering above the S&P100 Index (OEX). This region capped the index’s rally attempts in late January and again last week. But with pessimism on the rise in the face of the broad market’s strength, this is just another roadblock that will be hurdled with the same persistence that pushed the RUT through 800.

Bollinger Bands

Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. They evolved from the concept of trading bands, and can be used to measure the relative highness or lowness of price.

Bollinger Bands consist of:

- a middle band being a N-period simple moving average

- an upper band at K times a N-period standard deviation

above the middle band

- a lower band at K times a N-period standard deviation

below the middle band

Typical values for N and K are 20 and 2, respectively.

Predictive value:

The bands cannot, as some have supposed, be used to make reliable statements regarding what fraction of an equity’s prices will lie within a certain distance of the mean value. This is because an individual equity’s price does not obey known distribution functions (see stochastic process). For example, if the bands for plus or minus two standard deviations are computed, it is wrong to suppose that ~95% of an equity’s closing prices will, on average, lie within the Bollinger bands. That would require, among other things, that the prices be normally distributed, which they are generally not. It would further require that the true standard deviation be known. The standard deviation calculated as above, however, is only an uncertain estimate of the true standard deviation. Furthermore, it should be realized that the “standard deviations” of stock prices for finite time periods are not fixed parameters as required to apply classical statistical theory, but instead are variables in constant flux depending on price volatility. Even a weaker statement that the bands by Chebyshev’s inequality must contain at least 75% of prices, is incorrect. Counter-example to which is a case of strong directional trend in prices accompanied by low volatility (the bands are narrow in this case and prices don’t fit into the channel formed by the bands around the strongly-lagged moving average). Nevertheless, the bands have proved useful in the technical analysis of stock prices. The bands give a reliable visual picture of a stock’s price volatility. No particular significance, however, should be attached to a price touching the upper or lower band, as Bollinger himself has pointed out. These occurrences should be considered in relation to other factors before making investment decisions.

It is of interest to note that faulty interpretation of a price touching or breaching a band based on incorrect statistical assumptions has become so widespread that some traders now use these events alone as trading signals and by so doing may have unwittingly injected significance into these band-touching events that would otherwise be absent.

When the bands lie close together a period of low volatility in stock price is indicated. When they are far apart a period of high volatility in price is indicated. When the bands have only a slight slope and lie approximately parallel for an extended time the price of a stock will be found to oscillate up and down between the bands as though in a channel. When this behavior is found to regularly repeat in conjunction with a fairly steady broad market, a traders may, with some validity, use a touch or near touch of the upper or lower band as an indication that a stock’s price is nearing the limit of its trading range and therefore a price reversal is probable

Telecommunications (TTH): Bullish

Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism continues to dominate the sentiment backdrop of the telecomm sector. The composite Schaeffer’s put/call open interest ratio for the sector currently rests at 0.80, down from its peak, but still higher than 88 percent of the readings taken during the past 52 weeks. What’s more, of the 164 analyst rating on the components of the sector, only 37.2 percent from in at a “buy.” This bearish configuration leaves ample room for potential downgrades.

Outlook:The Telecommunications HOLDRS Trust (TTH – 35.66) successfully bounced off support at its rising 100-day moving average to reclaim the support of both its 20-day and 50-day moving averages. The exchange-traded fund (ETF) continued its uptrend last week, tagging a fresh annual high.

The Quesion:
OK, so management has spoken and basically screwed all the longs over, the analysts have spoken … no downgrades, and I think basically every analyst has come out today to reaffirm their ratings. There are no catalysts projected any time soon. However, the market is always forward looking … we are 1/3 through the first quarter and Judy said that there are early signs of things being better in Q2. Sanjay said something about Q2 being like Christmas (whatever that meant). All those new products mentioned at CES and MacWorld are only a couple of months away. Can’t we reasonably conclude that SNDK has bottomed, all negatives are priced in, and we’re going up from here?

Here is the predictions

- At $38/share , the capitalization will be barely more than 2X the cash position.

- No way will SNDK down here not be viewed as a serious takeover target. And it won’t be for anything under 65/share.

- At 38, their trailing p/e is now in the 15s. Far too low for a company that has sustained growth. They said costs will be coming down 40-50% this year due to 56 nm. They are currently down 40-50% from last year at this time. They will also have this thing called bit growth, 100-200%. Do the math. Even if prices drop 60% (which they call unsustainable), SNDK will still be growing at a characteristic clip.

- 2008 numbers will in fact be in play starting next Q as projections of one-year-out earnings. And that means x4 will start to come into play, as they confirmed, bringing prices down at least another 40% throughtout 2008.

- A soft Q1 06 does and will not derail SNDK’s amazing growth story. You cannot make money betting that it does. AH is way overdone, even if it doesn’t clear itself up for a few weeks. Poor valuation will bring about upgrades if it doesn’t come up on its own.

Conclusion:
SNDK is moving higher from here

From a technical perspective, the SPY has pulled back and rests perched on support at its 40-day moving average, which has captured a number of the exchange-traded fund’s (ETF) declines since late July. The AMEX Diamond Trust (DIA: sentiment, chart, options) is also nestled close its 40-day trendline, seemingly prepared to use it as a springboard to launch it on the next leg of its uptrend.

Meanwhile, another layer of support lies at the 142 level for the SPY beyond its short-term trendline. This strike is the site of peak front-month put open interest with more than 67,000 contracts in residence, which can act as a roadblock against any additional declines.

Elsewhere, the S&P 100 Index (OEX) is once again at the lower edge of its recent trading range. Since December 14, 22 of the index’s 28 daily closes have fallen between 660 and 670. Even with the market’s sharp decline on Thursday and lackluster performance on Friday, the index managed to remain above the 660 level. Furthermore, the index’s rising 40-day moving average also resides near the 660 level, prepared to help lift the OEX higher.

However, there are a few sticking points to the week that could give traders pause. On Wednesday, the Street will be greeted with the release of the fourth-quarter Gross Domestic Product in the morning, while at 2:15 p.m. Eastern time. the Fed will release its thoughts on the economy and its decision on interest rates. As if that’s not enough to get the blood pumping, January non-farm payrolls will hit the Street on Friday. My experience has been that the market’s reaction to such events is related far more to the sentiment backdrop ahead of them than to the actual results of the event. For example, a bear could spin almost any employment figure as bearish for the market – too strong and a Fed rate cut is off the table; too weak and the economy is headed into the sewer. And a bull could do the same. So the key becomes whether investors are positioned bullishly or bearishly for the report, and based on the information I cited above I believe they are positioned bearishly, which enhances the potential for a positive market reaction. This would especially be the case if the VIX should rise further early this week toward its 2007 highs in the 12 and change area.

The broad market continued its retreat last week, with the Dow Jones Industrial Average (DJIA) shedding 0.62 percent and the S&P 500 Index (SPX) retreating 0.58 percent. This drop came as no great surprise, as the CBOE Market Volatility Index (VIX) for SPX options closed below the key 10 level on Wednesday. As we have observed in the past, closes below this round-number level have resulted in sharp, quick declines in the broad market.

This dip into single-digit VIX territory causes a fervor among nervous speculators, as buying put protection has suddenly become “cheap” on a relative basis. The increase in put activity thus creates a swell of selling pressure that pushes the market even lower as the short put positions are hedged. Yet, as we saw through most of 2006, this buildup of put open interest becomes a boon for the market as it not only supplies a layer of technical support, but the eventual unwinding of the shorted shares also provides the market with a lift.

Moving in for a closer look, the Standard & Poor’s Depositary Receipts (SPY: sentiment, chart, options) saw fewer than 95,000 calls contracts added among its near-term options since January options expired. On the other hand, put open interest soared by more than 194,000 contracts among the same series of contracts. As a result, the Schaeffer’s put/call open interest ratio (SOIR) for SPY hovers at 2.01, as put open interest doubles call open interest among options with less than three months until expiration. This ratio is also higher than three-quarters of all the readings taken during the past year.

But the growing pessimism among options players isn’t exclusive to the SPY. The composite SOIR for all equities dropped following the expiration of January options, but continues to linger near its annual highs, pointing to high levels of skepticism on the Street as traders cling to the belief that the broad market has run out of steam.

The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.

Although there can be variations, the classic double bottom usually marks an intermediate or long-term change in trend. Many potential double bottoms can form along the way down, but until key resistance is broken, a reversal cannot be confirmed. To help clarify, we will look at the key points in the formation and then walk through an example.

Prior Trend: With any reversal pattern, there must be an existing trend to reverse. In the case of the double bottom, a significant downtrend of several months should be in place.
First Trough: The first trough should mark the lowest point of the current trend. As such, the first trough is fairly normal in appearance and the downtrend remains firmly in place.
Peak: After the first trough, an advance takes place that typically ranges from 10 to 20%. Volume on the advance from the first trough is usually inconsequential, but an increase could signal early accumulation. The high of the peak is sometimes rounded or drawn out a bit from the hesitation to go back down. This hesitation indicates that demand is increasing, but still not strong enough for a breakout.
Second Trough: The decline off the reaction high usually occurs with low volume and meets support from the previous low. Support from the previous low should be expected. Even after establishing support, only the possibility of a double bottom exists, it still needs to be confirmed. The time period between troughs can vary from a few weeks to many months, with the norm being 1-3 months. While exact troughs are preferable, there is some room to maneuver and usually a trough within 3% of the previous is considered valid.
Advance from Trough: Volume is more important for the double bottom than the double top. There should clear evidence that volume and buying pressure are accelerating during the advance off of the second trough. An accelerated ascent, perhaps marked with a gap or two, also indicates a potential change in sentiment.
Resistance Break: Even after trading up to resistance, the double top and trend reversal are still not complete. Breaking resistance from the highest point between the troughs completes the double bottom. This too should occur with an increase in volume and/or an accelerated ascent.
Resistance Turned Support: Broken resistance becomes potential support and there is sometimes a test of this newfound support level with the first correction. Such a test can offer a second chance to close a short position or initiate a long.
Price Target: The distance from the resistance breakout to trough lows can be added on top of the resistance break to estimate a target. This would imply that the bigger the formation is, the larger the potential advance.

Today, we got the fourth quarter results from Nokia’s cellular telephone sales, which can be added to the previous results from Sony Ericsson and Motorola. We also know how many Wiis were sold by Nintendo.
The OEM supplier for microSD cards is SanDisk and we know that SanDisk also supplies SD cards for Nintendo which makes the Wii. All the Nintendo Game Boy cartridges are delivered on the SanDisk flash product.
Therefore, we can estimate with reasonable accuracy, how many flash cards were supplied by SanDisk to these customers.
The three cell phone manufacturers noted above, delivered 200 million new cell phones this quarter. Let us assume that 10% of them, were the high end phones that use microSD cards. That makes 20 million phones. When you multiply that by an OEM price of about $25, that equals $500 million. You can then add 30% of the 3.2 million Wiis that were sold, which equals 960,000 units. You can multiply that by $50, which gives you a total amount of $48 million.
We now know that just those two end products equal $548 million of revenue.
We still have to add in the revenues from all the other flash products, as well as the MP3 products.
It is easy to see that SanDisk will have well over $1 billion of revenue. This is not even counting M-systems contribution.
I reviewed Daniel Amir’s last report for WR Hambrecht dated January 22, 2007,where he estimates that SanDisk will earn $977 million.
Therefore, I think that he is seriously underestimating SanDisk’s fourth-quarter revenue and we will have a marked positive earnings surprise, which should not be a surprise, if you do the calculations.
Therefore, fourth quarter estimates of $.69 per share are too low and we probably will see $.89 per share fourth-quarter earnings. That is my estimation.
You can clearly see that there will be blow out earnings. Now is the time to get into this stock at a discount.

Conclusion
SNDK is a long term buy at this price level

Gottaplay Interactive (GTAP), Inc. is rated one of the top ten video game rental services according to Top Ten Reviews. They are working hard to live up to their motto: “The Only Place to Play.” The Company features free home delivery and unlimited access to one of the largest gaming libraries available online. There are no due dates and no late fees. Members receive titles in 1-5 days and can play as long as they like. If they like a title, they can also purchase it if they so choose.

GTAP utilizes their own proprietary Game Distribution Software that contains an algorithm to accurately forecast levels of purchases and inventory. Distribution is achieved through a network of eight distribution centers linked to the GDS system. This enables the Company to optimize efficiencies in order fulfillment, inventory forecasting, procurement, inventory control, billing, and customer service. Customers even have the option of receiving text message confirmation that their order has been shipped.

GTAP uses their proprietary GDS system to create a custom interface for each subscriber to effectively merchandise their inventory and accurately predict subscriber preferences. Combined with a scalable, low-cost business model, this enables the Company to maximize revenue potential and minimize costs.

MARKET OPPORTUNITY

GTAP is already a leading online game rental subscription service providing a comprehensive library of about 3,500 titles to an existing base of subscribers at a cost of $20.95 per month. The Company has developed a strategy that is aimed at generating an explosive increase in subscriber growth over the next 12-24 months. The demand for video game rentals is as strong as it has ever been.

According to the NPD Group, while dollar sales were down slightly, total industry unit sales were up 4 percent over the same period the previous year. U.S. retail sales of video games (including portable and console hardware, software and accessories) reached more than $9.9 billion in 2004 - a decline of less than one percent when compared to $10 billion in the previous year.

Sales remained strong, thanks in large part to the console software, portable game software and portable game hardware categories, which saw dollar sales percentage increases of 7 percent, 11 percent and 10 percent, respectively. For the first time ever, sales of portable software titles broke the $1 billion mark. Total software sales also continued to set new records, with sales exceeding $6.2 billion, an increase of 8 percent in overall sales when compared to $5.8 billion in 2003.

Industry experts agree the video game industry has shown no signs of slowing down. No other entertainment industry has posted the sustained growth over the last decade as has been generated by the video game sector. Given the technological advances that are here now, all signs point to unprecedented growth and record sales over the next few years. GTAP has invested substantial resources to establish strong ties with various game developers and distribution providers to stay ahead of the curve.

As GTAP aggregates subscribers, their ability to pinpoint subscriber preferences should improve. This will enable greater operational efficiencies which in turn, should enable the company to lower costs. The OTC Digest believes GTAP has the potential to increase their profit margins as their subscriber base and other revenue streams accelerate. This creates a powerful opportunity to generate great profit growth and long-term success for the company and its shareholders. Management indicates holding approximately 21 Million Shares of the stock currently outstanding and appears very motivated to achieve positive results.

KEY MANAGEMENT

John P. Gorst - Chairman, CEO is a co-founder of GTAP and has directed all development and business efforts since November 2003. Mr. Gorst has over 17 years experience in founding entrepreneurial technology ventures, specifically in the development of software and business data services.

Prior to joining the Company, his experience included serving as CEO and Board Chairman of Insynq, Inc. a publicly traded application service provider. He was Vice President & General Manager for Interactive Information Systems Corp. and also operated a training/IS consulting business in conjunction with Nynex Business Centers of New York.

Mr. Gorst graduated at the top of his class as an Electronic Design Engineer from one of the top technology trade schools in Arizona. Mr. Gorst was also awarded a medal of honor for business leadership in 2001 and in 2006 from the National Republican Congress.

Asra Rasheed - President and COO has created several successful businesses in the multimedia marketplace. Ms. Rasheed was Director of Multimedia at Koyo Graphics where she managed large web development projects for clients such as Warner Brothers, Sanyo, and Sony. Ms. Rasheed also managed the development and growth of the online DVD rental and sales website for the largest distributor of Southeast Asian movies.

Prior to that, Ms. Rasheed founded NextRental.com, one of the first online video game rental companies and also served as Vice President of Business Development for Luminex Lighting.

Ms. Rasheed holds a BA in Finance from The School of Business & Economics at California State University, Fullerton, CA.

CONCLUSION

Gottaplay Interactive, Inc. GTAP has an excellent opportunity to achieve dynamic subscriber growth over the next several years. The Company has invested substantial resources to position itself among the nation’s top video game rental sites. It is a competitive business and senior management has spent a considerable amount of time “in the trenches” developing their proprietary software system, distribution channels and corporate partnerships.

As a result of their commitment to Customer Service, the company is building its reputation as one of the best sites for renting video games online. As the Company expands their services into the broadband and mobile phone arenas, additional revenue opportunities will present themselves. It appears GTAP is well-positioned to achieve significant revenue growth over the next 12-24 months.

Approximate Shares Outstanding: 30.7M
Insider Holdings: Approximately 70%

BTX Holdings, Inc. (OTCBB: BTXO) is engaged in the development of new strategies to utilize existing biomass waste for the production of alternative fuel and energy sources. The company is dedicated to finding innovative ways to help alleviate both the problem of waste disposal, as well as the increasingly contentious and thorny issue of America’s dependence on fossil fuels. Current methods of alternative fuel production depend upon costly and time-consuming processes, but BTX Holdings’ technology extracts specific components that will be more efficiently utilized in the processes that convert the feedstock (raw fuel) into the fuel end product, reducing the time and cost of fuel production.

Market News and Highlights

Built-in Supply: According to company estimates, the citrus industry generates more than 3 million tons of waste per year. This biomass waste is typically disposed of by dumping into landfills or by incineration. Unlike the raw materials like corn or sugarcane presently utilized by most alternative energy producers, this waste requires no additional production time and is available at a fraction of the cost, presenting substantial reductions in production costs.
Cutting-Edge Technology: BTX Holdings, through its subsidiary BioTex Corporation, utilizes three primary technologies, all of which it has either secured or is in the final negotiation stages of securing the global rights and/or patents. BTX has already reached an agreement in principle with Dexion International to acquire the worldwide rights to its patent application for Hypercritical Separation Technology (HST), a technology that allows for the separation of various substances such as sugar syrup, citrus oils like terpinen, linalole, myrcen, etc., and pectin pomace that can be viably employed in various applications like ethanol production.
Booming Market: With the recent volatility in oil prices, alternative energy has become a hot item. The total global oil and gas consumption is 127.8 million barrels per day, or 1,480 barrels per second (Source: OPEC.org). To respond to increasing demand levels that cannot be sustainably met by traditional fossil fuels, renewable sources of energy such as ethanol appear to be the logical choice. The market has begun to recognize the viability of these energy sources, and the worldwide ethanol industry is estimated to grow at a 30% annual growth rate through 2010 (Source: RNCOS). As this industry expands, the need for efficient and cost-effective sources of material are expected to grow as well.
Waste Reduction: BTX also utilizes the impressive BioReduction technology to substantially reduce biomass waste in terms of weight and volume. Currently, waste disposal often requires expensive solutions. Many waste producers pay as much as $85/ton, and there are new initiatives in New York that propose fixing the price at more than $125/ton. The BioReduction technology is capable of reducing these costs by more than 50%, providing a strong potential recurring revenue for the company.

Technically speaking, the QQQQ’s weekly relative-strength measure versus the S&P 500 Index (SPX) recently put in a new peak, which also coincided with the exchange-traded fund’s (ETF) declining 160-week moving average. Note that the measure also put in peaks in January 2004 and January 2007. Furthermore, the tech sector was also weak in the first quarter of 2005, even though the measure notched its peak in November 2004.

Furthermore, the QQQQ is currently trading near levels last seen on January 9. However, the CBOE Nasdaq Market Volatility Index (VXN) is lower than its January 9th levels, although 20-day historical volatility readings have declined on the pullback.

This continued complacency among traders on the tech sector despite an earnings season that is quickly turning into a wreck leaves the group vulnerable to additional losses during the near term, or at the very least, a period of underperformance versus the broader market.