First, just a few comments about last week's pick, CXI; judging by the e-mails received, a good many Stockprowler followers took advantage of CXI's move this past week and took gains of 30% - 50% off the table. And that's OK, there's nothing wrong with that... Also, a number of readers have suggested taking a look at the CXI warrants which closed at 5/16 Friday. The CXI warrants offer considerable leverage at very low cost. The warrants have a strike price of $8.40 and don't expire until June 2001. CXI warrants can reasonably be expected to trade at half the exercise price when shares of CXI reach that point. Considering that the warrants can be purchased presently for 1/4 of the current stock price, they are indeed a bargain. The caveat here is that they are only for those individuals who can tolerate the increased risk, as there is always the possibilty that the warrants could expire worthless.

      Lastly, due to the literally hundreds of e-mails received this past week... don't feel offended if you did not get a personal response. Stockprowler answered as many as humanly possible... and I've tried to answer in a general way here today, those that I was unable to respond to individually. Enough said. A little drum roll please...and now this week's hot pick:

      QSRI (Nasdaq) - This week's pick is highly speculative...it's a flip of a coin, a roll of the dice, so to speak. QSRI is engaged in the buying and development of oil/gas leases. ENRON is a 34% stake holder in (QSRI) Queen Sands Resouces Inc. Sounds great, right? Well, yes and no, QSRI took a major hit during the oil price crunch this past year, seeing its stock price tumble from the $6+ price range to a recent low of under 30 cents. Other companies in its market cap range hit the skids and folded their tents.. QSRI cut costs, shut down oil fields, and held on for better times...better times are here now. Looking at the QSRI filings to the SEC for the quarter ending March 31, 1999, we see that QSRI was selling crude for $8.78/barrel. As of Friday's close, crude was going at $24+ a barrel. I called investor relations at QSRI recently and asked some questions, in particular was my thought that earnings for the most recent quarter would show dramatic improvement. I was told, and it makes sense, that QSRI is just getting oil fields that were shut down back into operation, and that these won't affect the bottom line until the next couple of quarters. OK, so that explains the less than stellar earnings release just out this week. But the real key to QSRI's future is a $50 million line of credit being negotiated with a lender as I write this. And, I would have said that before I recently learned of QSRI drilling their biggest well in the company's history, that the chances were considerably less than 50/50 for this loan to occur. The line of credit, if it happens, will allow QSRI to explore/produce its existing and/or potential reserves which are considerable. In summary, I believe that the ENRON participation, the large number of oil/gas field leases held by QSRI, the proven reserves, the recent drilling of their biggest producing well ever, and the potential of an imminent $50 million line of credit, lead logically to the conclusion that what we have here is a VERY good bet. Also, the Stockprowler software/database has been showing heavy accumulation this past week...always a good sign.. The downside risk appears to be minimal, bottom at the 5/16 range if the loan fails to materialize, and the upside, near term, looks like an easy 1 1/2 - 2 if everything works out. Hey, I'll take a bet like this any day...

Good trading... Stockprowler