Stockprowler.com

Stockprowler’s pick this week...

QueryObject Systems Corp. (AMEX: OBJ)
One Expressway Plaza    Suite 208 Roslyn Heights , NY    11577 Phone: 1-800-522-6302    Fax: (516) 228-8644
Corporate Web Site: http://www.queryobject.com/
Shares Outstanding: 38.4 million Public Float: 12.2 million
Insider Ownership: 68% Institutional Ownership: (3) 2%
Market Capitalization: $3.1 million
Closing Price Friday 12/14/01 : 8 cents

In the aftermath of the millennium market crash and the bear market that has followed, investors are looking for guidance. Who/what will survive in the aftermath? Which existing organizations will evolve and adapt in ways that enable them to tap the power of information and be able to compete with aggressive new ventures that will one day define the new economy? The answer may very well reside with a little known business intelligence (BI) information software company that appears to offer companies an edge to compete with their rivals in the new millennium. QueryObject Systems Corp. (AMEX: OBJ) develops and markets proprietary business intelligence (BI) software solutions that enable business managers to leverage existing corporate data in making strategic decisions.

The QueryObject System is a highly scalable and efficient solution for providing business intelligence applications and users with all the relevant information from corporate data. CEO Robert Thompson stated, “We are a business intelligence company dedicated to helping organizations scale up their business intelligence systems to meet the demands of the new economy. The core strengths of our technology allow us to provide scalibility benefits to traditional systems, but our development is directed at pushing that analytical process away from a centralized core – out to boundaries of organizations where ultimately the decision-making process takes place. Business intelligence was designed to provide a defined class of users with access to defined sets of data – typically within an organization, typically using an analytical tool provided by the organization and typically serving a predefined analytical need. Going forward, it will be a much more ad hoc world where businesses will require the ability to spontaneously make an important piece of behavioral data available to business partners, business associates and allied companies where there is no preexisting infrastructure planning… To our customers, we are a business intelligence company providing the ability to scale up their business intelligence systems and extend their reach over the Internet. The Query-Object System is very effective for those purposes. But, to our investors, we are more; we are an emerging infrastructure component for the information economy.”

QueryObject Systems provides customers with the software it takes to build a multi-dimensional “fractal cube.” The software then runs on customer-owned servers. The trick to getting any kind of real-world use out of this multi-dimensional cube is to come up with a mathematical equation that describes the location of all the metrics within the cube's interior space. The equation, as it happens, is a fractal equation. “It's self-described, it's iterative,” says Matt Doering, CTO of QueryObject Systems Corp. Putting too much weight on the fractal part makes Doering uneasy, because people associate fractals with the lossy compression schemes used for packing big graphics files into smaller packages. While it's true that the data points stored in a QueryObject fractal cube are aggregates of individual data records, the cube itself is compacted with no loss of any of those aggregated points, according to Doering.

Doering says, the process of building a cube is one of “reading in the data and breaking it down into metrics and dimensions. From the dimensions it creates an algorithm - you can look at it as just a complex index - that allows us to directly access the answers we're looking for.” When it comes time to query the data stored in the cube, he says, “I ask a question, and the question is decomposed into a series of coefficients of an equation. By solving the equation, I know the exact area in the cube where my answer lies. It's not like a relational database, where I have to scale through a table, or run through indexes, or do joins. Literally by solving the equation, I can know the exact space in the cube to get my answer. So it's very, very fast in terms of its querying, because I'm not handling a lot of information to get you the answer you need.”

The impetus to make an almost magically fast back end for a query engine came out of experience in previous jobs, where both Doering and Robert Thompson, the CEO, developed query interfaces. “No matter how good we made the front-end tool,” Doering notes, “we were always hampered by the back end. Creating a tool that could create a complicated query that required three days to run, didn't really solve the business problem.” So Doering and Thompson looked at the problem by making the back end exponentially more responsive. “So when I ask the killer question,” Doering says, “I get the answer in a couple seconds.”

The company's QueryObject software suite allows customers to cull information from large, unstructured data warehouses, creating data marts that can be easily analyzed and accessed by users throughout enterprises. QueryObject Systems provides a unique analytical application engine that is optimized for access and distribution of high volume business data over the Internet. Customers include Wells Fargo, EDS, and the United States Air Force.

OBJ closed at 8 cents on volume of 317,600 shares. Company filings for insider trading activity for the past 12 months show several pages of insider purchases and not a single sell… incredible for a stock trading at these levels. A check of trading volumes for the past few months indicate no unsusal selling activity. Our investigation reveals that investment firms controlled by Barry Rubenstein and Irwin Lieber reportedly own 60 % of the company… Interestingly, Rubenstein and Lieber are substantial shareholders of record in NSSI (Nasdaq), CPHD (Nasdaq), and FALC (Nasdaq)… Stockprowler Readers are encouraged to visit the QueryObject Systems company web site for further information. http://www.queryobject.com/

Stockprowler.com did not receive compensation of any kind from the company or third parties for writing this report. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

Good Trading... Stockprowler