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     Though the market is still reacting to a great deal of uncertainty both politically and on the economic front, Stockprowler.com believes that we are very close to a bottom. There are some incredible bargains to be had out there… and we feel that this week’s pick ranks high among them.

Stockprowler’s pick this week is…

QuintaLinux Limited (NasdaqNM: QLNX)

Corporate Web Site: http://www.quintalinux.com/

Shares Outstanding: 9.5 million

Public Float: 1.5 million

Insider Ownership: 84%

Institutional Ownership: Not Available

Market Capitalization: $14.5 million

Closing Price Friday: $1.53

     This week’s pick, Quintalinux Limited, IPO’d on August 9, 2000 at $8 per share. The underwriting broker for the IPO was Barron Chase Securities, Inc.  I say was… because Barron Chase is out of business, and therein is the apparent reason for the rapid tanking of Quintalinux’s stock price in late October 2000. When Barron Chase ceased operations, they also stopped making a market in QLNX. On October 28, the stock dropped a precipitous $4 a share on no news other than that of Barron Chase closing its doors. Presently trading around $1.50 a share, it is the opinion of Stockprowler.com that QLNX is a very attractive speculation.

     Hong Kong based Quintalinux Limited is a leading technology provider in the People’s Republic of China and Hong Kong. The company, through its three divisions, contracts high technology “intelligent building” construction, offers commercial interior design and construction services, and is a leading provider of Linux systems and solutions for businesses and consumers. Quintalinux was awarded ISO 9002 accreditation in 1997. The company’s Construction Technology Division has operations in Beijing, Shanghai, Guangzhou and Shenzhen. The China subsidiary is headed by the Hong Kong management team and introduces modern and efficient project management techniques to the local Chinese staff. Beijing and Shanghai are anticipated to be the key development areas for Quintalinux in China. With its extensive experience and professional service record, Quintalinux has become one of the leading contracting firms in the People’s Republic of China. The company anticipates even greater growth for its China Division in the coming decade.     

     Quintalinux reported total revenues of US$24.2 million for the year ended 3/31/2000 compared with revenues of US$12.2 million for the year ended 3/31/1999, an increase of 98%. Quintalinux also reported a net profit of US$2.8 million for the year ended 3/31/200 compared with US$1.1 million, an increase of 155%. The company reported earnings of 48 cents a share based on a pre-IPO weighted average of 5,985,808 shares. Readers should be aware that post-IPO there are now 9,500,000 shares outstanding.

     On September 29, 2000 Quintalinux announced a cooperative marketing agreement with Red Flag Software Co., Ltd., China's top developer and distributor of Linux operating and application software, under which Quintalinux will market Red Flag Linux solutions in Hong Kong. As a Red Flag solution provider, Quintalinux will market Red Flag solutions, including operating software for servers, desktops, and embedded platforms, to businesses, consumers, and other users. Liu Bo, Red Flag's president and CEO, commented that with Beijing supporting development of Linux-based software, he expects strong growth for Linux in China. He also estimated that Linux would account for as much as 25% of the server market in 2000, compared to 13.6% in 1999 and 1% in 1998, and that Linux-based desktops would account for about 10% of desktop sales.                                                                  

     Investment in high technology companies in Shenzhen is growing faster than any other area in China. Shenzhen has been designated as a special economic zone by the Chinese government and is generally regarded as the technology powerhouse in southern China, with labor costs half that of neighboring Hong Kong. On November 3, 2000 Quintalinux announced a memorandum of understanding with China Shenzhen Hightech Fund Investment Company Limited, to jointly form a new investment company with the objective of making strategic investments in high-tech companies in China -- especially those located in the city of Shenzhen. The new investment company will be financed with up to $6 million, with Quintalinux potentially investing up to $4.8 million, for an 80% stake, and China Shenzhen Hightech Fund investing up to $1.2 million for the remaining 20%. David Lee, CEO of Quintalinux, stated “This joint venture represents an exceptional opportunity to pursue growth in association with Chinese state-owned companies. We will be able to obtain important information on technology development in China, including greater opportunities to respond to China's immense demand for high technology products and services. In addition, the potential to increase revenues through acquisitions may be available, should we decide to pursue such a growth strategy.''

     The information technology industry is experiencing strong growth worldwide, particularly in the Asia Pacific region. The result is a boom in the local property and real estate sector, where developers have substantially included high technology features and services in constructing new buildings as well as upgrading existing premises by adding value to those buildings. The Quintalinux group has a track record of competence in providing “intelligent building” solutions through its expertise in contracting, technology products, and information technology support. The list of clients is long, among them are notables like Citibank, Chubbs Hong Kong Ltd., Federal Express (HK) Ltd., Bank of America, and Compaq Computer (HK) Ltd.

     It is the opinion of Stockprowler that Quintalinux is well poised to capture an increasing share of a very lucrative and burgeoning market in the Asia Pacific. Shares of QLNX closed Friday at 1 17/32 on volume of 346,700 shares for the week.

For further information, potential investors are advised to contact Dan Matsui at Silverman Heller Associates, the investor relations firm for Quintalinux Limited dmatsui@sha-ir.com. In addition readers are encouraged to view the excellent informational video produced by Quintalinux and available at its web site. http://www.quintalinux.com/index1.htm... By the way, for those readers who aren’t averse to rolling the dice, take a look at the Quintalinux Ltd. warrants, ticker symbol QLNXW trading around 3/16. At the IPO, 1.5 million shares of common stock were issued along with 1.5 million warrants. The warrants don’t expire until August 8, 2005, and according to the e-mail we received from Dan Matsui, the warrants are in the money after the common shares hit $10.88. If Quintalinux continues to experience rapid growth, the warrants could skyrocket in value.