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On
the first Sunday of each month Stockprowler will bring you his latest hot
stock pick profiled in depth ...free on the Web! And every week Stockprowler
updates the Stockprowler Watch box with exciting new potential momentum
plays. Stockprowler uses state of the art technology to look under the rocks
and find those little stocks with the potential to make the BIG moves.
Stockprowler screens NASDAQ, NYSE, AMEX, and OTC stocks trading under $3.
These stocks offer the speculator considerable leverage. It is not uncommon
for these stocks to make moves of 30%, 50%, or more. Please read our disclaimer before trading
in any stocks mentioned on this Website ... Here's the Stockprowler Report
for the month of February, 2005: |
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Stockprowler's pick this week...
CYOP Systems International, Inc. (OTCBB: CYOS) 149 South Reeves Drive Beverly Hills, CA 90212 Phone: (310) 248-4860 Corporate Website: www.cyopsystems.com Shares Outstanding: 265 million January was a very poor month for stocks with nearly $10 billion being pulled from U.S. equities funds. Contrast this with an average inflow of $18 billion coming into equity funds in the month of January the previous 10 years. February appears to be off to a much brighter start with the Dow scoring a triple digit gain, closing Friday up 288 points on the week. Nasdaq gained 50 points. This week’s successful elections in Iraq and falling oil prices, coupled with the expectation that the Federal Reserve will be less aggressive in raising interest rates fueled a new surge of money into equities. Greenspan reported $4.5 billion coming into mutual funds this week Although January was an abysmal month generally, recent Stockprowler pick AMHI soared to a new high of 20 cents on January 28... a gain of 640% since we profiled the company in August 2004 at 2.7 cents! Our pick for the month of February 2005 is CYOP Systems International (OTCBB: CYOS) a developer and provider of online skill-games and services for the online entertainment and gaming industries. CrediPlay, CYOP Systems’ licensed application, allows gamers to play a game for a one-time fee, or pay-to-play in cash tournaments. The platform is 100% automated registering players in tournaments, running the tournaments and paying the winners instantly. The basic business model is based on charging a Network Maintenance Fee for each game played over the Internet. The player opens an account on-line using any number of merchant processors, including PayPal and Visa, so that he or she may register with, and gain access to any pay-for-play tournament of skill. After registering, the individual player may then enter into a tournament pool, out of which the winner(s) are paid from 100% of the entry fees. By structuring the software in this way, CrediPlay has differentiated itself from the Internet gambling industry, as its software is neither based on chance nor accepts third party betting and therefore is in compliance with the existing laws of most Internet rich jurisdictions in the United States and Canada. CYOP's central games portal, www.skillarcade.com, features virtual sports games, puzzles, card games, action games, strategy, driving, racing and adventure games where people play popular skill games against other players and compete in tournaments to win real money prizes. CYOP Systems recently added 90 new games to its suite of software, and will be integrating a recently announced Atari suite of products to its online offerings. Under the terms of the agreement, online players from Asia will be able to download or stream Atari games on a subscription basis through partners in CYOP's network of online entertainment and content providers in Asia. All of Atari's current and future online gaming titles are to be made available, including such classics as Missile Command, Monopoly, Terminator: War of the Machines, and Civilization 3. Mitch White, CEO of CYOP, commented, “The decision to further increase the number of available games has been prompted both by the terrific customer response to our games and by the forecasts of continued growth in the online gaming industry. The Asian marketplace is booming with online gaming subscription revenues in the Asia-Pacific region (excluding Japan) projected to more than double by 2008 to $1.84 billion from $760 million in 2003. We are very pleased to be working with Atari, and are looking forward to a mutually successful relationship.” On January 18, CYOP Systems announced that it has localized its gaming site, licensed software, and licensed games in 6 languages: English, Traditional Chinese, Simplified Chinese, French, Spanish and German, as well as the creation of culturally specific websites targeting the aforesaid markets, including meta-tags, appropriate keywords and optimization. A demonstration of the newly configured software may be viewed at http://demo.crediplay.com. CEO White noted, “The localization of our products into these various marketplaces is a result of our strategy to globalize our products for the growing popularity of online gaming. Localization is more than just simple translation, as it encompasses the entire feel of the site and is about positioning our product with a consistent message that has continuity, focus and meaning. We will continue to adopt a pro-active policy of seeking out new partners, and maintaining a constant focus on providing quality entertainment at tremendous value…” CYOP Systems licenses the software to gaming communities and portals to offer additional revenue sources through pay-for-play tournaments of skill in addition to marketing the company's proprietary site www.skillarcade.com. A player's fee is charged every time a tournament or game is played. This fee is disbursed to the game developer or publisher who owns the game being played, the server operator (portal) who runs the tournament and CYOP Systems, the transaction processor. The company is also proactively seeking out new partners who have large vertical portals and who are looking to add content and functionality to their web properties. The company believes that there are no major companies marketing skill video games in Asia yet, and that there exists an opportunity for CYOP to establish a foothold. As an early entry into the market, CYOP believes that it will be able to capture a significant market share of the industry within the next twelve months, and gross profit margins after direct costs and revenue splits will be in the 20% range.
Patrick Smyth, President of CYOP, commented, “I-Gaming is flourishing in English-speaking countries, however, a tremendous market has been undervalued in regions that are realizing formidable growth in online access. Out of the key world trading blocks, China and Korea lead the number of online gamers on the planet. China's strong economy and a large population, inclined to spend its disposable income on leisure goods and services, makes it a natural objective for our growth. Korea's fondness for gaming and the status that its society puts on this form of entertainment make it a primary country in which to market games. We believe that Asia is set for several years of strong growth driven by advanced infrastructure, increased Internet access, and a population that, simply put, loves to play online games.”
CYOP Systems has embarked upon a strategy of building associations with “Tier One” game developers in an effort to add more games into its licensed CrediPlay Skill Gaming systems. The industry has over 2,900 game developers and publishers including companies such as Atari, Electronic Arts, Midway Games, Nintendo, Sony, Microsoft and THQ. A few industry leaders control the largest market share, and CYOP intends to market its products to these companies as well as the smaller niche developers.
Smyth commented, “Stung by the overall crunch that has shut down many studios, publishers are scrambling for ways to make a profit. The developers that survive will be those that form both short and long-term alliances with online content and service providers, such as pay-for-play skill gaming. Investments in new games are in the millions of dollars. CYOP Systems’ CrediPlay can provide an opportunity to game publishers to generate new revenue streams and extend the shelf lives of their products. This will, in-turn, bring additional action-type games to our customers and increase our ability to target a new demographic player database.”
Stockprowler views CYOS as an excellent opportunity for the speculative investor. Shares of CYOS have traded as high as 4 cents in the past 52 weeks. CYOS closed Friday at $.0032 on 6,248,000 shares traded. Stockprowler.com does not receive compensation from companies we profile or from third parties... we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are small relative to the public float so that the effect on the stock price when we buy or sell is minimal. Please read our full disclaimer. Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to because trading on insider information is illegal! All information contained in our reports is available in the public record... and any written or verbal communication with company CEOs/IR people strictly adheres to this rule. 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 |
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