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Twice each month at Noon EST on Sunday, Stockprowler will bring you his latest hot stock pick...free on the Web! 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 Bulletin Board stocks trading around $3 or under. These stocks offer considerable leverage at minimal cost. 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 Web site. So are you ready? Here's the Stockprowler report for the week of Sunday May 20, 2001: |
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The
market is trending again… up, finally. Our last pick, eMachines, Inc.
(NasdaqNm; EEEE) climbed as much as 170%
since our report on news that the company was looking for a buyer and
has hired investment bank Credit Suisse First Boston to advise. On
another note, Stockprowler.com is monitoring the ongoing situation with
Star Telecom, Inc. (STRXQ)… the bankruptcy court hearing is set for
June 1, 2001 at 9:30 AM. Trading at just 2 cents a share, the upside
could be considerable if they get a favorable ruling on the Chapter 11
protection. Stockprowler’s pick this week…
New York City based Track Data Corporation (NasdaqNM: TRAC) is a financial services company that owns Track Data Securities Corp., a registered securities broker-dealer and member of the National Association of Securities Dealers, Inc. TRAC provides a proprietary, fully integrated Internet-based online trading and market data system. In addition, TRAC provides real-time financial market data, fundamental research, charting, and analytical services to institutional and individual investors through dedicated telecommunication lines and the Internet. TRAC also disseminates news and third-party database information from more than 100 sources worldwide. For individual investors, TRAC offers myTrack, a fully integrated, Internet-based online trading and market data system. http://www.mytrack.com/ …myTrack's direct access online trading has commissions starting at $12.95 per trade and allows users the choice of where to route their orders. myTrack's continuous, dynamic stream of live market data is powered by application-based software and a constant server connection similar to systems used by professionals, making it faster than the HTML web-based static pages offered by most of its competitors, such as Schwab, E*Trade, and TD Waterhouse. In addition to all the free data supplied to myTrack users--streaming delayed quotes, company news, charting for technical analysis, and a proprietary library of intra-day market statistics--myTrack users can choose from a selection of paid data and research, including streaming real-time quotes and Nasdaq Level II. myTrack offers access through PCs, browser phones, and PDAs, such as Palm Organizers and Visors (made by Handspring). For investment professionals, TRAC offers MarkeTrak. The service provides domestic and international market information, dynamically updating quotelines, options and futures displays, real-time spreadsheets, tick-by-tick updating graphics, news services and third-party databases, user-defined screen layouts, access to back-office order and execution services, and over 20 years of graphical price history. It allows users to calculate theoretical values of options and determine the most beneficial investment strategy through calculating returns on alternative investments, including options and futures. In addition, users are able to download real-time data to both Microsoft Excel and Lotus 1-2-3 spreadsheet applications, which allows the users to create individually tailored financial applications to meet specific needs without additional programming. It runs under Windows NT, DOS and UNIX operating systems on a wide variety of personal computer and workstation platforms. MarkeTrak provides investment professionals the ability to easily and rapidly analyze, on a single service terminal, large volumes of real-time prices, third-party databases, historical information and news services to support split second trading decisions. On May 10, 2001, Track Data Corp. announced results for its first quarter ended March 31, 2001. Revenues for the first quarter ended March 31, 2001 were $17,391,000 compared to $12,890,000 for the same period in 2000, an increase of 35%. Net income for the first quarter of 2001 was $5,355,000, or $.08 per share, compared to a net loss for the 2000 period of $1,878,000, or $(.03) per share. Track Data Corp. recently completed the purchase of 4.5 million shares of its common stock and authorized the purchase of up to an additional 3 million shares. Barry Hertz, Chairman and CEO, commented, “The company believes that its stock is still undervalued. In light of the company's business prospects for 2001 and beyond, the Board of Directors believes that repurchase of its shares is a prudent use of its capital. The company expects to continue to purchase shares under the repurchase plan, from time to time, depending on market conditions and the price per share.” Of even greater significance to potential TRAC investors is the recently announced decision by powerhouse Knight Trading Group, Inc. (NasdaqNM: NITE) to acquire a stake in Track Data Corporation. Knight agreed to acquire one million shares of Track common stock for $1.25 million and has received a three-year option to acquire an additional two million shares of Track stock for $3.5 million. The companies also announced today that they have signed a letter of intent to operate a joint venture that will cater to the trading needs of institutional investors. “We believe that the order management needs of institutional investors are underserved by the order management systems currently available in the securities marketplace,” said Kenneth D. Pasternak, Chairman, Chief Executive Officer and President of Knight Trading Group. “Knight’s joint venture with Track, once finalized, will provide a front-end order management system that will meet institutions’ securities order handling and routing needs. Knight will provide liquidity and content to the new operation, while Track will add functionality and control for the system’s institutional subscribers.” Knight Trading is one of the largest destinations for stock orders placed via the Internet. Knight traded 87 billion shares in the first nine months of 2000, a volume behind only those posted by Nasdaq and the New York Stock Exchange (NYSE). www.knighttradinggroup.com. There is speculation on the message boards that the Knight/ Track Data joint venture may be in the form of an ECN (electronic communication network). Quoting from a March 12, 2001 statement issued by Track Data CEO, Barry Hertz, “In other news, our previously announced joint venture with Knight Trading Group, Inc. (Nasdaq: NITE) is proceeding as planned and we expect to jointly introduce a new state-of-the-art trading product for the institutional trading market. Introducing myTrack in the Canadian market has been slowed by regulators in Canada but we are still hopeful to make an announcement shortly. We are not aware of any issues holding up approval. The approval of our ECN awaits testing with the NASD which is expected to be completed during March with approval coming in the second quarter.” A Stockprowler.com check with NetworkSolutions.com reveals that Track Data has been registering the NITE and TRAC names together, i.e., NITETRAC.com and NITETRAC.com: http://www.networksolutions.com/cgi-bin/whois/whois?STRING=name+Track+Data And then there is the existence of the mystery NITE-TRAC beta test site: http://www.mytrack.com/nitetrac/ And, also, the RagingBull.com message stating that the “Track_ Nite ECN order Book is also now a part of My Track.coms web site order book.” http://ragingbull.lycos.com/mboard/boards.cgi?board=TRAC&read=15196 The recent Instinet IPO (NasdaqNM: INET) has fueled further speculation that not only is there going to be a Knight/Track Data ECN, but that they may do the joint venture as an IPO. Time will tell… Stockprowler views TRAC as undervalued without even considering the NITE-TRAC wild card. With a ROE (return on equity) of 66% (ttm) and a P/E of 10, TRAC is trading at a considerable discount to other stocks in its industry group. Using a conservative industry valuation of 3 times sales works out to a stock price of $2.94… TRAC closed Friday at $1.52. Throw in the NITE-TRAC wild card and things could get real interesting… Stockprowler.com does not receive compensation from companies profiled or from third parties associated with the companies profiled. 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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