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Link to Lycos Quotes/Message Boards 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 July 14, 2002: |
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Stocks continue to tumble on persistent worries over accounting irregularities, corporate fraud and missed earnings. It was the eighth straight losing week for Wall Street, with the Dow dropping a whopping 695 points. In fact, the market's three major indexes have not finished a week higher since May... Interesting little piece out Saturday morning by the Associated Press highlighting investor anxiety. After a decade of investing in stocks, Philip Little, a 37-year-old Los Angeles publicist, has seen a 50 percent decline in his portfolio and has started looking at alternatives, like suspending contributions to his retirement plan and using the cash to buy real estate instead. His feeling: "There's more fallout to come.'' ''It seems like there's a corporate scandal a day. And I don't want to put my money into a company until I'm sure that the books are clean. Right now, I'm not sure,'' Little said. There is a nagging fear among many investors that the bear market that has engulfed trading for the last two years is simply going to get worse. Several readers wrote to tell us that we were crazy or worse for saying in our last report that we feel there is a high probability of a market collapse the likes of which we haven't seen since 1929. For those of you out there who believe that stock prices have fallen to bargain basement prices and that a market bottom is upon us, allow me to take a few moments to revisit history and put the present into perspective. After the market crash of '29 the market continued its slide into the tank for nearly another 3 years, not reaching a bottom until July 1932... and only after the Dow had tumbled 89% from its September 1929 peak. At present the Dow has fallen a mere 26% from its peak close of 11,723 on January 14, 2000... we could have a long way to go still. As we have stated on previous occasions, keep your eyes on the U.S. Dollar Index http://tfc-charts.w2d.com/chart/US/92 as we believe it to be the key indicator of market direction. The Index was at 106.22 on Friday. Critical technical support is 108.00... we have fallen below support. We believe, and have been saying since February, that gold mining stocks may be the best place to invest right now. Personally, I have only gold mining stocks and a few highly speculative "roll the dice" penny stock plays in my portfolio. This is not the time to have serious money invested in "quality stocks" hoping that you have caught a bottom... only to find that the companies you invested in are being investigated by the SEC... Stockprowler’s pick this week...
Hong Kong based Quintalinux Limited (NasdaqNM: QLNX) 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. The company's design and contracting unit (which makes up 90% of sales) offers carpentry, electrical engineering, fire-control systems, interior design, renovation, and telecommunications and information technology installation services to owners and operators of commercial and industrial properties. Quintalinux's commercial construction operations include air-conditioning, electrical, flooring, information display, and lighting products and services. In addition, Quintalinux is a leading provider of Linux systems and solutions for businesses and consumers. Quintalinux was awarded ISO 9002 accreditation in 1997. The company 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. For the third fiscal quarter ended December 31 2001, Quintalinux reported net income of US $38,000 ($0.0036 per share), compared to the net loss of US $1.1 million, or ($0.12) per share, for the corresponding period in year 2000. For the nine-month period ended December 31, 2001, net loss was US $1.3 million or ($0.13) per share, compared to a loss of US $4.5 million ($0.53 per share) for the corresponding period in year 2000. The improvement in net income was primarily due to improved margins and reduction in administrative expenses. Other income during the three-month period ended December 31 2001 was US$4,000 compared to $7,000 for the same corresponding period in 2000, and US $11,000 compared to US $55,000 for the nine months. Total revenue for the nine-month period ended December 31 2001 increased by US $5.5 million or 44%, compared to US$18.0 million of the corresponding period in year 2000. The increase was due to the acquisition of Sonik Interior Contracting Company Limited. Sonik has recently completed building projects in Hong Kong for Lucent Technologies, Dresdner Bank Group, the Arab Bank, XL, Winterthur International Insurance Co., Ltd., and Hong Kong Trade Development Council. Additionally, the Company completed projects in Shanghai in November for the Fitness First Health Club, Thai Airways International and Hapaq-Lloyd (China) Ltd. In early December, the Company secured new projects in Hong Kong for Hotel Conrad (HK) and Leighton Contractors (Asia) Ltd. The gross profit margin for the nine-month ended December 31 2001 increased approximately 14%. On March 18, Quintalinux announced the execution of a letter of intent with Protex Systems Limited to acquire 100% of PSL, a Hong Kong company that has provided Systems Network Architecture Solutions for over 10 years in Hong Kong and The People's Republic of China. Protex's revenues for the twelve months ended March 31, 2002 are expected to be approximately US $8 million, with operating income of approximately US $500,000. The intended acquisition will be financed with approximately 2.5 million shares of Quintalinux stock. Mr Chu Tat, Chairman of Quintalinux commented, "This is an important acquisition in several ways. The revenues and operating income will be a material addition to our current business. Our capabilities will be greatly enhance as a turnkey provider of 'Intelligent Building' networks and systems.We are very excited to add these additional capabilities to our own strengths to take advantage of this period of rapid growth within the mainstream business areas of the People's Republic of China." In February, Quintalinux announced the signing of a US $10 million contract for the design and fit out work for the 2002 Century Avenue phase of the Century Plaza project in the Pudong area of Shanghai, China. 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 of companies 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... At less than 10 cents a shares this looks like a helluva "roll the dice" speculation. 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 |
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