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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 August, 2003: |
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Stockprowler’s pick this week...
Our last Stockprowler pick, SeaView Video Technology (OTCBB: SEVU) gave readers something to cheer about. Two weeks after our report, SEVU hit a new 52 week high of 20 cents... for a gain of 400% over our profile price. SEVU closed on Friday at 14 cents, still up a remarkable 250%. Since our last report, SEVU has entered into a strategic business alliance with China Silian Group Co., Ltd (SIC Group), of Chongqing, China. SIC Group is one of the 500 largest industrial enterprises in China, manufacturing a wide array of electrical instrument products for worldwide distribution to customers who include ABB Ltd. and Siemens AG. SIC Group has established a secured open ended credit line for SEVU to procure production of the company's products for its customers... very impressive. On June 5, 2003 the Consumer Bankers Association released a newswire captioned "CBA gives Congress Thumbs Up on Check 21" http://www.cbanet.org/news/press%20releases/check_trunc/check_21.htm . The Check 21 Act provides a legal framework for substituting electronic images for paper checks. It allows banks and other financial institutions to process consumer checks electronically eliminating the need to physically send paper checks from bank to bank. The U.S. House passed the Check 21 Act by a vote of 405-0. In the Senate, the Committee on Banking, Housing and Urban Affairs approved its substantially similar version of the bill by a voice vote. The Check 21 Act could be signed into law before the August legislative recess. So, why are we telling you all this? Because it is our opinion that the signing of the Check 21 Act into law will launch a little known "penny stock" company straight into the stratosphere. The company is US Dataworks, Inc. trading on the Amex at around a half a buck a share. US Dataworks is a developer of electronic check processing software, serving many of the top banking institutions, credit card issuers, and the United States Government. The software developed by US Dataworks is designed to enable organizations to transition from traditional paper-based payment and billing processes to electronic solutions. US Dataworks' proprietary software is integral to the way banks will process checks when Check 21 becomes law. On July 2, Computer Sciences Corporation (NYSE: CSC) announced an agreement to resell US Dataworks, Inc.'s Accounts Receivable Conversion (ARC) suite of software products. CSC will integrate US Dataworks' products with its Remittance Processing System, which payment processors use for image-based capture, processing and archiving of account payments. The combined products will improve efficiency by enabling users to process checks as electronic transactions. By enabling electronic processing, the CSC and US Dataworks solution means remittance processors can collect a higher percentage of returned checks, reduce bank fees and losses due to unpaid accounts, improve float and lower operational costs. "We feel this agreement with CSC reinforces the US Dataworks software suite as the premier solution for accounts receivable conversion in today's market," said Terry Stepanik, US Dataworks president. Computer Science Corp. is the 3rd largest computer software company employing 90,000 people worldwide. On July 17, US Dataworks announced its operating results for the year ended March 31, 2003. Revenue for fiscal 2003 more than doubled to $2,168,125, up 107%, while operating expenses were trimmed by 38% from the previous year. US Dataworks Chairman and CEO Chuck Ramey said, "We are pleased to report that our distribution partnerships are strengthening revenue growth as a expected. As we emerge from our developmental phase, management has remained focused on profitability and believe that the progress we have made over the past year toward restructuring our balance sheet, combined with the financing recently closed, will afford us continued growth toward that goal." Strategic distribution partnerships formed in 2003 include agreements with: BancTec, Cash Management Systems, Computer Sciences Corporation, IBML, ISD, Net Deposit, OPEX Corporation, and Thompson Financial Publishing. We expect the Check 21 Act will be approved in early August and quickly signed into law by President Bush. The event will be the focus of attention of the financial news networks and likely catapult US Dataworks into the spotlight. The potential market here is huge and US Dataworks is poised to take a considerable share of it by means of its strategic partnering with Computer Science Corp. and other heavyweights in the financial services sector. Recently, there has been considerable talk that UDW is a hostile takeover target because of its growth potential and low stock price. In fact, there were three SEC 8K filings on August 1, 2003 indicating that three British investors had acquired nearly 10 million shares of UDW. The US Dataworks' Board of Directors had prior to those filings approved a Stockholders Rights Plan designed to enable UDW stockholders "to realize the full value of their investment and to provide for fair and equal treatment for stockholders in the event that an unsolicited attempt is made to acquire US Dataworks." It is the opinion of Stockprowler.com that trading in shares of UDW will continue to be volatile over the coming weeks. For those who have a strong stomach, the reward here could be nothing short of fantastic. It is our opinion that UDW could see $2 - $3 short term on buy-out talk and anticipation of the signing of the Check 21 Act. Long term it is not inconceivable that UDW could be a $10 stock... or even a $20 stock. Remember you saw it here! Stockprowler 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 always relatively small so that the chance of having an effect on a stock’s price when we buy or sell is negligible. Please read our full disclaimer. http://www.stockprowler.com/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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