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Our last pick, Universal Express, Inc. (OTCBB: USXP), rocketed a whopping 615% after profile report on July 29. USXP has since pulled back on profit taking, but is still up 195% after closing Friday at 12.4 cents on 11,507,300 shares traded...

High on our Watch List this week are BIKO and COVD. Biocontrol, Inc. (OTCBB: BIKO) trading at only 1.2 cents a share recently announced that its subsidiary, Rapid HIV Detection Corp., has received an order for 14,000 of its InstantScreen® Rapid HIV tests from Walter Reed Army Institute of Research for further evaluation by its HIV Research Program in Washington, DC. The additional evaluation of InstantScreen follows results obtained on Walter Reed studies of 592 InstantScreen tests, which demonstrated 100% accuracy. The data from Walter Reed's recent evaluation of rapid HIV tests will be presented on Monday, August 13, 2001 at the National HIV Prevention Conference in Atlanta, Georgia. InstantScreen is a finger-prick blood test that can quickly determine if someone is infected with HIV, the virus that can cause AIDS. The advantages of InstantScreen are:

· 100% accurate -- In combined evaluations on nearly 1200 specimens by institutions such as Walter Reed Army Institute; Noguchi Memorial Institute for Medical Research in Accra, Ghana; World Health Organization; and the National Institute for Virology in South Africa, InstantScreen has shown 100% accuracy in detecting both those infected with the HIV virus and those not infected when compared to the world wide accepted laboratory tests known as ELISA (for initial screening) and Western Blot (for confirmation).

Instant results -- Within 30 seconds or less the results are known Simple to use -- InstantScreen requires no special training, extra equipment, or refrigeration, uses only a small amount of finger prick blood, and anyone who can read at least on an elementary level can administer the test

Affordable -- $10 or less in most instances

Initially, InstantScreen will be marketed outside the US, especially in Africa, India, South America, the Caribbean and Asia, where HIV/AIDS is rampant...

Covad Communications (OTCBB: COVD), number 2 on our Watch List this week, said Tuesday that bondholders agreed to erase $1.4 billion in debt as part of a move to reorganize under bankruptcy protection. Shares of COVD, which once traded as high as $66 a share, were delisted from the Nasdaq last month after the stock fell well below $1. The company said a majority of bondholders have agreed to accept cash and preferred stock, which would pay 19 cents on each dollar invested in Covad high-yield and convertible bonds. In addition, Covad would return $26.5 million in cash reserves to the holders of its 12.5 percent bonds. The transaction would also require Covad to pay bondholders $283.3 million in cash. Afterward, the company said it expects to have about $250 million in cash left.

Current stockholders would be unaffected, excluding the dilutive effects if the preferred stock is actually converted into common shares. The preferred stock conversion likely would only happen if the company managed to substantially improve its business... reflected by a higher stock price. Covad Communications is the largest DSL (digital-subscriber-line) provider apart from the “Baby Bells”. “Covad will be in a much stronger financial position going forward, with no debt and a much smaller cash requirement, if this transaction is successful,” said Charles E. Hoffman, Covad's president and CEO. “With the growth in our revenue and continued reduction of costs -- all which put us on a faster track to profitability”... COVD closed Friday at 62 cents. Looks like a helluva speculative opportunity to us.

Stockprowler’s pick this week...

NUWAVE Technologies, Inc. (Nasdaq: WAVE)
Corporate Web Site: http://www.nuwaveinc.com/index.asp
Shares Outstanding: 10.6 million
Public Float: 6.0 million
Insider Ownership: 43%
Institutional Ownership: (6) 1%
Market Capitalization: $18.9 million
Closing Price Friday 8/10/01: $1.78

NUWAVE Technologies, Inc. (Nasdaq: WAVE) has developed a proprietary video-enhancement technology designed to significantly enhance video output devices with clearer, sharper details and more vibrant colors when viewed on the display screen. This is known as the NUWAVE Video Processor ("NVP") hardware technology. In addition to the patented NVP hardware technology, the company has also developed the only proprietary digital high speed filtering technology that removes noise and graininess in both pictures and video images and complements the video enhancement technology used in the NVP. The result of this development is a set of patented algorithms that remove approximately 70% of the picture noise while retaining correct focus (the image and text in the image does not blur). In addition, this algorithm process is approximately three times faster than any other known algorithm or filter, thus allowing use in and during real 9 time streaming video. This is known as the PicturePreptm Digital Software Technology. Based upon these proprietary technologies, NUWAVE has developed three product lines: (1) the NUWAVE Video Processor Technology; (2) Retail Products and (3) PicturePrep(TM) Digital Software Technology.

NUWAVE's proprietary technology digitally controls and re-configures analog video signals (including those that have been compressed for storage or transmission via satellite, cable and the Internet) to improve picture quality. NUWAVE's exclusive software controls give the user or content provider the ability to easily control the amount and type of “improvement “ required for on-screen content ranging from animation - to news broadcasts - to movies.

On March 29, 2001 NUWAVE Technologies was granted U.S. patent number 6,188,444 and U.S. patent number 6,151,018 "Video Picture Improving Apparatus and Method". Jerry Zarin, Chairman and CEO of NUWAVE stated, “The issuance of these patents, together with the sustained interest by and ongoing conversations with leading Far East manufacturers of consumer electronic products for the incorporation of our ASIC chip into their products, confirms the uniqueness of our technology."

The first patent, NUWAVE NVP104 ASIC (#6,188,444), is for a small, low-cost Application Specific Integrated Circuit (ASIC) chip that provides superior video image enhancement for use in any video or television product on the market today. Its versatility allows use in all analog television products presently sold and in virtually all digital video (television) products yet to be developed, proving its value in both current and future markets. Additional digital technology patents have been certified allowable to NUWAVE by the Patent Trademark Office and NUWAVE is confident that these patents will be issued soon.

The second patent granted (#6,151,018) provides for sending and receiving codes to a NUWAVE ASIC that duplicates the video attributes on the receiving side as dictated by the sending side. The patent specifically details sending the NUWAVE code in the vertical interval of any type of video signal, digital or analog, thus providing increased video dynamic range and enhancement on a scene-by-scene basis to NUWAVE enabled DVD, VCR, Set Top Box and/or TV receivers. The resulting video pictures are dramatically improved, thereby providing a theatre experience in the home, the goal sought after by the majority of the television market.
“Early intensive video enhancement R&D efforts by NUWAVE has resulted in numerous patents pending and this is the first wave of those to be grante”, said Bob Webb, NUWAVE Vice President of Technology. “Moreover, we will continue to ensure that our valuable intellectual property is legally protected. We foresee significant commercial application in the incipient market of video on demand; a market whose potential is only now being recognized.”

NUWAVE Technologies plans to license this technology and/or have it manufactured in the form of ASICs (Application Specific Integrated Circuit) chips through third parties and to directly market and sell these products to OEMs who, by incorporating this enabling technology, will improve picture quality in their set-top boxes, televisions, VCR's, DVD's, camcorders and other video output devices. The completed NVP 104 plastic (silicon) chip is now available for sale. The company has been concentrating its efforts to date on demonstrating and marketing this technology to the large Asian consumer electronics OEM's in Japan and China. Several of these potential customers have expressed serious interest in this technology. As a result, after signing confidentiality/non-disclosure agreements, these OEM's have received the NUWAVE specially designed evaluation boards using the patented NVP 104 chip. This board enables them to conduct the necessary testing and evaluation of the chip as it applies their specific product(s). In addition to the evaluation boards, certain of these OEM's have also requested samples of the company's chip for their engineers to use in their new product design cycles. Management believes that these activities will lead to orders being received during the second and third quarters of 2001.

In addition to the NVP technology, during 2000 NUWAVE completed the initial development of its first proprietary digital photo and video software technology and launched the PicturePrep 2000 product line. In March 2001, this software was upgraded to PicturePrep Deluxe 2001 with new file management and uploading capabilities. Also in March 2001,the first Mac version for Apple Computers was released. These products are the first downloadable software products with the ability to enhance both pictures and streaming video from virtually any PC program or while surfing the Internet using a PC. In addition to direct on-line consumer sales, the company has begun marketing this technology directly to businesses in order to expand its OEM customer base. NUWAVE plans to license the digital filtering technology associated with PicturePrep Deluxe 2001 to OEMs for embedding in products such as PC's, printers, scanners, camcorders and DVD's among other digital imaging devices. The PicturePrep Deluxe 2001 software product can also be bundled with the sale of a third party's product. The company has also begun the marketing of its software products to retailers for sale in their camera, film and film processing departments. The PicturePrep digital technology not only complements its proprietary analog ASIC chip technology, but can also work in conjunction with it to further improve the resulting image quality.

NUWAVE recently completed development of the VGE 101, its first retail product, a set top box, utilizing the NVP ASIC chip. The VGE 101 is a unique low cost video game enhancer that visually improves graphics detail allowing gamers to raise their video game performance to a level never before attainable. Based on patented algorithms and other image enhancing technology, the VGE contains integrated circuit (IC) technology adapted to improve the quality of the video gaming experience. The VGE is clearly not a toy but the epitome of high technology, attractively priced at an MSR of $49.95, to capitalize on a mass market opportunity. The VGE also features a DVD setting that optimally enhances viewing of all DVD movies - which represents today's highest quality video standard.

According to Jerry Zarin, Chairman and CEO of NUWAVE, “The VGE is an entirely new application of sophisticated image processing technology that could revolutionize the video game industry. There are no video gaming products we are aware of that can do what the VGE can do. It is capable of enhancing the visual effects to improve gameplay and increase a gamer's competitive advantage on the vast library of existing games as well as next generation video games.”

Designed for all popular game consoles including Microsoft's X-Box™, Sony's PS2, Nintendo, Gameboy, etc. gamers can personalize the way the video game appears on the television screen by using the VGE. The sleek black console VGE easily hooks up in seconds to the gamers console and television with standard RCA connectors and plugs and is designed to work with popular 32/64/128 bit game platforms. It also features two preset video game settings, one of which independently enables optimal video enhancement for any DVD player. The VGE set top box is approximately 2 inches by 5 inches by 7 inches and can be conveniently positioned for use either vertically or horizontally. VGE is compatible with worldwide video standards such as NTSC, PAL, PAL-M, PAL-N, and SEACAM.

VGE is now available nationally in retail outlets including J&R Music World, Barnes & Noble’s GameStop/ Babbage’s outlets, Electronics Boutique stores, and Jack of All Games, a subsidiary of Take-Two Interactive Software, Inc. (Nasdaq: TTWO). The launch of the VGE through leading U.S. video game retailers is the beginning of a large-scale nationwide retail rollout to a potential market of over 15,000 retail outlets. Recently, it was announced that Gem, a UK leading distributor of gaming hardware, software and accessories, has placed an opening order and agreed to carry NUWAVE's VGE ("Video Game Enhancer"). Gem currently supplies over 3,000 UK stores, including over 500 specialist independent outlets and major chains such as Dixons, Currys, Electronics Boutique, PC World, etc... Significantly, on August 23rd & 24th, J&R Music World, in New York City, will stage an in-store demonstration of NUWAVE's VGE. Consumers will be invited to experience the VGE difference first-hand and see for themselves how the product enhances the game playing experience.

Market penetration of television sets in the United States is approximately 99.5%; VCRs 70%; cable 60%; and personal computers, 40%. Combined, the market size of video applications in these markets exceeds $100 billion in the United States alone. The opportunity for stand-alone set-top video-enhancement products is substantial with more than 600 million television sets currently in use worldwide, with 300 million in the United States. The annual volume in the US for television sales is more than 20 million units, for VCR sales more than 17 million units and sales of DVD’s are growing at double digit rates annually. NUWAVE expects to begin full-scale sales and marketing of its proprietary technology for use by TV, DVD, VCR and other video product manufacturers.

WAVE closed at $1.78 on volume of 80,800 shares... up 54 cents on the week. With a float of only 6 million shares, WAVE will likely move sharply and quickly as word of this company’s proprietary technology starts to spread on the Street. Stockprowler Readers are encouraged to visit the WAVE company web site for further information.

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