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Each and every week at 7:00 PM EST on Sunday, Stockprowler will bring you his latest hot stock pick of the week ...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 primarily NYSE, AMEX, and NASDAQ 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, September 3, 2000: |
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The Nasdaq at 4234 appears ready to retake the rest of the ground it lost during the spring sell-off. The next 6 weeks will tell the story… Stockprowler has got a smile on his face once again, our pick for August 21, DSLN, claimed the honors for the "best pick of the week" over at the TipReporter.com web site last week. In addition, the Stockprowler pick for August 7, AVN, exploded closing out the week up 147%… Last week's pick ADSX also appears ready to move to the upside. Our guess is that it's awaiting the vote on the proposed merger… Stockprowler's pick this week is… PixTech, Inc. (NasdaqNM: PIXT)
Santa Clara, Ca. based PixTech, Inc. is a development stage company engaged in the design and manufacture of field emission displays (FED's). FED's are technologically advanced flat panel video displays that have distinct inherent advantages over liquid crystal displays (LCD's) that are in widespread use in handheld PDA's, lap-top computers and notebooks. In addition FED's are the likely successor to CRT displays that are used in televisions and PC monitors which are heavy, bulky, and consume large amounts of power. PixTech FED's provide sharp, bright, CRT-like images in full color or monochrome that can be seen over a 160+ degree viewing angle at true video speed and with instant-on over a large temperature range. In addition, the FED panels are rugged, thin, lightweight, low in power consumption, and are cost competitive when produced in large quantities. In 1992, Pixtech, Inc. exclusively licensed key patents from the French electronics research institute, Laboratoire d'Electronique, de Technologie et d'Instrumentation, and, since then, has focused on advancing field emission display technology toward high volume manufacturing and wide market acceptance. Since early on, PixTech's strategy has been to collaborate with other parties in order to accelerate the development of its operations. Initially, the Company applied this strategy to the area of fundamental research and product development by licensing its technology to certain display manufacturers, including Futaba Corporation and Motorola, Inc. After completing the development and initial commercialization of its first product, the Company applied this collaboration strategy toward its manufacturing efforts. On October 19, 1999, Pixtech announced that it had completed a $20 million equity private placement with Unipac Optoelectronics Corp. Under the terms of the agreement, Unipac, an active matrix liquid crystal display manufacturer based in Taiwan, received 12.4 million shares of PixTech's Common stock at a purchase price of $1.61 per share. With this transaction, Unipac became PixTech's largest shareholder, and combined with its parent company United Microelectronic Corporation (UMC), own approximately 34.5% of PixTech's shares of Common Stock outstanding. Dieter Mezger, PixTech's President and CEO, commented, "I am delighted that Unipac has made a significant investment in PixTech. Unipac has been our contract manufacturer and has played a vital part in the preparation of manufacturing field emission displays (FED) in volume. Unipac's confidence and commitment in our FED technology and volume ramp-up plans are evidenced by this additional investment." Mr. Mezger added, "With Unipac now being our largest shareholder, I am more confident than ever in our ability to successfully ramp-up production of our field emission displays." Dr. Hsing Tuan, Unipac's President, said, "We have been diligently working on the high volume manufacturing processes of PixTech's FED technology and tremendous progress has been made over the recent months. I believe Unipac and PixTech will soon be in a position to benefit from the growth opportunity of the flat panel display industry, and I am delighted that Unipac is a significant part of this project." It is highly significant that Pixtech has partnered with UMC/Unipac, and that UMC/Unipac is the largest shareholder in Pixtech. Stockprowler.com has discovered that UMC/Unipac has also partnered with Massachusetts based Kopin, Inc. (NasdaqNM:KOPN) a developer of miniature flat-panel LCD displays. Kopin's CEO, Dr. John Fan, attributed his company's recent success (and soaring stock price) in part to its alliance with UMC/Unipac which enabled the company to aggressively ramp-up production of its CyberDisplays this past year. Dr. Fan stated, "We must credit the hard work of all our employees at our Display Manufacturing Center, and of our manufacturing partners, especially UMC and Unipac in Taiwan. In a little over one year we have become the leading manufacturer of miniature flat-panel displays." In addition to the UMC/Unipac partnership, memory product designer Micron Technology (NYSE:MU) owns 18% of PixTech… Recent News:
For the three-month period ended June 30, 2000, PixTech reported revenues for the second quarter of 2000 of $2.1 million, compared to revenues of $2.0 million recorded in the first quarter of 2000. The company's loss from operations was $6.8 million in Q2 2000 compared to $7.1 million in Q1 2000. PixTech recorded a net loss for Q2 2000 of $6.7 million, the same as in Q1 2000.The net loss per share of common stock for the second quarter of 2000 was $(0.13) compared to a net loss per share of ($0.16) in the first quarter of 2000. The company's product revenues were $131,000 in Q2 2000 compared to $86,000 in Q1 2000. Other revenue increased from $1.9 million in Q1 2000 to $2.0 million in Q2 2000, the majority of which was related to PixTech's DARPA contract. Operating expenses decreased slightly from $9.0 million in Q1 2000 to $8.9 million in Q2 2000 due to reductions in Sales, Marketing and G & A expenses. Research and development expenses remained relatively constant at $7.9 million in Q2 2000 compared to $7.8 million in Q1 2000. Since early 1998, a large percentage of the Company's products were shipped to Zoll Medical Corporation, a United States medical equipment manufacturer that markets a portable defibrillator incorporating our field emission displays. PixTech received a purchase order to deliver 50,000 displays to Zoll Medical over a five-year period. Zoll Medical uses the screens as a key differentiator against competing products using liquid crystal display screens, emphasizing some of the key characteristics of field emission displays, including brightness and viewing angle. In addition, there is a growing market for large displays, not just for office use, but also for the home consumer. Although advances in CRT technology have allowed some reduction in tube size, standard televisions are heavy, bulky, and consume large amounts of power. Large flat displays are gaining in importance, and this is evidenced by the slow but steady penetration of plasma displays (PDP's) into the market. At present PDPs are restricted to business and promotional markets, chiefly due to their high cost. Much of this is caused by the large amount of silicon required to drive the display, and low yields of the display panels themselves. Field Emission Displays (FEDs) provide an excellent alternative route to high quality, large area displays. It is the opinion of Stockprowler.com that a number of factors make PIXT a desirable speculation: the UMC/Unipac synergy with PixTech, the Audi deal for use in automotive applications, the inherent superior viewing qualities over LCD's in medium/large screen applications, the interest of the medical community as evidenced by the 5 year contract with Zoll Medical, Inc., and the obvious continued interest by the U.S military. Dieter Mezger, CEO of PixTech, sees his company as a leader in taking this technology to market and projects the target market is in the order of $3 - $5 billlion over the next 5 years. PixTech with its exclusive patent licensing agreements is well positioned to capture a substantial portion of that lucrative market. As of September 2, 2000 two analyst firms, Beeson Gregory and Josephthal & Company have issued "strong buy" and "buy" recommendations, respectively, on PIXT. PixTech closed up 20% Friday at 2 1/32 on 5 times average volume. Good trading… Stockprowler |
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