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Feb 28-March 4, 2005
Penny Stocks Daily
March 4, 2005
Good Morning,


This mornings non-farm payroll numbers look pretty good and equities saw a quick jump top the upside
when these numbers came out around 8:30 AM EST.  The DOW looks to open right at a three and a half
year high, and the NASDAQ looks to make up a little ground after drastically under performing the rest of
the market yesterday.  Getting through this resistance may be tough, however, as January payrolls were
revised slightly down, the unemployment rate actually went up, and average hourly earnings did not
budge.  Todays number beat estimates by around 40 thousand, but we are still yet to see a jobs increase
that keeps up with the population growth.  We may just need one more catalyst to break into new territory
and get a 100 plus point rally on the DOW.  This may come from Oil as traders took quite a bit of profits
off the table after this commodity almost matched its high of last year.  The dollar continues to weaken
across the board, which may actually help stocks. Looking at bonds, they sold off as soon as this number
came out, but immediately rallied back.  Nevertheless, futures are picking up steam this morning and it
should be a good day overall, and another positive week could bring in plenty of buying from break out
traders next week.


Micro Cap View


We continue to see activity levels remaining consistently high on the OTC BB, with the top 100 issues
again doing more than 50 thousand transactions.  We saw four issues doing over 1000 trades, and
besides GTEL, the other three are all new faces.  The number of issues under a dollar doing at least one
trade remains over 1200, and we saw exceptional price action.  Ten of these stocks made gains of 100%
or more and only three lost 50% or more.  Only 23 of these stocks are priced below our magic number of
$.001, where we do not follow stocks.  We will keep an eye on this number as a sign of quality to see
where it goes over the next month as late filers get delisted off the face of the planet, or more specifically,
the Pink Sheets.


New Initiatives and Recent Developments


We added a new stock to the portfolio yesterday as it came down to a our price condition rather quickly,
USTT.  We are fairly comfortably weighted, although we have enough capital available to add at least one
new position to the portfolio early next week.  For today, we will keep an eye on the stocks we are holding,
and have tightened up a few of our buy and sell conditions.
The Portfolio
Diabetic Treatment Centers of America Inc
(DBTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials
Portfolio Overview
Our Average Price:  $.42
Portfolio %: 5.7%
Portfolio % Range:  5.7-7.5%
Next Buy:  $.32
Next Sell:  $.88
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                                          http://www.dtcofamerica.com

Closing Price:  $.32

Quick Profile
Based in Salt Lake City, Utah, DTC of America is dedicated to providing effective medical therapies to diabetics that
will significantly improve their health and well being.



Contact:
Diabetic Treatment Centers of America, Inc.
Arden Oliphant, 801-207-1816
aoliphant@dtcofamerica.com


A bit of a sell off late yesterday leaves this position at a rather unprofitable level.  We are very lightly invested, and we still feel the same way
about the company.  We will look to pick up more with another 7% of the portfolio if we get the chance at a substantial discount, leaving us with
a reasonable average price.  We have adjusted our next buy condition down to $.24.  Right now our plan is to only average down one more
time, and we will seriously consider reassessing the situation if the stock makes it all the way down to the teens.
GPS Industries Inc (GPSN)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.114
Portfolio %: 13.2%
Portfolio % Range:  6-13.8%
Next Buy:  N/A
Next Sell:  $.21
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                              http://www.inforetech.com  
Closing Price:  $.102

Quick Profile

GPS Industries Inc. (GPSI) is involved in the development of golf course management technology. The Company
applies Global Positioning Systems (GPS) technology, radio frequency and an integrated network of wireless
technology to information systems for the golf and recreational industries. Its portable product, the Inforemer, is a
communications network that utilizes advanced Internet protocols to provide a wireless information system to
enhance recreational value, increase golf course profits and improve player safety. Effective September 30, 2003,
the Company amended its Articles of Incorporation to change its name from Inforetech Wireless Technology Inc. to
GPS Industries Inc.

Contact:

5500 - 152nd Street, Suite 214
Surrey, BC V3S 5
Phone: (604) 576-7442
Fax: (604) 576-7460
Email:
info@inforetech.com



We continue to see this stock perk up a bit with respect to volume and price, and we saw some nice buys late in the day yesterday.  We will
stick around for now, and would expect the positive activity to continue.  We have not seen any new developments in a while, and the support
we have seen at a dime without news is quite positive.
RS Group of Companies (RSGC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.61
Portfolio %: 9.2%
Portfolio % Range:  5.5-14.1%
Next Buy:  $.61
Next Sell:  $1.00
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                              www.rsgc.com  

Closing Price:  $.72

Quick Profile

RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad
series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November
2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution,
RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North
America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in
the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential
property developers and is being used as an extremely effective marketing tool in the United Kingdom for the
buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.

Contact:

RS Group of Companies, Inc.
Patti Cooke, 416-391-4223, ext. 4084
info@rsgc.com
This stock is such a slow trader that we only need to check on it every now and again, in fact, yesterday we only saw three trades.  They
registered 600 thousand shares on the 25th of February under some consulting or employment agreements, which will not do much to dilute
the existing 22 million shares outstanding.  We will remain in this position for the time being until we get much closer to the Strategy
International Insurance take over.  The most recent news we have to go on is mixed, but interesting.  We did not here a reiteration of the
$1.75 offer for our shares, but we did not hear of any new proposal.  Nevertheless, this independent firm is their secret weapon to try and get
a little bit more value, but we do not see them coming up with anything new.  We have already scaled back this position to a point where we
feel very comfortable, but will not be pursuing any new buys here.  We took a fair portion of profits from this stock already, and we will not let
the rest of the position dwindle away.  We still see a good possibility of a dollar per share sometime real soon.  We will probably be in this
position at least until March.
Salon Media Group Inc (SALN)


Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.41
Portfolio %: 6.5%
Portfolio % Range:  6-7.2%
Next Buy:  $.21
Next Sell:  $.67
Quick Glance PSD Rating: 4 (1= close to next buy, 10=
close to next sell)
                                                                     http://www.salon.com
Closing Price:  $.35

Quick Profile

Salon Media Group, Inc. is an Internet media company offering journalism from news and in-depth analysis to
commentary on politics, technology, culture and entertainment. The Company also offers an audio-streaming Website
and hosts two online communities: Table Talk and The Well. The Well is a member-only discussion community, in
which members use their real names to post and only members can view the postings. Table Talk is available for all
Internet users to read, but only subscribers can post. Salon's revenue sources are from advertising and
subscriptions to Salon Premium and The Well/Table Talk. The Company's content provides an array of news,
features, interviews and regular columnists and include news and politics, opinion, technology, arts, life, books,
comics and Salon Audio (free recordings of short stories, novel excerpts, poems, essays and interviews).

Contact:

22 Fourth Street, 11th Floor
San Francisco, CA 94103
Phone: (415) 645-9200
Fax: (415) 645-9207
Email:
investor@salon.com



This stock continues to behave in excessively volatile fashion whenever we see even a hint of activity, which has been lightening up a bit with
only 4 trades yesterday.  We would expect support to remain at $.30, but we must keep in mind the highly speculative nature of this position.  
We will need to see some dramatically lower prices before we consider adding any more of the portfolio to this stock.  We will likely be
changing our conditions around as rapidly as this stock changes it's price.  We will continue to adjust our profit target to the down side every
day that goes by without any developments, as we would expect activity to dry up substantially, within a few weeks or so.
SoftNet Technology (STTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.205
Portfolio %:  15%
Portfolio % Range:  6.4-23.1%
Next Buy:  $.159
Next Sell:  $.30-$.35 (1/3 of the Position)
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                   www.softnettechnology.com  

Closing Price:  $.223

Quick Profile

Softnet Technology Corporation recently acquired WholesaleByUs, LLC.  In the short existence of one year, WBU
has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other Internet sellers programs as well
as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest
shipping time possible.



Contact:

SoftNet Technology
James Farinella, 866-898-4842/908-204-9911
www.softnettechnology.com
We added another 7% of the portfolio Wednesday at our buy condition of $.24, which at first looked like a good entry point.  Then, the selling
continued and we saw a low of $.17 before the stock finally stabilized at $.20.  Yesterday, we were happy to see the stock continue to stabilize.
 We have taken profits in this position already, but we wanted to remain as heavily invested as possible, as this is our favorite stock for the
time being.  We still feel the same way, especially when we saw the CEO again pick up shares on the open market Wednesday three separate
times.  The first buy was right along with us at $.24, and then he added some more at irresistible prices for a total of around 10 thousand
dollars.  He has now spent almost a quarter a million dollars on his own company, and judging from the pre-release numbers we saw, we see
no reason to turn our tails and run.  Growth looks good for the first part of this year, but we must understand that with the few different things
they have going on right now, they will not be profitable for at least a few quarters.  We will simply use this opportunity to become as heavily
invested as we want to be.  After averaging up a few times in this position, we now stand at break even, and we will be waiting for something in
the mid to low teens before we attempt to pick up anymore shares.  Essentially we do not want to be more than 20% invested in this position,
but would like to remain at more than 10%.  Yesterdays press release again looks good.
USA TECHNOLOGIES INC (USTT)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.17
Portfolio %:  7.2%
Portfolio % Range:  6.9-7.4%
Next Buy:  $.135
Next Sell:  $.29
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                  http://www.usatech.com/  

Closing Price:  $.175

Quick Profile

USA Technologies, Inc. (USAT) offers a suite of networked devices and associated wireless non-cash payment,
control/access management, remote monitoring and data reporting services, as well as energy management
products. Its customers are principally located in the United States and consist of hotels, chains, consumer package
goods companies, information technology (IT) and vending operators. The Company's networked devices and
associated services enable the owners and operators of everyday, stand-alone, distributed assets, such as
vending machines, personal computers and many more, the ability to remotely monitor, control and report on the
results of these distributed assets, as well as the ability to offer their customers alternative cashless payment
options.

Contact:
100 Deerfield Lane, Suite 140
Malvern, PA 19355
Phone: (610) 989-0340
Fax: (610) 989-0344
Email:
usatech.com/contact.php

We added this stock to the portfolio yesterday fairly early.  We were looking for the stock to dip below $.17 before entering our trade, and it
did, although not long enough to get the $.169 ask that briefly showed it's head, we ended up paying $.17.  Volume looked great and we
would expect this position to remain quite active.  We will sit tight for the time being and would like to be a little bit more heavily invested, which
is why our second buy is planned for $.135, otherwise, we may end up averaging up along the way.

Daily Tip

Ever wonder how the true market in penny stocks can be different than the advertised prices on the level II screen.  
Market makers for OTC BB securities have a lot less regulation and consequences for their actions.  If two people are
waiting inside the bid and ask, MM's will take advantage of them and trade among themselves for quick profits.  This can
lead to more and more retail traders getting in between the spread, thereby creating a new market.  MM's don't have to
report a sale for up to a minute, although 90% is in real time.  At least we don't have to deal with different markets for
ECN's and complicated arbitrage stemming from options expirations like we do with the big boy's.






Enjoy Your Trading Day,
Penny Stocks Daily






Penny Stocks Daily does not receive any compensation whatsoever from the companies we follow.  We do not accept payment for the links we provide on this
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Newsletter to a  mass audience.  We do not, and will not provide individually tailored investment advice.  We are not responsible for any errors, material or otherwise
within our Newsletter.  We do not engage in pump and dump schemes and will not tolerate such activity.  You are responsible for your own investment decisions and
we strongly encourage you to do your own research.



"Penny Stocks Daily" and "Quick Glance PSD Rating" are Trademarks of Penny Stocks Daily.
Penny Stocks Daily
March 3, 2005
Good Morning,
Blue chips have now finished up 4 out of the last six trading sessions with positive gains with yesterdays
underlying momentum being on the upside, despite the slight loss for the DOW and others.  We saw the
markets rally yesterday as Greenspan began to speak, and Oil inventories came in larger than expected.  
Then, later in the day, Oil busted through $53 a barrel where it still stands as speculators less popular
inventory estimates that actually showed a draw-down.  Nevertheless, stocks held up quite well, and when
Oil does finally crash, and the timing is right, we may begin to see some new highs in equities.  Futures
are fairly positive today, and assuming Oil does not continue towards $55 or $60, we may just see those
highs today.  The DOW hitting 11,000 would be the first hurdle, and we would expect the NASDAQ to
continue outperforming the rest of the markets, as it has all week long.  Investors are focused on retail
numbers that came out showing much more retail spending for almost all of the companies reporting than
was originally thought.  This shows a bit more growth in the economy than we all thought, but whether or
not Wall street focuses on this, or they focus on the reality of more interest rate hikes remains to be seen.
 We think that the street will remain euphoric as the precursor to tomorrows jobs report, weekly jobless
claims, look somewhat positive as well with claims falling 1000.  Futures are moving higher, and if things
stay the way they are right now, we could see a good day overall.  Things that could derail this rally could
be more Greenspan speak at 9:30 today, or a poor jobs number tomorrow.  With today not being a
Friday, we will be watching volume very closely, as we really need to see a heavy day with positive price
action.
Micro Cap View
Trade volume on the OTC BB remains consistently strong with five issues doing more than 1000 trades
each yesterday.  Overall, price action was positive for the pennies as we saw 8 stocks gaining 100% or
more, many with heavy volume, and only 5 stocks losing 50% or more, none of which on heavy trade.  All
week long the OTC BB has been moving inversely to Blue chips day after day, which again shows very
short term divergence, followed by mid term convergence.  We see a healthy mix of old standbys and new
faces on the most active list in terms of trades per day, and we continue to see the average price for all of
the stocks under a dollar rising slightly.
New Initiatives and Recent Developments
So far this week we have completely exited two stale positions essentially at break even points, SEHO and
EMFP.  Yesterday, we added to STTC and are now sitting with 50.7% of the portfolio in Micro Caps.  This
leaves us plenty of cash to pursue new issues, as well as keeping plenty available to average down in any
current issues that need it.  
We have one new buy planned for today for which we will use 7% of
the portfolio and the ticker is USTT.
 We covered this stock in our "Outside the Portfolio" section quite
a while ago and since then it has remained on our radar screen.  We have seen tremendous average
volume for this stock, and it continues to do over 100 trades a day.  They sell cashless vending machines
and appear to be picking up momentum with respect to fundamentals.  They do have around 450 million
shares outstanding and around 8 million dollars in debt, but the revenues they are generating make these
numbers sustainable.  They have positive book value, plenty of cash and a growing customer base.  
Technically speaking, they stock has held up support at a dime better than any stock we have seen in a
while.  We feel that it may be very close to breaking out of the $.17 range and busting through $.20.  We
will not follow this stock below a dime, but would not be opposed to averaging down once somewhere in
the low teens.  This is not a particularly volatile stock with such a large float, but the consistent volume will
allow for plenty of liquidity.  We will be looking to buy today right away if we get the opportunity somewhere
below $.17.  If we do not go below that point today, we will still be buying, and will attempt to get them in
the $.17's, before the stock breaks into the $.18's.
The Portfolio
Diabetic Treatment Centers of America Inc
(DBTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials
Portfolio Overview
Our Average Price:  $.42
Portfolio %: 6.8%
Portfolio % Range:  6.5-7.5%
Next Buy:  $.32
Next Sell:  $.88
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                                          http://www.dtcofamerica.com

Closing Price:  $.395

Quick Profile
Based in Salt Lake City, Utah, DTC of America is dedicated to providing effective medical therapies to diabetics that
will significantly improve their health and well being.



Contact:
Diabetic Treatment Centers of America, Inc.
Arden Oliphant, 801-207-1816
aoliphant@dtcofamerica.com


Support for this stock has remained quite strong and the activity levels we are seeing are just about perfect.  We would expect the trade to
slow down a little bit, as long as there are no new press releases over the next week or so, but would expect the price to slowly creep up.
GPS Industries Inc (GPSN)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.114
Portfolio %: 13.2%
Portfolio % Range:  6-13.8%
Next Buy:  N/A
Next Sell:  $.21
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                              http://www.inforetech.com  
Closing Price:  $.101

Quick Profile

GPS Industries Inc. (GPSI) is involved in the development of golf course management technology. The Company
applies Global Positioning Systems (GPS) technology, radio frequency and an integrated network of wireless
technology to information systems for the golf and recreational industries. Its portable product, the Inforemer, is a
communications network that utilizes advanced Internet protocols to provide a wireless information system to
enhance recreational value, increase golf course profits and improve player safety. Effective September 30, 2003,
the Company amended its Articles of Incorporation to change its name from Inforetech Wireless Technology Inc. to
GPS Industries Inc.

Contact:

5500 - 152nd Street, Suite 214
Surrey, BC V3S 5
Phone: (604) 576-7442
Fax: (604) 576-7460
Email:
info@inforetech.com



We continue to see this stock perk up a bit with respect to volume and price.  We will stick around for now, and would expect the positive
activity to continue.  We have not seen any new developments in a while, and the support we have seen at a dime without news is quite
positive.
RS Group of Companies (RSGC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.61
Portfolio %: 9.2%
Portfolio % Range:  5.5-14.1%
Next Buy:  $.61
Next Sell:  $1.00
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                              www.rsgc.com  

Closing Price:  $.72

Quick Profile

RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad
series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November
2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution,
RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North
America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in
the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential
property developers and is being used as an extremely effective marketing tool in the United Kingdom for the
buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.

Contact:

RS Group of Companies, Inc.
Patti Cooke, 416-391-4223, ext. 4084
info@rsgc.com
This stock is such a slow trader that we only need to check on it every now and again, in fact, yesterday we only saw six trades.  They
registered 600 thousand shares on the 25th of February under some consulting or employment agreements, which will not do much to dilute
the existing 22 million shares outstanding.  We will remain in this position for the time being until we get much closer to the Strategy
International Insurance take over.  The most recent news we have to go on is mixed, but interesting.  We did not here a reiteration of the
$1.75 offer for our shares, but we did not hear of any new proposal.  Nevertheless, this independent firm is their secret weapon to try and get
a little bit more value, but we do not see them coming up with anything new.  We have already scaled back this position to a point where we
feel very comfortable, but will not be pursuing any new buys here.  We took a fair portion of profits from this stock already, and we will not let
the rest of the position dwindle away.  We still see a good possibility of a dollar per share sometime real soon.  We will probably be in this
position at least until March.
Salon Media Group Inc (SALN)


Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.41
Portfolio %: 6.5%
Portfolio % Range:  6-7.2%
Next Buy:  $.21
Next Sell:  $.67
Quick Glance PSD Rating: 4 (1= close to next buy, 10=
close to next sell)
                                                                     http://www.salon.com
Closing Price:  $.33

Quick Profile

Salon Media Group, Inc. is an Internet media company offering journalism from news and in-depth analysis to
commentary on politics, technology, culture and entertainment. The Company also offers an audio-streaming Website
and hosts two online communities: Table Talk and The Well. The Well is a member-only discussion community, in
which members use their real names to post and only members can view the postings. Table Talk is available for all
Internet users to read, but only subscribers can post. Salon's revenue sources are from advertising and
subscriptions to Salon Premium and The Well/Table Talk. The Company's content provides an array of news,
features, interviews and regular columnists and include news and politics, opinion, technology, arts, life, books,
comics and Salon Audio (free recordings of short stories, novel excerpts, poems, essays and interviews).

Contact:

22 Fourth Street, 11th Floor
San Francisco, CA 94103
Phone: (415) 645-9200
Fax: (415) 645-9207
Email:
investor@salon.com



This stock continues to behave in excessively volatile fashion whenever we see even a hint of activity.  We would expect support to remain at
$.30, but we must keep in mind the highly speculative nature of this position.  We will need to see some dramatically lower prices before we
consider adding any more of the portfolio to this stock.  We will likely be changing our conditions around as rapidly as this stock changes it's
price.  We will continue to adjust our profit target to the down side every day that goes by without any developments, as we would expect
activity to dry up substantially, within a few weeks or so.
SoftNet Technology (STTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.205
Portfolio %:  15%
Portfolio % Range:  6.4-23.1%
Next Buy:  $.159
Next Sell:  $.30-$.35 (1/3 of the Position)
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                   www.softnettechnology.com  

Closing Price:  $.21

Quick Profile

Softnet Technology Corporation recently acquired WholesaleByUs, LLC.  In the short existence of one year, WBU
has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other Internet sellers programs as well
as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest
shipping time possible.



Contact:

SoftNet Technology
James Farinella, 866-898-4842/908-204-9911
www.softnettechnology.com

We added another 7% of the portfolio yesterday at our buy condition of $.24, which at first looked like a good entry point.  Then, the selling
continued and we saw a low of $.17 before the stock finally stabilized at $.20.  We have taken profits in this position already, but we wanted to
remain as heavily invested as possible, as this is our favorite position for the time being.  We still feel the same way, especially when we saw
the CEO again pick up shares on the open market yesterday three separate times.  The first buy was right along with us at $.24, and then he
added some more at irresistible prices for a total of around 10 thousand dollars.  He has now spent almost a quarter a million dollars on his
own company, and judging from the pre-release numbers we saw, we see no reason to turn our tails and run.  Growth looks good for the first
part of this year, but we must understand that with the few different things they have going on right now, they will not be profitable for at least a
few quarters.  We will simply use this opportunity to become as heavily invested as we want to be.  After averaging up a few times in this
position, we now stand at break even, and we will be waiting for something in the mid to low teens before we attempt to pick up anymore
shares.  Essentially we do not want to be more than 20% invested in this position, but would like to remain at more than 10%

Daily Tip

We generally like to keep at l;east 20-40% cash available at all times within our high risk portfolio to take advantage of
the dips and valleys that will always come our way, to help in the diversification process and to help keep risk as low as
possible.  This may at first seem like a waste of resources, but we tend to disagree.  Most On-Line brokerage firms allow
you to earn interest on the cash in your portfolio by rolling it back and forth between money market funds and even as
many as ten different savings vehicles.  Right now you are probably earning between 1and 1/2% to 2% on the cash
sitting in your portfolio, and by the end of this year, we would expect this figure to be something closer to 3%.  This may
not seem like a lot, but with 30% of the portfolio always being in cash, your interest earned will add up overtime.  Think of
this extra cash as a way to drastically reduce your commission costs.  As an example, a $10,000 account would earn
around 100 dollars on the 3000 or so that is always in cash over a one year period.  Think of this as ten free trades a
year, or think of it as a one to two dollar reduction in every single commission you pay.  Either way you look at it, this is
just one of the many advantages of keeping plenty of cash on hand at all times





Enjoy Your Trading Day,
Penny Stocks Daily






Penny Stocks Daily does not receive any compensation whatsoever from the companies we follow.  We do not accept payment for the links we provide on this
Newsletter other than the Google ads.  We believe in the United States of America and stand by our First Amendment Privilege to provide an unbiased Investment
Newsletter to a  mass audience.  We do not, and will not provide individually tailored investment advice.  We are not responsible for any errors, material or otherwise
within our Newsletter.  We do not engage in pump and dump schemes and will not tolerate such activity.  You are responsible for your own investment decisions and
we strongly encourage you to do your own research.



"Penny Stocks Daily" and "Quick Glance PSD Rating" are Trademarks of Penny Stocks Daily.
Penny Stocks Daily
March 2, 2005
Good Morning,

Futures have been on the down  side all morning long, but do not show the possibility of a steep
decline across the board.  We saw decent volume yesterday on a significant up day, but it still did not
match that of our recent one day declines.  Overall, today looks to be a bit of a bore, with the possibility
of some movement when Oil inventories come out.  A dramatic shift in inventories could easily push
Crude Futures out of the very tight range they have been in, which would almost certainly affect the
stock market.  Beyond that, we have a little bit of jobs data due out at 10:00AM EST, as well as an
appearance from Alan Greenspan.  Stocks all across the world have been under pressure over the last
18 hours or so, which will make it difficult for the DOW and others to make their way towards positive
territory.  One positive sign for stocks is the fact that treasuries have sat right where they did after a
steep decline earlier in the week which corresponded with sharp moves higher for equities.  Charts do
not lie, and we are still very close to multi year highs all around, and as long as we stay that close,
there is always a good chance of another run.  The NASDAQ has outperformed the rest of the market
for three strait sessions in a row with yesterdays action being the most dramatic.  Looking at stock
futures as well as pre-market action in all of the major ETF's, we see the likelihood of that continuing.


Micro Cap View

Action on the OTC BB continues to be consistently high with the top 100 issues again doing more than
50 thousand trades.  Overall, we saw three stocks doing more than 1000 trades, and the top ten
breaking through the 600 mark.  Out of the 1250 stocks under a dollar that did at least one trade, we
saw six of them gaining 100% or more.  On the flip side, we saw eight of them losing 50% or more.  
This shows a significant price action difference as compared to the previous trading session, and we
are beginning to see the contrasting trade opportunities that typically exist in the short term, between
Micro Caps and Blue Chips.  Dow futures seem to be picking up steam to the down side, so we would
expect a good day over all for the sub dollar issues.


New Initiatives and Recent Developments

We were looking to get out of a stale position, SEHO for the first part of this week, and yesterday our
rather tight conditions were met.  We took the entire position off the table at $.21, as our mental stop
loss was adjusted to $.20, after the stock ran up a little bit on decent news.  We were also looking for
$.23 to see the entire position, but as soon as the bid began to break down, and it was evident that the
stock was headed back below $.20, we entered out order immediately.  We may keep an eye on this
stock and will probably come back if and when volume ever returns.  We were so lightly invested in that
position that it was essentially a break even trade.  As far as cash in the portfolio, we are getting their,
but still need to take profits or cut losses in at least one more position.  We do not feel the time is right
to take profits in our winning positions, although our sell conditions could easily be met in a heartbeat.  
The cash will come from another stale position we have been holding, but are still lightly
invested in, EMFP.  We will be selling our entire position in this stock first thing in the
morning, so we have removed it from the portfolio section ahead of time.
 
The Portfolio
Diabetic Treatment Centers of America Inc
(DBTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials
Portfolio Overview
Our Average Price:  $.42
Portfolio %: 6.5%
Portfolio % Range:  6.5-7.5%
Next Buy:  $.32
Next Sell:  $.88
Quick Glance PSD Rating: 3
(1= close to next buy, 10= close to next sell)
                                                          http://www.dtcofamerica.com

Closing Price:  $.35

Quick Profile
Based in Salt Lake City, Utah, DTC of America is dedicated to providing effective medical therapies to diabetics that
will significantly improve their health and well being.



Contact:
Diabetic Treatment Centers of America, Inc.
Arden Oliphant, 801-207-1816
aoliphant@dtcofamerica.com


Activity levels for this stock remain quite high, and we will use this lackluster price action to add to the position and bring our average price
down a bit.  We are keeping our second buy condition in place at $.32, and we are happy to become a little bit more heavily invested in this
position.  We may even consider averaging down one more time in the $.20's, as we like to become more heavily invested in stocks that
continue to demonstrate positive fundamentals while the stock price is technically selling off.
GPS Industries Inc (GPSN)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.114
Portfolio %: 13%
Portfolio % Range:  6-13.8%
Next Buy:  N/A
Next Sell:  $.21
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                              http://www.inforetech.com  
Closing Price:  $.10

Quick Profile

GPS Industries Inc. (GPSI) is involved in the development of golf course management technology. The Company
applies Global Positioning Systems (GPS) technology, radio frequency and an integrated network of wireless
technology to information systems for the golf and recreational industries. Its portable product, the Inforemer, is a
communications network that utilizes advanced Internet protocols to provide a wireless information system to
enhance recreational value, increase golf course profits and improve player safety. Effective September 30, 2003,
the Company amended its Articles of Incorporation to change its name from Inforetech Wireless Technology Inc. to
GPS Industries Inc.

Contact:

5500 - 152nd Street, Suite 214
Surrey, BC V3S 5
Phone: (604) 576-7442
Fax: (604) 576-7460
Email:
info@inforetech.com



Volume picked up quite a bit yesterday right when the stock dipped slightly below $.095.  We are invested about as much as we want to be in
this position for the time being, and expect to see the stock break out above a dime sometime real soon.
RS Group of Companies (RSGC)

Links
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Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
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News Search
Financials

Portfolio Overview
Our Average Price:  $.61
Portfolio %: 9.5%
Portfolio % Range:  5.5-14.1%
Next Buy:  $.61
Next Sell:  $1.00
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                              www.rsgc.com  

Closing Price:  $.75

Quick Profile

RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad
series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November
2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution,
RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North
America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in
the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential
property developers and is being used as an extremely effective marketing tool in the United Kingdom for the
buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.

Contact:

RS Group of Companies, Inc.
Patti Cooke, 416-391-4223, ext. 4084
info@rsgc.com
This stock is such a slow trader that we only need to check on it every now and again, in fact, yesterday we only saw eight trades.  They
registered 600 thousand shares on the 25th of February under some consulting or employment agreements, which will not do much to dilute
the existing 22 million shares outstanding.  We will remain in this position for the time being until we get much closer to the Strategy
International Insurance take over.  The most recent news we have to go on is mixed, but interesting.  We did not here a reiteration of the
$1.75 offer for our shares, but we did not hear of any new proposal.  Nevertheless, this independent firm is their secret weapon to try and get
a little bit more value, but we do not see them coming up with anything new.  We have already scaled back this position to a point where we
feel very comfortable, but will not be pursuing any new buys here.  We took a fair portion of profits from this stock already, and we will not let
the rest of the position dwindle away.  We still see a good possibility of a dollar per share sometime real soon.  We will probably be in this
position at least until March.
Salon Media Group Inc (SALN)


Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.41
Portfolio %: 6.4%
Portfolio % Range:  6-7.2%
Next Buy:  $.21
Next Sell:  $.77
Quick Glance PSD Rating: 4 (1= close to next buy, 10=
close to next sell)
                                                                     http://www.salon.com
Closing Price:  $.32

Quick Profile

Salon Media Group, Inc. is an Internet media company offering journalism from news and in-depth analysis to
commentary on politics, technology, culture and entertainment. The Company also offers an audio-streaming Website
and hosts two online communities: Table Talk and The Well. The Well is a member-only discussion community, in
which members use their real names to post and only members can view the postings. Table Talk is available for all
Internet users to read, but only subscribers can post. Salon's revenue sources are from advertising and
subscriptions to Salon Premium and The Well/Table Talk. The Company's content provides an array of news,
features, interviews and regular columnists and include news and politics, opinion, technology, arts, life, books,
comics and Salon Audio (free recordings of short stories, novel excerpts, poems, essays and interviews).

Contact:

22 Fourth Street, 11th Floor
San Francisco, CA 94103
Phone: (415) 645-9200
Fax: (415) 645-9207
Email:
investor@salon.com



This stock continues to behave in excessively volatile fashion whenever we see even a hint of activity.  We would expect support to remain at
$.30, but we must keep in mind the highly speculative nature of this position.  We will need to see some dramatically lower prices before we
consider adding any more of the portfolio to this stock.  We will likely be changing our conditions around as rapidly as this stock changes it's
price.
SoftNet Technology (STTC)

Links
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Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.192
Portfolio %:  13%
Portfolio % Range:  6.4-23.1%
Next Buy:  $.24
Next Sell:  $.35-$.40 (1/3 of the Position)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
                                   www.softnettechnology.com  

Closing Price:  $.279

Quick Profile

Softnet Technology Corporation recently acquired WholesaleByUs, LLC.  In the short existence of one year, WBU
has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other Internet sellers programs as well
as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest
shipping time possible.



Contact:

SoftNet Technology
James Farinella, 866-898-4842/908-204-9911
www.softnettechnology.com


Yesterdays pre-earnings release after the bell look pretty good, and are at least right in-line with the press releases we saw late last year.  
Whether the stock jumps towards our profit target for another third of the position remains to be seen.  Should we go the other way, we will be
ready and waiting to add more shares of this stock to the portfolio if we get the opportunity at our next buy point.

Daily Tip

There is no way to determine a tiny stocks likelihood of devastation, and most companies on the OTC BB are by
definition on the brink.  Without institutional interest in these issues there aren't enough people to demand answers.  The
only information they provide is forward looking statements and they never give too many clues as to business
conditions.  It is important to read the disclaimer about forward looking statements as they often contain industry specific
examples and probabilities of increasing their customer base.  Always be ready to sell these stocks in a heartbeat if
disaster strikes and time is of the essence.  If you miss a big down shift due to horrible news by a half a day or so, you
typically still have a chance to average down and get out at break even within a day or so.  It is just important to be on
top of it and dissolve your position as soon as possible.  This is only for news that shifts the company fundamentally in
the wrong direction.







Enjoy Your Trading Day,
Penny Stocks Daily






Penny Stocks Daily does not receive any compensation whatsoever from the companies we follow.  We do not accept payment for the links we provide on this
Newsletter other than the Google ads.  We believe in the United States of America and stand by our First Amendment Privilege to provide an unbiased Investment
Newsletter to a  mass audience.  We do not, and will not provide individually tailored investment advice.  We are not responsible for any errors, material or otherwise
within our Newsletter.  We do not engage in pump and dump schemes and will not tolerate such activity.  You are responsible for your own investment decisions and
we strongly encourage you to do your own research.



"Penny Stocks Daily" and "Quick Glance PSD Rating" are Trademarks of Penny Stocks Daily.
Penny Stocks Daily
March 1, 2005
Good Morning,
After a third test of new highs all around the major Indices last week, we were again denied yesterday
as stocks headed sharply lower on a decline in existing home sales for January, as well as a persistent
Oil price above $51 a barrel.  We remain bullish, however, despite the lack of volume we have seen
when the markets rally, and the sharp rise in activity yesterday with the NASDAQ doing well over 2
billion shares on very weak price action.  We believe that speculation is rampant in the Oil and
Currency markets, just take a look at the supply demand relationship.  First of all, heating oil supplies
were a mere 7% higher than they are today one year ago, but prices are more than 50% higher.  Also,
last year at this time we had many more signs of economic growth than are present today.  Can we
blame China?  Not really, especially when we consider that their growth seems to have peaked a year
ago.  In fact, the only reasons we are hearing for this are a slim chance of a production cut from OPEC
later this month and, of course, cold weather.  You can bet that lat year around this time it was cold in
the Northeast U.S., after all it is winter.  Fears that Usama Bin Ladin is planning to attack Oil fields in
Saudi Arabia were originally behind this Oil craze, but now we believe it is just way overdone.  We are
seeing the exact type of bullishness in the Oil market as we saw in the NASDAQ five years ago, and
every single analyst and Oil trader is bullish.  Although we do not see an exact reversal in sentiment for
stocks, we do continue to see plenty of bears, and we believe the inevitable crash for Oil will fuel
buying in equities.  Right now futures are pointing to a little bit of an early morning rally, and we
continue to see the NASDAQ outperform, as it barely did yesterday.  M&A excitement continues, and
we are frankly surprised to see so much activity surrounding the possibility of a Quest, MCI deal,
especially considering how much money both of these companies lose time and time again.  We will
again keep an eye on activity levels, especially on the NASDAQ, and are looking for a matching or
even higher volume level on an up day.  A couple more sessions with weak volume and good price
action followed by heavy selling, and we may be singing a different tune with respect to our short term
sentiment.
Micro Cap View
Activity remains all around on the OTC BB, and we saw respectable price action as the major markets
declined.  Out of the 3000 plus issues on this non-exchange, 1267 of the stocks trading under a buck
did at least one trade.  Out of these issues, 7 gained more than 100%, and only five lost 50% or more.  
Two stocks did more than 1000 trades, and 6 did more than 500.  This is not overwhelmingly exciting,
but at least we are seeing a level of consistency that has never been present before.  Over the past
couple of years, activity has remained during March and April, and drops off sharply for the next six
months.  What we would like to see this time around is a pick up in activity in May and/or October.  One
thing that is exciting is the fact that we have seen the average number of Market Makers per security
grow month after month after month.  We continue to see the number of issues decline, showing an
improvement in quality almost to a point where this market is quickly becoming structured exactly like
the NASDAQ.  One missing piece of the puzzle is the amount of graduations to listed status we have
seen so far tis year as compared to last year, there has only been three.
New Initiatives and Recent Developments
We will continue to look for cash in our portfolio, as we are a tiny bit overweighted in Micro Caps.  We
still have plenty of cash available to add to any stocks we already own that meet our next buy point, but
simply do not want to add any new positions right at the moment.  We will continue to adjust our
conditions until we feel a bit more comfortable.  
We are still looking to get rid of SEHO if and only
if the conditions we have laid out are met.
The Portfolio
Diabetic Treatment Centers of America Inc
(DBTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials
Portfolio Overview
Our Average Price:  $.42
Portfolio %: 7%
Portfolio % Range:  6.7-7.5%
Next Buy:  $.32
Next Sell:  $.88
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                          http://www.dtcofamerica.com

Closing Price:  $.428

Quick Profile
Based in Salt Lake City, Utah, DTC of America is dedicated to providing effective medical therapies to diabetics that
will significantly improve their health and well being.



Contact:
Diabetic Treatment Centers of America, Inc.
Arden Oliphant, 801-207-1816
aoliphant@dtcofamerica.com

We have yet to see the details concerning this companies conversion of debt to equity, and usual when we have restricted securities, we are
looking at a whole new ball game.  The conversion price of $.80 is quite bullish, although we have yet to see any positive reaction in the stock.
 In fact, we saw a rather large block trade go through outside of the inside market to the down side worth around 40 thousand dollars at the
very end of the trading day.  We feel this may be a short term bottom, but should the stock dip lower, we will not be opposed to averaging
down once at our next buy point with another 7% of the portfolio.  We continue to see plenty of activity and the stock did over 300 trades
yesterday.  It will be interesting to see how things turn out today if and when we attempt to test that $.40 support range for the fourth time, we
will be watching volume very closely at that point.
Emergency Filtration Products Inc (EMFP)

Links
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Charts
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Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.48
Portfolio %: 6.9%
Portfolio % Range:  6.8-7.3%
Next Buy:  N/A
Next Sell:  $.52 (Mental Stop-Loss @ $.40)
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                   http://www.emergencyfiltration.com

Closing Price:  $.46

Quick Profile
Emergency Filtration Products, Inc. is a specialty filter products company that has developed an air filtration
technology for removing infectious bacteria and viruses in airflow systems. The Company's product line includes
RespAide cardiopulmonary resuscitation isolation masks, disposable filters for bag valve masks (BVMs), Superstat, a
modified collagen hemostat and personal environmental masks. Emrgency Filtration also has products in various
stages of development and production. These include its breathing circuit filters and emergency life support
ventilation and intubation system (ELVIS) for the BVM market. Approximately 80% to 90% of the Company's sales
have been to the United States military. Emergency Filtration holds military national stocking numbers for the RespAide
CPR isolation mask, the replacement filters and for Superstat. These stocking numbers make the products acceptable
for inventory in all four branches of the military and the United States Coast Guard.

Contact:
175 Cassia Way, Suite A115
Henderson, NV 89014
Phone: (702) 558-5164


Trading has almost come to a standstill for this position, but at least the price has held up well.  We have some rather tight conditions for this
stock at the moment, and as we have said, we would like to step out as soon as this trade becomes even a tiny bit profitable.
GPS Industries Inc (GPSN)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.114
Portfolio %: 13%
Portfolio % Range:  6-13.8%
Next Buy:  N/A
Next Sell:  $.21
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                              http://www.inforetech.com  
Closing Price:  $.10

Quick Profile

GPS Industries Inc. (GPSI) is involved in the development of golf course management technology. The Company
applies Global Positioning Systems (GPS) technology, radio frequency and an integrated network of wireless
technology to information systems for the golf and recreational industries. Its portable product, the Inforemer, is a
communications network that utilizes advanced Internet protocols to provide a wireless information system to
enhance recreational value, increase golf course profits and improve player safety. Effective September 30, 2003,
the Company amended its Articles of Incorporation to change its name from Inforetech Wireless Technology Inc. to
GPS Industries Inc.

Contact:

5500 - 152nd Street, Suite 214
Surrey, BC V3S 5
Phone: (604) 576-7442
Fax: (604) 576-7460
Email:
info@inforetech.com



This stock continues to hold up pretty well at the dime range.  Volume has actually remained steady, and we sawe a little bit of a buying spree
late in the day yesterday.  We have not seen any developments for a week or so now, and we are particularly pleased with the support for this
stock that has remained.
RS Group of Companies (RSGC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.61
Portfolio %: 9.6%
Portfolio % Range:  5.5-14.1%
Next Buy:  $.61
Next Sell:  $1.00
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                              www.rsgc.com  

Closing Price:  $.77

Quick Profile

RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad
series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November
2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution,
RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North
America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in
the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential
property developers and is being used as an extremely effective marketing tool in the United Kingdom for the
buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.

Contact:

RS Group of Companies, Inc.
Patti Cooke, 416-391-4223, ext. 4084
info@rsgc.com
This stock is such a slow trader that we only need to check on it every now and again, in fact, yesterday we only saw one trade.  They
registerd 600 thousand shares on the 25th of February under some consulting or employment agreements, which will not do much to dilute
the existing 22 million shares outstanding.  We will remain in this position for the time being until we get much closer to the Strategy
International Insurance take over.  The most recent news we have to go on is mixed, but interesting.  We did not here a reiteration of the
$1.75 offer for our shares, but we did not hear of any new proposal.  Nevertheless, this independent firm is their secret weapon to try and get
a little bit more value, but we do not see them coming up with anything new.  We have already scaled back this position to a point where we
feel very comfortable, but will not be pursuing any new buys here.  We took a fair portion of profits from this stock already, and we will not let
the rest of the position dwindle away.  We still see a good possibility of a dollar per share sometime real soon.  We will probably be in this
position at least until March.
Salon Media Group Inc (SALN)


Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.41
Portfolio %: 6.3%
Portfolio % Range:  6-7.2%
Next Buy:  $.21
Next Sell:  $.77
Quick Glance PSD Rating: 4 (1= close to next buy, 10=
close to next sell)
                                                                     http://www.salon.com
Closing Price:  $.31

Quick Profile

Salon Media Group, Inc. is an Internet media company offering journalism from news and in-depth analysis to
commentary on politics, technology, culture and entertainment. The Company also offers an audio-streaming Website
and hosts two online communities: Table Talk and The Well. The Well is a member-only discussion community, in
which members use their real names to post and only members can view the postings. Table Talk is available for all
Internet users to read, but only subscribers can post. Salon's revenue sources are from advertising and
subscriptions to Salon Premium and The Well/Table Talk. The Company's content provides an array of news,
features, interviews and regular columnists and include news and politics, opinion, technology, arts, life, books,
comics and Salon Audio (free recordings of short stories, novel excerpts, poems, essays and interviews).

Contact:

22 Fourth Street, 11th Floor
San Francisco, CA 94103
Phone: (415) 645-9200
Fax: (415) 645-9207
Email:
investor@salon.com



This stock continues to behave in excessively volatile fashion whenever we see even a hint of activity.  We would expect support to remain at
$.30, but we must keep in mind the highly speculative nature of this position.  We will need to see some dramatically lower prices before we
consider adding any more of the portfolio to this stock.  We will likely be changing our conditions around as rapidly as this stock changes it's
price.
Sense Holdings Inc (SEHO)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.215
Portfolio %:  6.3%
Portfolio % Range:  6.5-8%
Next Buy:  N/A
Next Sell:  $.23 (Mental Stop-Loss @ $.16, $.20)
Quick Glance PSD Rating: 9
(1= close to next buy, 10= close to next sell)
                                            http://www.Senseme.com

Closing Price:  $.18

Quick Profile
Sense Holdings, Inc. designs, develops, manufactures and sells fingerprint-based identification products and
systems that incorporate biometric technology to verify a person's identity. The Company has also owned, licensed
or has optioned for purchase additional security-related technologies: Micro Electro Mechanical Sensors technology
is used in the field of explosive detection and Biometric technology relating to keyless motor vehicle operation; Sense
Holdings, which has also developed and is marketing CheckPrint SDK, a software development kit for biometrics that
enables purchasers and licensees to create custom applications for software and hardware; CheckPrint DTU, which
provides users with the ability to secure a computer terminal and files and folders, via fingerprint identification, and
CheckPrint SDTU, which provides users the ability to secure a computer terminal with fingerprint biometric and a
smart card.

Contact:
4503 NW 103rd Avenue, Suite 200
Sunrise, FL 33351
Phone: (954) 726-1422
Fax: (954) 726-1747
Email:
jgarrity@senseme.com


Todays news looks fairly positive, so we will be changing our exit conditions slightly, just in case we get a little bit of a run up.  They are
somewhat complex, but should be easy to execute.  We will keep our mental stop-loss in the same place, at $.16, but if we get above $.20,
that stop loss will immediately rise to that same level.  Additionally, if we see $.23, we will sell the entire position immediately.
SoftNet Technology (STTC)

Links
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Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
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Portfolio Overview
Our Average Price:  $.192
Portfolio %:  13%
Portfolio % Range:  6.4-23.1%
Next Buy:  $.24
Next Sell:  $.35-$.40 (1/3 of the Position)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
                                   www.softnettechnology.com  

Closing Price:  $.2825

Quick Profile

Softnet Technology Corporation recently acquired WholesaleByUs, LLC.  In the short existence of one year, WBU
has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other Internet sellers programs as well
as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest
shipping time possible.



Contact:

SoftNet Technology
James Farinella, 866-898-4842/908-204-9911
www.softnettechnology.com


This stock continues to perform well and we again saw positive news yesterday.  This news was obviously not enough to send the stock
busting through the $.30 range, but we at least saw plenty of activity, and over 150 trades.  We will keep an eye on trading activity, and if we
see a nice boost along with prices in the mid $.30's, that will be the sign to take another third of the position off the table, and look for a dip
back below $.30 to pick up more.  We will remain patient for now, and will be keeping an eye on open market purchases from the CEO to
continue.

Daily Tip

Be sure to take a look at a companies complete filling with the SEC to determine the seriousness of the company and
their potential for becoming a big boy.  Press releases and abridged versions of quarterly reports are useless for your
research.  Go strait to the source,
www.sec.gov for all of your research.  There is no other place that information
becomes available and this is the first place to start, followed by a visit or phone call to the company.  Company websites
are important to, but not for financial information or press releases.  Use them simply to see how seriously the company
takes itself.










Enjoy Your Trading Day,
Penny Stocks Daily






Penny Stocks Daily does not receive any compensation whatsoever from the companies we follow.  We do not accept payment for the links we provide on this
Newsletter other than the Google ads.  We believe in the United States of America and stand by our First Amendment Privilege to provide an unbiased Investment
Newsletter to a  mass audience.  We do not, and will not provide individually tailored investment advice.  We are not responsible for any errors, material or otherwise
within our Newsletter.  We do not engage in pump and dump schemes and will not tolerate such activity.  You are responsible for your own investment decisions and
we strongly encourage you to do your own research.



"Penny Stocks Daily" and "Quick Glance PSD Rating" are Trademarks of Penny Stocks Daily.
Penny Stocks Daily
February 28, 2005
Good Morning,
A very respectable rally on Friday is certain to leave investors bullish this week, especially when we
consider that the DOW has now more than made up for it's largest one day decline in several years
from last Tuesday.  Meanwhile, the catalyst that started the decline for stocks, new four month highs
for Oil, remains, showing that even though stocks were hit hard when this happened, they had plenty of
other reasons to dust themselves off and get back up.  Volume was a little light last week, and we
certainly would have liked to see a bit more conviction behind this rally.  The Dow is now less than thirty
points away from a new fifty two week high, and only several hundred points a way from the long
awaited new all time high.  We will keep an eye on volume to let us know if this will be the case this
week and into next.  The NASDAQ, on the other hand continues to under perform the rest of the
market, no matter how long or short your time horizon is.  This tech heavy Index is now more than 6%
away from it's 52 week high, and has to more than double before finding a new all time high.  One
would have to believe that plenty of value exists in the electronic markets, from the NASDAQ 100 all the
way down to the pink sheets.  Right now futures are a bit mixed, showing even more signs of an under
performing NASDAQ.  What we need is not just a one day convergence for this Index, but we need to
see it pick up considerable ground all year long.  Qatar's Oil Minister said Sunday that the Organization
of Petroleum Exporting Countries might "cut supply to stop inventories from building" on March 16
when OPEC members gather in Iran.  This is somewhat troubling considering that Oil recently found
fresh four-month highs over $52/bbl, an almost 50% premium to prices found exactly a year ago today.
 The U.S. Dollar is likely to remain under pressure as long a Oil remains over $50 a barrel, and the
stock market will probably nor react until there is a extreme trend change in this futures contract.  M&A
activity remains with FD confirming it will acquire MAY for $11 bln and YELL will acquire USFC for $1.37
bln.  MYL has terminated its $4 bln agreement to buy KG and reports suggest Qwest will revise its offer
yet again for MCI.  A little bit of economic data out all morning long may move markets a bit, and will
keep an eye on the Bond pits, as well as S&P futures to see the first hint of any big move.  Right now
we are remaining bullish.
Micro Cap View
We continue to see very respectable activity for Micro Caps, and are beginning to see price action
more closely match the major markets.  We are seeing a little bit less of the heavy activity when Blue
chips are dull, and less activity when the spotlight returns to the listed world, and are now seeing a
level of consistency that is rare in this inconsistent market segment.  We continue to do more than 50
thousand trades a day in the top 100 issues on the OTC BB, and are even starting to see a little bit of
consistency over on the Pink Sheets.  Only one stock on the OTC BB did over 1000 trades, GTEL,
which is a little less than the first four days of last week, but we would expect a little less activity on
Fridays.  Mondays tend to follow suit, and we may see similar activity today.  We will look at Tuesday to
see if trade and dollar volume pick up and beats the previous two sessions, and we would march to
perform similarly to February, which may turn out to be the most active February ever.
New Initiatives and Recent Developments
After adding a couple of new stocks to the portfolio last week, we are a tiny bit overweighted in Micro
Caps as opposed to cash.  For this reason, we would like to see at least one sale in the portfolio,
whether it be taking profits or cutting some losses, before we attempt to add any brand new issues to
the portfolio.  This may take a day or two, or it could take five minutes.  We have adjusted many of our
buy and sell conditions for the stocks already in the portfolio, so please take note, and most
importantly,
we are looking to get rid of SEHO if and only if the conditions we have laid out
are met.
The Portfolio
Diabetic Treatment Centers of America Inc
(DBTC)

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Portfolio Overview
Our Average Price:  $.42
Portfolio %: 7.2%
Portfolio % Range:  6.7-7.5%
Next Buy:  $.32
Next Sell:  $.88
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                               http://www.dtcofamerica.com

Closing Price:  $.46

Quick Profile
Based in Salt Lake City, Utah, DTC of America is dedicated to providing effective medical therapies to diabetics that
will significantly improve their health and well being.



Contact:
Diabetic Treatment Centers of America, Inc.
Arden Oliphant, 801-207-1816
aoliphant@dtcofamerica.com

We continue to see plenty of volume in this stock and would expect it to continue at least through the first part of this week.  Although we feel
this stock is a bit undervalued, despite their lack of revenue, we may see some volatile action, and a quick move to either our profit target or
next buy point.  We originally began looking at this stock last fall when they reported that their revolutionary idea concerning the treatment of
diabetes without needles was approved for reimbursement from Medicare.  We saw the stock jump a little bit over a dollar, and has since come
down to a much more valuable level.  We may see a little bit of dilution from the recent letters of intent to acquire a couple of tiny businesses,
but feel that once this company starts generating revenues, they could see profits very quickly.  Nevertheless, as we mentioned previously,
the stock is likely to move with a bit of volatility and hopefully provide opportunities sooner rather than later.
Emergency Filtration Products Inc (EMFP)

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Portfolio Overview
Our Average Price:  $.48
Portfolio %: 7%
Portfolio % Range:  6.8-7.3%
Next Buy:  N/A
Next Sell:  $.52 (Mental Stop-Loss @ $.40)
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                        http://www.emergencyfiltration.com

Closing Price:  $.47

Quick Profile
Emergency Filtration Products, Inc. is a specialty filter products company that has developed an air filtration
technology for removing infectious bacteria and viruses in airflow systems. The Company's product line includes
RespAide cardiopulmonary resuscitation isolation masks, disposable filters for bag valve masks (BVMs), Superstat, a
modified collagen hemostat and personal environmental masks. Emrgency Filtration also has products in various
stages of development and production. These include its breathing circuit filters and emergency life support
ventilation and intubation system (ELVIS) for the BVM market. Approximately 80% to 90% of the Company's sales
have been to the United States military. Emergency Filtration holds military national stocking numbers for the RespAide
CPR isolation mask, the replacement filters and for Superstat. These stocking numbers make the products acceptable
for inventory in all four branches of the military and the United States Coast Guard.

Contact:
175 Cassia Way, Suite A115
Henderson, NV 89014
Phone: (702) 558-5164


This is another position that may becoming stale, but with the slow activity that has only slightly picked up, we will remain patient and keep the
same conditions probably all week long.  We will not be pursuing a new buy, and will look to take the entire position off the table at a slight
profit anywhere above $.52.  Alternatively, we will liquidate the entire position if support breaks down around $.40 in an attempt to stem any
draining of capital.  We are still lightly invested in this stock, but we have a tight stop loss because we have yet to see the activity that we
thought would return to this position.
GPS Industries Inc (GPSN)

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Portfolio Overview
Our Average Price:  $.114
Portfolio %: 13%
Portfolio % Range:  6-13.8%
Next Buy:  N/A
Next Sell:  $.21
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                   http://www.inforetech.com  
Closing Price:  $.10

Quick Profile

GPS Industries Inc. (GPSI) is involved in the development of golf course management technology. The Company
applies Global Positioning Systems (GPS) technology, radio frequency and an integrated network of wireless
technology to information systems for the golf and recreational industries. Its portable product, the Inforemer, is a
communications network that utilizes advanced Internet protocols to provide a wireless information system to
enhance recreational value, increase golf course profits and improve player safety. Effective September 30, 2003,
the Company amended its Articles of Incorporation to change its name from Inforetech Wireless Technology Inc. to
GPS Industries Inc.

Contact:

5500 - 152nd Street, Suite 214
Surrey, BC V3S 5
Phone: (604) 576-7442
Fax: (604) 576-7460
Email:
info@inforetech.com



We will keep a close eye on this position today.  We feel that support should hold up at a dime, but if we begin to see hints of $.08, we will
likely change our conditions rapidly later in the week.
RS Group of Companies (RSGC)

Links
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Portfolio Overview
Our Average Price:  $.61
Portfolio %: 9.6%
Portfolio % Range:  5.5-14.1%
Next Buy:  $.61
Next Sell:  $1.00
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                                   www.rsgc.com  

Closing Price:  $.77

Quick Profile

RS Group of Companies, Inc. has developed and is implementing a strategy to design, structure and sell a broad
series of pass-through risk specialty insurance and reinsurance platforms throughout North America. In November
2003, through its wholly owned subsidiaries, the Company introduced its core pass-through risk solution,
RentShield(TM) (http://www.rentshield.com), a Residential Rental Guarantee Program being offered to North
America's $300 billion residential real estate rental market. It is estimated that there are over 38 million rental units in
the United States and Canada. Rental Guarantee was first developed in Finland to provide surety to residential
property developers and is being used as an extremely effective marketing tool in the United Kingdom for the
buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline.

Contact:

RS Group of Companies, Inc.
Patti Cooke, 416-391-4223, ext. 4084
info@rsgc.com

We will remain in this stock for the time being until we get much closer to the Strategy International Insurance take over.  The most recent
news we have to go on is mixed, but interesting.  We did not here a reiteration of the $1.75 offer for our shares, but we did not hear of any
new proposal.  Nevertheless, this independent firm is their secret weapon to try and get a little bit more value, but we do not see them coming
up with anything new.  We have already scaled back this position to a point where we feel very comfortable, but will not be pursuing any new
buys here.  We took a fair portion of profits from this stock already, and we will not let the rest of the position dwindle away.  We still see a
good possibility of a dollar per share sometime real soon.  We will probably be in this position at least until March.
Salon Media Group Inc (SALN)


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Portfolio Overview
Our Average Price:  $.41
Portfolio %: 6.6%
Portfolio % Range:  6-7.2%
Next Buy:  $.21
Next Sell:  $.77
Quick Glance PSD Rating: 4 (1= close to next buy, 10=
close to next sell)
                                                                                          http://www.salon.com
Closing Price:  $.36

Quick Profile

Salon Media Group, Inc. is an Internet media company offering journalism from news and in-depth analysis to
commentary on politics, technology, culture and entertainment. The Company also offers an audio-streaming Website
and hosts two online communities: Table Talk and The Well. The Well is a member-only discussion community, in
which members use their real names to post and only members can view the postings. Table Talk is available for all
Internet users to read, but only subscribers can post. Salon's revenue sources are from advertising and
subscriptions to Salon Premium and The Well/Table Talk. The Company's content provides an array of news,
features, interviews and regular columnists and include news and politics, opinion, technology, arts, life, books,
comics and Salon Audio (free recordings of short stories, novel excerpts, poems, essays and interviews).

Contact:

22 Fourth Street, 11th Floor
San Francisco, CA 94103
Phone: (415) 645-9200
Fax: (415) 645-9207
Email:
investor@salon.com



We will most likely remain under weighted in this stock given the risk.  The volatile moves due to the tiny float will make for a lot of excitement if
and when any volume returns.  Just look at how fast this stock worked its way up to $.40 yesterday with only a tiny amount of volume.  What is
the most interesting is that yesterdays volume was right with the highest volume days this stock has seen, and we feel there is good chance
that this is just the tip pf the Iceberg.  Nevertheless, we will remain lightly invested in this fun issue and see if we can be on the right side of any
big percentage swings.  
Sense Holdings Inc (SEHO)

Links
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Volume and Price Studies
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Delayed Level II (Enter Symbol)
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Financials

Portfolio Overview
Our Average Price:  $.215
Portfolio %:  6.3%
Portfolio % Range:  6.5-8%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                                                 http://www.Senseme.com

Closing Price:  $.18

Quick Profile
Sense Holdings, Inc. designs, develops, manufactures and sells fingerprint-based identification products and
systems that incorporate biometric technology to verify a person's identity. The Company has also owned, licensed
or has optioned for purchase additional security-related technologies: Micro Electro Mechanical Sensors technology
is used in the field of explosive detection and Biometric technology relating to keyless motor vehicle operation; Sense
Holdings, which has also developed and is marketing CheckPrint SDK, a software development kit for biometrics that
enables purchasers and licensees to create custom applications for software and hardware; CheckPrint DTU, which
provides users with the ability to secure a computer terminal and files and folders, via fingerprint identification, and
CheckPrint SDTU, which provides users the ability to secure a computer terminal with fingerprint biometric and a
smart card.

Contact:
4503 NW 103rd Avenue, Suite 200
Sunrise, FL 33351
Phone: (954) 726-1422
Fax: (954) 726-1747
Email:
jgarrity@senseme.com


We are looking to get out of this position very soon, but we have included some conditions today that should allow for the opportunity to get
out at least very close to break even, while having a very tight mental stop-loss.  We will sell the entire position if support breaks down and we
see $.16, and we will also sell the entire position if we see $.205.
SoftNet Technology (STTC)

Links
Quick Snapshot
Volume and Price Studies
Charts
SEC Filings and Insider Transactions
Time and Sales
Delayed Level II (Enter Symbol)
Press Releases and Coverage
News Search
Financials

Portfolio Overview
Our Average Price:  $.192
Portfolio %:  13.2%
Portfolio % Range:  6.4-23.1%
Next Buy:  $.24
Next Sell:  $.35-$.40 (1/3 of the Position)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
                                                        www.softnettechnology.com  

Closing Price:  $.29

Quick Profile

Softnet Technology Corporation recently acquired WholesaleByUs, LLC.  In the short existence of one year, WBU
has been able to reach the Platinum seller status on EBAY and is close to reaching the highest level -- Titanium.
WBU designed a business model that allows the company to integrate with other Internet sellers programs as well
as with Paypal's system developers program. All sales can be tracked immediately to allow for the quickest
shipping time possible.



Contact:

SoftNet Technology
James Farinella, 866-898-4842/908-204-9911
www.softnettechnology.com


This stock continues to perform well.  We will keep an eye on trading activity, and if we see a nice boost along with prices in the mid $.30's,
that will be the sign to take another third of the position off the table, and look for a dip back below $.30 to pick up more.  We will remain
patient for now, and will be keeping an eye on open market purchases from the CEO to continue.

Daily Tip

Don't forget to watch for the strongest and weakest groups in the overall market and relate them to the OTC BB.  Also,
watch oil and gold prices to name a few that will certainly relate to companies we trade.  Always try to find why certain
stocks may have moved on lower or higher oil prices for example, even if they don't appear to be influenced by them.  
Closer examination can and a few extra steps can be rewarding.  Is the company's profits directly related to the
production of plastics.  Is it's expenses directly related to the price of gasoline used in it's delivery trucks, etc.  Stock
prices always move for a reason and it is our job to find out what that reason is and to anticipate future reactions.










Enjoy Your Trading Day,
Penny Stocks Daily






Penny Stocks Daily does not receive any compensation whatsoever from the companies we follow.  We do not accept payment for the links we provide on this
Newsletter other than the Google ads.  We believe in the United States of America and stand by our First Amendment Privilege to provide an unbiased Investment
Newsletter to a  mass audience.  We do not, and will not provide individually tailored investment advice.  We are not responsible for any errors, material or otherwise
within our Newsletter.  We do not engage in pump and dump schemes and will not tolerate such activity.  You are responsible for your own investment decisions and
we strongly encourage you to do your own research.



"Penny Stocks Daily" and "Quick Glance PSD Rating" are Trademarks of Penny Stocks Daily.