Back Issues
Pages are sorted with the latest issue at the top.
Jan 31-Feb 4, 2005
February 4, 2005

Good Morning,

This mornings jobs report was a bit more lackluster than was expected.  We have seen the bond
market react fairly significantly, as well as the currency markets, but we have not seen to big of a
move in equities yet.  This is quite positive, as we would normally expect stocks to move lower in the
short term on this kind for data.  Perhaps the internal numbers from this report are keeping stocks
afloat like the unemployment rate at 5.2 percent.  In fact, we could see the stock market rally in the
short term, as investors look ahead to the possibility of a continued measured pace of rate hikes all
year, with the final bias being as much as a half a point below the consensus.  Lower interest rates
are historically good for the stock market, although over the past decade or so, this has not played
out as predictably.  The stock market will now begin to focus on the rest of the earnings reports
coming out, and all of these Mergers and Acquisitions, which is all excessively bullish.  We will look for
stocks to test the upper end of their long term range in the very short term   If Oil continues to pull
back, and gets below $45 a barrel and stays there for a bit, that will definitely help.


Micro Cap View

We were happy to see that the discrepancies in OTC BB data were worked out very quickly this time
around, as they usually take several days to get their act together.  We have seen some very positive
activity over the past few days with respect to price.  Volume, on the other hand has remained on the
light side, and we feel that over the next week, a lot of market moving economic data will be behind us,
and investors looking for volatility will have to come back.  With the major markets looking flat today,
we may see this influx come earlier, rather than later.


New Initiatives and Recent Developments

We are currently 75.4 percent invested in Micro Caps as opposed to cash in our high risk portfolio.  
This is exactly where we want to be, and we have seen some pretty sharp moves higher over the past
few days, and we would like to become even more heavily invested in Penny stocks, because several
of our positions are very close to being scaled down for one reason or another.  With the cash that we
have available, and the possibility of more coming, we have one new buy planned for today.  We will
purchase GPSN with 7% of the portfolio, if and only if we can pick up shares for $.145 or less.  Please
see yesterdays "Outside the Portfolio" section for a little bit more detail, but we feel that this company
has a fantastic idea, they are in the right business for tremendous profit margins, and right smack in
the middle of winter is generally the best time to pick up warm weather related stocks.  This does not
mean that we will be holding this stock until August, we feel that the pace of contracts and sales could
easily be in the midst of picking up, as these resorts will need to set this stuff up as soon as possible,
in order to see the extra profits that this GPS golf money maker of sorts can bring to these clubs.  We
will look to get involved with this company very shortly, and if we do not get our conditional price
today, we will likely readjust it Monday.  We will not chase this position, as we feel the current price
represents possible value, but add 50% and we may be signing a different tune.
The Portfolio
                                                                              http://www.peaks.com  
Closing Price:  $.46

Quick Profile

American Skiing Company is a holding company, operating through various wholly owned subsidiaries.
The Company develops, owns, and operates a range of hospitality-related businesses, including skier
development programs, hotels, golf courses, restaurants, and retail locations. It also develops, markets,
and operates ski-in/ski-out alpine villages, townhouses, condominiums, and quarter and eighth share
ownership hotels. The Company manages its operations in two business segments, resort operations
and real estate operations.

Contact:

136 Heber Avenue #303, P. O. Box 4552
Park City, UT 84060
Phone: (435) 615-0340
Fax: (435) 615-4780
Email:
investinfo@ascresorts.com
American Skiing Co (AESK)

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:  $.525
Portfolio %: 19.6%
Portfolio % Range:  6.3-21%
Next Buy:  N/A
Next Sell:  Half of the position at $.52 (Stop Loss at $.38)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)

We will stick around for a little bit longer because we expect to eak out a profit with this position.  Not only has this stock showed strong
support at $.40, we appear to be sneakily headed higher, as this stock did a couple of months ago.  We simply think that Intrawest and other
big ski resort companies would be fools not to pick this company and it's debt up right now.  A lot of the glimmer in this company was removed
several years ago when one of their resorts that hosted the X games lost this very promising contract to a resort out west.  Over the past
couple of years, this company has continued to grow revenues, however, and when talking to ski and snowboard retailers, they have seen the
amount of free stuff grow over all of their other products, showing that this industry has seen a huge influx of cash very recently.  We will keep
our same condition for now, and honestly, would not mind becoming a little less heavily invested while we wait.
FORTUNE DIVERSF INDS (FDVI)

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:  $.56
Portfolio %: 6.8%
Portfolio % Range:  6.8-7.2%
Next Buy:  $.41
Next Sell:  $1.00
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
                                                                                  http://www.fdvi.net/

Closing Price:  $.53

Quick Profile
Fortune Diversified Industries, Inc., incorporated in 1988, is a diversified holding company. The Company, formerly
known as WOW Entertainment, Inc. and prior to that American Gaming & Entertainment, Ltd., has conducted its
business directly and through wholly owned subsidiaries. The Company is the parent company of Professional Staff
Management, Inc., Professional Staff Management, Inc. II and Pro Staff, Inc. (collectively PSM); Nor-Cote International,
Inc. (Nor-Cote); Kingston Sales Corporation (Kingston); Commercial Solutions, Inc. (Commercial Solutions); James H.
Drew Corp. (JH Drew); PDH, Inc. (PDH); Cornerstone Wireless Services, Inc. (Cornerstone Wireless); Cornerstone
Wireless Construction Services, Inc. (Cornerstone Construction); Innovative Telecommunications Consultants, Inc.
(ITC); Telecom Technology Corp. (TTC); StarQuest Wireless Services, Inc. (StarQuest); Women of Wrestling, Inc.
(WOW); and Murphy Development, Ltd. (Murphy).

Contact:
6402 Corporate Drive
Indianapolis, IN 46278
Phone: (317) 532-1374
Fax: (317) 974-1968
Email:
info@amstock.com



We have seen activity pick up over the past couple of trading sessions causing us to stick around.  Although we generally do not put much
stock into gapping up and down theory, we feel that the fundamentals of this stock may support the idea that we have filled the gap that was
created on January 14, and assuming that investors look at balance sheets, the trend should be up a bit from here.
Fonix Corp (FNIX)

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:  $.135
Portfolio %: 13%
Portfolio % Range:  5.7-13.4%
Next Buy:  N/A
Next Sell:  Half of the position at $.13 (Stop Loss @
$.094)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
                                                                                http://www.fonix.com

Closing Price:  $.125

Quick Profile

Fonix Corporation delivers conversational speech solutions to consumer systems and devices for everyday use. It
offers voice technology for mobile/wireless devices, computer telephony systems, the assistive market and
automobiles. The Company operates as two business units: Fonix Speech Group that delivers speech solutions in the
mobile / wireless, automotive, computer telephony and server, assistive and consumer speech and distributed speech
markets and Fonix Telecom Group, which offers wire-line voice, data, long distance and Internet services to business
and residential customers throughout BellSouth's Southeastern United States operating territory.

Contact:

9350 South 150 East, Suite 700
Sandy, UT 84070
Phone: (801) 553-6600
Fax: (801) 328-8778
Email:
truehs@investorideas.com


We have lowered out price where we will be putting half of this position back into cash, as we feel that we have become to heavily invested in
this stock for the moment after averaging down once.  We would still like to stick around to see if their continues to be positive developments,
but we simply do not want this stock to become a capital drainer.  We will look to take half of the position off the table if we can get anything
above $.13, and we may consider moving our stop loss up for the rest of the position.
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 %: 13.9%
Portfolio % Range:  5.5-14%
Next Buy:  $.61
Next Sell:  1/3 of the position at $.89
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                                         www.rsgc.com  

Closing Price:  $.80

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 has shown a little bit of strength this week, and we would expect this to continue leading right up to any announcement concerning
the merger in March.  We will keep the same conditions for now, but we may move our target for 1?3 of the position up a little bit soon.
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 %: 7.1%
Portfolio % Range:  6.9-8%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
                                                                       http://www.Senseme.com

Closing Price:  $.22

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


Over the past few days, we have seen this stock begin to consolidate.  We are expecting strong support somewhere between $.18 and $.22.  
Volume has been light, however when we compare trading activity to what we saw before this stock spiked on January 20, it has just about
doubled.  Right now, we do not plan on holding this stock forever, but we will stick around to see where the next leg up may be.  We would
expect some upward moving news soon, but if we seem to be headed lower, we will probably discontinue our next buy point, and may turn it
into a stop loss.
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:  $.166
Portfolio %:  15%
Portfolio % Range:  6.4-23.1%
Next Buy:  .24
Next Sell:  $.30-$.32 (Stop Loss for 1/3 of position)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
                                                              www.softnettechnology.com  

Closing Price:  $.315

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
 Over the past quarter or so, this company has shown some tremendous achievements.  Sometimes when companies issue a lot of great
sounding press releases, their actual numbers finally come in and they tend to look like fools.  We believe this company is dramatically
different, however, because of several factors.  First of all, we have a CEO that is outright buying his own companies stock with his own cash
at higher and higher prices.  Also, these are very substantive releases coming out, and this kind of growth in the Internet retail sector is not
unheard of.  Finally, we can see how this company is doing right on line at all of its Portals.  Holding support at $.30 may be tricky, however, so
we believe that locking in some of our profits now, could allow us to become even more heavily invested on a pull back to the mid $.20's.  The
volume growth we have seen has been tremendous, and there is always a chance of one more huge day to the upside.  Here is the plan:  
Should this stock look to dip below $.30, we will be selling 1/3 of the position.  If we hold up above $.30 all day and gain some more ground,
then we will sit tight until next week.  If we go below $.30 and become  a little less heavily invested, than we will immediately look to add another
7% of the portfolio back to this position, should we get the opportunity at around $.24.  

Daily Tip

In the world of listed stocks, NYSE, NASDAQ and AMEX, when a company files a notification of late filling for a report that
is due, it is typically a red flag, or a sign that something is going wrong.  When this happens, these companies almost
always issue press releases telling investors why they will be late, and it is usually because of an accounting discrepancy
that will change not just the already late period's financials, but previous quarters or years as well.  When a company on
the OTC BB files a notification of late filling, however, it should generally be shrugged off as the norm.  In the Penny
Stock world, these companies typically have a small staff, use smaller accounting firms that have much bigger work
loads, and generally need the extra time.  This is not to say that late fillings are not a sign of quality, but the quality level
of Over the Counter Bulletin Board stocks has improved so much in the past ten years, that investors are just happy to
see these filling at all.  Remember that Pink sheet stocks are not even required to file with the SEC at all, and less than a
decade ago, no unlisted stocks were under this legal obligation.  We never dismiss a stock because of the mere fact that
they are always late, but if we see a company that is consistently on time quarter after quarter, and year after year, we
will certainly include that in our analysis.





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.
February 3, 2005

Good Morning,

Jobless claims are out this morning showing a little bit of a positive precursor to
tomorrows Non Farm payroll Data.  Along with some more data due out at 10:00 AM EST
this morning, we would expect markets to move a little bit.  Futures have picked up a little
bit of steam to the downside after this report came out, perhaps because of concerns
that Fridays payroll numbers may be better than expected, and one more stellar addition
to jobs in March could cause the Fed to raise by 50 basis point later that month.  It is not
this simple, however, and the odds of that happening are pretty low, especially with
productivity looking to pull back a bit.  If we miss the numbers tomorrow by a significant
amount, expect the stock market to rally in the short term, and then trend lower.  Thanks
to an ECB meeting that left European interest rates unchanged at 2.0%, the dollar looks
a little bit better from a cash standpoint, which has caused the dollar to rally fairly
significantly.  The stock market has been moving inversely to the dollar for a while, but
believe it or not, we can have a strong dollar, a strong stock and bond market, lower Oil
and commodity prices.  The root of the problem is the U.S.'s debt, but more importantly,
it's trade deficit.  The rest of the world will move financial markets based on this logical
premise, while we are running around trying to figure out how to save a social security
system, that was essentially started as an alternative to socialism, by putting the money
that is left in to the stock market, which is a sneaky way of stealing from the poor and
giving to the rich.  Why can't we just fix the real problem, which is quite simple, we need
more money.  Everything is tied together, and perhaps the saddest part about our
economy is that it could be fixed by rolling back the tax cuts for the richest 1% of
Americans, and take the trillion dollars and lives we will spend in Iraq, and now Iran and
Syria, and invest it into alternative energy.  Being self sufficient would completely get rid
of the "Terrorist" problem, yet we continue to run this country like WorldCom, and
eventually, the dollar will crash and we will be forced to look into converting to a North
American dollar.  Fortunately, times change, and four years from now things could be
completely different.


Micro Cap View

Market data for the OTC BB is all mixed up, which seems to happen a lot.  Unfortunately,
there is only one service that disseminates this data, and when they get messed up,
everything gets messed up.  Overall, activity looked strong yesterday, but we simply
have no way of gauging volume.  At this point in time, there may be a lot of people
interested in Micro Caps, and hopefully, this will be the last time OTC BB market data
improvements lose ground.


New Initiatives and Recent Developments

We have tightened up a few of our conditions in order to attempt to get out of a couple of
stale positions, and let our winning trades run a bit.  In the meantime, we are keeping a
close eye on several new possibilities.  It is important to continue to look for new
opportunities, even if your portfolio is heavily weighted in stocks.  The more stocks we
can keep an eye on, and get to know, the more likely we will get the right entry point
when the time comes.  We continue to watch many of the stocks in our "Outside the
Portfolio" section as well as a few others.  We plan on definitely adding a couple of new
positions, even if we have to cut a few losers free.  
The Portfolio
American Skiing Co (AESK)

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:  $.525
Portfolio %: 19.6%
Portfolio % Range:  6.3-21%
Next Buy:  N/A
Next Sell:  Half of the position at $.52 (Stop Loss at $.38)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
http://www.peaks.com  

Closing Price:  $.46

Quick Profile
American Skiing Company is a holding company, operating through various
wholly owned subsidiaries. The Company develops, owns, and operates a
range of hospitality-related businesses, including skier development programs,
hotels, golf courses, restaurants, and retail locations. It also develops, markets,
and operates ski-in/ski-out alpine villages, townhouses, condominiums, and
quarter and eighth share ownership hotels. The Company manages its
operations in two business segments, resort operations and real estate
operations.

Contact:
136 Heber Avenue #303, P. O. Box 4552
Park City, UT 84060
Phone: (435) 615-0340
Fax: (435) 615-4780
Email:
investinfo@ascresorts.com



This stock barely moved yesterday and we will keep the same conditions, and should any positive action continue, we would like
to take half of the position off the table at our break even point, right around $.52.  We will not be averaging down again, and
have included a mental stop loss that we will trigger if the bid begins to break down around $.38.  Ideally, we would like to hold a
smaller portion of this stock in the portfolio for a little while, but feel the extra capital could be used elsewhere.
FORTUNE DIVERSF INDS (FDVI)

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:  $.56
Portfolio %: 7%
Portfolio % Range:  6.8-7.2%
Next Buy:  $.41
Next Sell:  $1.00
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
http://www.fdvi.net/

Closing Price:  $.56

Quick Profile
Fortune Diversified Industries, Inc., incorporated in 1988, is a diversified holding
company. The Company, formerly known as WOW Entertainment, Inc. and prior
to that American Gaming & Entertainment, Ltd., has conducted its business
directly and through wholly owned subsidiaries. The Company is the parent
company of Professional Staff Management, Inc., Professional Staff
Management, Inc. II and Pro Staff, Inc. (collectively PSM); Nor-Cote International,
Inc. (Nor-Cote); Kingston Sales Corporation (Kingston); Commercial Solutions,
Inc. (Commercial Solutions); James H. Drew Corp. (JH Drew); PDH, Inc. (PDH);
Cornerstone Wireless Services, Inc. (Cornerstone Wireless); Cornerstone
Wireless Construction Services, Inc. (Cornerstone Construction); Innovative
Telecommunications Consultants, Inc. (ITC); Telecom Technology Corp. (TTC);
StarQuest Wireless Services, Inc. (StarQuest); Women of Wrestling, Inc. (WOW);
and Murphy Development, Ltd. (Murphy).

Contact:
6402 Corporate Drive
Indianapolis, IN 46278
Phone: (317) 532-1374
Fax: (317) 974-1968
Email:
info@amstock.com



Light volume continues with this position, and we feel that any time a little bit of activity comes into this stock, the spread will
tighten up and the stock will head higher.  We are comfortably weighted with this position and will keep it on the back burner for
awhile until volume picks back up, which it may be threatening to do.  We may also suspend our next buy, and turn it into a
mental stop loss.  We will remain patient, however, as we have liked this companies financial statements for a while.
http://www.fonix.com

Closing Price:  $.119

Quick Profile
Fonix Corporation delivers conversational speech solutions to consumer
systems and devices for everyday use. It offers voice technology for
mobile/wireless devices, computer telephony systems, the assistive market and
automobiles. The Company operates as two business units: Fonix Speech Group
that delivers speech solutions in the mobile / wireless, automotive, computer
telephony and server, assistive and consumer speech and distributed speech
markets and Fonix Telecom Group, which offers wire-line voice, data, long
distance and Internet services to business and residential customers throughout
BellSouth's Southeastern United States operating territory.

Contact:
9350 South 150 East, Suite 700
Sandy, UT 84070
Phone: (801) 553-6600
Fax: (801) 328-8778
Email:
truehs@investorideas.com
Fonix Corp (FNIX)

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:  $.135
Portfolio %: 12.5%
Portfolio % Range:  5.7-13.4%
Next Buy:  N/A
Next Sell:  Half of the position at $.14 (Stop Loss @ $.094)
Quick Glance PSD Rating: 6
(1= close to next buy, 10= close to next sell)




Todays news looks quite positive, and we would expect this stock to get close to our sell point for half of the position.  Should this
occur, we will be happy to hold a smaller position for a little bit.  This is not the kind of news that you buy, as we may just see a
quick pop, therefore, it makes more sense to try and take a little bit off of the table, and then we will come in with a new weight
and strategy.
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 %: 13.8%
Portfolio % Range:  5.5-14%
Next Buy:  $.61
Next Sell:  1/3 of the position at $.89
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.rsgc.com  

Closing Price:  $.78

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 did end up trending towards Mondays late day ask pull, and we believe that their are simply not a lot of sellers left.  
We would expect this stock to head towards a dollar very soon.  As we have indicated in the past, we would like to stick around
with this position at least until March when the takeover deal could be finalized.  Nevertheless, we have included a price where
we would take around a third of the position off the table should Monday's late day pull of the ask materialize further.  This still
allow us to be fairly heavily invested, should the stock run to $1.50 or higher, but gives us the opportunity to possibly pick up
shares again should it bounce back.  We may lower our next buy condition throughout the week as well.
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 %: 7%
Portfolio % Range:  6.9-8%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.Senseme.com

Closing Price:  $.21

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 believe the low $.20's will remain solid support for this issue.  Right now we are exactly where we want to be.  We are lightly
invested, and do not plan on changing our conditions any time soon.
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:  $.166
Portfolio %:  12.8%
Portfolio % Range:  6.4-23.1%
Next Buy:  .185
Next Sell:  $.32
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.softnettechnology.com  

Closing Price:  $.281

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 have raised our target price for half of the position.  Todays news is again, fantastic.  We will be looking for their Annual
report in March to give us an idea of how all of these numbers look on paper.  It will be important to keep in mind that we
probably will not see a dramatic number for revenues or profits in this report, as they have seemed to be picking up steam during
the holidays and beyond.  Nevertheless we probably won't look to sell before the filling or anything like that.  We will attempt to
trade in and out of this stock a couple of times before then.  When things are going well for a stock you are in, you may as well
extend your gains as much as possible.  This stock just continues to look very solid, and we will probably stick around for a while,
and even become more heavily invested should the stock fall back to the low $.20's before we are able to take half of the
position off the table at $.29.  More good news late on Monday may allow this stock to continue even higher.  We will look to take
only half of the position off the table at $.29, and would quickly like to buy some back in the mid to low $.20's.  After we see the
action from the next few days, we will likely move our conditions around a little bit.  Do not worry, we plan on sticking around with
this issue for a while.  
February 2, 2005

Good Morning,

Futures have been pointing modestly higher all morning, despite investors awareness
that the FED will raise rates by a quarter percentage point.  We are at a crossroads, and
have been headed higher for a week now.  What the fed says today that may give any
kind of hint as to where we are going with these rate hikes, and where they will stop.  
Should we see any inclination of more aggressive hikes, we will almost definitely see the
dollar rally big time, and stocks take a bit of a breather.  We expect Allan and Co. to
continue these measure hikes without giving any clues, but you never know.  Should it
appear that hikes will slow, and that we may only be headed towards 3 or 4 percent by
the end of the year, the market will probably rally through the rest of the week.  The
presidents speech tonight will likely affect the stock market and the dollar tomorrow,
especially with respect to fixing social security, which is only broken because of tax cuts.  
Something is not right with the economy, and we will get a better picture on Friday when
non farm payrolls come out.  This will also be a big market mover, and we can expect
volatility to continue.


Micro Cap View

Overall, the action on the OTC BB matched that of Monday, with a strong divergence
from Blue chips.  Only 308 out of the 900 or so stocks under $.50 advanced, and we
barely saw any issues doing over 1000 trades.  Right now, alternative style investors are
a little tied up with currencies and derivatives.  We would expect activity to return next
week, once the rate hike, and jobs report comes out and is played.  We will watch for
institutional activity to pick back up at that point, as we have begun to see more and
more heavily funded investment firms getting involved with Micro Caps.


New Initiatives and Recent Developments

We have tightened up a few of our conditions in order to attempt to get out of a couple of
stale positions, and let our winning trades run a bit.  In the meantime, we are keeping a
close eye on several new possibilities.  It is important to continue to look for new
opportunities, even if you portfolio is heavily weighted in stocks.  The more stocks we can
keep an eye on, and get to know, the more likely we will get the right entry point when the
time comes.  We continue to watch many of the stocks in our "Outside the Portfolio"
section as well as a few others.  We plan on definitely adding a couple of new positions,
even if we have to cut a few losers free.  
The Portfolio
American Skiing Co (AESK)

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:  $.525
Portfolio %: 19.4%
Portfolio % Range:  6.3-21%
Next Buy:  N/A
Next Sell:  Half of the position at $.52 (Stop Loss at $.38)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
http://www.peaks.com  

Closing Price:  $.44

Quick Profile
American Skiing Company is a holding company, operating through various
wholly owned subsidiaries. The Company develops, owns, and operates a
range of hospitality-related businesses, including skier development programs,
hotels, golf courses, restaurants, and retail locations. It also develops, markets,
and operates ski-in/ski-out alpine villages, townhouses, condominiums, and
quarter and eighth share ownership hotels. The Company manages its
operations in two business segments, resort operations and real estate
operations.

Contact:
136 Heber Avenue #303, P. O. Box 4552
Park City, UT 84060
Phone: (435) 615-0340
Fax: (435) 615-4780
Email:
investinfo@ascresorts.com



This stock barely moved yesterday and we will keep the same conditions, and should any positive action continue, we would like
to take half of the position off the table at our break even point, right around $.52.  We will not be averaging down again, and
have included a mental stop loss that we will trigger if the bid begins to break down around $.38.  Ideally, we would like to hold a
smaller portion of this stock in the portfolio for a little while, but feel the extra capital could be used elsewhere.
FORTUNE DIVERSF INDS (FDVI)

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:  $.56
Portfolio %: 7%
Portfolio % Range:  6.8-7.2%
Next Buy:  $.41
Next Sell:  $1.00
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
http://www.fdvi.net/

Closing Price:  $.56

Quick Profile
Fortune Diversified Industries, Inc., incorporated in 1988, is a diversified holding
company. The Company, formerly known as WOW Entertainment, Inc. and prior
to that American Gaming & Entertainment, Ltd., has conducted its business
directly and through wholly owned subsidiaries. The Company is the parent
company of Professional Staff Management, Inc., Professional Staff
Management, Inc. II and Pro Staff, Inc. (collectively PSM); Nor-Cote International,
Inc. (Nor-Cote); Kingston Sales Corporation (Kingston); Commercial Solutions,
Inc. (Commercial Solutions); James H. Drew Corp. (JH Drew); PDH, Inc. (PDH);
Cornerstone Wireless Services, Inc. (Cornerstone Wireless); Cornerstone
Wireless Construction Services, Inc. (Cornerstone Construction); Innovative
Telecommunications Consultants, Inc. (ITC); Telecom Technology Corp. (TTC);
StarQuest Wireless Services, Inc. (StarQuest); Women of Wrestling, Inc. (WOW);
and Murphy Development, Ltd. (Murphy).

Contact:
6402 Corporate Drive
Indianapolis, IN 46278
Phone: (317) 532-1374
Fax: (317) 974-1968
Email:
info@amstock.com



Light volume continues with this position, and we feel that any time a little bit of activity comes into this stock, the spread will
tighten up and the stock will head higher.  We are comfortably weighted with this position and will keep it on the back burner for
awhile until volume picks back up, which it may be threatening to do.  We may also suspend our next buy, and turn it into a
mental stop loss.  We will remain patient, however, as we have liked this companies financial statements for a while.
Fonix Corp (FNIX)

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:  $.135
Portfolio %: 12.7%
Portfolio % Range:  5.7-13.4%
Next Buy:  N/A
Next Sell:  Half of the position at $.14 (Stop Loss @ $.094)
Quick Glance PSD Rating: 6
(1= close to next buy, 10= close to next sell)
http://www.fonix.com

Closing Price:  $.121

Quick Profile
Fonix Corporation delivers conversational speech solutions to consumer
systems and devices for everyday use. It offers voice technology for
mobile/wireless devices, computer telephony systems, the assistive market and
automobiles. The Company operates as two business units: Fonix Speech Group
that delivers speech solutions in the mobile / wireless, automotive, computer
telephony and server, assistive and consumer speech and distributed speech
markets and Fonix Telecom Group, which offers wire-line voice, data, long
distance and Internet services to business and residential customers throughout
BellSouth's Southeastern United States operating territory.

Contact:
9350 South 150 East, Suite 700
Sandy, UT 84070
Phone: (801) 553-6600
Fax: (801) 328-8778
Email:
truehs@investorideas.com




Essentially, if this stock moves up today, we will have formed a higher bottom than that of a few sessions ago when the stock hit
$.11.  Something higher than $.135 over the next couple of days would cause us to stay involved for a little bit longer as it will
look like its headed up.  Should we continue to fall towards a dime, we will likely look for a rapid exit strategy.  This stock
continues to hold up support at around $.12 and Monday mornings news did help a little bit.  We would expect this stock to at
least allow us to take half of the position off the table at $.14 sometime very soon, and allow us to take a bit of the risk away.  We
have also included a mental stop loss just below a dime.
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 %: 13.8%
Portfolio % Range:  5.5-14%
Next Buy:  $.61
Next Sell:  1/3 of the position at $.89
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.rsgc.com  

Closing Price:  $.78

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 did end up trending towards Mondays late day ask pull, and we believe that their are simply not a lot of sellers left.  
We would expect this stock to head towards a dollar very soon.  As we have indicated in the past, we would like to stick around
with this position at least until March when the takeover deal could be finalized.  Nevertheless, we have included a price where
we would take around a third of the position off the table should Monday's late day pull of the ask materialize further.  This still
allow us to be fairly heavily invested, should the stock run to $1.50 or higher, but gives us the opportunity to possibly pick up
shares again should it bounce back.  We may lower our next buy condition throughout the week as well.
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 %: 7.3%
Portfolio % Range:  6.9-8%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.Senseme.com

Closing Price:  $.22

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 believe the low $.20's will remain solid support for this issue.  Right now we are exactly where we want to be.  We are lightly
invested, and do not plan on changing our conditions any time soon.
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:  $.166
Portfolio %:  12.8%
Portfolio % Range:  6.4-23.1%
Next Buy:  .185
Next Sell:  $.29
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.softnettechnology.com  

Closing Price:  $.269

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 just continues to look very solid, and we will probably stick around for a while, and even become more heavily invested
should the stock fall back to the low $.20'2 before we are able to take half of the position off the table at $.29.  More good news
late on Monday may allow this stock to continue even higher.  We will look to take only half of the position off the table at $.29,
and would quickly like to buy some back in the mid to low $.20's.  After we see the action from the next few days, we will likely
move our conditions around a little bit.  Do not worry, we plan on sticking around with this issue for a while.  
February 1, 2005

Good Morning,
The stock market failed to gain any additional momentum yesterday after opening up
sharply higher.  We still appear to have upside potential in the short term, but yesterdays
lack of conviction, and the markets failure to push higher later in the day will likely weigh
heavily on sentiment today.  Futures are flat this morning, and there is a whole host of
earnings and economic data coming today which may add some much needed volume
and volatility.  Unfortunately, this could also be muted by uncertainty ahead of two things.
 The FOMC meeting tomorrow where Alan Greenspan and company will raise rates by at
least another 25 basis points, and George W's state of the union address.  First of all,
smart money will be hanging on the governments every word, not that they will provide
any useful information, but they will give tremendous insight into what the dumb money
may do.  Just because the stock market is supposed to go down when interest rates go
up does not mean they will.  The theory says that traders have to pay more to borrow
money, so they borrow less to invest in equities.  Right now, however, the U.S. Federal
funds discount rate will be higher than many major countries, making the dollar look a
little bit better than it has.  We have already seen a nice rally in the dollar this year, and
a continuation could cause the hoards of people out there betting against it to be forced
into covering their shorts.  This could easily bring easily bring a lot of cash back to the
stock market from Hedge Funds, Overseas investment funds, etc.  We will keep a close
eye on the Dollar, especially with respect to the Euro going forward, as Oil does not
seem to be providing the catalyst it did in 2004.  The market simply will not react to
Crude futures price changes unless we break out one way or the other from the $45-$50
a barrel range we are stuck in.  Meanwhile, gold and other commodities have cooled off
leaving little else to bring volume back to the stock market besides economic news,
earnings and yes, geopolitics are back.  It is starting to look a little bit like 2004 all over
again.
Micro Cap View
Penny Stocks continued their diversion from Blue Chips yesterday, ending up with a
negative trading session overall with relatively light volume.  The top 100 issues did
around 2 billion shares, and less than 50 thousand trades.  Futures for the major Indices
are starting to point up at 8:30 AM this morning, and should the stock market rally, we
would expect Micro Caps to have another lackluster day.  Nevertheless, we are very
interested in seeing the data for January encompassing the OTC BB.  Activity will
obviously be less positive than December, but we would like to compare it to January of
last year.  A comparison of December 2004 and December 2003 three again shows an
increase in liquidity and quality.  Dollar volume was at to 5 and a half billion, up from 4
and a half.  The number of MMs per security increased from 10 and a half to 14 and a
half.  The average number stocks was down a little bit, and further evidence of increased
quality comes from the average traded price of the pennies, or stock under five dollars,
going from $.67 to $.74.  Yesterday, the OTC BB did over three billion shares as a
whole, mainly because 12 out of the top thirty share volume leaders are priced under
$.001.  As always, earnings season weighs heavily on these kind of issues with delisting
to the Pink Sheets due to late filling with the SEC, and reverse splits.  We will watch for
quality to continue improving, as we compare each month with last years corresponding
month, and some of the best words we could hear from the NASDAQ this year would be a
restructuring of the rather archaic minimum liquidity requirements for market makers with
respect to Penny Stocks.  Considering how much money these guys and gals make, it
would be nice for them to offer a little bit more than 50 dollars worth of stock or cash in
issues trading around $.01.  We will continue to keep our fingers crossed.
New Initiatives and Recent Developments
As we have been hinting towards, we would like to do a little bit of reshuffling in the
portfolio, the problem is we do not see any reason to get out of any of the stocks we are
in completely.  What we will do, however, is scale back a few issues for which are very
lightly traded, because our time horizons are longer, and we can kind of put them on the
back burner while we attempt to get involved with a few new issues that we may have
shorter time horizons for.    We will attempt to do this throughout the rest of this week, so
please keep an eye on our aggressive price and weight conditions, particularly AESK,
FNIX  STTC and RSGC  Please take a peek at our "Outside the Portfolio" section for new
stocks that we are considering.
The Portfolio
American Skiing Co (AESK)

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:  $.525
Portfolio %: 19.8%
Portfolio % Range:  6.3-21%
Next Buy:  N/A
Next Sell:  Half of the position at $.52 (Stop Loss at $.38)
Quick Glance PSD Rating: 7
(1= close to next buy, 10= close to next sell)
http://www.peaks.com  

Closing Price:  $.47

Quick Profile
American Skiing Company is a holding company, operating through various
wholly owned subsidiaries. The Company develops, owns, and operates a
range of hospitality-related businesses, including skier development programs,
hotels, golf courses, restaurants, and retail locations. It also develops, markets,
and operates ski-in/ski-out alpine villages, townhouses, condominiums, and
quarter and eighth share ownership hotels. The Company manages its
operations in two business segments, resort operations and real estate
operations.

Contact:
136 Heber Avenue #303, P. O. Box 4552
Park City, UT 84060
Phone: (435) 615-0340
Fax: (435) 615-4780
Email:
investinfo@ascresorts.com



This stock perked up a little bit yesterday, and should any positive action continue, we would like to take half of the position off
the table at our break even point, right around $.52.  We will not be averaging down again, and have included a mental stop loss
that we will trigger if the bid begins to break down around $.38.  Ideally, we would like to hold a smaller portion of this stock in the
portfolio for a little while, but feel the extra capital could be used elsewhere.
FORTUNE DIVERSF INDS (FDVI)

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:  $.56
Portfolio %: 6.8%
Portfolio % Range:  6.8-7.2%
Next Buy:  $.41
Next Sell:  $1.00
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
http://www.fdvi.net/

Closing Price:  $.53

Quick Profile
Fortune Diversified Industries, Inc., incorporated in 1988, is a diversified holding
company. The Company, formerly known as WOW Entertainment, Inc. and prior
to that American Gaming & Entertainment, Ltd., has conducted its business
directly and through wholly owned subsidiaries. The Company is the parent
company of Professional Staff Management, Inc., Professional Staff
Management, Inc. II and Pro Staff, Inc. (collectively PSM); Nor-Cote International,
Inc. (Nor-Cote); Kingston Sales Corporation (Kingston); Commercial Solutions,
Inc. (Commercial Solutions); James H. Drew Corp. (JH Drew); PDH, Inc. (PDH);
Cornerstone Wireless Services, Inc. (Cornerstone Wireless); Cornerstone
Wireless Construction Services, Inc. (Cornerstone Construction); Innovative
Telecommunications Consultants, Inc. (ITC); Telecom Technology Corp. (TTC);
StarQuest Wireless Services, Inc. (StarQuest); Women of Wrestling, Inc. (WOW);
and Murphy Development, Ltd. (Murphy).

Contact:
6402 Corporate Drive
Indianapolis, IN 46278
Phone: (317) 532-1374
Fax: (317) 974-1968
Email:
info@amstock.com



We are comfortably weighted with this position and will keep it on the back burner for awhile until volume picks back up, which it
may be threatening to do.  We may also suspend our next buy, and turn it into a mental stop loss.  We will remain patient,
however, as we have liked this companies financial statements for a while.
Fonix Corp (FNIX)

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:  $.135
Portfolio %: 13%
Portfolio % Range:  5.7-13.4%
Next Buy:  N/A
Next Sell:  Half of the position at $.14 (Stop Loss @ $.094)
Quick Glance PSD Rating: 6
(1= close to next buy, 10= close to next sell)
http://www.fonix.com

Closing Price:  $.126

Quick Profile
Fonix Corporation delivers conversational speech solutions to consumer
systems and devices for everyday use. It offers voice technology for
mobile/wireless devices, computer telephony systems, the assistive market and
automobiles. The Company operates as two business units: Fonix Speech Group
that delivers speech solutions in the mobile / wireless, automotive, computer
telephony and server, assistive and consumer speech and distributed speech
markets and Fonix Telecom Group, which offers wire-line voice, data, long
distance and Internet services to business and residential customers throughout
BellSouth's Southeastern United States operating territory.

Contact:
9350 South 150 East, Suite 700
Sandy, UT 84070
Phone: (801) 553-6600
Fax: (801) 328-8778
Email:
truehs@investorideas.com




This stock continues to hold up support at around $.12 and yesterday mornings news did help a little bit.  We would expect this
stock to at least allow us to take half of the position off the table at $.14 sometime very soon, and allow us to take a bit of the risk
away.  We have also included a mental stop loss just below a dime.
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 %: 14%
Portfolio % Range:  5.5-14%
Next Buy:  $.61
Next Sell:  1/3 of the position at $.89
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.rsgc.com  

Closing Price:  $.81

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



As we have indicated in the past, we would like to stick around with this position at least until March when the takeover deal could
be finalized.  Nevertheless, we have included a price where we would take around a third of the position off the table should
yesterdays late day pull of the ask materialize to a rally.  This still allow us to be fairly heavily invested, should the stock run to
$1.50 or higher, but gives us the opportunity to possibly pick up shares again should it bounce back.  We may lower our next buy
condition throughout the week as well.
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 %: 7.3%
Portfolio % Range:  6.9-8%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.Senseme.com

Closing Price:  $.22

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



Despite yesterdays pullback, we believe the low $.20's will remain solid support for this issue.  Right now we are exactly where we
want to be.  We are lightly invested, and do not plan on changing our conditions any time soon.
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:  $.166
Portfolio %:  12.8%
Portfolio % Range:  6.4-23.1%
Next Buy:  .185
Next Sell:  $.29
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.softnettechnology.com  

Closing Price:  $.269

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




More good news late yesterday may allow this stock to continue even higher.  We will look to take only half of the position off the
table at $.29, and would quickly like to buy some back in the mid to low $.20's.  After we see the action from the next few days,
we will likely move our conditions around a little bit.  Do not worry, we plan on sticking around with this issue for a while.  
January 31, 2005

Good Morning,


We rarely see the futures market pointing to such a higher open as we see this morning.  
DOW futures being up 50 points or more at 8:00am only happens a few times a year.  
NASDAQ 100 futures were up by as much as 11or 12 points, but all three major indices
have since pulled back a little bit.  Nevertheless, we can expect the stock market to open
markedly higher after a reasonably successful election in Iraq.  Oil has pulled way back
after fears of disruption to Iraq's 2 million barrel a day and growing output subsided.  
OPEC will not disrupt supply for a bit, and temperatures in the worlds most heavily
consuming regions look to remain above average.  The greenback even rallied a bit
earlier this morning, but has since drawn back to it's happy home at around $1.3030 on
the Euro.  M&A activity is still exceptional, and with the S&P just barely eaking out a
positive week on Friday, stemming fears of four negative weeks in a row, today could end
up being the biggest one day rally of the year, and we would fully expect the week to end
on a positive note.



Micro Cap View


Micro caps finally diverged from the major Indices on Friday by having one of the most
positive days we have seen in a while, while the rest of the market took a breather. We
were happy to see that the diversion was to the upside for us, but with todays looking like
a frenzy of buying for the major markets, we would not be surprised to see Penny Stocks
pull back a bit, or at least break even.  We are starting to see more and more institutions
setting aside at least a little bit of cash for the OTC BB, which is excessively positive.  
Trades were good on Friday, breaking back above the 50 thousand mark for the first
time in a week or so, and we continue to see improved quality as the less legitimate
companies fail to file with the SEC on time from two quarters ago.


New Initiatives and Recent Developments



We are comfortably weighted in Micro caps for the moment with enough cash available to
add to any positions that meet our next buy conditions.  Almost all of the stocks in our
portfolio began to trend up with the rest of the OTC BB on Friday bringing us very close
to some key technical levels.  We would not be surprised to see our particular issues
continue to advance a little bit today, and we will likely look to step out of one or two
issues we are currently involved with should they get back above a break even point for
us.  Specifically, we are a bit concerned about AESK and FNIX.
The Portfolio
American Skiing Co (AESK)

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:  $.525
Portfolio %: 19.1%
Portfolio % Range:  6.3-21%
Next Buy:  N/A
Next Sell:  $.81
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.peaks.com  

Closing Price:  $.42

Quick Profile
American Skiing Company is a holding company, operating through various
wholly owned subsidiaries. The Company develops, owns, and operates a
range of hospitality-related businesses, including skier development programs,
hotels, golf courses, restaurants, and retail locations. It also develops, markets,
and operates ski-in/ski-out alpine villages, townhouses, condominiums, and
quarter and eighth share ownership hotels. The Company manages its
operations in two business segments, resort operations and real estate
operations.

Contact:
136 Heber Avenue #303, P. O. Box 4552
Park City, UT 84060
Phone: (435) 615-0340
Fax: (435) 615-4780
Email:
investinfo@ascresorts.com

This past weekend was the first time this companies mountains had plenty of fresh powder for skiers in time for a break from
work, and we herd of activity at their East Coast resorts picking up.  We would like to remain involved at least through Presidents
week, which is one of the biggest ski breaks of the year to see what conditions were like and see how sales were.  We are not to
concerned with the action of the last couple of trading sessions.  The spread is quite wide and volume is quite low.  What we
have seen is continuing support at $.40.  We will likely add a mental stop loss to this equation very shortly, probably around
$.38, as we do not want to be stopped out on a quick test of support at $.40.  We are guessing that this stock may be pivoting
and will head back up.  The stop loss will be to preserve some capital, but we have always had an open ended time horizon with
this stock, and have expected and even welcomed the low volume, which allows us to pay a little less attention to this stock.  It
looks like more snow this week.
FORTUNE DIVERSF INDS (FDVI)

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:  $.56
Portfolio %: 7.2%
Portfolio % Range:  6.9-7.2%
Next Buy:  $.41
Next Sell:  $1.00
Quick Glance PSD Rating: 4
(1= close to next buy, 10= close to next sell)
http://www.fdvi.net/

Closing Price:  $.58

Quick Profile
Fortune Diversified Industries, Inc., incorporated in 1988, is a diversified holding
company. The Company, formerly known as WOW Entertainment, Inc. and prior
to that American Gaming & Entertainment, Ltd., has conducted its business
directly and through wholly owned subsidiaries. The Company is the parent
company of Professional Staff Management, Inc., Professional Staff
Management, Inc. II and Pro Staff, Inc. (collectively PSM); Nor-Cote International,
Inc. (Nor-Cote); Kingston Sales Corporation (Kingston); Commercial Solutions,
Inc. (Commercial Solutions); James H. Drew Corp. (JH Drew); PDH, Inc. (PDH);
Cornerstone Wireless Services, Inc. (Cornerstone Wireless); Cornerstone
Wireless Construction Services, Inc. (Cornerstone Construction); Innovative
Telecommunications Consultants, Inc. (ITC); Telecom Technology Corp. (TTC);
StarQuest Wireless Services, Inc. (StarQuest); Women of Wrestling, Inc. (WOW);
and Murphy Development, Ltd. (Murphy).

Contact:
6402 Corporate Drive
Indianapolis, IN 46278
Phone: (317) 532-1374
Fax: (317) 974-1968
Email:
info@amstock.com



This stock has remained range bound since we got involved with wide spreads, although activity has remained higher than usual.
 We have not seen any insider selling with this position since we picked this company up, which is the most important thing to
watch out for considering how heavy the insider control in this company is.  Volume appears to be materializing, and we are
keeping our buy and sell conditions intact for now.  As we have said, we are not opposed to adding another 7% of the portfolio to
this stock should we pull back into the low $.40's.
Fonix Corp (FNIX)

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:  $.135
Portfolio %: 12.8%
Portfolio % Range:  5.7-7.3%
Next Buy:  N/A
Next Sell:  $.165
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.fonix.com

Closing Price:  $.121

Quick Profile
Fonix Corporation delivers conversational speech solutions to consumer
systems and devices for everyday use. It offers voice technology for
mobile/wireless devices, computer telephony systems, the assistive market and
automobiles. The Company operates as two business units: Fonix Speech Group
that delivers speech solutions in the mobile / wireless, automotive, computer
telephony and server, assistive and consumer speech and distributed speech
markets and Fonix Telecom Group, which offers wire-line voice, data, long
distance and Internet services to business and residential customers throughout
BellSouth's Southeastern United States operating territory.

Contact:
9350 South 150 East, Suite 700
Sandy, UT 84070
Phone: (801) 553-6600
Fax: (801) 328-8778
Email:
truehs@investorideas.com


Perhaps this mornings news will help get this stock back above $.13.  Support continues in the $.12's, where the latest equity
deal becomes un-profitable for the recipients.  We were finally able to add some more to this position at our conditional buy of
$.125, bringing our average price down to $.135.  We are now comfortably weighted in this position and will not be buying
anymore shares.  In fact, we will not follow this position below a dime, and will probably include a stop loss there very shortly.  We
are holding off for today, simply because we would like to give this company a little bit of time, and do not want to be stopped out
on a quick dip.  At this point, we believe our new average price is quite manageable, and should allow us to get out at break
even in the very least.  As we have said, if we do not get any positive developments out of this company soon, we will look to get
out completely on the first pop back in to profitability, or even break even.  Next week, we will have some tighter conditions laid
out, as we do not wish to make any rash decisions today simply because support could be breaking down.  We could easily see
some news that will get us to where we want to be.
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 %: 13.4%
Portfolio % Range:  5.5-13.6%
Next Buy:  $.69
Next Sell:  $1.50
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.rsgc.com  

Closing Price:  $.70

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 are expecting news from this stock within the next month or so, and as long as we remain in the $.60-$.80 range, we will
remain patient, and do nothing.  We are sitting right where we want to be after taking half of this position off the table in the
$.80's, after buying in the $.50's.  We then added some shares back to the portfolio in the high $.60's bringing our average price
and weight back to another profitable opportunity.  We have no problem sticking around until march, although we will need to pay
closer and closer attention to the aqcuiree, as holding shares of this could result in getting some percentage of cash at $1.75 a
share, and the rest of it in the new companies stock.   Right now this deal is only being valued at half of face value, mainly due to
what we think is lack of interest in the dull world of insurance.  We are very confident that this stock will be trading over a dollar
sometime between now and March, 2005 when the deal is expected to be finalized.  Whether it is the shareholder approval, or
some other press release.  The exact type of deal they are eluding to and as far as what we have seen in the past, rarely
changes from the original terms.  Also, if this deal does close in March, it will be at faster pace than we normally see.  We are
comfortably weighted for the time being, but if and when activity does return, we may adjust our conditions and trade in and out
of this stock a couple more times.  The change of accountants yesterday is no big deal.
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 %: 7.9%
Portfolio % Range:  6.9-7.4%
Next Buy:  $.16
Next Sell:  $.39
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
http://www.Senseme.com

Closing Price:  $.245

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 will watch for this position to continue making higher highs and higher lows.  We will likely adjust our conditions in the near
future to hopefully taker advantage of this positive action.  This stock looks to possibly be bouncing back up, and we will keep a
close eye on it.  As we have said, we are not opposed to averaging down at around $.16, and have a rather robust profit target.  
We will keep an eye on SEC fillings, but for now, this is probably our favorite position.
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:  $.166
Portfolio %:  10.9%
Portfolio % Range:  6.4-23.1%
Next Buy:  .185
Next Sell:  $.29
Quick Glance PSD Rating: 5
(1= close to next buy, 10= close to next sell)
www.softnettechnology.com  

Closing Price:  $.226

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



More buying from the CEO may tale root in the stock this morning and again provide solid support for this position at $.20.  At
this point, we will consider buying even more of this position at something under $.20, but we want to see what happens today
first.  Volume has been tremendous and consistent, and even looks to be continuing to pick up momentum.   This company
continues to be absolutely on fire and we would like to remain involved as long as possible.  We have taken some decent profits
off the table already, and our conditional price for the rest of the profits of something below $.20 has not been realized.  In other
words, support at $.20 has held up quite well.  We would like to become more heavily invested in this position again, and may
move our next buy condition up later next week.  We fell that this stock will at least test it's recent highs again soon, and possibly
find another leg up.  We will continue to watch volume which has been perfect thus far.  With the weight we have remained with in
this position due to it's decent percentage gain, we will again only take half of the position off the table at our next profit target,
which we may tighten up slightly later next week as well.

                                                  Daily Tip

Don't forget to watch the volatility measures that monitor whether the market is scared or not.  The VIX for listed stocks and the
VIN for the NASDAQ typically move inversely to the overall market.  Watch for discrepancy's, like the market moving up, while the
VIX stands still or moves up a little could be a sign of more consolidation to come.  As the volatility indices move up, people are
increasingly bearish causing fantastic buying opportunities.  Don't think that these measures apply to the OTC BB, in fact
volatility is what it's all about.


                                   Enjoy Your Trading Day,
                                      Penny Stocks Daily

                                                  Daily Tip

Is it worth entering all of the 3000+ issues on the OTC BB into a watch list?  Absolutely.  It is impossible to get any meaningful
information on the most truly active penny stocks any where on the web for free.  By sorting this list by dollar volume and trades
per day in your free online brokerage trading platform, you will get a birds eye view of the entire market.  It is definitely worth the
time to do this and you will get a lot more insight than the effort you put in.


                                   Enjoy Your Trading Day,
                                      Penny Stocks Daily

                                                  Daily Tip

We talk all the time about not letting your emotions get the better of you when trading stocks.  This principal is just as important
when it comes to looking at economic numbers and other catalysts.  You may feel strongly that the dollars is headed lower and
lower, but before you start buying Euro's for the long term, take a look at the charts.  Pretend you are a computer, and you may
quickly realize that betting against the dollar could be like buying Amazon.com in 1999.  Only put other peoples emotions into
your analysis, never your own.


                                   Enjoy Your Trading Day,
                                      Penny Stocks Daily

                                                                       Daily Tip

Remember that NASDAQ Market Makers like to keep a certain amount of shares of inventory as they legally manipulate stock
prices.  Try doing this for a week or so with OTC BB issues: Keep a running tally of which market makers where on the bid and
ask when orders were filled at the bid or ask.  Start with a very lightly traded issue to make it simple.  Assume that all trade going
through at the ask where bought from the market makers on the ask and split up evenly.  Also assume trades going through on
the bid were sold to the MM's equally on the bid.  Discard trades going through in the middle.  After a week or so you will begin to
be able to determine which MM's are sitting on more shares than normal or are low and need to get more.

                                                        Enjoy Your Trading Day,
                                                           Penny Stocks Daily