latest on PURE from gene inger's www.ingerletter.com
"PURE Bioscience (PURE) was added as a speculative 'pick' recently after the firm announced an offering discussed in prior remarks. Last week we speculated as price action faded modestly from recent highs, it had provided newer reasonable entries. It rallied fairly smartly, consolidating; so may press new closing bull market highs soon. This past week, after a 15% haircut, we argued further dips (perceived as temporary scenarios) would probably invite nibbling on the buy-side no lower than the 2.50's, as that was prior to potential rallying behavior ahead of next week's upcoming New York presentation. We got that and the stock closed on Friday near 2.80 on large volume.

Most of that occurred in the hour after we posted the San Diego Union Tribune story to our MarketCast members; as soon as one of our members made us aware of it. It is a bit ironic, as the stock had traded about 150,000 shares and was solid as a rock all day, but even with that story out, sleepy readers in San Diego didn't react terribly aggressively. Shortly after we distributed it to our intraday members (newspaper; so a very public source, whether entirely accurate or slightly off in a couple minor areas as I suspect; but not materially so), it hit the major wires and the rest was history. Sellers were evident too; probably some of the smaller low-cost registrants from the filing not entirely cognizant (or in agreement) with the potential we see should they 'land' even a single major household name consumer product client. This reminds me a bit of the early days in Ionatron, where the old USH&G holders with tiny costs thought a run to 2 or 3 was terrific (and it was for them), when in reality 'critical mass' was just starting to be contemplated, not even reached. Sometimes it's not greed hanging-in-there; it's smart. If you're a long-time investor in a speculative development stage company and they finally get their act together and are off to the races, it's likely not a time to leave the track, but to relax in the 'clubhouse' and see if you actually own a thoroughbred. It is time to let it have a chance to get some 'legs' to see if it can really be a performer.

At the same time, any hints of actual corporate progress could ignite renewed interest in the shares; with the San Diego paper pretty much validating everything speculated here (even more aggressively). The company has too; if you'll review 'charts & plans' posted on the purebioscience.com website. Glimpses of where they hope to take this interesting speculative little company in the near future (we call attention to the 'more info' button on the right lower side of their homepage; and to the fairly complex need to click with symbols as provided in the series of charts and tables; care needed not to be taken to the start) are provided.

Bottom line: the registration is out of the way; thought further dips to be temporary; then the stock would start firming ahead of next week's show in New York City, which likely will introduce PURE to a number of new players there. All of this has come as it has been postulated, which is no assurance as regards the future. However, as or if it closes over 3, anticipate PURE might subsequently file for an American Exchange stock listing, and then once it eventually (given contracts) surpasses 5, institutional or other interests become feasible. It's all speculative on contracts, test markets, sales, and of course a single consumer household company (or more) taking it National. In the long-run the 'drug' filings are pertinent, but in the near-term the cleaning products are a potential big deal, and not simply another 3 a.m. infomercial situation. That's as a result of the independent validations, and primarily because of CIBA distribution (in our opinion). However, anything 'concrete' on the hospital side is a big deal too, since over 40,000 Americans die annually of staph infections alone, picked up in hospitals.

We think the 'friendlier' FDA basically is reflecting the reality that bacterial resistance to other products is a big problem, and that this type of silver ion is not yet shown to become bacterial resistant. We don't know what the future holds; but for now this will do, and we think there is going to be a lot of interest in their product mix forthcoming.

As the updated tables in the website presentation pretty much cover most of what we intended to review (and we are justly slightly busy to say the least) we may not delve into details very much again, as the company's investor relations staff has really done a great job with that slide-type (PowerPoint probably) presentation of company goals; and the San Diego Union story covers most of what I was going to add about people (in terms of the saga, the pioneers and inventors; how they got from point-to-point). It is almost as if this stock is ready to take-off, so we won't belabor the basis of original analysis, and are glad speculators had the chance to take their time buying the dips.

Here's a link to the San Diego Union Story: if you're interesting in buying (or adding) it is of note that choppy action is entirely likely; and that this is a 'bb' stock; so use care.

http://signonsandiego.com/news/business/biotech/20060428-9999-1b28pure.html

Though of course even a contract won't mean instant distribution; it's the first step on the way, then test markets (maybe; but maybe not for some distribution like ideally in the case of The Home Depot, since their industrial supply arm already has a year's experience with PURE) and that might be good enough for some other big retailers. It is hard to say; but we do speculate the company's at a good 'pivot point' this year.

As to that 'PowerPoint' presentation on the website, we've rarely if ever seen one so straight to the point, and not mincing words in efforts to describe a company's plans. The 'linkage' by clicking to multiple pages also is highly unusual, and shows a great deal of confidence and care went into preparing it. If the company's able to remotely execute on what's outlined, it promises a very interesting few months and years (the drug indications ultimately) coming up. It's necessary to point-out this is speculative until something is announced, but we're tempted to be optimistic given an aggressive schedule they themselves outline. Our price projections were for 3 by summer (doubt any problem with that), and ideally 4-6 later this year and then we'll see. (Opinions.)

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latest from INGER ingerleter.com on INKS

InkSure (INKS) presented a solid earnings report and 'conference call' recently. The stock advanced ahead-of, during, and even after the report; then it eased and now is firming again into the Boston presentation of 'chipless RFID'.

News today (slightly abbreviated and condensed by us, with no material changes):

InkSure Technologies Inc., a leading provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud and diversion, today announced that its wholly-owned InkSure RF subsidiary has been awarded a new U.S. patent related to the Company's ongoing development of "chipless" RF printed labels.

US patent number 6,997,388, entitled "Radio Frequency Data Carrier and Method and System for Reading Data Stored in the Data Carrier," was granted February 14, 2006. This is the 3rd patent involving "chipless" RFID applications granted to InkSure Technologies in the past 16 months.

This new patent and anticipated future grants define our serious intentions in this field," stated Elie Housman, Chairman and Chief Executive Officer of InkSure Technologies Inc. "While RFID (Radio Frequency Identification) technology enables automatic non-contact and non-line-of-sight conveyance of product and logistical information, current RFID applications require the embedding of relatively expensive chips into the ID tags, making (other) item-level tagging cost-prohibitive for most products.

Our (InkSure's) goal is to develop multi-bit 'chipless' RFID printed labels that can be manufactured and applied (or imprinted we'll note) at a cost of well below one cent each. 'Chipless' RFID labels offer far more speed, functionality and ease-of-use than traditional barcodes, and have the potential to revolutionize brand protection and supply chain management on a global scale." (ed: that's the part we view as having 'disruptive' potential versus the more-expensive and silicon-based competition).
According to IDTechEx Ltd., a leading consultancy in smart labels and smart packaging, "chipless" label technology is expected to represent 45% of total RFID unit volume within ten years.
"We believe that, based on this patent, we have achieved a technology proof-of-concept that addresses the most critical challenge involved in the development of a 'chipless' RFID tag/label using printed conductive ink marks," continued Housman. "This should pave the way to one of the most promising technological foundations for cost-effective 'chipless' RFID solutions."
InkSure, with its corporate headquarters in Ft. Lauderdale, Florida and its R&D center in Science Park, Rehovot, Israel, specializes in uniquely comprehensive, covert security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. The Company's sales and marketing activities target sectors including financial, pharmaceutical, branded products, transportation, and government/institutional areas, on a global scale. The Company's R&D activities include development of "chipless" RFID technology for affordable item-level secure logistics and track-and-trace applications.
We suspect that the 'chipless RFID' presentation this week, may commence a good intro for InkSure to showcase existing product lines too; as many potential customers don't need non-line-of-sight (RFID) ability for everything that they market these days. Or they may need it for caseloads, but not necessarily piece goods. If so the current offerings of low-cost-per imprint authentication & anti-counterfeiting technology may be very important to present, though likely lacking the future-tech 'pizzazz' of RFID.

Today; the stock briefly breached 4 again, then settled-back a little. With presentation and realization of the company's potential (and it's just that, though they have stated a couple meaningful undisclosed major accounts that are in various stages of starting with them), we would not at all be surprised to see (reserved comment for members).

Essex Corporation (KEYW) consolidating after recent easing (more commentary).

Ionatron (IOTN) is a developing 'disruptive player' in Directed Energy Weaponry. In our opinion the ' conference call' shed more light on prospects (and affirmed direction for a number of areas) as 'theorized and speculated' about, in a very favorable way.

The pattern action in this stock remains excellent. It continues so and we expect that to not only continue to be the case, but we are actually looking for price improvement, (as outlined). Stay tuned to our daily (or intraday if a MarketCast member) comments.

(Reserved for members only) added as a speculative 'pick' after announcement as discussed in last evening's remarks. We will not be reiterating the commentary, as it was lengthy (though we do appreciate several kind comments about our thoroughly covering pertinent aspects in a first write-up). Members may refer to the March 28th Daily Briefing text for the full assessment of this potential best-of-breed selection.

By the way, we 'unofficially' heard rumors that in Taiwan there has been 'field testing' of variation of (reserved) product for months, as it may be effective against surface superficial contamination of 'bird flu' (yes, H5N1 Avian virus). Yesterday's curiosity it turns out was more than speculation; we have heard that is actually the case (more). Of course 'bird flu' utilization is terrific; but absolutely not our primary interest in this.

Today: price action excellent. We are extremely pleased the shares didn't gap up and in that regard thank members keeping it

gene ingers latest on INKS
www.ingerletter.com

InkSure (INKS) is relatively light-volume; consolidating around or just shy of 3 now in light activity. Increasingly looks like it wants to firm prior to the Quarterly discussion or much the presentation of the 'chipless RFID' system next month in Boston. 'Chipless RFID' will have application in National Security, and even with the military eventually.

We think one reason the company is incorporated here is so as to do U.S. business; as many states and the Federal Government would require that for document issues (maybe they should apply that to all points of entry to this Country too; you'd think).

There is a new law, a rider to a defense appropriations bill last year; calls for states to comply with national standards for drivers’ licenses by May 2007. Key will be the requirement for a uniform 'machine-readable technology' that will store the bearer’s data. Since the law does not specify which machine-readable systems are required to be employed, the task of sorting out differing available technologies falls to the heroic Department of Homeland Security, which is now undertaking the rulemaking process this year. Many states currently use magnetic strips to store basic information on all drivers licenses, but these strips can rarely be read outside their jurisdictions. Real ID (the nickname for the law) will require inter-state operability, and thus consistency.

The American Civil Liberties Union opposes this measure, as does the libertarian Cato Institute. Some religious fringe groups have gone as far as suggesting national identification cards could be 'the mark of the beast' as prophesized in the Book of Revelations. Nonsense. The security of our persons and our Nation demand it; not to mention safety on the roads (not so incidentally if an illegal driver ever hit you). But of course there is the other side of the coin; the Coalition for Secure Drivers’ Licenses is a stanch supporter of more stringent ID standards. The 9/11 Commission also called for Federal regulations in the issuance of birth certificates and driver’s licenses. We'd have one guess what company could economically provide 'chipless RFID': INKS.

Of major concern to groups opposing the measure is possible use of radio frequency identification (RFID) chips, because they contain small antennae that can be read by low frequency transceivers. DHS has already put in place requirements to install such chips in passports, and critics of the technology fear driver’s licenses will be next. We say fine; too bad we have to go in this direction, but if so do it efficiently, elegantly as regards non-intrusive markings, and economically, via 'digital ink', not with expensive silicon chips (though it would work but be heavier and definitely not so cost-effective).

A taxpayer watchdog group, Citizens Against Government Waste, recently took an aggressive stance in opposing the technology, estimating in a report that the cost of a license could rise from $10 to $25 now, to $90 if chips are chosen over magnetic strips. We concur; that's why we advocate 'chipless RFID' at pennies per impression.

'Installing radio frequency identification chips or similar technology into every driver's license will be an expensive, invasive and less secure way to update identification documents'; said the CAGW group. We concur. Do it differently. In December, that group delivered a petition with 5,000 signatures to Homeland Security Secretary Michael Chertoff opposing the RFID solution. However, Chertoff a fan of technology such as RFID, called RFID cards 'very useful'. The chips are not 100 percent secure, opponents say. Low-frequency transceivers used by unauthorized identity thieves can pick up data from several feet away. One company on the 'net already promotes an electromagnetic shield that can be placed in wallets or purses to protect driver’s licenses against ID theft, even though RFID remains 2 years from implementation if it were to be approved.

Those who believe current state driver’s licenses protect identities are 'delusional', Chertoff told reporters at a briefing. Again we concur. We also agree two other ways to address the issue are 'chipless RFID', such as InkSure will present in late March, or even InkSure's conventional 'digital tagging ink' authentication solution, as it emits no such signal as opponents are concerned about, and by the way is easy to operate with respect to 'confirm or deny' scanning readers. Furthermore, we believe the INKS 'chipless RFID' system will have sufficient frequency (sort of spread-spectrum, but it's not exactly that) to defeat typical efforts to 'hack' or scan the ID's; an expressed fear.

Chertoff frankly thinks a secure card that is not forgeable, that is biometrically based, actually protects people against identity theft'. So, he should be doubly enthusiastic about InkSure's 'chipless RFID' technology then; but we don't know, though hope the Government participants at the Boston gathering will do more than check it out (we'd really hope that preliminary discussions have already occurred; and if not suggest the company consider doing so). There might be some high-tech thieves who could read a card through someone’s wallet or purse; Chertoff has opined. 'I don’t know if taking extreme hypotheticals is a way to make public policy' he was quoted as saying. Well, our answer is this is the future; one company won't have it all; but a consistent tactic of codifying drivers licenses to cause counterfeiters, forgers, terrorists and criminals, to run afoul of the law, is a good thing. And we believe InkSure has existing products that go a good ways towards fulfilling this need (which they probably haven't as of yet introduced to state or Federal agencies, though we wouldn't know), not to mention an interesting promise in the forthcoming 'chipless RFID'. World premier: late March.

In the meantime; of course it's a speculative stock as outlined before; and on the 'bb' so care in accumulation is necessary. It can be volatile and subject to sharp swings in both directions, as we've already witnessed on occasion. However, we do not believe so many of the old (some still quite young) 'players' from Sensormatic (the pioneer of the RFID field; later sold to Tyco) would be involved (more in the last couple months) if they didn't believe this very small company had some compelling innovative gear to show to prospects, and potentially upstage some very big technology names as well.

NOTE final Paragraph!

Chipless RFID - The End Game
RFID tags that do not contain a silicon chip are called chipless tags. The primary potential benefit of the most promising chipless tags is that eventually they could be printed directly on products and packaging for 0.1 cents and replace ten trillion barcodes yearly with something far more versatile and reliable. Learn more from exclusive new IDTechEx research.
Feb 20, 2006


RFID is a powerful enabling technology with ever widening application. However, potentially the largest applications of RFID such as consumer packaged goods, postal items, drugs and books can only be fully addressed if tag prices drop to under one cent including fitting them in place. There are many paybacks from doing this but, even taken together, they do not justify more. These largest applications offer potential sales of ten trillion tags yearly but silicon chips will always be too expensive to form the basis of more than a tiny proportion of such tags. Even without the expense of a silicon chip, a fitted cost means that, like 95% of barcodes today, the majority of highest volume RFID tags must be applied directly to products and packaging to achieve a fitted cost of well under one cent. A totally new report based on new research by IDTechEx analyses the situation. It is called Chipless RFID Forecasts, Technologies & Players 2006-2016 - this is the only report to assess all the technologies, barriers, players and forecasts for chipless RFID.
What is Chipless RFID?
RFID tags that do not contain a silicon chip are called chipless tags. The primary potential benefit of the most promising chipless tags is that eventually they could be printed directly on products and packaging for 0.1 cents and replace ten trillion barcodes yearly with something far more versatile and reliable.

The mainstream types of chipless tags are digitally encoded and work at more than one millimetre range, like silicon chips. Their potential markets go beyond the lowest cost - highest volume potential markets because they have other attributes beyond cost. Indeed today they are sold for higher price than silicon chip tags in some cases and lower cost in others. That will continue to be the case. Unique signature, analogue artefacts such as the magnetically encoded stripe in a banknote or microwave reflecting fibres in security paper can be sensed at one millimetre away and therefore just about fit into our definition of RFID but they have little application beyond anti-counterfeiting. We therefore discuss them only briefly in this report and we omit them from our statistics.

The next ten years will see a rapid gain in market share of chipless tags. The numbers sold globally will rise from 5 million 0.4% in 2006 to 267 billion 45% in 2016. By value, chipless versions will rise from $1.2 million 0.1% in 2006 to $1.39 billion - a more modest 13% of all income from RFID tags in 2016 because most of the increase in penetration will be by price advantage. Including the infrastructure, software and services, that is a $2.8 billion market for chipless RFID systems in 2016. Thereafter, chipless tags will rapidly come to dominate the RFID market though the most technically capable chips, such as financial cards containing microprocessors, 5.8 GHz tags for non-stop road tolling or Ultra Wide Band tags for Real Time Location Systems will continue to be made using silicon chips.


Source: IDTechEx
Many chipless technologies but few winners
The first generation of chipless technologies did not meet open standards for use by many service providers and no attempt was made to write such standards for them. There were many chipless technologies offered including acoustomagnetic, swept RF inductor capacitor arrays and electromagnetic RF sputtered film - each a multi-bit version of one of the three types of anti-theft tag in common use. Others have been in the form of diode arrays, Surface Acoustic Wave SAW devices and chemicals that emit high frequencies when moved. However, only acoustomagnetic tags for error prevention in healthcare and SAW tags for non-stop road tolling and manufacturing have achieved sales above one million tags. The acoustomagnetic tags of AstraZeneca come out in front and 4.5 million continue to be used every year. However, this design is difficult to cost reduce further and it has performance limitations such as rigidity. The main characteristic of most of the first generation chipless technologies was that they were pursued by small, undercapitalised companies in the main and they had technical limitations that were troublesome in the marketplace.
Second generation chipless tags
By contrast to the above first generation chipless tags, SAW tags can be improved technically and cost reduced a great deal and they store enough data and operate at a popular frequency used by conventional chip RFID. This means they can be the basis of large closed and open systems. Indeed, initial work has been done by EPCglobal to incorporate SAW capability in the standards it develops within ISO. Two other technologies are also very promising here. New participants have come up with electromagnetic tags based on nothing more than printed stripes of conductive ink on paper or low cost plastic film. In addition, about forty companies are working on Thin Film Transistor Circuits TFTCs - most of them capable of being printed at high speed on low cost plastic film. TFTCs can have the same electronic circuit as that in the silicon RFID chip, so, subject to limitations of the materials used, they can employ the same frequencies and standards as chip-based RFID. The ability to operate at 13.56MHz is extremely important as 55% of tags ever made have operated at this frequency and the figure will be over 70% in 2016. It is the preferred frequency for cards, tickets, library, laundry, pharmaceutical and postal items. The main business characteristics of second generation chipless technologies are that they are being backed by some of the world’s largest companies and some well capitalised small ones. Many of them are in a position to be both sellers and users. They include IBM, Hewlett Packard, Xerox, 3M, Toshiba, Dai Nippon Printing, Toppan Printing and Samsung. Packaging and paper giants such as Mreal, MeadWestvaco and International Paper are also involved. However, there are impediments to even these technological routes and we summarise the situation in the table.

Benefits and challenges for the most promising chipless RFID technologies

Source: IDTechEx

In addition, these technologies also share the attributes of employing non-toxic materials and potentially low cost production facilities compared to silicon.
Best for specific types of application
The most promising chipless technologies will be best directed at certain applicational sectors. Even then, they are not suitable for many opportunities within these applicational sectors and in some such as air baggage and animals the standards are already against them. The best sectors for chipless are nevertheless items (books at manufacture, library, laundry, pharmaceutical, consumer goods, archives, postal),smart tickets/ banknotes/ other high volume secure documents, air baggage, animals, people such as prisoners, those on parole or in hospitals or care homes, vulnerable invalids, visitors to leisure facilities, theme parks etc, high value logistics.
Learn more
Read the World's only report covering the Future of Chipless RFID, from IDTechEx: Chipless RFID Forecasts, Technologies & Players 2006-2016.

Only IDTechEx air chipless RFID in depth at our events - we see the future. Hear the exclusive announcement of a new chipless technology developed by Inksure at RFID Smart Labels USA 2006, March 28-29, in addition to Motorola, PolyIC and others. Trust IDTechEx.

almost everynight,not to this degree,some nights a line or two ,but since it's one of his top picks,there is usually a large write up once a week or so, you can take out a trial visit the website check his free stuff and bio
www.ingerletter.com

i forgot--please remember i cannot post every night so if you want this kind of coverage please look into his letter(great history)
www.ingerletter.com

Gene Inger's latest(and fairly In depth )write up on INKSURE

Advanced Photonix (API) found earnings reported in the middle of the afternoon as it turns out; though the 'official' press release wasn't provided until just after the close.

On a minor note, there is some debate about securing 'tax abatements' in Ann Arbor; a prerequisite to obtaining certain incentives from the State of Michigan. We suspect it is presumed this issue will not be a stumbling block, as the company may have had the opportunity to imply that certain movements from other locales are contingent on these incentives being provided. We suspect the State senator lobbying for API to do this consolidation in Ann Arbor, presumed cooperation from the City before the issue came to debate, or had certain implied assurances the City wouldn't be an obstacle.

Revenue for the third quarter of fiscal year '06 and nine months ended December 25, 2005 were $6,511,000 and $16,782,000, respectively. Fiscal Q3 revenue increased by $2,659,000 or 69% over revenue of $3,852,000 for the third quarter of fiscal year 2005. The Company recorded increases in four of its principal markets during Q3 06 (and four during YTD '06) with most significant revenue increases coming from the telecommunications, industrial sensing and homeland security markets. Revenue for the third quarter to the industrial sensing markets rose to $2,739,000 in Q3 06, an increase of $699,000 or 34% over the prior year due to the additional revenue from the recent acquisitions and organic growth. The acquisition of Picometrix provided the Company entry into the homeland security market with its Terahertz products and contracts and significantly extended its reach in the telecommunication markets with optical receiver products (though revenues from the Cisco router, if applicable, aren't really visible as yet, and no formal contract has yet been announced if forthcoming).

All in all it's pretty good, because there were (and will be) certain notable expenses in regards to the move from (and upgrades in) Camarillo, as well as for the acquisition of Picometrix. These generally were non-recurring so would have meant a decent Q4 anyway. That said, the consolidation to Michigan has expenses, so it's helpful that all the robust increases in various sectors are contributing to offsetting those costs in the course of transforming this company into what we think will be a not-so-small player.

In the very short-run (and the 'official' PR release was posted after the close), there is little doubt that some of the large 'sale' blocks showing up around 3 were likely -as in the prior Quarter's case- from Highbridge, the venture capital group that tends to use rallies to feed out their remaining holdings (acquired by financing Picometrix prior to a deal to be acquired by API). If for some reason they don't compel API to take money in the second traunch (phase), you could see their remaining shares absorbed rapidly as the stock gains a greater following. Over time, 2 million shares later supply or not, it is likely that reported progressive accomplishments of the company absorb that and likely engender more institutional interest, though much of that will increase (we think logically) particularly when and if it moves over 5. So from a 'coverage' or as regards broader institutional interest, we think moving from 2 to 5 is tougher than maybe 5 to 10 down the line. I'm sure there are players that would be thrilled to get 5; but maybe they don't understand that about that time it's an affirmation that the company finally is hitting critical mass, and that's when institutions (even those already nibbling) tend to buy into strength, rather than merely on palpable price concessions. It's also why in our assessment, we were not early, but thought the (current) absolute low would be in 2005, with pullbacks of course, but with the shares possibly doubling or so with the affirmation of business development in 2006, and then 'in-play' ideally in 2007.

In our view 'in-play' did not refer to a move from 2.50 to 5, but maybe from 5 to 10+. So that's why while we have held it consistently since our first write-up, and are not disappointed by the periodic 'blocks' that greet rallies (because these were known as well as discussed venture capital share and warrant obstacles for price appreciation short-term, but become irrelevant in the fullness of time in our view). It's also why we tend to think API referred to their entry in certain areas like 'homeland security' as an 'incremental' addition to revenues for the next few quarters. Our suspicion is that they are absolutely optimistic about these growth areas (including telecom and the military applications for optical devices), but realistic on (without saying it) working-through a couple million (more or less) of overhead shares before the stock moves potentially a bit more dynamically. So we think it's sort of a 'grind' near-term, but eventually breaks free of the hobbling shares from the Pico venture deal, and/or reflects interim news.

It's our thinking that if volume increases with attention, or institutional nibbling grows, then it won't take several quarters for API's pioneering THz work to be recognized. In a nutshell that's why we selected it for 'small-cap' pick of the year, with patience that's hard to assess with respect to how long that takes. If we thought it would take 'till '07, we wouldn't have picked it until then. We think this year is a reasonable move, and by next year (if things progress reasonably) we'll look to API to get much wider attention. Do note that they managed to eek-out a profit, so unless they're playing to Ann Arbor and Michigan politicians for the tax breaks, this looks better than 'incremental' gains.

As the year progresses we are optimistic that both API and INKS will be similar in this regard, though there's no doubt that API has the larger profile (and is already listed). In the long-run though, INKS too becomes interesting, as 'supply chain management' is an enormous field, where no single player will control any key sector, but there will be lots of room for true innovative low-cost authentication/anti-counterfeiting/chipless RFID players to potentially have a sufficient share of the business to be rewarding to the companies and shareholders. We even see API indirectly in this, as Picometrix is positioned to contribute to product manufacturing consistency, and while a stretch; is an area that also can be inventory-controlled (as in 'A' versus 'B' stock for example) by use of 'chipless RFID' and other inexpensive digital imprinting solutions expected.

In our view this report was very solid with all areas of the business slowly growing organically and company gradually expanding also. The market for this super high-tech beast is great and this is just the beginning. Love the management. The PR will stimulate much more interest in the stock and hopefully we can get some institutional buying. We should add these levels of growth historically attract funds that have cash available to put to work; so thus their interest will be increasingly visible (we suspect).

Institutions 'in the know' interested in buying, either will wait for the presumed (though doesn't have to occur) pullback after a post-news rally on good news, or already have started buying (our hunch about underlying blocks of recent days) and will add on the pullbacks along the way that occur. Further, once the stock (eventually) moves over a key level (5) we'll anticipate broader mainstream coverage and professional interest.

InkSure (INKS) is relatively light-volume; but holding shy of 3 (as is logical really, and pending more developments and maybe the Q4 report being out of the way). Sure it's sensitive to buying or selling efforts in-size, as is common for most such OTC stocks. Now, let's explore some additional tidbits that while certainly not assured to result in a particular share of a very enormous 'supply chain management' or anti-counterfeiting authentication business, point that way. To us the shares are reminiscent of maybe a level that API was at a year or more ago, or IOTN a couple years back. However, we suspect there is pressure for anti-counterfeiting in so many venues now, that with so many focusing on the sector, it's likely to invite serious commercial interest. And we'll be the first to say that procurement decisions in industry are faster than governments tend to move; though in this case, there is both potential in the commercial and public sectors, since one reason for incorporation in the U.S. was to be able to deal with the state and Federal agencies that require vendors to be U.S. firms prior to contracting.

Recently there has been some favorable press for the sector of authentication and/or the RFID area, but none exactly 'chipless RFID' competitors. One getting exposure in this regard was Document Security Systems (DMC) and that underscores the large potential market for authentication solutions overall. It is not at all a mature market at this point, and there is plenty of room for many providers of quality solutions as noted in the past. DMC was organized in 1984, yet after so much time its current financial position is only similar to INKS, even though INKS just began direct sales in 2002. It got publicity in a Business Week piece that INKS didn't. INKS is still below their radar screens we believe. And we suspect the March Boston conference may change that. (Meanwhile we'll be delighted if the percentage move in INKS replicates what DMC in the past experienced, though it's defensive just now. Again; not really competitive.)

INKS and DMC are only competitors in that both provide authentication solutions for industry. InkSure's actual product lines and end-applications are quite different as per discussions with INKS management. Most of DMC’s products, including 'stamping' on components document forms that verify authenticity; not the same as digital ink that's stamped directly on the product in question (direct stamping is harder to circumvent). The rest of what they do is mostly focused on prevention or detection of unauthorized photocopying/scanning. This is fine for protection of certain type documents but does little to protect branded goods themselves; again only the attachment's are stamped.
Please understand; most counterfeit products do not simply involve merely the use of photocopied or scanned information; instead, the packaging, labels and the products themselves are being produced by the counterfeiter. InkSure provides products that allow for more definitive identification of authentic products. InkSure materials are in a sense added into the normal production course of the packaging, labels or products themselves; thus providing forensic-level authentication, but in handheld field readers which can typically give definitive indications of authenticity in less than two seconds.

Using DMC as a comparison again (versus what we're more interested in) does offer alternative methods of marking products and using readers to determine authenticity. However, other 'reader' (such as DMC's) are simply a plastic lens; that requires user interpretation to determine whether a hidden pattern or image can actually be seen when using the lens (a layman's way of saying this would be like checking for a fake ID or driver's license by looking at the hologram; most people won't easily realize if it is real or fake). InkSure's readers on the hand, require no user interpretation thinking: the reader preprogrammed to make the decision, presumably without frequent error.

The DMC lens technology is similar to other, common plastic lens applications, such as those offered by GSSC ('Scrambled Indicia') and Paradigm Solutions (a 'Hidden Image'). Nothing wrong with those, as far as they go; but they cost more and are not leading edge technology, which is what we're focused on. INKS, on the other hand, provides a unique, leading-edge covert machine-readable technology ('CMRT'), by which each end-user (such as a retailer or warehouse or pharmacy or auto parts or other distributor, which are the main market fors now) is afforded in its own exclusive SmartInk formulation (or 'code'), for the highest level of security technically available.

Now sure, this is a competitive landscape; but we're primarily interested in both this, as well as 'chipless RFID', which moves this along in terms of versatility and serious innovation, while at the same time most conventionally scanned products need only the basic current CMRT (scanned) barcode authentication technology. Hence they are viewed as complimentary, and the interest by a customer in the existing product can readily lead to excitement about incorporating the forthcoming technology, it is anticipated. INKS revenues continue to grow at a 50%+ rate, evidencing the growing acceptance of InkSure solutions, due to their accuracy, security and ease of use.

I hope this clears things up a little for those worried about competition. What's out for now is already generally less advanced than what InkSure offers. Because there was a period of time involved in structuring the company, getting incorporation in America, and necessary patent protection for the forthcoming products, this is all fairly nascent as regards the understanding of how this can stop pharmaceutical, parts, software or entertainment (not to forget official document incorporated) authentication protection.

We haven’t missed the boat, and are not late (quite the opposite we think). But it is a large ocean of opportunity, and there is room for more than one vessel to sail. Hence we think the financial press and much of the industry is barely (if at all) aware of INKS as of yet, and we believe that the core of the SensorMatic (original RFID pioneers) is already at, or has just joined, InkSure, to spread the word and grow the business. So while current prices look good to early penny investors (mostly in Israel), this is entry-level in the U.S. (in our opinion), and basically does not yet even touch the potential in this Country, or worldwide, with respect to the penetration of European and Asian markets (where counterfeiting is basically epidemic). 'Chipless RFID' isn't factored-in yet (that we can see); so we tend to think this stock is basically working through exit of the now-registered early-holders (rather than new dilution as previously discussed) and after whatever reaction occurs to the upcoming Quarterly report, we suspect the interested parties will be looking for any pullback (if that occurs) for buying purposes, with expectations of increased attention to the stock after the 'chipless' presentation.

Some new info on INKS from the latest Inger letter
WWW.ingerletter.com
his letter is the only one that seems to be following this stock--looking for good news
InkSure (INKS) is relatively light-volume; but holding shy of 3 (as is logical really, and pending more developments and maybe the Q4 report being out of the way). Sure it's sensitive to buying or selling efforts in-size, as is common for most such OTC stocks.

There have recently been product introductions by others with respect to entering the potentially huge and lucrative anti-counterfeiting and authentication field, as well as in the RFID area. While all hope to obtain a chunk of the market, we'd like to opine as in the past, that the sector (supply chain management is basically everything) is utterly huge, and no single firm is going to dominate it. Further, it will depend on product and price levels. For instance, nobody is going to buy a Texas Instruments chip to track a pair of socks, but they might use InkSure's half-cent per impression technology. If that suggests we think INKS is competing with TXN; not exactly is the answer. Vary a product and the needs, and you vary the allocation of expenditure (though not to say a small company couldn't take business that a more expensive product could justify; as everyone wants to keep costs down). Today Hitachi introduced a thin-film RFID, which is not 'chipless', as the film is the chip. But that too has a higher per-impression or per-gluing or affixing if you will, cost than does InkSure.

We're mostly focusing (for now) on the pharmaceutical or software (and/or ticketing) industries, where there is no justification for 'chips' on a bottle or box of pills, but there can be for ink imprints. Tomorrow we'll share some discussions and due diligence we have been gathering as regards companies that might be considered competitors; at the same time as we have asked those in the know why they either aren't competitive threats, or once again why there's room at the ball for the various dancers. Nothing is assured as some of these (like INKS) are small companies; but that's where leverage is relative to the big boys, so while speculative, that's why we made a pick in the area (at the same time we believe TXN has a role; we hope to reacquire shares cheaper.)

Essex Corporation (KEYW) consolidated nicely in the mid-to-upper teens; moved forward buoyed by an upgrade at one firm (those are sometimes temporary assists), and even more by announcement of completion of satisfactory (laboratory) testing of the radar Advanced Optical Processor (AOP as it's called). Now oscillating over 20, we'd like to see more 'digestion' of recent fairly spirited gains, but pullbacks are rare at the moment. One or two fairly volatile down days are hard to call for, given almost unpredictable volatility in both directions of this fascinating not-too-cheap company.

Ionatron (IOTN) is an increasingly developing 'disruptive player' in Directed Energy Weaponry, that has potential to really shake the very foundations of old-line defense industries, and skewer plans for certain bureaucratic types attached as if by umbilical cord to their old-line approaches to advanced defensive systems (more via audio). I'll focus on the New York Times (and Reuter's) story on the Defense Budget as relates to the couner-IED Task Force primarily by audio tonight.

The NYT story basically indicates an almost blank-check approach to resolving the IED problem. Reading between the lines, we see it as referring to primarily Ionatron products at this time; not exclusively, but primarily. That's because the story relates to not just a tripling of the expenditures this year, but the deployment of hundreds of troops and contractors (not vendors, but we presume hired ex-military or mechanics, such as ex-Seal team members, Rangers, Special Forces or what have you) to run or operate the equipment). As there are no other machines we're aware of that require a dedicated 'force' of personnel, we presume these are to operate and maintain JIN's. No assurance on this, just an interpretation. Further, General Votel, believed partial to the test phases of JIN, is the Deputy Director of the Task Force (he is the 'one-star' General referred to by the Times).

We certainly expect JIN and JIN integrated with at least some other technologies (or vehicles) to be deployed. We saw something over the weekend (a TV anti-IED piece) that appeared to have a chain dragging from a Humvee probe ahead of it, but doubt they'd have a JIN mounted to a simple Humvee (viewed it repeatedly on a DVR to try to ascertain what it was, but couldn't). However we suspect there are more variations of JIN than the early lumbering vehicle, or even the advanced mobile one. Consider capabilities even ranging to IEDs not necessarily restricted to those buried in-ground. We wouldn't know, but suspect the reason you haven't heard more is that it's crucial, as opposed to ancillary, to our current best-efforts against these horrific IED devices.

any opinions of this?i think it's another small step foward (on the ink technology)before larger news on chipless rfid

H.W. Sands Corp. Enters Into Letter of Intent With InkSure Technologies for the I.D. and Transaction Card Market
Thursday February 2, 8:30 am ET
'Distinct technological breakthrough in the fight against counterfeiters'


JUPITER, Fla., Feb. 2 /PRNewswire-FirstCall/ -- H.W. Sands Corp., a leader in bringing in new products and technologies to the identification, security and financial transactions card markets, and InkSure Technologies Inc. (OTC Bulletin Board: INKS - News), a developer of cutting-edge covert encoded-ink authentication solutions, today announced the signing of a Letter of Intent to form a strategic alliance that will be marketed under the Sands-Secure® line of security solutions.
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"The level of sophistication provided by the combination of H.W. Sands' covert taggants and InkSure taggants and readers represents a distinct technological breakthrough in the fight against counterfeiters," noted Daniel Persico, Executive Vice President of H.W. Sands Corp. "This should be a highly productive partnership that delivers outstanding value to customers."

"InkSure's CMRT (covert machine readable technology) authentication solutions are ideally suited for the anti-counterfeiting requirements of the financial and I.D. card markets," stated James Assaf, CEO for U.S. Operations at InkSure Technologies Inc. "Our products can instantly authenticate cards in the field, and they can validate cards in high-speed environments such as sorting locations, return centers and production sites. With its experience, technological expertise and existing customer base in the card industry, H.W. Sands is well-positioned to successfully introduce our covert security solutions into this market."

About H.W. Sands Corp.:

H.W. Sands Corp. is a worldwide leader in the design and manufacture of products for the Imaging Industry with a primary focus on the Security, Transaction Card, Electrophotographic, Display/OLED, Ink Jet and Pre-sensitized Printing Plate markets. Established in 1983, the company's R&D focus is on the research, development and commercialization of high-value, custom and commercial dyes, chemicals and corollary products that support customers' product differentiation, thereby increasing brand value and overall profitability. H.W. Sands is a U.S. company operating worldwide. For more information, please visit this website: www.hwsands.com.

About InkSure Technologies Inc.:

InkSure Technologies Inc. specializes in comprehensive security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. Addressing diverse industries such as Financial, Pharmaceutical, Branded Products, Transportation, Government, and many others, InkSure utilizes cross-disciplinary technological innovations to implement customized and cost-effective security systems for data and asset integrity within existing infrastructure and environment. InkSure's proprietary patented solutions are recognized as highly secure top performance products available in the market and the company has a successful track record of providing system integrations and dedicated service worldwide. InkSure is a U.S. company operating in North and South America, Europe and S.E. Asia. For more information, please visit this website: www.inksure.com

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Although InkSure (the "Company") believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Important factors that could cause actual results to differ materially from the forward-looking statements include the Company's need to obtain substantial additional capital (through financings or otherwise) to fund its operations, the progress of development, government and regulatory approvals and licensing

no connection--and i am just posting here what INgerleter.com wrote
Check HIS bio

Mr. Inger’s career began at a major Wall Street firm, where his selections’ easily outperformed others. Leaving New York, he anchored KWHY-TV in Los Angeles, the Nation's first financial television station, and later began portfolio management, The Inger Letter, and new financial television programs in several cities, including San Francisco, Ft. Lauderdale and his own station in New York/New Jersey. His West & East Coast Stock Market Today shows later became FNN affiliates, which merged into CNBC (where he remains an original Market Maven).

Now retired from portfolio management, Gene publishes his popular Internet Daily Briefing commentary and updates its companion MarketCast several times daily. The Daily Briefing assesses the day's events, and comments on any unusual moves in the stock, bond, Dollar, oil & gold markets, with a particular emphasis on technology issues in computers & telecommunications.

MarketCast, an email-based, intraday service featuring audio updates, provides a near, real-time analysis of market action. Given the rapid pace of changing economic, psychological, and geopolitical perceptions, MarketCast is designed to provide a compass for shot-term traders to help them maintain their bearings.

Intraday and Daily S&P futures trading guidelines, always originate on MarketCast , though each Daily Briefing reviews the trade, and outlines probable and alternative patterns for the next session. (One key to successful trading is always to have a plan of action if your preferred pattern does not occur; that's part of responding to subtle messages from the market, and not just one's opinion). All individual stock selections originate in the Letter, though the Daily can help finesse entry and exit points between issues. All "official" stops and entry zones are as established in the Letter. The Daily is very popular among investors seeking to navigate the overall market pattern, and discern sector movements within the trend.

Coming from a money management & security analysis background, Gene’s focus targets very realistic money-making strategies (including allocations) more so than esoteric buy & sell signals that can get flashy publicity, but have little to do with actual portfolio alignment. So, if one or more of our DJ, S&P futures, T-Bond calls, NDX, SOX or Internet Index trades happens to be a major homerun, or an individual stock excels in either direction, it doesn't mean we're advocating being completely invested, or conversely 100% fully out of the market, at any time. A professional way of approaching the market should emphasize scaling-in during serious purges (ideally after bases are built), and scaling-out gradually into strength (ideally into extended parabolic moves), happily not worrying about "milking" the last percent out of a move. In a perfect world, Gene believes you would be completely out of the market at the exact top, and completely in the market at the exact bottom, amidst panic and despair. However, since it's folly to make wholesale in-or-out portfolio decisions, we strive to approximate (though always glad if we nail one) tops and bottoms, tending to scale back exposure into great strength and of course the inverse on major breaks, subject to evaluating the always-lurking fundamental big picture worries and opportunities. Marketcast will provide very specific buy & sell signals, with a little bit bigger picture summary on the final report, as will the Daily Briefing on the same slightly broader daily basis.

Clearly, since we view frequent (or after-the-fact) wholesale decisions to "sell everything" or "buy everything", heard among the guru-crowd, as unrealistic strategies, we are never completely out of the market, though we tend to have heavily cash positions (along with some shorts) during time of great risk. Our portfolio-modeling is structured in a real-life manner, so we’re often long certain core investment holdings (such as Dell at 3, partially sold for a multi-thousand point gain, but not totally exited), GM Hughes at only 5 (after GM's cash distribution, Lucent at 16 (immediately after the spin-off from AT&T and held enthusiastically ever since, with hedges in competing stocks), in Merck from 42 (with half sold on the explosion over 110) & Intel since the 20's (but with 1/3 sold, amidst warnings that the stock would get pummeled in 1998, providing a buy for those not aboard the earlier run), while occasionally shorting pricey momentum stocks as they reversed parabolic spikes (such as Micron Technologies from 90 a couple years back, covered at 30 and bought at 18 then sold at 36) and 1997's super-hot IPO Rambus (shorted over 80 and later bought in the 30's, as was determined due to the expected lag in introducing RDRAM), and we even turned overtly bearish around blow-off peaks of heavy promoted, or manipulated, stocks like Iomega & Presstek (in some cases making money both on the long and later short sides).

As a resource for ideas, ingerletter.com and Gene's hotline hope to stimulate your own work and contribute to increased market success by aiding your investing concepts and trading strategies. No determination of suitability of any approach, idea, or stock, is intended or implied, for a particular investor; who should consult their own advisor or broker regarding actual decisions, or do so fully on their own recognizance. Inger & Co. is totally independent and is not affiliated with any broker, trading system, mutual or hedge fund, or service. Gene is a retired investment advisor, who hopes his ideas contribute to your own investing skills.


--------------------------------------------------------------------------------

Copyright © 2006 The Inger Letter. All rights reserved.

none-but i think SSHGURU copies his info

I will look in, but i have never followed(bought on his reccomendations)

"Does the newsletter you are quoting from write about INKS often?... Aiming4.

Almost everyday,but not always to this degree unless something has happened either news,meetings,stock action etc.

more(some repeated) from mondays inger letter
www.ingerletter.com--this will be the last i can post here due to copyright laws..if you are a market timer,and/or in to some of the stocks he follows in depth, really this is a great buy


InkSure (INKS) is normally light-volume and sensitive to any buying or selling efforts in-size, as is common for most OTC stocks. Modestly drifting lower (for days), there's was a (recently visible on Edgar) slightly complex-to-dissect registration statement that while superficially dilutive at first glance, mostly seems to clean-up previously announced warrants, converts, or registers certain stock for potential future sale by early holders. So there's no 'new' dilution. It's appears nothing materially changed, and that there's no stated intention as regards timing of any future sales (just enables such sales in the future).

Some of the old warrant/stock holders (from literally penny days) possibly have been the sellers (as they finally can), so while the 2 area may look good for sub-1 players, a drop to below 2 may appeal as attractive to those who didn't want to chase it on the quick run to 4 last year, following our initial write-up. Impossible to say for sure, but in our view that's basically a plausible scenario. The penny crowd has a good gain with respect to their entry, and the investor group (presumably with a speculative vision as relates to current and future products) is looking forward to speculative gains. There's little doubt in our thinking that if the company is able to market it's yet-to-be-launched 'chipless RFID' product, they could do quite well (the shares also), and we suspect the stock is probably no longer excessively pricey based on legacy existing products that already offer certain security capabilities that are competitively attractive now.

A cursory interpretation (which likely evoked early selling in the shares Thursday) is that a first read might lead one to interpret it as new, rather than newly able to sell, shares; whereas a careful read suggests it's a filing primarily for old shares or as are provided in the 'convertible' offering, as stipulated at the time. Some shares already are issued, but not necessarily tradeable, which now become tradeable, whereas it's also newly-empowered (or registered) holders may independently determine later-on whether to hold or retain (full or partial) positions. We understand it's actually unusual in that some waited for years prior to even the step of having shares registered; so as they are normal common or marketable securities.

So, presumably that took the shares down sharply, there were ready buyers willing to absorb it during that little maelstrom (or slightly below); so if our 'read' was right about this being basically related to older news (to wit; shares we all knew would eventually become marketable securities), it's not quite as blind-siding as initial discovery (that we had to dig to find) appeared.

In a late exclusive update yesterday, we were able to clarify the filing, and given to understand that the firm didn't see it as particularly relevant. Senior management did confirm that filing related to 'old stuff', such as the registration of shares sold through the July, 2004 private placement. Top management confirmed that there's been no new cash (since the 9/30/05 private placement of convertible notes) as well as no new dilution to the shareholders by virtue of this filing. That is their statement to us.

It was thus apparently less significant that first meets the eye. However, there may be something else. There apparently was scuttlebutt that the company would 'miss' their Q4 estimates, which related to becoming profitable by yearend. Today they released a clarification, which while slightly ambiguous, made several points that appreciated in our understanding of their current business developments:

a- that the largest (ever) customer required certain equipment customization that thus delayed shipment of the appropriate scanning equipment, that they intended to ship in Q4 (originally hoped to start in late Q3), but now is forthcoming in the 'near future';

b- an overt statement that this is a huge customer (we suspect pharmaceutical or similar field, but do not know) and may open doors to similar 'tax stamp' / mark authentication (we think pharma, because that's an area where counterfeiting or remarking and labeling has been a chronic international problem recently);

c- a realization that while this may adversely impact Q4 of '05 results, it may help early '06 results (ambiguous as to whether Q1 or Q2 for example);

d- delays in the shipping of (presumed scanning or imprinting equipment to get the customer going) are resolved, and they are going forward;

e- year-over-year ('05 versus '04) should nevertheless increase by around 50% (we think that's because they not only renewed the Turkish bus contract that was as yet unsecured at the last 'conference call', but expanded that customer by around 250 buses or so, as they indicated in a recent release; thus we think that cushions the adverse impact of a delay in the new customer shipments);

f- "Postponement of the equipment shipments into early 2006, combined with new and repeat business from other ‘world-class’ customers, should allow the Company to generate strong revenues and greatly improved operating results in the current year. InkSure is clearly positioning itself as a premier provider of innovative covert security solutions on a global scale, and our confidence in the future has never been stronger," concluded Elie Housman, CEO.

While this is a small company, we don't believe several of the SensorMatic crew from the original RFID days would have joined InkSure if they weren't enthusiastic about it prospectively, and we are given to understand that they have hired one or two more in the sales department of late, as well as bringing a chemist from Israel (presumably to help design and process formulations for customers in the U.S.) to assist the staff here. Again, we can't confirm anything other than the formal release, but ruminations exist to suggest that.

We think it's smart for the company to explain the shift of late '05 revenues into early '06 this week, and basically get that issue out of the way prior to reporting results as they will of course formally do in the course of events. While residual 'ink' income of course won't start for the new customer until the installation of imprinting machinery, it nevertheless is viewed as a glitch, and not a loss of business or anything like that.

Besides, the CEO previously had speculated that Q4 of '05 might be robust if they'd made the shipments more timely, but then Q1 of '06 would be softer, because these installations are non-recurring; the consumables are the recurring income stream for the company. Since we're mostly interested in the current (really not legacy, since it is fairly disruptive and unique in its own right as anti-counterfeiting and authentication goes) revenue stream facilitating the move into 'chipless RFID', we find no big issues at all with these reports. Rather we think it creates speculative risk opportunities for aggressive risk-takers understanding the opportunities and pitfalls in OTC stocks.

Anyway, this gets concern about the new customer (still coming, just delayed a hair) out of the way, and makes a missed Q4 probably moot, since the proceeds are still expected to be accruing at some point early in '05, as this proceeds, per the release.

This further clarification about the new 'largest ever' customer on the heels of having renewed and expanded the prior largest Turkish customer, and good relations we've heard rumored with the biggest domestic U.S. customer, is welcome, and negates for us (whether rightly or wrongly) concerns about the shakeout based on fears either of a new dilution, or of the significance of a missed Quarter (not missed; postponed and that's not the same as a lost customer as some might have feared but we don't know) and let's this progress with close-to-schedule evolutions of existing technologies into the forthcoming premier of the visionary future product, which is 'chipless' RFID.

I hope that this interpretation and summary is helpful, and you can find the release on most any normal web-based news service you may utilize, to ascertain for yourself.

As to 'chipless' RFID; while all along that's been a product intended to be presented in 2006 (early in March in Boston); if well received the company indicated previously anticipation of it becoming hopefully a revenue contributor starting in 2007 (or maybe a tad earlier, and continuing for years potentially). Though they're optimistic about 2006 (as previously presumed and now affirmed by their release) for existing lines of anti-counterfeiting and authentication products, we thought you'd enjoy learning that (with the help of an 'associate' super-sleuth), efforts were made to ascertain who are the participants involved in the upcoming Boston presentation (post from yesterday).

On the second day of the 'Smart Label' conference, and headlined in the agenda as a 'World's First', there are three speakers on 'Chipless RFID'. They are:

(With a caption; world's first): "Next generation of RF Tag based Track&Trace technologies - InkSure's approach"; the unveiling of a new 'chipless' technology from Inksure, Israel; Yaron Meerfeld, CEO, presenting.

Then we have 'low cost label opportunities' from Motorola, USA, with Ms Jie Zhang, Principal Staff Engineer, presenting.

Finally, we have "Fully Printed RFID for high volume application", including the status of organic electronics for RFID, from PolyIC, Germany, Wolfgang Clemens, Head of Applications, presenting.

We are unaware of any existing or pending relationships between InkSure, Motorola, PolyIC or any other companies, though do note that a host of familiar names such as Kodak, Dow Corning, Fujitsu, Proctor & Gamble, General Electric, Chevron, DHL and even several universities as well as Government agencies are participating. Note that among these are the U.S. Department of Defense/Defense Logistics Agency on the role of RFID in National Security, passive implementation, and data architecture areas. 'Wired Magazine' and 'The Boston Globe' will moderate the various sessions. Kodak is the key sponsor; and Motorola the key 'emerging technologies' sponsor (do note they speak right after InkSure's premier presentation at that segment on day 2).

Of all of participants, only InkSure is billed as a 'world's first' premier of a new product type and design. Further, it is late March (March 27-29, not early march as thought in earlier remarks), and the actual sessions will be held at The Westin Copley Place as opposed to at MIT (though introduction to qualified engineers/attendees are offered). (The original 'auto-ID' conferences started there, but have grown out of the facilities.)

Finally, while the 'vision' for the future includes lots of interest in 'chipless RFID', the firm continues to be quite optimistic about growth in the legacy business as noted. It goes without saying that while there may be parallel interest for these products over time as the new ones come available, a number of customers do not require RFID, but are quite interested in the existing anti-counterfeiting/authentications products. In this regard the company anticipated moving to positive cash flow either somewhere around the transition into 2006, and in 2007's first half, and we now expect that to be delayed into maybe the middle of this year (speculating per today's clarifying release) with a view of the existing product lines helping enable the new forthcoming goods.

As a parting note on the stock, yesterday we could not specifically affirm suggestions of progress on the previously-applied-for was 3rd U.S. Patent to complement the prior 2 received in the 'chipless RFID' field. We've heard the Patent application is cleared, but not yet issue. A number has been assigned. If or when we hear more specifics on this Patent, we'll certainly apprise our readers. It looks complex (we reviewed it) and is complementary to those previously issue (very involved from a technical aspect).

Bottom line: what is relevant to the future of InkSure as a 'disruptive technology' we suspect is not how well they did with 2006 vs. 2005 (though that apparently was o.k.); and not even how well they do in 2006 with future conventional (for them) sales of a unique authentication technology (though it is important and they're quite optimistic in that regard). But rather it relates to the future of non-silicon based RFID tags; exactly what InkSure hopes to be the first to introduce to the marketplace.

"Organic", of if one prefers "polymer-based", or "chipless" RFID tags could bring tag (per impression if you prefer) prices down below one cent (far below current levels), at which point possibilities of item-level RFID tagging shoot through the roof, beyond even the most ambitious goals of mere supply chain tracking and visibility. An article just published by research firm IDTechEx notes that if sub-penny organic RFID tags took hold, the industry would see a repeat of what happened with bar codes (earlier): the once-healthy bar code-label business was sunk when the printing of bar codes directly on packaging began. Well, that could create problems for the silicon chip type manufacturers, but create an impressive potential opening for the organic 'chipless' RFID impression business; and that's why we're particularly interested in the shares as time evolves.

After InkSure's 1st patent awards (to put this in perspective), CEO Elie Housman said: "Our goal is to develop multi-bit ‘chipless’ RFID tags that can be manufactured and applied to product labels at a cost of well below one cent each." Depending on how quickly and if these technologies meaningfully develop, the possibilities could disrupt the path to widespread RFID adoption, rendering obsolete the entire notion of a five-cent silicon-based RFID tag, and that's why we became interested in the stock. We of course won't know results of this advanced product line for a while, but are optimistic the company's existing business can at least be an enabler of adequate progress that allows evolution to non-silicon 'chipless' product, ideally with competitive advantages.

Are we early, before it's on Wall Street radar screens? Hopefully. As it drops back to the original price-zone we first initiated coverage, due to apprehension or old filings (or whatever), we can only suggest it has nothing to do with the future at the same time as it provides (for those interested) an equivalent entry consideration.

As usual we caution that investor decisions are their own, and this is the best and we think the most current information that can be gleaned on this interesting small firm; a speculation to be sure, but in an area that we continue to suspect will receive at least considerable attention in the next several years.

in his first write up of the stock he said he had a position--isn't that better knowing someone who writes about a company puts his money where his mouth is??--Any scientific people out there can brouse this Patent application that was just allowed by govt--what does it mean???
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FP...

InkSure Technologies Provides Update on Large International Order
Friday January 20, 11:52 am ET


FT. LAUDERDALE, Fla., Jan. 20 /PRNewswire-FirstCall/ -- InkSure Technologies Inc. (OTC Bulletin Board: INKS - News), a leading provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud and diversion, today provided an update on the status of a previously announced equipment order involving authentication of the packaging of hundreds of millions of individual product containers for a large international customer.
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In June 2005, InkSure announced its receipt of an order from a large international customer that calls for the initial shipment of several hundred SignaSure(TM) electro-optic readers and the installation of a number of high-speed production line SortSure(TM) quality assurance systems. Following the deployment of the equipment and the activation of the authentication project, the Company expects to receive recurring revenues from the sale of SmartInk(TM) to the customer.

"This represents the largest equipment order in InkSure's history, and we look forward to a long-term relationship with our international customer," stated Elie Housman, Chief Executive Officer of InkSure Technologies, Inc. "The order is of great importance to our Company, because it represents our entry into the large market for tax stamps/marks, the counterfeiting of which costs governments around the world billions of dollars annually."

When the order was first announced, the Company expected equipment revenues to begin in the second half of 2005, but changes in field specifications and the late arrival of components from other project vendors delayed initial shipments. Further delays resulted from system integration issues, which have since been resolved. The Company now expects the equipment to be shipped and deployed in the near future.

"While these delays have been frustrating and will prevent InkSure from achieving profitability in the fourth quarter of 2005 as expected, we are gratified that our equipment meets the highest performance standards and confident that the international authentication project will provide important benefits to the customer," continued Housman. "We are currently looking at a number of other projects in the tax stamps/markings field, and management is optimistic that InkSure will play a significant role in this area."

Despite the absence of equipment revenues under the abovementioned international order, InkSure expects fourth quarter revenues to be the strongest of the year 2005 and well ahead of prior-year levels. Revenues for the full year ended December 31, 2005 should increase by more than 50% when compared with 2004 results.

"Postponement of the equipment shipments into early 2006, combined with new and repeat business from other 'world-class' customers, should allow the Company to generate strong revenues and greatly improved operating results in the current year. InkSure is clearly positioning itself as a premier provider of innovative covert security solutions on a global scale, and our confidence in the future has never been stronger," concluded Housman.

About InkSure Technologies Inc.

InkSure Technologies Inc., with its corporate headquarters in Ft. Lauderdale, Florida and its R&D center in Science Park, Rehovot, Israel, specializes in comprehensive, covert security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. The Company's sales and marketing activities target a number of market opportunities, including financial, pharmaceutical, branded products, transportation, and government/institutional, on a global scale. The Company's R&D activities include the development of chipless RFID technology for affordable item-level secure logistics and track-and-trace applications.

The Company's common stock is listed on the OTC Bulletin Board under the symbol "INKS". Additional information on the Company is available on its website at http://www.inksure.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Although InkSure (the "Company") believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Important factors that could cause actual results to differ materially from the forward-looking statements include the Company's need to obtain substantial additional capital (through financings or otherwise) to fund its operations, the progress of development, government and regulatory approvals and licensing/commercialization of the Company's technologies, and other factors noted in the Company's periodic report filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

this from www ingerletter.com
from fridays issue--i guess he did some digging on todays action--any coments from this board?

"InkSure (INKS) is light-volume and sensitive to any buying or selling efforts in-size, as is common for most OTC stocks. Modestly drifting lower (for days), there's been a (filed apparently the prior day, but just visible on Edgar today) a slightly complex-to-dissect registration statement that while seemingly dilutive, actually appears to clean-up (our interpretation) previously announced warrants, converts, or registers certain stock for potential future sale by early holders. It's appears nothing material changed, and that there's no stated intention as regards timing of any future sales (just enables such sales in the future). Theoretically, some aren't even saleable under the 3 level.

A cursory interpretation (which possibly evoked some early selling in the shares here in the U.S. on Thursday) might lead one to interpret it as new, rather than newly able to sell, shares; whereas a careful read suggests it's a filing primarily for old shares as are already are issued, but not necessarily tradeable, which they now can become for action independently taken later-on as sellers may determine (if they elect to do so). We understand it's actually unusual that some have waited for years prior to even the step of having the shares registered, so that they are normal common or marketable.

So, while this presumably did take the shares down sharply, there were ready buyers willing to absorb it during that little maelstrom; so if our 'read' is right about this being basically related to older news (to wit; shares we all knew would eventually become marketable securities), it's not really a blind-siding surprise that the initial discovery (that we initially had to dig just to find) appeared. It is apparently less significant that first meets the eye.

Exclusive update: we have been able to clarify this filing further, and understand that the firm didn't see it as not particularly relevant. Senior management confirms that all this relates to 'old stuff', such as the registration of shares sold through the July, 2004 private placement. Top management confirms that there's been no new cash (since the 9/30/05 private placement of convertible notes) as well as no new dilution to the shareholders by virtue of this filing.

We always wish for transparency that enhances both the visibility and interpretation of events, whether material or less so, as appeared to be the case in this instance. It was the response I got to the effect of the firm believing this filing was not relevant as to why there was no accompanying release outlining what they have now explained.

We might even be optimistic the filing clears-the-decks of not so much weak holders (though that may be the case as hardier souls venture in), but gets this out of the way prior to ideally further clarification about new customers for their existing technologies and the forthcoming premier of the visionary future product, which is 'chipless' RFID.

As to 'chipless' RFID; while all along that's been a product intended to be presented in 2006 (early in March in Boston), if well received the company indicated previously an anticipation of it becoming hopefully a revenue contributor in 2007. Though they're quite optimistic about 2006 (as previously stated and affirmed) for their existing line of anti-counterfeiting and authentication products, we thought you'd enjoy learning that (with the help of an 'associate' super-sleuth), efforts were made to ascertain when as well as what participants are involved in the Boston presentation.

On the second day of the 'Smart Label' conference, and headlined in the agenda as a 'World's First', there are three speakers on 'Chipless RFID'. They are:

(With a caption; world's first): "Next generation of RF Tag based Track&Trace technologies - InkSure's approach"; the unveiling of a new 'chipless' technology from Inksure, Israel; Yaron Meerfeld, CEO, presenting.

Then we have 'low cost label opportunities' from Motorola, USA, with Ms Jie Zhang, Principal Staff Engineer, presenting.

Finally, we have "Fully Printed RFID for high volume application", including the status of organic electronics for RFID, from PolyIC, Germany, Wolfgang Clemens, Head of Applications, presenting.
We are unaware of any existing or pending relationships between InkSure, Motorola, PolyIC or any other companies, though do note that a host of familiar names such as Kodak, Dow Corning, Fujitsu, Proctor & Gamble, General Electric, Chevron, DHL and even several universities as well as Government agencies are participating. Note that among these are the U.S. Department of Defense/Defense Logistics Agency on the role of RFID in National Security, passive implementation, and data architecture areas. 'Wired Magazine' and 'The Boston Globe' will moderate the various sessions. Kodak is the key sponsor; and Motorola the key 'emerging technologies' sponsor (do note they speak right after InkSure's premier presentation at that segment on day 2).
Of all of participants, only InkSure is billed as a 'world's first' premier of a new product type and design. Further, it is late March (March 27-29, not early march as thought in earlier remarks), and the actual sessions will be held at The Westin Copley Place as opposed to at MIT (though introduction to qualified engineers/attendees are offered). (The original 'auto-ID' conferences started there, but have grown out of the facilities.)
Finally, while the 'vision' for the future includes lots of interest in 'chipless RFID', the firm continues to be quite optimistic about growth in the legacy business as noted. It goes without saying that while there may be parallel interest for these products over time as the new ones come available, a number of customers do not require RFID, but are very interested in the existing anti-counterfeiting/authentications products. In this regard the company anticipated moving to positive cash flow either somewhere around the transition into 2006, and in 2007's first half, and we wish them good luck in that regard, with a view of the existing product lines helping enable the new goods.
As a parting note on the stock, while we cannot specifically affirm this until reported; it was suggested that a 3rd U.S. Patent was applied for to complement the 2 received in the 'chipless RFID' field. We have heard there is a public document (haven't seen it as yet) in which the Patent application is cleared, but a number not yet assigned. If or when we hear or see any specifics on this Patent, we'll certainly apprise our readers.
Bottom line: what is relevant to the future of InkSure as a 'disruptive technology' we suspect is not how well they did with 2006 vs. 2005 (though that apparently was o.k.); and not even how well they do in 2006 with future conventional (for them) sales of a unique authentication technology (though it is important and they're quite optimistic in that regard). But rather it relates to the future of non-silicon based RFID tags; exactly what InkSure hopes to be the first to introduce to the marketplace.
"Organic", of if one prefers "polymer-based", or "chipless" RFID tags could bring tag (per impression if you prefer) prices down below one cent (far below current levels), at which point possibilities of item-level RFID tagging shoot through the roof, beyond even the most ambitious goals of mere supply chain tracking and visibility. An article just published by research firm IDTechEx notes that if sub-penny organic RFID tags took hold, the industry would see a repeat of what happened with bar codes (earlier): the once-healthy bar code-label business was sunk when the printing of bar codes directly on packaging began. Well, that could create problems for the silicon chip type manufacturers, but create an impressive potential opening for the organic 'chipless' RFID impression business; and that's why we're particularly interested in the shares as time evolves.
After InkSure's 1st patent awards (to put this in perspective), CEO Elie Housman said: "Our goal is to develop multi-bit ‘chipless’ RFID tags that can be manufactured and applied to product labels at a cost of well below one cent each." Depending on how quickly and if these technologies meaningfully develop, the possibilities could disrupt the path to widespread RFID adoption, rendering obsolete the entire notion of a five-cent silicon-based RFID tag, and that's why we became interested in the stock. We of course won't know results of this advanced product line for a while, but are optimistic the company's existing business can at least be an enabler of adequate progress that allows evolution to non-silicon 'chipless' product, ideally with competitive advantages.
Are we early, before it's on Wall Street radar screens? Hopefully. As it drops back to the original price-zone we first initiated coverage, due to apprehension or old filings (or whatever), we can only suggest it has nothing to do with the future at the same time as it provides (for those interested) an equivalent entry consideration.
As usual we caution that investor decisions are their own, and this is the best and we think the most current information that can be gleaned on this interesting small firm; a speculation to be sure, but in an area that we continue to suspect will receive at least considerable attention in the next several years.

yes but these shares are UNLOCKED now,from previous deals or financings..This is dilution,but it was previously known from the deals and their prospectus es?

oops meant dubi sorry

dubu--isn't this all "old" news from previous placements and deals??

Dubi,Since you have been the most outspoken Bull,what reasons did you have for selling INKS...thanks

maybe i am blind -but where does INKS fit with this release??They are with SUN chemicals,but does this mention "chipless"???

INKS needed ASAP
Bird flu 'out of control' in Chinese province
16:28 11 November 2005
NewScientist.com news service
Gaia Vince
The Chinese government says the spread of the deadly H5N1 bird flu in one of its provinces is not under control and has warned of a potential disaster there. There have been three fresh outbreaks of the avian virus in the north-eastern province of Liaoning in 24 hours, and a new suspected human infection.

And the Middle East has now seen its first definite case of H5N1 bird flu. The authorities in Kuwait have confirmed that a migratory flamingo found on a beach died of the lethal strain. They say another bird suspected of having the virus had the milder H5N2 strain.

There have been six outbreaks in the past month in China and the government has responded with mass culls of poultry. The most recent outbreaks, which killed about 1100 chickens, prompted the authorities to cull 670,000 poultry in the areas affected, and place 116 people in quarantine.

The outbreaks are being blamed on migratory birds, but the head of the UN’s Food and Agriculture Organization in Beijing said it was possible that they were due to village-to-village spread of the virus.

Counterfeit vaccines
A Chinese agriculture minister has warned that the country faces a “disaster” due to the use of sub-standard – and counterfeit – poultry vaccines. These can mask symptoms of the virus, making control difficult, or even introduce the virus.

Tests on four people suspected to have contracted bird flu are still being carried out, one in Liaoning and three in Hunan province. But the Chinese state news agency Xinhua reports that 121 people from the area in Liaoning who had suspicious symptoms have now been declared not to have the disease by the local health ministry.

The highly pathogenic H5N1 virus has killed at least 62 people in Asia and more than 150 million birds since 2003. In its current form, the virus has killed 50% of people known to have contracted the virus.

Drug production
To date, there are no confirmed cases of human-to-human transmission, but experts fear the virus will mutate into a form that can pass easily among people and spark a global pandemic. After a meeting in Geneva, Switzerland, this week health experts unveiled a $1 billion plan to fight bird flu, with assistance from the World Bank.

Vietnam, which has suffered 42 human fatalities – more than any other country – is currently treating two more suspected cases. It has announced that it is to begin part-production of the antiviral drug, Tamiflu, after agreeing a licence with Swiss drug company Roche. It is also planning a bird flu hospital near its border with Cambodia.

The spread of the virus is expected to increase over the northern hemisphere winter – assisted by the region’s widely held practice of keeping backyard poultry, which make large-scale, thorough culls almost impossible. Indonesia, which has suffered five confirmed human fatalities, has rejected a $10 million international loan, saying it wants grant money instead.

Bird Flu - Learn more about the flu pandemic that could kill millions in our continually updated special report.

i am willing to give it more time,but i do not like the INTERNATIONAL customer being put off another qtr..this is second time--waiting for CC

midas what do you make of the earnings/??

Press Release Source: InkSure Technologies, Inc.


InkSure Technologies Welcomes Two New Members to its RFID Advisory Board
Thursday September 8, 8:30 am ET
Distinguished Professors Bring Invaluable Experience to Company's Efforts to Develop 'Chipless' RFID Item-Level Tagging Capabilities


FT. LAUDERDALE, Fla., Sept. 8 /PRNewswire-FirstCall/ -- InkSure Technologies Inc. (OTC Bulletin Board: INKS - News), a leading provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud and diversion, today announced the addition of two new members to its outside Advisory Board for the development and implementation of the Company's RFID technology.
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Prof. Amnon Yogev, a worldwide authority on optics, is the founder of Aytec Avnim Ltd., a consulting firm, and Engineuity Ltd. Prof Yogev, who was formerly with the Weizmann Institute, has been retained by the Company to work closely with management in the implementation of certain elements of InkSure's RFID ("Radio Frequency Identification") initiative involving patents recently issued and previously announced. Prof. Yogev earned his Ph.D. from Israel's elite Weizmann Institute of Science and was involved in research and teaching at that prestigious institution for more than 40 years. He was appointed head of the energy research center at the Weizmann Institute in 1991. Among various awards and professional distinctions, Prof. Yogev has earned nine (9) patents and published over 90 articles on molecular organic spectroscopy, laser spectroscopy, laser photochemistry and solar energy.

Prof. Amir Boag will work with InkSure management in the areas of algorithms and signal processing involving the RFID project. He received the B.Sc. degree in electrical engineering and the B.A. degree in physics in 1983, both Summa Cum Laude, the M.Sc. degree in electrical engineering in 1985, and the Ph.D. degree in electrical engineering in 1991, all from Technion-Israel Institute of Technology, Haifa, Israel. From 1991 to 1992 Prof. Boag was on the Faculty of the Department of Electrical Engineering at the Technion. From 1992 to 1994 he was a Visiting Assistant Professor with the Electromagnetic Communication Laboratory of the Department of Electrical and Computer Engineering at the University of Illinois at Urbana-Champaign. In 1994, he joined Israel Aircraft Industries as a research engineer and became a manager of the Electromagnetics Department in 1997. Since 1999, he has been with the Physical Electronics Department of the School of Electrical Engineering at Tel Aviv University, where he is currently an Associate Professor. Dr. Boag's interests are in electromagnetic theory, wave scattering, imaging, and the design of antennas and optical devices. He has published over 50 journal articles and presented more than 90 conference papers on electromagnetics and acoustics.

"We are very pleased to have such distinguished and qualified leaders in their fields join our outside advisory board, which is working closely with our management and R&D team to commercialize next-generation 'chipless' radio frequency identification (RFID) technology designed to enable item-level tagging of merchandise, packages and other products," commented Yaron Meerfeld, Chief Operating Officer of InkSure Technologies Inc. "If successfully commercialized, we believe RFID technology has the potential to replace the familiar barcode technology and other electronic article surveillance solutions that are currently available. RFID tags would permit 'non line of sight' collection of product information and would be suitable for a variety of applications, including authentication, supply chain management and traceability, proof of ownership, and data carrying transactions. We are hopeful that our first RFID product can be introduced in 2006."

About InkSure Technologies Inc.

InkSure Technologies Inc., with its corporate headquarters in Ft. Lauderdale, Florida and its R&D center in Science Park, Rehovot, Israel, specializes in comprehensive, covert security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. The Company's sales and marketing activities target a number of market opportunities, including financial, pharmaceutical, branded products, transportation, and government/institutional, on a global scale.

The Company's common stock is listed on the OTC Bulletin Board under the symbol "INKS". Additional information on the Company is available on its website at http://www.inksure.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Although InkSure (the "Company") believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Important factors that could cause actual results to differ materially from the forward-looking statements include the Company's need to obtain substantial additional capital (through financings or otherwise) to fund its operations, the progress of development, government and regulatory approvals and licensing/commercialization of the Company's technologies, and other factors noted in the Company's periodic report filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.


For further information, please contact:

James Assaf, CEO, U.S. Operations at +1-954-772-8507 or via e-mail at
jassaf@inksure.com

CC thoughts--i like the patents,and RFID for next year--they seem very into the company business and technology--too bad they can't announce customers and amounts of contracts

from PR businneswire
Revenues for the second quarter trailed management's earlier expectations, primarily due to the timing of partial shipments of our electro- optic authentication readers," noted Elie Housman, Chief Executive Officer of InkSure Technologies Inc. "We initially expected a significant number of readers to be shipped to a new customer during the month of June, but such shipments were delayed to the third quarter. Therefore, shipments of these readers and initial shipments of SmartInks to the international customer will benefit operating results in the second half of 2005, when we expect to report record revenues and a significant reduction in net loss when compared with the prior-year."

"Strategically, a number of accomplishments were noteworthy in the most recent quarter. We introduced our revolutionary TrackSure handheld electro-optic reader, which performs barcode reading, authentication and validation against an on-board database with the push of a single button. This new reader allows investigators and field agents to retrieve on-the-spot detailed information from a scanned item, including product identification, product origin and distribution area, and it can determine immediately whether the barcode has been copied or tampered with. We believe this expansion in reader capabilities will open the door to significant new market opportunities for our Company in the future."

"We were also awarded two new U.S. patents related to InkSure's ongoing development of 'chipless' RFID (Radio Frequency Identification) tags during the second quarter," said Housman. "Our goal is to develop multi-bit 'chipless' RFID tags that can be manufactured and applied to product labels at a cost of well below one cent (US) each. If we can accomplish this, InkSure should be well-positioned to participate in the predicted shift away from traditional barcodes in the areas of brand protection and supply chain management. We are encouraged by estimates from IDTechEx Ltd., a leading independent consultant in smart labels and smart packaging, that global revenues from RFID systems should exceed $10 billion (US) by 2010, with 'chipless RFID' accounting for at least 30% of the total."

"In June we received the largest equipment order in our Company's history, from our strategic partner Sun Chemical Group B.V., for authentication readers and covert security inks to be used in a number of projects involving the packaging of consumer products. While we were disappointed that no reader shipments occurred in the second quarter, we expect all of the readers to be delivered during the second half of 2005. We should also begin receiving recurring revenues from the sale of SmartInks for these projects well before the end of the year."

"After the end of the second quarter, we announced our first contract in the ethical (prescription-based) pharmaceuticals industry, where counterfeiting poses a huge risk in terms of both lost revenues and product liability issues. We will continue to focus on the pharmaceutical industry as a priority market, and we are currently involved in tests with a number of additional pharma companies and their suppliers," concluded Housman.

this sticks out in the negative--but it's a start up and i hope we will find out more in the CC about these NEW contracts

At June 30, 2005, we had cash, cash equivalents and short-term deposits of approximately $876,000, compared to $1,682,000 at June 30, 2004. The differences from June 30, 2005 to June 30, 2004 are due to the negative cash flow from operating activities during the last fiscal year.

We generated negative cash flow from operating activities of approximately $458,000 in the three months ended June 30, 2005 compared to $323,000 in the three months ended June 30, 2004. We generated negative cash flow from operating activities of approximately $761,000 in the six months ended June 30, 2005 compared to $984,000 in the six months ended June 30, 2004.

We believe that cash generated from operations will provide sufficient cash resources to finance our operations and the projected expansion of our marketing and research and development activities for the next twelve months. However, if our operations do not generate cash to the extent currently anticipated, or we grow more rapidly than currently anticipated, it is possible that we would require more funds than presently anticipated.

Thoughts???

just remember this part--i mean it's done alot on BB stocks,it's PR/IR paid--and it serves a need but it sends up a red flag compared to an actual research report or say gene Ingers DD..but the report is still very good etc

RJ FALKNER & COMPANY, INC. publishes research reports on small- and micro-cap companies. The information contained in our reports is based upon sources which we consider reliable but is not guaranteed by us, nor do such reports represent a solicitation to buy or sell the securities discussed therein. The information and opinions contained in our research reports are based upon publicly available information as of the date such reports are published. Readers of our reports should recognize that the information, projections, opinions, and/or conclusions contained in the reports may have changed since publication, and we assume no responsibility for updating the reports as a result of such changes. This report may include financial information that is not prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. Readers of this report should review the financial information provided by the subject company of this report in its 10-K, 10-Q and 8-K filings with the Securities and Exchange Commission.

Additional information on the companies discussed in our research reports is available upon request by contacting us at 800-377-9893. While we are paid by the companies that are the subject of our research reports for the provision of research coverage, we are not an agent of such companies, and all of the views expressed in our research reports accurately reflect our research analysts’ personal views about any and all of the subject securities or issuers. No part of our research analysts’ compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed by such analysts in the research reports. All opinions and/or conclusions in our research reports were developed independently by the analysts writing the reports, unless otherwise stated. Our analyses of small- and micro-cap companies have been independently prepared by us, and any sales and/or earnings forecasts included in our research reports were independently prepared by RJ FALKNER & COMPANY, INC., unless otherwise stated, and are not endorsed by the managements of the companies which are the subject of our reports. Such sales and/or earnings forecasts were prepared based upon historical information that was available to the public as of the date of publication of the reports. Use of these reports may be subject to the applicable rules of certain self-regulatory organizations, and securities mentioned in the reports which are traded over-the-counter may not be cleared for sale in certain states.

RJ FALKNER & COMPANY, INC. and/or its employees, officers, affiliates or members of their families may have long or short positions in the securities discussed in the research reports (and/or options or warrants relating thereto) and may purchase and/or sell the securities or options/warrants from time to time in the open market or otherwise. RJ FALKNER & COMPANY, INC. derives its compensation from the provision of research reports and investor relations consulting services. RJ FALKNER & COMPANY, INC. currently receives a cash retainer of $3,000 per month from INKSURE TECHNOLOGIES INC. for the periodic publication and distribution of research reports on the company, along with certain investor relations services. An officer of RJ FALKNER & COMPANY, INC. currently owns 8,500 shares of INKS common stock and has been granted an option (expiring March 2015) to purchase up to 50,000 shares of INKS common stock at an exercise price of $1.40 per share.

a IR ?pr piece "paid for by the company" see last paragraphs--still very infomative---Rememeber the ingerletter.com was first, did his own DD and has alot of the sam--either way it gets the message out (if coorect)
Note it's 4 pages so remember to click on link bottom right of each page!!

http://www.rjfalkner.com/page.cfm?pageid=2138

nice day today,thin can zoom or drop,but up 30% today as of now!

i hope nobody here is offended i got a RB bb started on this stock--looks great holding up, with less (no)volume ,but need an attack on the old high's

http://ragingbull.lycos.com/mboard/boards.cgi?board=INKS

here is the text from theingerletter.com re INKS from last night---today

hope you like this,he has a very good established track record

Bits & Bytes . . . notes reasonable consolidation by most all tech stocks monitored. Texas Instruments (TXN), Motorola (MOT), and Intel (INTC) all consolidated during the past week, and then advanced slightly. Essex (KEYW) showed greater volatility in its behavior lately; typical for the issue (which also joins the Russell 2000 this go-round). KEYW acted superbly on Monday (over 1.50 up) and on Tuesday as well. It is at an all-time high now. Ionatron (IOTN) consolidating price movement over 8.70-75; confirming a suspicion that preceding dips towards lower 8's were exhaustion light-volume moves that would precede renewed upward action. There is no news, but no sellers evident; and we are satisfied with the current action, looking for rangebound stability and then upside possibly later this week (that could be a contest between short-sellers covering in the face of potential Russell-related buying; even slight selling of a type related to those who bought early-on in-anticipation of the Russell listing buy pulse. We suspect those are not 'neutralizing' factors however, and that on-balance it resolves to the plus side as the week evolves. The pullback currently is not particularly worrisome, and technically could argue 7.95-8.05; but doesn't have to as there are overriding factors to consider pending in the almost immediate future.

It's just my personal observation, but suspect we'll see a quick run-up back to 9 soon. It is my impression that we had a dip from a 'head & shoulders', washed-out as noted in the 6's, ran up to over 9, but couldn't get above daily resistance (at the time, as yet). It is my further suspicion that while it can be argued either way (price movement now) because we are basically in the 'armpit' of the 'head & shoulders', the resolution most likely ought to be to the upside, not the downside, because of the basic factors that surround this stock. A rebound to an 'armpit' leaves an intact H&S until it doesn't of course; but in our view the leg up (from a structured short-term bottoming) was also a likely initiation of a full intermediate move up, and not just a rebound. That's why the critical nature of moving over the resistance overhead, and when that occurs (if we'll say to be balanced) the shorts will scramble, and theoretically run-ups occur.

As to the company; there is an Annual Meeting next week, which is supposed to be just a formality at the firm's lawyers offices in New York City. However, considering a number of open issues and the lack of recent transparency (primarily due to security issues the Government imposes on the firm), we would welcome the firm conveying to shareholders some sort of outline of where things stand (as Government permits). For instance, some clarification on contract progress, delivery times, and certainly a bit of an outlook as to overall growth and development prospects vis-à-vis LIPC, not just JIN, for sure would be welcomed. In essence; an update on the overall 'feel' for where things stand would potentially go far to assuaging shareholder anxieties that certainly are understandable on a fairly young company such as this fascinating one.

Early Monday, Essex (KEYW) filed a new 'shelf-offering', which authorized (but does not yet determine if or when, but the ability to sell) $100 million worth of additional shares (about 5 million shares). That creates an implied potential dilution, which one might think would send the shares lower. Nope; as we've often noted with respect to folks worrying about offerings in certain other 'growth' (not struggling) companies, it all depends what the company plans to do with the money. That's not known as yet.

However, Essex has no urgent need for cash; their management might comtemplate issuing proposed shares after a new forthcoming deal is announced, which drives the share price higher, and then it only pulls back (from a higher level conceivably) on the announcement of a possible deal, which might be viewed favorably, inherently so as to minimize dilutive effects of the offering. This would be good business practice, and the raising of money to fulfill an important growth aspect of a business isn't bad news.

While we certainly do not know what a company has in mind, we do know lately there were rumors Cisco Systems (CSCO) might be considering a partnership with Essex to initially or exclusively distribute Essex's Hyperfine WDM (wave division multiplex) which allows for delivery of encrypted information at a speed about ten times that of current technology Cisco is able to offer presently. That rumor was incorrect (at least as regarded today). Nothing of the type was announced by Cisco today; both rose. Regardless, the price action of Essex is absolutely just excellent.

Now for tonight's special segment:

Occasionally we add a stock outside of well-known big-cap technology leaders, that we keep an eye on. Even more infrequently we take a look at small-cap issues, that are thought to have either a particular niche position in a sector, or potential over time (or conceivably both). In this respect Ionatron was the only OTC stock in recent years in which coverage was started even before it became Nasdaq small-cap. It has made it all the way to the Nasdaq National Market and even to the Russell 2000 now.

However that is an exception (and it was a most interesting exception) to the rule for such stocks; which basically is to avoid anything under $5 a share, and typically not to consider anything at all prior to (if ever) inclusion in the Nasdaq small-cap sector. The vast majority of 'penny stocks' and sub-small-cap listings, don't make it, often are either manipulated or simply struggling, or it's difficult to find accurate information on.

A few do work; and here and there everyone hopes that a smattering of 'Vegas-size' bets on several of these (though inherently done quite selectively) might culminate with objectives lots of speculators eventually want to find, with a small portion of their 'highest risk' wagering capital; the proverbial 5-bagger, 10-bagger, or more. It is very necessary to point this out before writing about any OTC stock. While every stock is a speculation to some extent (though many don't think so, they'll learn one day that for sure most things in life, including houses and property are too), OTC companies are often harder to track, subject to the machinations of market-makers and of course are often inherently volatile (in either direction). With this caveat, and caution that a total of speculations in OTC stocks should be viewed as 'gambling', and not core portfolio investment holdings, let's go forward, as you may see why we suspect something just lately catching our eye has theoretical potential that may differentiate it from the pack.

Thus, every now and then something comes to our attention that suggests an early or 'toe in the water' position could be of speculative interest and potential. Many players will probably remember Sensormatic; it was one of the successful pioneers of what evolved into RFID tags; the familiar plastic tags that had to be removed from garment or other items upon leaving a retail store so the alarms weren't set-off. It was sold to Tyco eventually. Until then for awhile it was a very interesting equity play in its own right (at the time we speculated successfully in Sensormatic, and exited well before the later acquisition). The field has really matured since then, and remains fairly 'hot'.

The experiences of Tyco are irrelevant; the point is what Sensormatic developed into. This aroused a bit of recent curiosity to discover some of those original Sensormatic savvy guys involved in a very tight-lipped operation that potentially could be the next phase or generation in all kinds of 'bar-code' related security enhancement advances. (A member -not the shadow- first mentioned this stock, but it was only upon digging that we found connections with the old Sensormatic team; who are now experienced and seasoned in the field, and we suspect capable of mounting a top-notch project.)

Beyond that, it was the awarding of 'two' (potentially) key novel U.S. Patents (not just 'applied for'; but actually awarded) just last week that particularly causes attention to be focused now, rather than waiting to see if they progress over the next year or two. The patents cover .. 'chipless' RFID. Think about it. The prohibitive cost for low-price goods using RFID for security, inventory control and anti-counterfeiting efforts, often is the cost of embedding an RFID chip into or upon the goods, item, merchandize or document (such as a ticket for a sporting event or an airplane flight even), which is a prohibitive expense for low-cost or mass-market applications. Even pharmaceuticals could be handily controlled if a 'chipless' RFID encoding were possible (both relating to authenticity as well as monitoring where they are; not to mention even hospitals).

We think this is facilitated both by the patents issued to this new company, and also from their prior experience with security encoding or anti-counterfeiting (yes 'covert' in style) proprietary technologies, many of which are covered by an earlier patent and in use currently (though customers sometimes don't want this broadly discussed, so a would-be counterfeiter won't be alert to the possibility of what security to look for).

While the 'chipless RFID' is the 'sizzle' that caught our attention, the steak for now is the bar-code proprietary ink solutions, which could ideally be the residual cash-flow to let this company prosper as it moves towards new-generation 'chipless RFID' realms.

The 2 patents are entitled 'Chipless RF Tags' and 'Radio Frequency Data Carrier and System for Reading Data Stored Therein'. What this in theory does will enable non-contact and non-line-of-sight automatic scanning (or conveyance) of product and logistical or other information. And if successful it would do it without the imbedding of relatively expensive old-style (or competing) RFID tags. How's it done? Interactive ink basically. Or call it digital ink. Potentially this makes item-level tagging practicable for the first time, at per-imprint costs of just a small fraction of conventional RFID chips.

Of course cost is the key to success of this pending product, plus the presumed ease of incorporating this within the 'bar codes' so universally applied to virtually everything everywhere. What the company does is provide scanning equipment (which they will do the final assembly of outsourced components) with residual revenue important; it's from the sale of specialized inks and 'chipless' encoding. An example comes from the earlier product sale (the company's about five years old) to the Istanbul (Turkey) bus company. Turkey paid about 2.5 million to put scanning boxes in the city's buses; at the same time as the system really becomes meaningless without consumables that are provided by the company on a regular basis (that was a 5-year contract expiring this year, which the company anticipates a renewal of, though they're focusing on the bigger markets and other product areas with their more advanced technologies).

As to financials, they have cash on hand, have financed (conventionally) through the private-placement area and so far don't have major issues we can detect with respect to dilution. However, at some point in their growth, offerings to raise capital expressly for build-outs of new production and servicing facilities would be reasonable to expect we think. For now the company is in the process of moving their HQ to Ft. Lauderdale Florida from New York. A subsidiary will take care of business in Europe, and they'll continue to maintain their ongoing 'research & development' operation in Science Park in Rehovot, Israel. My understanding is that most of the executives this summer (not yet in Florida) will be moving to Fort Lauderdale, where office space is already opening in the Cypress Creek business area, and with (I presume) assembly nearby.

So who is this slightly 'covert' mystery company? InkSure Technology Inc. (INKS) is on the 'OTC bulletin board' (pink sheets); and we hasten to point out that is often not the easiest market to learn information or easily trade in. Ideally that will change. The company's 10Q's and so on and their website (inksure.com) are business-like and of a caliber (along with the trademarked product line) that suggests a bigger company in the offing. We suspect so; though this is not seen as a 'flashy' stock or quick hit (that is a positive in our view); since they appear to be a serious group of well-assembled guys determined to be a player in the very large anti-counterfeiting, security, ticketing or documentation and inventory control fields. (We think that's 'Sensormatic talking' in the background of a professional demeanor.) Competitively we view that favorably.

Something else we like: this company (so far) is very low-key; nobody seems to know anything about it. That's good. The inference is that we're early, not late to the table. I hope not too early, but that's hard to tell. Last week they announced (after the patent awards) their biggest sale yet; to Sun Chemical (world largest specialized ink maker by the way, and private), and we are concerned about waiting too long, lest they nail a big account in the pharmaceutical, currency, sports, airline, or retail areas. Also the risk (or opportunity) of a small company like this being swept-up by a major player is a prospect if this all pans-out well; though that would not necessarily be a negative. It is our 'take' at first-blush that they're interested in building the business; not selling it for just limited gain. And that they aren't promoting it as many OTC companies do, is a plus we think (in believing it's an actual business being developed; not a stock deal or other kind of situation primarily, which we disdain in the markets). Can't be certain, but it sort of just feels 'for real', and seems to be a business with the ducks being well lined-up, in preparation for going after serious National accounts that need security.

From time-to-time members have asked about out take on the RFID sector, and our answer normally is that we are solely represented by our major holdings like TXN in the field. And that's so. We have avoided the crowded micro-chip field. However this is sufficiently differentiated, especially in the 'chipless RFID' aspect of their business, on-top-of the likely equally serious anti-counterfeiting document protection operation activities (for instance the Turkish bus ticket business; some say 10-20% of all tickets were counterfeit; so with such situations world-wide a risk, there's an obvious role for countering such forgeries in ways that are intrusive while also being invisible to users of legitimate documents and so on). You could only imagine if China would encode all software sales accordingly (right..). So this is our unique speculation for the field.

One reason the company may be moving most of their activities to Florida is that it's required to be a (mostly) American company for certain security document services sold to the U.S. Government. We don't know if they'll be heavily involved in document security (like passports or driver's licenses), or currencies, checks, securities; but it is possible. They believe the most receptive market segment will be customers which have experienced problems with counterfeiting, data theft, and have been unable to reduce or eliminate the effects of counterfeiting through authentication solutions that are more easily circumvented than the covert security features InkSure can provide.

At this point it appears the products are multi-disciplinary technologies based on both chemistry and printing, as well as software and electro-optics. Most of it is proprietary but we are given to understand that a 'clerk' can scan and verify a ticket or item in no more than about a second, with no particular knowledge or skill (they get a 'yes or no' as far as authentication, and then call a supervisor presumably if there's a problem of a security or counterfeiting type). Simply put; we don't know if this is the 'holy grail' for the RFID industry, but it is competitive. However just WalMart's determination earlier this year, that all WalMart goods will have RFID tags, says enough. Now imagine it at a fraction of the cost WMT's envisioned. Enough for now; more as available. Thus:

We initiate coverage on a speculative OTC RFID candidate: InkSure (INKS). Price is around 1.95-2.05 on the OTC 'bulletin board'. The stock's relatively thin. Any that determine to 'play' this stock should be cognizant of the limitations of the OTC, thus a limit order approach should be maintained for all purchases and sales. Our initial goal for the shares will be the 3-4 area; with clearly some suspicion that this may be really a speculative retention for the longer-term; with prospects dependent on contracts as the company grows, as well as financial transparency on the part of management; a sensible financing approach to grow the business, and an effort to move to NASDAQ. It is impossible to say if this occurs, where it may go down-the-road; or if their results will grow fast enough to move it to regular Nasdaq in the reasonable fullness of time.

Price action: shares were slightly higher than current levels a week ago; gapping-up on 'twin patent' news which made some RFID industry publications; then settled back a bit. Hence shares down to just about fill the gap, leaving no special premium for the announcement of the patents (back to the breakout or conceivable support point), it's a decent point for new nibbling we suspect. INKS all-time high was after it became a public vehicle under this name (a reverse-merger, albeit apparently a 'clean one' of a shell previously held by a child toilet-training firm, which had basically evaporated), in 2002, at around 2.50. Subsequently dropping to under 1, it gradually worked back up as business was reoriented and generated. Revenue, while small at 400,000 in the last quarter, has the right direction (a double, year-over-year) and any new contracts aren't reflected (nor is information readily available). Volume increasing steadily from the average. There do not appear to be unusually high salaries, option structures or other impediments to speculative interest, from what can be gleaned at this point. If it continues to be well (but aggressively) managed to forge ahead before competing or even newer technologies come along, it could establish itself as a new 'benchmark' if they do things just right; maximizing comprehension of the technology's versatility.

Full disclosure: yours truly has a nominal 'toe-in-the-water' initial position at current (some slightly higher, some slightly lower) levels. For now it's our intention to retain this small position as an investment speculation to see what the InkSure boys can deliver, and determine later if this is to be another Sensormatic (as to potential), or just another stock that meanders around (and hopefully higher). If it becomes a 'hit' in the sector, don't be surprised if our attention to the company and coverage, increases over time, particularly if management is able to move it to the NASDAQ eventually as a small-cap, and with an eye on National Market representation if business warrants.

Also we'll be watching to see if they show respect for shareholders as well, by limiting dilutions, being as transparent as feasible, and maximizing shareholder return. Our first take on their public pronouncements is a positive one. It might be added, lastly, that there is no major 'message board' or 'analyst coverage' yet that we can find, and if evolves satisfactorily, we suspect we'll have been the first American analyst (it may have been covered in Israel, we don't really know) to initiate monitoring or coverage. So maybe a ground-floor entry; if this is successful. Hard to say; speculative for sure.

Members please note: we have no association with IOTN or for that matter any other publicly traded firm (never have had) other than as shareholders of course. Yours truly remains an Ionatron shareholder throughout coverage timeframes, as regularly noted. Comments are interpretative speculative postulations, provided 'as is with all faults', and all risks, with no assurance about future performance of anything in any way whatsoever.

Inksure was just added as a new play (last night)from a very well known ,long time (and a good record)market letter last night
gene inger's ingerletter.com..i like his record on security type plays so i bought More, then what i had--hope we do well,how can we get on more message boards..it's hard to do DD except from the companies website
thanks

Hi: new to this board,i like this stock,while speculative,of course there are endless possibilites in this day and age of security..I look for some good things..The management impresses me