Analysis of Economics

[cdrom]

July 20, 2006 EOD

STG-
What appeared to be good news in STG of selling 2 units for $18M (SLIS and German divsion) has not been met too well with market. PPS moved about .04 to .37~.38 in the morning session and pushed down by selling pressure. Volume was not impressive considering the news either.

The technicals were improving until today. The PPS is low and there appears to be heavy support at .32 so will have to wait until solid momentum arises. The current market cap is still $14M and even without the 2 units being sold, the company could generate approx. $300M annually. Does not make sense why PPS is currently at .32. Need to look into further. The company debt will be reduced significantly by the sale of the 2 units, so bk is out of the question.

TRANQ is selling off big time. Heavy weakness in transportation sector. Market is discounting the slowing of US and World economy it appears. TRANQ fell below 200 DMA 2528 today. Need to see if it can bounce above in coming weeks and decide what to do with STG. Looks as though 50 dma is crossing down to 200 DMA. Looks very weak in the transport sector.

ADTR-
Still appears to be at heavy consolidation. NITE has been at the ask for about three weeks at .12. What could that be? and Who is NITE representing?

Video gaming industry appears to be improving and similar company GME has been upgraded to a strong buy by Wedbush the other day.

Overall market condition appears to be improving and rate increases of couple of more this year should be end.

Watchlist-
Need to look into SWW (2.87) and CMGI (1.06).