Poker's Picks

[PokerVertigo]

.<font color=green>DD for SPZI

Here is why I think SPZI is a good undervalued microcap.

Reasons:

- Their software SpoozToolz 2.0 will be offered at $89/month. This includes datafeed fees because the data will be coming straight from your broker.

- The reason they didn't go anywhere after their launch of version 1.0 was because of many issues regarding refresh rates with their software... I believe they've worked out all the kinks and done so much more with version 2.0 that there should be no issues at all now.

- Since it is an excel plugin, it will have a very strong industrial strength database at its core. Also, setting complex triggers will be relatively easy, using excel macros.

- Fractalz3 is an analyser that plugs into SpoozToolz, and it uses chaos theory to predict market fluctuations pretty accurately. A research was conducted and it showed that using Fractalz3 to help trade showed no loss for the client in 6 weeks of trading.

- They have deals with OptionsXpress and Ameritrade right now. Right now they're working on an online advertising campaigne.

The competing product right now is Tradestation. It is a very good product that has a built in scripting system known as "easylanguage". However, in order to use Tradestation, you have to use them as a broker. Spooz allows you to have the same trading system, but it will work well with your existing broker. Also, the database of Tradestation is nothing compared to what you're going to get with Microsoft excel.

The marketcap for Tradestation is $660 million and SPZI is under $2 million.

Projections for 2007 show they're hoping sales to hit approximately $7 million... I think that estimate is rather conservative, considering this:

If they strike up a deal with Ameritrade and/OptionsXpress which is inevitable considering the trading software for both of those brokerage houses suck. Those two cats would like to stay on the same level as Tradestation, but without a trading platform like Spooz, they will not be able to do so. So when Spooz is presented to their clients, I believe that it will be very well received.

$89/month will be a fee that clients will gladly pay in order to trade using their existing brokers. If by the end of 2007 we hit 15000 users (which is definitely doable) that is:

$89/month * 15000 = $1,335,000 in sales per month... multiply that by 12 and you'll have an interesting look at where this company is headed.

I believe that the overhead for Spooz will not be that high, so most of the projected sales figure can be banked.


On an interesting side note, southendstockpickers.com is now backing SPZI... I usually don't care for stock promoters, but I support their reasons for why they think the stock will soar in a few weeks.
http://southendstockpickers.com/Home_Page.html