CHRISTIAN ROCK CAFE

[shaneyboy]

Stockprowler's pick this week...

Commodore Applied Technologies, Inc. (OTCBB: CXII)
150 East 58th Street, Suite 3238
New York, NY 10155 Phone: [phone]
Corporate Website: http://www.commodore.com
Shares Outstanding: 127 million
Public Float: 59 million
Market Capitalization: $2,032,000
Closing Price Friday 11/05/04: $0.016

Shares of our last pick, Itec Environmental Group (OTCBB: ITCV), traded as high as .018 up 463% after our October report. In the past week, the stock price of ITCV has plummeted as a result of the company issuing new shares at an alarming rate… the total presently stands at 667 million… almost three times the number outstanding just a month ago. To make matters worse, on November 4, the company announced a 1 - 165 reverse split to be concluded sometime in the next 20 days. Though we still believe the company to be an attractive speculation, we have closed our position. It is our opinion that the stock price will decline following the reverse split and, at that time, likely present an excellent entry point for the speculative investor.

On another note we have been following the RAE and MHR call options for over a month (see our Watch List) and we believe both to be excellent speculative opportunities. The RAECU options have nearly tripled over the past month or so and we believe this to be just the beginning of what could be a very dramatic move in the coming months. The MHRLC options expire on December 18 but we expect a major move to occur after the company's earnings release and conference call scheduled for November 9. The company's NAV is estimated at $18+ and we anticipate earnings for the coming year to be huge.

Our pick for the month of November 2004 is Commodore Applied Technologies, Inc. a company that we looked at back in September 1999. At that time the company was trading on the American Stock Exchange at around a $1 a share. We believed the company to have tremendous potential, but although the stock had several good price spikes over the years, the company never really landed a big contract and the stock price began a long decline. Eventually the company was de-listed from the AMEX. Shares of CXII are currently trading under 2 cents a share.

So why are we looking at Commodore again? Several reasons, the first being the company finally landed a big contract! In September, Commodore announced it had been awarded a $12 million-plus contract by Bechtel Jacobs Company LLC of Oak Ridge, TN. Bechtel Jacobs is involved with decommissioning and cleanup work at the U.S. Dept. of Energy's nuclear site at Oak Ridge. Although the scope of the Commodore contract covers environmental sampling and data integration, the contract is significant because it could be preliminary to other substantial contracts involving the use of Commodore's patented Solvated Electron Technology (SET) that is able to effectively treat radioactive waste. It is widely known that the DOE has a problem with reliable and economic treatment of low-level radioactive mixed waste. Shelby Brewer, Commodore's Chairman and CEO said: "We are pleased to support Bechtel Jacobs in its role as DOE's environmental management contractor. We have a strong integrated team with SAIC and RCS. Transition from the incumbent contractor to the Commodore team will begin as quickly as possible." Brewer continued: "Commodore Applied Technologies, Inc. has two business thrusts: engineering services, and the applications of its patented technologies, such as Solvated Electron Technology - SET™. The engineering services part of our portfolio is managed by our subsidiary Commodore Advanced Sciences. This award from Bechtel Jacobs means a great deal to our company in that it will stabilize the engineering services part of our portfolio and provide a platform for growth."

Commodore's proprietary Solvated Electron Technology (SET) is a non-thermal chemical process that remediates hazardous materials by destroying the hazardous components of waste. The SET™ process leaves the resulting material free for reuse, non-hazardous disposal or long-term nuclear disposal. Commodore developed SET™ as a commercially viable technology that can be used to destroy some of the world's worst environmental hazards. Commodore scientists have demonstrated the technology's unsurpassed method of destroying hazardous and highly regulated toxic materials at a number of test sites. SET™ effectively treats and destroys PCBs, CFCs, pesticides, dioxins, furans, chlorinated solvents, fungicides, herbicides, chemical weapons and high-energy explosives. Further, SET™ processes depleted uranium hexafluoride and the hazardous material from many mixed radioactive and hazardous waste combinations. Whether found in soils, oils, sludge, sediments, metals, concrete, liquids or other media, SET™ can safely destroy the halogenated compounds without producing residual waste products. In addition to the Oak Ridge site, Commodore has targeted the DOE's Hanford, Washington site as a client. Hanford is one of the principal repositories of stored radioactive low-level mixed waste (LLMW) in the nation and is a federal site, located near Richland, Washington. Hanford was one of the two principal sites in developing fissionable materials for the atomic bomb in WWII (the Manhattan Project). The other principal site is Oak Ridge. The DOE has placed the clean-up of Hanford's facilities as a top priority. Commodore last year opened a regional office in Hanford to better position itself for this opportunity.

DOE Hanford had planned to rely heavily on a local Richland, Washington company, Allied Technology Group, for the thermal treatment of its organic LLMW. However, ATG's equipment could not be made to perform, and ultimately the company went bankrupt in 2002. ATG was purchased by a group of local investors, Pacific EcoSolutions in 2003. Commodore is in active discussions with the new company to substitute the proven SET technology for the failed thermal technology. The goal is to make Pacific EcoSolutions the local treatment site of choice for the Hanford radioactive wastes.

In addition to treating LLMW at Hanford, Commodore is pursuing its bid to become the treatment of choice for the large amounts of contaminated sodium metal at the site. Elemental sodium must be converted into a stable compound …sodium and water/moisture is explosive! One of the worst nuclear reactor incidents in history was the Soviet Union explosion where water came in contact with sodium in the reactor's heat transport system. The Hanford Fast Flux Test Facility (FFTF) has over 2 million pounds of elemental sodium which must be removed and treated as part of the FFTF de-activation program. The total estimated cost of the de-activation program (DOE estimate) is $500 million, and the sodium treatment component is a significant part of that number. Commodore's SET™ can use the "waste" sodium directly to treat LLMW and toxic wastes - as it did for Los Alamos Laboratory recently.

Shelby T. Brewer, Ph.D., has served as Chairman of the Board and Chief Executive Officer of Commodore Applied Technologies, Inc. since January 15, 2001. From 1981 to 1984, Dr. Brewer served as Assistant Secretary of Energy in the Reagan administration, holding the top nuclear post in the U.S. government. While serving as the Assistant Secretary of Energy, Dr. Brewer had responsibility for Hanford and its operations. Prior to his appointment by President Reagan, Dr. Brewer held positions of increasing responsibility in private industry, the U.S. Navy, and the Atomic Energy Commission. Dr. Brewer holds Ph.D. and M.S. degrees in nuclear engineering from the Massachusetts Institute of Technology. He holds a B.S. degree in mechanical engineering and a B.A. in humanities from Columbia University.

Insiders own 53% of the outstanding shares of CXII, with CEO Shelby Brewer holding 13,507,465 shares. Interestingly, Dr. Brewer and other company executives have been deferring up to 100% of their salary and expenses to keep the company afloat during its lean times… an unusual demonstration of confidence in the future potential of the company. Stockprowler views CXII as a rare speculative opportunity… the company appears to be under the radar of micro-cap investors judging by the lack of volume and ridiculously low stock price. If the recent $12 million Bechtel contract turns out to be just the tip of the iceberg, this could be the penny play of the year!

Stockprowler does not receive compensation from companies we profile or from third parties... we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are small relative to the public float so that the effect on the stock price when we buy or sell is minimal. Please read our full disclaimer.

Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to because trading on insider information is illegal! All information contained in our reports is available in the public record... and any written or verbal communication with company CEOs/IR people strictly adheres to this rule. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

Good Trading... Stockprowler