Robert McWhirterACD Systems InternationalASA.TOWATCHSep 16, 2003

Ranks fairly well in his database model. In March/06 earnings are expected to go from $0.01 to $0.07. Against a stock price of approximately $1.19 that gives a 17 X PE and a .6 PE to growth. Part of the challenge is their ROE is about 5% which is not great. Year over year sales is up about 15%. A lot of competition in a nasty market.

Recent earnings were better than expected, but estimates have dropped recently. Have cash of about $.70 per share. Competition is offering a similar product for free.

Didn't like management guidance. Expect they will lose money.

New version of their software is coming out. Ranks in the bottom third of their database. Good growth.

(Was a top pick on Feb 11. Down 11%.) Still likes. Just made a good acquisition.

Digital photograhy is becoming cheaper and is starting to take off. Has some competition.

Increasing earnings. Reasonable price.