Peter HodsonACD Systems InternationalASA.TOSELLJan 23, 2004

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.

Ranks in the bottom 10% of their database. Had a 20% cut in earnings estimates over the last 90 days. Year-over-year earnings are up 20%. Stock is cheap.

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.