Stockchase Opinions

Robert McWhirter AirIQ Inc IQ-X HOLD Jun 21, 2006

5th largest installed base of subscribers in the world. New devices/subscribers they are adding has an average price and monitoring fee that is lower than the existing installed base. Analysts expect they will make money in 07 on a net income basis.
$0.175

Stock price when the opinion was issued

computer software processing
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PAST TOP PICK
(Was a Top Pick Dec 7/04. No change.) Company is continuing to add more and more subscribers. Thinks it's turning profitable this year. Turning cash flow positive. Starting to ramp up with new products. Pretty excited about the upside for this company. Cheap. If they deliver, it could be $1.20/1.50 stock.
WEAK BUY
Systems for tracking cars. Expected to have an earnings break even by the end of 2006. Earnings fell short of expectations last quarter. Likes the overall business model, but they are not earnings positive yet. Good management. The recurring revenue model is very good.
WEAK BUY
Not earning money at this point. Has the 5th largest number of clients of a recurring revenue basis. Earnings have been shaved because of the impact of the US$ but expecting they will hit break even in 2006.
WEAK BUY
Just recently announced that they are in violation of a couple of the lending covenants with their bankers and are needing money to pay back. In the bottom portion of the database. Not expected to be profitable in 2006. Liked it because it is one of the top 5 providers of devices to keep track of things.
BUY
Ranks 668, bottom of the database. Was expected to make money and break even in 06 but this was revised to a loss of $.03. Break-even expected in 07 when they are expected to earn $.01. 5th largest subscriber base in the world. Very good opportunity for them and good overall growth.
COMMENT
Tracks vehicles. Continue to add subscribers, but the average selling price is going down. Continues to struggle with profitability. Taking steps to cut expenses and he is looking for an up tick in earnings.
COMMENT
Ranks in the bottom part of his database. Have over 100,000 subscribers making them one of the top 5 in the world for subscribers. Subscribers added recently are at a lower selling price. Have dramatically scaled down their costs.
DON'T BUY
Prefers WebTech Wireless (WEW-X), which lets you to know where a truck or van is. AirIQ ranks in the bottom 20%. Expected to lose $.04 for calendar 06, $.02 for 07 and $.01 for 08. Subscriber base is 115,000, 5th largest in the world. Could be a takeout.
HOLD
New technology officer. Early stages. Wait to see what happens.