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Technology Stocks : QSSY Q-Seven Systems -- Ignore unavailable to you. Want to Upgrade?


To: Gator who wrote (49)12/13/1999 6:31:00 AM
From: Madeleine Harrison  Respond to of 55
 
Microcap Alliance- The Stocks to Watch Newsletter
12-12-99
By Dave Reiner

An Internet Microcap with Staying Power

As 1999 comes to an end, it's important to take inventory of all the "me
too" IPOs that flooded the market in the second half of the year so we can
filter out the ones who lack staying power. The Internet companies that I
believe will be the most promising, will be those who provide the software
infrastructure that's helping to build the Internet and make it perform
better. One of the very few microcaps lucky enough to be in this sector
is Q-Seven Systems, Inc. (OTC:BB:QSSY). Q-Seven's User Management
Software ensures that online businesses run their best by providing users
with a system for backend administration and security.

Q-Seven Systems is in a large, fast-growing market - a very important
prerequisite for any Internet play. The bigger the market, the better
potential ROI. Because Q-Seven's User Management Software is flexible and
scalable, it smartly cuts across ALL E-Commerce businesses. This is the
software's greatest advantage and it allows new services and technologies
such as online brokerages, gaming, sportsbooks, shopping, payment systems,
flash animation, video streams, and interactive movies to be integrated
with little effort into existing sites. Security of the software includes:
data encryption prior to being sent over the Internet via secure-Http;
database 128 bit DES encryption; log-file records of all transactions;
fraud prevention by session tracking; and firewall support.

The Numbers:

Q-Seven reported revenues in its third quarter ended September 30,
1999 of $314,970 as compared to $124,934 in the corresponding period in
1998, an increase of 152%. Revenue reported for the nine months ending
September 30 were $749,887, up from $300,773 in the first nine months of
1998.

Profits for the quarter decreased to $2,743 compared to $33,599 for
the same quarter of the comparative quarter for the previous year.
This decrease in earnings was attributed to increased general and
administrative costs and trade show expenses. Philipp Kriependorf,
President of Q-Seven, indicated that he expects profits to increase
for the next (fourth) quarter of the current year, as initial revenues
from sales of Q-Seven's gaming software will be reported.

Analyst Recommedations:

Last week, William W. Davison, PhD, issued a buy rating on QSSY with a
12-month target of $7 based on the company's demonstrated ability to grow
its revenue stream.

The Bottom Line:

We're nearing the end of the fourth quarter for QSSY and we already
know from Kriependorf's comments that earnings will be expected to
increase. The question is how much? On Friday, the stock gapped up
nicely to 2 1/16 +7/16, or +26.92% on 128,900 shares traded, indicating we
could be in for a big week. I would definitely keep a close eye on the
stock this week.

(rest of report on other stocks is omitted here)

Have a profitable week! Dave Reiner



To: Gator who wrote (49)12/13/1999 6:33:00 AM
From: Madeleine Harrison  Read Replies (1) | Respond to of 55
 
And another......

Subject: Global Microcap Group
Send reply to: gatorpicks@hotmail.com
Organization: Global Microcap Group

Global Microcap Group
globalmicrocapgroup.trading.net

-------------------------
Special Report
Sunday, December 12, 1999
Written by C.Kesler
-------------------------
You can also view this profile, and our last Special Report
on Vodavi Communications Systems (Nasdaq: VTEK), written
by our colleague Jesse, at heartstreet.com
GMG members are encouraged to browse the HeartStreet.com site.

Special Report:

Q-SEVEN SYSTEMS
OTC BB: QSSY

Current Price: $2.06

Buy Rating

Outstanding Shares: 12,500,000

Float: 2,800,000

Q-Seven Systems, is a German based international Internet
software company specializing in providing user management
software for adult entertainment, online gambling, and
personal finance Internet businesses. Q-Seven reported
revenues in its third quarter ended September 30, 1999 of
$314,970 as compared to $124,934 in the corresponding period
in 1998, an increase of 152%. The company emerged from a
partnership of three Internet service companies and was
founded at the end of 1998. Its headquarters are located
in Monheim, Germany with over 20 employees it concentrates
on programming superior user management software and
succeeded in forming several strategic partnerships with
internet marketing and billing companies worldwide. The
companies mission is the development and promotion of a
flexible, sophisticated software for commercial online
applications. To learn more about Q-Seven Systems and
their services, visit their website at:
q-seven.com

The partnership consisted of three businesses:

Q-5 Internet Marketing, a service company for web development,
site promotion and E-Commerce.

EuroDebit Systems, a US/German billing company for all major
credit cards and European payment systems.

Cyberotic Media, Europe's leading adult entertainment provider
of content, affiliated programs, live entertainment, and adult
verification systems.

Because of the rapid growth of E-commerce, there is a
tremendous need for a software program which can set a
standard in the administration for these kinds of services.
Websites that offer commercial services like shopping malls,
online gaming sites and other entertainment content need a
reliable software system that can manage users, handle site
administration as well as provide for secure online payment.
Q-Seven has developed such a software that allows Internet
Content Providers to create their own entertainment worlds
and virtual shopping environments with amazing ease. Because
of its modular structure, new services can be added with a
look and feel that can be customized to the proprietor's
liking and can be quickly integrated to keep up with the
rapid pace of technological advance that occurs on the
Internet.

I believe the brief down trend experienced recently in QSSY
was due to profit taking after high growth in value and will
begin do appreciate in value considerably over the next
several weeks/months.

Sincerely,

C.Kesler - Administrator
Global Microcap Group
globalmicrocapgroup.trading.net