E-motions: Vol. No. 1, Issue No. 32 Brought to you by California News Tech (OTC BB: CNTE)

By: Tai Nicolopoulos E-Motions Writer 08/08/2006

A New Generation of Internet Company: Keeping Users, and Investors Happy

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1. Emotions in Focus: Is the Bloom Back on the Internet Rose?

    After the Internet bubble burst around early 2000, it seemed as though investors would not be looking to companies with web offerings for a long time to come. Nonetheless, the market is slowly coming back to companies in the Internet sector. While investors no longer feel the reckless enthusiasm they once did for the web, or even for the larger category of tech stocks, the buzz surrounding “Web 2.0” is in the middle of a slow crescendo.

    There are a handful of prerequisites, however, that companies have to meet to appeal to investors who have grown older and wiser after learning from investments that were real dogs, like Pets.com. To start, companies need to actually have a viable good or service; it is no longer enough to merely have a cool idea or a catchy domain name. Good companies should have a product line ready to launch that meets a real need with a large base of consumers. Furthermore, the company has to offer the latest generation of technology: user-friendly interfaces and the most timely and accurate sources of information. Altogether, the most important factor for these companies is offering added value to consumers and an overwhelmingly positive user experience.

2. The Big Movers and Why

    Are you missing out on potential profits from Heads UpTM recommendations? Recently, MediaSentimentTM subscribers using Heads UpTM for Thumbs Up / Thumbs Down recommendations for publicly traded companies were able to take advantage of these Big Movers, moving 12% or more in their recommended directions, after they released earnings.

Big Movers in the Spot light:

    Two recent Media Sentiment® Heads Up™-recommended stocks embody the kind of sentiment surrounding the best of the “Web 2.0” companies. The first company, Traffic.com Inc. (Nasdaq: TRFC), went up 12.39% on July 26, 2006 after a Thumbs Up Heads Up™ recommendation. Traffic.com offers real-time traffic information and services to businesses, consumers, and government agencies in the United States. With AOL and major mobile companies as partners, Traffic.com has been able to offer comprehensive, real time, traffic information to users. In addition to offering a cool product and making it available on the go, Traffic.com has distribution agreements with a handful of government agencies and leaders in personal navigation and mapping market share. These relationships ensure that Traffic.com has a sizeable audience for its services.

    Later, another company, Rediff.com India Ltd. (Nasdaq: REDF), went up 22.07% on July 20, 2006 after a Thumbs Up Heads Up™. Rediff.com provides online news, entertainment, shopping and personals to India and the Indian community world wide. Furthermore, Rediff.com’s audience in the developing world is a choice market, where the trend of lower-priced PCs has opened up a new and untouched segment of computer users as targets for online advertising. Offering unique content to this large global audience, the company was able to boost its revenue for the quarter with highly specific and successful online advertising. In fact, revenue from online ad business alone increased 68% in Q1 2006.

Other Big Movers:

Harris Corp. (NYSE: HRS), which provides communications products, systems, and services to government and commercial customers, went up 13.00% on July 26th after a Thumbs Up Heads Up™.

Agere Systems Inc. (NYSE: AGR), which provides integrated circuit solutions for storage, mobile wireless communications, and enterprise and telecommunications networks applications, went up 25.67% on July 25th after a Thumbs Up Heads Up™.

Stericycle Inc. (Nasdaq: SRCL), which provides medical waste management services, infection control, and pharmaceutical returns and related compliance services, went up 12.25% on July 28th after a Thumbs Up Heads Up™.

Dura Auto Systems (Nasdaq: DRRA), which designs and manufactures driver control systems, and other automotive systems, went up 64.10% on July 27, 2006 after a Thumbs Up Heads Up™.

Trex Co Inc. (NYSE: TWP), which manufactures and distributes wood/plastic composite products, went up 21.25% on July 27, 2006 after a Thumbs Up Heads Up™.

Gulf Island Fabrication Inc. (Nasdaq: GIFI), which engages in the fabrication and refurbishment of drilling and production platforms, went up 24.46% on July 26, 2006 after a Thumbs Up Heads Up™.

MRV Communications Inc. (Nasdaq: MRVC), which engages in the design, manufacture, sale, distribution, integration, and support of communication equipment and services, and optical components, went down 8.15% on July 26, 2006 after a Thumbs Down Heads Up™.

Schweitzer-Mauduit International Inc. (NYSE: SWM), which engages in the manufacture and sale of paper and reconstituted tobacco products to the tobacco industry, went down 13.67% on July 27, 2006 after a Thumbs Down Heads Up™.

Cardiac Science Corp. (Nasdaq: CSCX), which engages in the development, manufacture, and marketing of diagnostic and therapeutic cardiology products , went down 14.73% on July 28, 2006 after a Thumbs Down Heads Up™.

I-Flow Corp. (Nasdaq: IFLO), which engages in the design, development, manufacture, and marketing of ambulatory drug delivery systems, went down 17.69% on July 27, 2006 after a Thumbs Down Heads Up™.

Carpenter Technology Corp. (NYSE: CRS), which engages in the manufacture, fabrication, and distribution of specialty metals and engineered products, went down 16.09% on July 26, 2006 after a Thumbs Down Heads Up™.

Hydril Co. (Nasdaq: HYDL), which engages in engineering, manufacturing, and marketing connection and pressure control products used for oil and gas drilling and production worldwide, went down 16.55% on July 25, 2006 after a Thumbs Down Heads Up™.

3. How to Use the News

    It is exciting for investors to once again be able to look to tech stocks. With second generation so-called “Web 2.0” companies offering services ranging from mobile updates, to location specific content, there are a lot of new investment opportunities. It is important, however, to examine each Internet stock carefully. A service may be very high in “cool factor” and user satisfaction, but it may be difficult to monetize. Definitely ride the wave of buzz surrounding new Internet ideas, but don’t forget to do your homework. Check out their advertising models, the size of their potential audience, and what they charge, if at all, for their services.

4. Links you can use

Rediff.com's Profit Surges
How the Internet Transformed Business

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