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Adding On Track Innovations (OTIV) $1.60 to Watch List.

Internet Stock Review, Wednesday, 8/24/2011.

Beverly Hills, CA 65..84F Sunny.
Chicago, IL, 64..91F Sunny.
Port Jefferson, NY, 69..88F Fair.  182

1. StrikeForce (SFOR) Shareholder Update.
2. StrikeForce Back on Bulletin Board.
3. Why Software is Eating the World, Marc Andreesen.
4. Adding On Track Innovations (OTIV) to Watch List.
5. Disclaimer.

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Internet Stock Review

Blog Version: http://internetsecuritystockreview.ning.com/profiles/blogs/1-strike...


1. StrikeForce Technologies (SFOR) $0.035 Shareholder Update.

Nice, nice and nice.

StrikeForce (SFOR) released a well written shareholder update this morning. Despite the market volatility, we really get the feeling that the company has the wind behind its back, from a number of ever strengthening sources-- almost as strong as Hurricane Irene, which is now headed up the Eastern Seaboard. The difference of course being, we expect this storm to last much, much longer.

A highlight from today's gust:


"The timing is absolutely perfect for StrikeForce Technologies," said Mark Kay, StrikeForce's CEO. "Our product development strategy is paying off, our products are being embraced as "best of breed" in the industry and our sales are commencing and projected to grow at multiples of previous performance based on the business noted above. The regulatory environment is phasing in mandates for the type of authentication and protection protocols that our patent and patents pending cover and our products provide. We expect the remainder of the year to be very positive for StrikeForce with expanded market penetration and highly profitable sales growth in the ensuing months and years."


Because we are coming in at such a low price, we are of course excited about six month to one year share price potential. However, the real excitement lies in where the shares could potentially be trading two or three years from now. There's really just no telling. This could put the Internet Security Stock Review on the map.

Full Release: http://markets.financialcontent.com/demo/?GUID=19306434&Page=Me...

PS. For the best archive of news on any company (which supercedes splits and symbol changes) we use Financial Content.com

Bookmark this, if you are following this company's progress: http://markets.financialcontent.com/demo/?Page=NEWS&Page=NEWS&Ticker=SFOR


2. StrikeForce Back on Bulletin Board.

One of our market maker friends called, to tell us (as the company expected), StrikeForce (SFOR) is now back on the bulletin board. The company has always been in full compliance and met all disclosure -- but announced on February 18th, that it lost the listing when "..because our original market maker is no longer in business (Westminster Securities). We are re-applying to be listed on the OTC Bulletin Board through another active market maker."

If you're not aware, there have been some major, major changes in the way clearing firms handle the transfer and ownership in companies "not" listed on the OTC Bulletin Board -- with a lot of brokerage firms just saying, "thanks, but no thanks."

In our opinion this can in some instances create a severe valuation discount in those companies, which also in our opinion StrikeForce had to endure, for nearly six months (bad for them, good for us -- since we only recently began coverage).

See here: http://www.otcmarkets.com/stock/sfor/quote


3. Why Software is Eating the World, Marc Andreesen.

Not to be overly StrikeForce "centric," but when we read this article from Marc Andreesen, we kept reading how StrikeForce could benefit in this new environment. Our "centric" read are in (quotes)


By Mark Andreesen.

Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.

Over two billion people now use the broadband Internet, up from perhaps 50 million a decade ago, when I was at Netscape, the company I co-founded. In the next 10 years, I expect at least five billion people worldwide to own smartphones, giving every individual with such a phone instant access to the full power of the Internet, every moment of every day.

(OMG, that then is StrikeForce's potential market. Five billion smartphone users (which are esentially mini-computers) who need to be protected and StrikeForce got its mobile patent in early 2011. This is also the next target market for cyber-criminals)

On the back end, software programming tools and Internet-based services make it easy to launch new global software-powered start-ups in many industrieswithout the need to invest in new infrastructure and train new employees. In 2000, when my partner Ben Horowitz was CEO of the first cloud computing company, Loudcloud, the cost of a customer running a basic Internet application was approximately $150,000 a month. Running that same application today in Amazon's cloud costs about $1,500 a month.

(There is probably no way StrikeForce could have survived with that type of overhead and minimal string-shoe budget. More wind at our back.)

With lower start-up costs and a vastly expanded market for online services, the result is a global economy that for the first time will be fully digitally wiredthe dream of every cyber-visionary of the early 1990s, finally delivered, a full generation later.

Full Article:


IA's Special Situation Research

Blog Version:

4. Adding On Track Innovations (OTIV) to Watch List.

One of the best analyst we follow out of South Florida has come across the perfect candidate for fisherman, in the current market pull-back.

Due to cash considerations, meaning they have gobs of it, we are adding this to IA's Special Situation Research and maybe to the ISSR after further research, as the products offer Internet security, via their various smart-card applications.

Now if you're like us, as soon as you saw the word, "smart-card" you may have thought -- "oh-no, not another smart card company."

But work with us here. They got cash and revenues and an installed base of the highest caliber of customers imaginable -- which after a few seconds deliberation, should bring you to the same conclusion that we have, which is "these guy have only scratched the surface."

On Track Innovations: (OTIV) $1.60
Market Value: $51 million.
Cash: $33 million.
Sales Guidance 2011: $55-60 million
Web: http://www.otiglobal.com/Investors_Introduction
Fact Sheet: http://www.otiglobal.com/uploads/investors/OTI_Factsheet_07292011.pdf (they need out help here)

(The Company was awarded the Frost & Sullivan 2005 and 2006 Company of the Year Award in the field of smart cards.)

Since a bad market is what brought this to our attention, let's look at the chart first.

1 Year Chart:


9 Year Chart (even juicier with a high near $16):


With today's 31 million shares outstanding, on January 18th at $4.00, the entire company was worth $124,000,000. Not a huge company by any means and prohibitively cheap for institutional tastes. Today, the same company can be bought for $51 million.  Which is downright impossible for an institution to buy, and as such reserved as our play ground for now. So much for the "institutional advantage" they keep talking about on TV. If you're the "little guy" they refer to, this Bud is for you!

Let's recap.

January Value: $124,000,000
August Value: $51,000,000 (cash $31 million)

And now a quick message from the CEO Oded Bashan,

"Following the first six months of 2011, with better than expected revenues, OTI is well positioned to enjoy its expected growth and the investments we have made in the recent years. We are involved in a larger number of projects that have progressed to their commercial implementation stage, resulting in the increase in recurring and transaction fee revenues. We have a larger number of opportunities that are in pilot stages with a clear path to rollouts, which will mainly impact 2012 and 2013 revenues, ultimately increasing our long term visibility and profitability. In addition, we have created new alliances with channel partners in the vertical markets that we focus on, especially in the petroleum and parking markets, which will help us increase revenues from these sectors. The advancements increase our confidence level in meeting the previously provided guidance for the year of $55-$60 million in revenues."

What interest us most (read flings and website for your own version of excitement) is the parking division called EasyPark -- in what we understand is a world of very, very hungry municipalities who need your quarters (now dollars) for the privilege to park on our (now their) streets and parking lots.  

And note this is not the "biggest" division (SmartID is 64% of revenues, SmartPayments 19%), but dang, it sends a chill up or spine.

Since 2000, EasyPark has been implemented nationwide as a complete parking solution in Israel, with over 600,000 users. EasyPark is the only parking system to date to have been field-tested and used on such a scale, and has been successfully endorsed by both municipalities and drivers

EasyPark enables drivers to be charged for the exact period of time parked, while simplifying the monitoring, collection and revenue distribution of parking fees. The core of the EasyPark system lies in a durable, adaptable, single in-vehicle device (an "electronic parking meter") and proprietary software that provide a simple and convenient solution, which can be used for all parking needs including on street parking, parking lots, toll roads etc.

Case Study: EasyPark in Tel Aviv, Israel

The Challenge:

As in many large cities around the world, on street parking in the busy city of Tel Aviv, Israel, was a challenge for both driver and the municipality for the following reasons:

A. The need to purchase municipal parking tickets found in designated stores
B. Parking fees were paid in advance for blocks of times regardless of the actual parking time
C. Parking fees collection process was cumbersome and costly

The Solution:

EasyPark addressed the parking authoritys specific issues and concerns by providing a solution that benefits all parties involved  the municipality, the vehicle owner and the parking inspector.

A. Payment is done for the exact time parked (be it 1 minute, 48 minutes, etc.)
B. Collected parking fees are transferred to the municipality electronically via the systems clearing system
C. The EasyPark device was made available for purchase and reloading in numerous commercial locations throughout the city
D. The EasyPark device is kept in the vehicle, eliminating the need to search for a parking payment method

The Outcome:

A. Vehicle owners pay only for exact time parked and dont need to search for small change, which encourages drivers paying for parking at times when they wouldnt necessarily have in the past.
B. Municipality Tel Avivs income from parking fees has increase by more than 20% in addition to minimizing the amount of cash in the system.  (Hello read that twice)
C. Parking Inspectors rewarded according to number of vehicles checked, not based on number of parking tickets issued.

Get it, got it, we're gone...

(Now of course we could be missing something here, as our analytical work is sometimes described as "superficial and big picture," but this sure looks like a gift from the Bear Market Gods to us.)

Disclaimer: SFOR. Safe Harbor Statement: Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the sales of the company's identity protection software products into various channels and market sectors, the issuance of the company's pending patent application, and the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Client, we have been retained for investor relations services and reporting and compensated with one and a half million restricted shares and warrants to buy an additional five-hundred thousand shares for $0.06 and $0.11.
OTIV: This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions, we are making forward-looking statements. Because such statements deal with future events and are based on OTI's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by market acceptance of new and existing products and our ability to execute production on orders, as well as the other risk factors discussed in OTI's Annual Report on Form 20-F for the year ended December 31, 2010, which is on file with the Securities and Exchange Commission. Although OTI believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. Not a client, yet.
Going Concern Statements.
We would like to point out that the majority of companies listed on the
OTC Bulletin Board have factors which create an
uncertainty about the their ability to continue as a going concern. These
concerns are typically related to financing (or lack of), competitive
environments, lack of operating history and operating at loss levels which
is typical of most start-ups.
These statement can usually be found in their most recent 10Q filings and
typically you don't have to dig to far down past the financial tables. We
like to use http://www.pinksheets.com for quick and easy access to SEC
filings. We think it would be wise for most investors to assume that all
companies listed on the OTC Bulletin Board (and many on NASDAQ) have going
concern issues.
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