Investrend Announces Investment Opinion on Direct Insite.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Investrend Research NEW YORK--(BUSINESS WIRE)--May 15, 2001 A Quarterly Update Report on Direct Insite (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DIRID DIRID Direction Infrared Intrusion Detector ) by Investrend Analyst Scott Hood, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. was released today by Investrend Research. Mr. Hood maintained his Speculative BUY rating with a target price for DIRID of $5.60. The report is available at no charge at www.investrend.com/. Mr. Hood noted... Direct Insite ("DIRI") is a classic "show me stock". The market is currently attaching no value to Direct Insite's d.b.Express software, nor their current customers and partnerships. In fact, the stock is trading at 25% of book value or 55% of the value of their holdings in NetWolves common stock (NasdaqSC: WOLV, $2.80). We attribute the decline in DIRI to four factors: 1) a lack of announcements on new or expanded contracts, 2) trading activity in DIRI to take advantage of the $1 de-listing rule and subsequent reverse split, 3) the 50% decline in NetWolves common stock and 4) an over 35% decline in the Nasdaq Composite Index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed , with greater weakness in Nasdaq securities that are technology related. At this time, we are maintaining our rating of "Speculative Buy". We consider an investment in DIRI to be speculative due primarily to the uncertainty of adding contracts in the near term. The d.b.Express product offers cost savings and valuable phone data analysis capabilities to any company with high volumes of telecommunication traffic. It is a requirement for companies functioning as an application service provider to have redundant systems. Beginning February 1, 2001, DIRI leased space at an IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) e-business Hosting Center in Newark, New Jersey. The lease will cost $226,000 per year plus as much as $800,000 in one-time hardware costs. This is a significant investment for a service that provided only $2.1 million in total revenues in 2000. We view this investment as a signal of management's expectation to add contracts in the near future. Mr. Hood heads the research team, co-manages the portfolios and chairs the Investment Committee at First Wilshire Securities Management in Pasadena, California. He has over 10 years experience in the securities industry. Mr. Hood worked as an analyst at First Wilshire between 1993 and 1996, and then moved on to Merrill Lynch as a Supervisory Analyst in Hong Kong. He rejoined First Wilshire in 1998. He received his Bachelor of Science Noun 1. Bachelor of Science - a bachelor's degree in science BS, SB bachelor's degree, baccalaureate - an academic degree conferred on someone who has successfully completed undergraduate studies degree from New York University New York University, mainly in New York City; coeducational; chartered 1831, opened 1832 as the Univ. of the City of New York, renamed 1896. It comprises 13 schools and colleges, maintaining 4 main centers (including the Medical Center) in the city, as well as the , is a Chartered Financial Analyst Chartered Financial Analyst (CFA) An experienced financial analyst who has passed examinations in economics, financial accounting, portfolio management, security analysis, and standards of conduct given by the Institute of Chartered Financial Analysts. and has passed the NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). Series 4, 7, 16, 24, and 63. Public Analysis & Review (PAR) is a program of Investrend Research. Anyone, including a company, may enroll a company for annual analyst coverage. PAR reports are performed on behalf of the members of the Institute, and are not a service to any company. PAR analysts are responsible only to the public. PAR analysts are paid in advance to eliminate pecuniary interests and insure independence. PAR enrollment fees are $19,700 per annum. Please read disclaimers on our website (www.investrend.com) before investing. |
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