THE SEASONED SPECULATOR Newsletter THE SEASONED SPECULATOR

âYour source for outstanding 21st century small and microcap stock ideasâ

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INTRODUCTION

Welcome to the first edition of the The Seasoned Speculator newsletter, where we will be introducing small and microcap stocks that we believe offer exceptional growth potential in 2005 and beyond. Many may be appropriate for inclusion in your aggressive growth or speculative wealth building portfolio allocation. Our first selection in 2005 is TNX Television (TNXT).

 

Please visit our website the SeasonedSpeculator next week for more information.

Note: For readers not familiar with microcap investing, please visit our SeasonedSpeculator website next month for some classic winning small cap investing and trading strategies.

 

 

TNX TELEVISION [TNXT] COMPANY PROFILE

BUSINESS: Installs, operates and manages in-commuter train television. TNX holds concession contracts with privately owned train operating companies. Their TV content is near real-time television news, information and entertainment. Initial contracts are predominantly with London commuter trains. 

 

Company Website: 360 Onboard. 

SECTOR: Media

REVENUE MODEL:  Advertising and program sponsorship.

 

The First Mover Advantage: TNX Television sports a very a desirable advertising demographic due to its âcaptiveâ audience of urban business commuters, which can be targeted specifically by region or even by individual route.  Like most of the Seasoned Speculator 21st century picks, their business model is both scalable and globally replicable. Potential new major markets are Europe and Asia, as well as the US and Canada. 360 Onboardâs system potentially could also be expanded to other transport systems such as trams and buses.

 

TNXT STOCK INFORMATION

Shares outstanding 48 Million; 62M Fully Diluted

Est. Float: 20M

Market Cap: $15M

52 week high: $3.35   52 week low: .08

 

SECTOR VIEW

We do not recommend many media holdings in 2005. However, attractive special situations such as this one are always an exception for us.

  

PRESIDENTâS MESSAGE TO PROSPECTIVE SHAREHOLDERS

We are in the process of building what will be the second largest commercial network in the UK.  We will have the best demographics and be building a world class network that is both scalable and expandable.  To do this we have put together a world class team of people including some outstanding board members to grow the company. We now have almost 80 cars in operation and the programming and response from the traveling public is outstanding.  We as a company are excited about the reception we have gotten and the product that we deliver.

 

Today we are on our way to building a profitable long term business, which will potentially pay our shareholders a very handsome return on their investment.  You can see us at www.360onboard.com.

 

THREE MILESTONES TO A BIG BANG

The first is obviously its large scale London roll out. 
The second would be a significant Northern American, European or Asian contract. 
Finally, the end game is a media buyout or major long term strategic alliance.
 

MARKET ANALYSIS 
In the beginning of the year, we expected sufficient support between .50 and the 2004 low of .58. There was not, and the stock quickly dropped and became oversold.  We then upgraded TNXT from an accumulate to a buy under .38

There is significant overhead resistance between .90 and $1. When broken with new good news, $1.50 and $3 become natural price targets.  

  

BOTTOM LINE 

There is growing interest in communicating with consumers outside the home because advertisers are losing control of the living room.  It is reasonable to assume that should TNX Television meet its milestones, its stock is likely to handsomely reward share holders with far above average stock market returns.  Once this stock becomes âdiscoveredâ, then $1 will become the floor and not a ceiling. We conservatively project potential 2005 and 2006 targets of $1.50 and $3+ respectively. We first recommended an initial accumulation under $.78. When the market opportunity presented itself, we added buys under .38, under .31, and at .10.

 

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Editor: Henry Weingarten Â© 1/3/2005 and 2/1/2005. All rights reserved. DISCLAIMER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS. INVESTORS ARE REMINDED TO PERFORM THEIR OWN DUE DILIGENCE BEFORE MAKING ANY INVESTMENT DECISION. ALWAYS INDEPENDENTLY INVESTIGATE AND FULLY UNDERSTAND ALL RISKS BEFORE MAKING ANY INVESTMENT.

The SeasonedSpeculator accepts No Liability Whatsoever for Any Loss Arising from Any Use Of this Report or It's Contents. By viewing these materials or using the SeasonedSpeculator web site, you agree to the following terms of use: The Seasoned Speculator is not a registered advisor or broker-dealer.  Opinions or estimates constitute our best judgment at this time and are subject to change without notice. Information upon which this material is based was obtained from sources believed to be reliable but has not been verified. We do not represent that it is accurate or complete, and it should not be relied upon as such. The Seasoned Speculator provides information on select companies that it believes have outstanding investment potential. This report is provided for information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. An investment in small and microcap stocks is highly speculative, and carries the risk of loss of part or total principal investment. The Seasoned Speculator and its officers, Directors, and affiliates may from time to time buy or sell shares of companies, which it provides information on, in the open market without notice. We do not offer any opinion as to when other should sell; each investor must make that decision based on his or her judgment of the market.

This report contains forward looking statements which involve, risk, and uncertainties that may cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully compete, additional financings and other risks. We may buy or sell actual shares of this stock on the open market at their own discretion. Always make sure to do your own due-diligence before making any kind of investment.

COMPENSATION: The Seasoned Speculatorâs parent company, Target Publishing Inc., will receive payment of $10,500 from a major shareholder of TNX Television [TNXT] for various investor and brokerage awareness services, including distribution of this report. Later 50,000 shares of TNXT stock were added to the contract for additional consulting services.

