March 7th, 2005

SpeculatingStocks.com Stock Pick: Brillian Corp (BRLC)

Price: $2.07 (long-term strong buy)

Brillian Corporation designs and develops rear-projection HDTVs. The company is the first and only provider of Gen II LCoS(TM) technology used in these products. Their LCoS(TM) microdisplay technologies address the market demand for a high-performance display solution with high image fidelity, high-resolution scalability, and high contrast ratios.

This company's shares have went from over $11.00 to under $2.00 in less than a year; however, they are in a hot industry with the right technology. Brillian has finally started shipping its HDTVs again after months of a slow production due to a part shortage. We believe problems like this are behind the company now.

BRLC currently has a book value of $2.68 and no debt. The problem is they are gushing money each quarter. Guidance for the first quarter is for a loss in the range of $5.5 million to $6.5 million. When revenues begin to pick up their net loss should be greatly diminished.

There are 6.90 million shares in the float and 12.36% are being shorted.

SpeculatingStocks.com Target Price: We believe BRLC will recover to over $4.00 within the next 3-6 months.