January 19, 2005

SpeculatingStocks.com Stock Pick: Action Products International, Inc. (APII)

Stock Price: $3.44 (long-term strong buy)

Action Products International, Inc. is a multi brand designer and manufacturer of educational and positive branded toys emphasizing fun. Its products are marketed and sold worldwide to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers, and educational markets.

The company recently reported that its fourth quarter sales set a new record high of $3,017,000, up 63.7% vs. $1,843,100 in 2003. December sales were up over 154% from the same period last year. This financial performance exceeded all forecasts, internal and external. Most recently, the company now expects a profit for the fourth quarter. Full audited financial results are expected by February 25th.

The company believes they will set new sales and profitability records as they continue to cut costs and release new products in 2005.

APII jumped to over $5.00 on 12/30 after the company increased its sales forecast. APII is now a solid buy as it starts to trend higher with more volume than ever in its history.

SpeculatingStocks.com Target Price: We expect APII to rise above $6.00 within the next 6 months.