October 13, 2004

SpeculatingStocks.com Stock Pick: Secured Digital Applications, Inc. (SDGL)

Stock Price: $0.28 (long-term strong buy)

This is the second time we have released SDGL as a stock pick. We have been alerted by a member that SDGL is beginning to receive much more attention.

The company and its subsidiaries are involved in the development and integration of shipping and supply chain management service, and sale of biometrics security systems. They are also involved in Web based interactive multimedia content.

The company expects its ninth consecutive positive net income quarter. Revenues are expected to be around $5 million. The third quarter numbers will not include the recent acquisition of Gallant IT group. We expect fourth quarter numbers to improve as the company continues to cut costs and synergize their acquisitions.

The Chairman and CEO of the company stated his intention to buy 300,000 shares of SDGL. This is over $80,000 worth of stock. We believe this is a great shot of confidence for SDGL and our view that SDGL has little downside from this level.

SpeculatingStocks.com Target Price: We expect SDGL to double within the next 3-6 months.