December 29, 2004

SpeculatingStocks.com Stock Pick: Synergy Brands, Inc. (SYBR)

Stock Price: $3.13 (short-term strong buy)

Synergy Brands, Inc. is a holding company that operates in wholesale distribution of consumer goods as well as retail distribution (B2C) of premium cigars and salon products through three segments. The consumer products are concentrated within the Grocery and Health & Beauty Aids (HBA) industries as well as the premium cigar business.

The company is currently building out its wireless network, which will consist of 162 sites covering the United States, Canada, Mexico, and Virgin Islands. This network will allow complete communication between ground monitoring stations and commercial, military, and corporate aircraft. An air marshal on a flight will be able to connect his laptop to the network for total surveillance of the aircraft.

SkyWay just shipped four of its Media Server’s, used for aircraft communication, to Continental Airlines for installation in their new 737/757 aircraft. Ten more Media Server’s are to be shipped to Continental at a later date.

The company has entered into a major agreement with Titan Corp giving Titan the right to market and sell SkyWay Systems and Services to Government customers for military and homeland security applications. The potential of SkyWay solutions for homeland security is massive, yet the solution will also passengers to tap into the Internet unlike ever before. Using the SkyWay network, passengers will be able to obtain speeds of up to 5 times faster than their home cable or DSL lines. This company could easily become another IPIX or TASR if their technology catches on with multiple airlines. Their wireless network alone is an extremely valuable asset. SWYC has settled in the middle of its three month range and should start to trend up again in the near future.

SpeculatingStocks.com Target Price: We would be disappointed if SWYC shares were not comfortably over $1.50 by the end of the year.