Remember that the information below is not meant to be in any way a complete analysis of the opportunity, but to give potential Investors an overview of some of the issues that may be important. Interested investors should examine further information. Also please refer to the terms and conditions in your subscription agreement.

1. Proposal Title/Headline

Stockmarket Analysis, Education and Portfolio Management Software

2. Business Summary

The Company has built a profitable business by developing and marketing unique stockmarket analysis software, and providing daily on-line tuition to it's members. The method of education provides both static and interactive training to the members in their home at a time to suit them. The sale of software sustained the development costs of the software and the building of the support and training infrastructure. The Company has changed the business model since gaining full ownership of the intellectual property rights to our software in September 2001 by radically lowering the upfront cost of the software. The repricing strategy has worked and we have managed to double our membership numbers in 8 months. The company is now set for leveraged growth from a solid base.The Company requires capital to make the growth strategy successful in the desired timeframe.We have successfully used our technology overseas using NZ stockmarket data. Our system can be easily rolled out to other countries at minimal cost. To show potential investors the real benefit of our system you can request a free copy of the company's unique software for your evaluation by contacting the company through Pacific Capital Corporation Ltd.

Updates

3. Estimate of Market Size and Growth Potential

Our product ia applicable to all global stockmarkets. Given the ever-increasing number of stocks traded on various world exchanges it is impossible for any investor to conduct analysis using traditional methods. There is an increasing need and a growing demand for technical analysis, as it is a proven method of analysing countless stocks in a very short time. The market size is expanding rapidly, given the constructive and intelligent use of the Internet.

4. Market Demand

The Company has developed unique software that allows the investor and trader to accomplish in minutes what would normally take many hours. The major benefit to a client is increased profitability through better utilisation of trading capital and efficient management of trading and investment portfolios. We provide education through the internet which assists our members to capitalise on major moves in the price of stocks, rather than simply buying stocks and waiting for something fundamental to change and be reflected in the price of a stock. Market timing is more important than "time in the market" for anyone who wants a better than average return on capital invested.

5. Competitive Advantage

Lower Sale Price
Lower Cost Price
Volume of Scale
Secure Distribution
Intellectual Property

Products of this nature have traditionally sold for a high front-end price. Our product pricing model of low front-end price and higher monthly subscriptions means we can now open up the market to the majority of investors and traders who were previously excluded from this area by price. We can do this because, unlike our competitors our software only accepts data in the format that we supply, whereas our competitors' products accept raw data from various sources which means competitor's customers do not need to use that competitor to provide data for the software. We are leaders in content,quality, price and depth of experience in training.

6. Market Distribution

In September 2001 we dismantled the old distribution structure and resumed full central control of sales and distribution. The majority of sales are direct with the product physically distributed by mail or directly to the new client at point of sale. Sales originate through attendances at trade shows and exhibitions, responses to advertisements, client referrals and through other distributors selling re-badged versions of our product.

7. Management

CEO: Sydney Futures Exchange licensed dealer, jointly established Commodities and Futures Broking company which still exists. He has lectured in Technical Analysis at the Securities Institute of South Australia. Project Manager/Systems Development (BSc. MSc.): Previous career in systems development and service industry. Joined the company as a programmer in 2000. Possessing no previous stockmarket knowledge, has developed the software without industry bias using pure programming logic, with the ease of use to the end user as the primary consideration. Business Development Manager: Following a career in direct sales, his interest in the stockmarket and his realisation of the potential for the product led him to become actively involved in the Company. Initially the driver of sales his role has expanded to business development. Broking Services Manager: Experienced in financial planning where he filled the role as State Manager of Monitor Money for a period of seven years. Accountant: For a period of 8 years prior to joining the company she was responsible for the accounts team for Changi Airport.

8. Technology

The software performs detailed analysis to scan thousands of stocks within a matter of seconds, to produce a short list of stocks with the potential for price rises over the short to medium time frame. The key to the success of this particular software is the methodology used within the scanning functions. The Company's software identifies price patterns in stock charts that have proven successful in share trading over many decades. In line with the Company's philosophy of only trading stocks that are rising in price we have programmed a unique Trend Channel Indicator (TCI) that simply and visually displays the trend of the stock price. The software can scan daily for any stock that deviates from its current trend enabling traders and investors to identify trading opportunities at the earliest possible time, and this also alerts the trader of the imminent decline in a stock price to enable timely exit.

9. Product Development

The Company's software is fully developed and commands industry respect. We continue to make advances in algorithms and program functions and will always be improving the product's ease of use. We have development programs in place to cover all fields of technical annalysis to broaden the appeal of our product. The product succesfully performs analysis on other stock exchange and futures data. The first overseas data is now being processed from New Zealand. Possible future developments include: 1)programming a web server based delivery at cost of approximately $350,000. 2)Develop Managed Funds and Unit Trusts data globally.The ASX can now give us a data feed on 4000 such funds.

10. Scalability

All registration, education and administration functions have been developed to run via our server and all new subscribers add little cost to the business. Currently all fixed costs are covered by monthly membership subscriptions allowing huge leverage to be gained through expanding the client numbers. The web based platform removes international barriers and allows us extremely low cost access to all global equity markets. Stock data from all major world stock exchanges is avialable to us at very affordable prices. The revenue centres of the business all have the potential to derive income from each new member who joins the company.

11. Intellectual Property in SME's Business

Registered design
Trade secrets

The software's unique source code has been developed over a number of years and the source code is kept under high security. We also have confidentiallity agreements covering employees and contractors. Our software can only run on proprietary data supplied by our data converter, this gives us excellent access protection.

12. Barriers to Entry

Software Development Lead Time: Only the software component can be replicated and this would take a period of approximately 12 months. However the software is only a small part of our business and would not really be of any benefit to any company which could not offer the education across the whole investor spectrum. We estimate that it would take an additional 12 months for someone to duplicate our education programs. This timeframe will be extended with the new and innovative scanning functions and marketing ideas currently in place.

13. Milestones

Product Development: Next advancement in our software - November 2002. $50,000. Domestic market: The company intends to at least triple the annual sign up rate of new members within 12 months by increased expenditure on marketing, attendance and speaking spots at all major Trade Shows and Lifestyle Exhibitions. Anticipated expenditure, $420,000 Distribution agreements: These will generate membership numbers rapidly.We hope to have two in place by the end of November 2002. These agreements include re-badging the software for other vendors. Total cost $85,000 Global Market Coverage: The focus of our overseas expansion will be in Europe initially. Our independent market research has demonstrated that the Asian markets are over supplied with "live" fundamental information and would require too much effort to change ingrained attitudes and break down the personal stockbroker relationships. Associated software and exchange data cost would be in the range of $45,000 for adapting the data and paying the exchange fees. Experience has shown that we can process hundreds of new clients daily regardless of location using the systems currently in place. Estimated initial marketing costs $150,000 All costs will be covered from the capital raising of $750,000.

14. Risks

1. A major stock market correction will cause only a temporary slowdown in our income. Experience after the "telco correction" in 2001 showed that after the initial reaction more people already involved in the market came to us for education and software. 2. New Competitors; See barriers to entry. 3. Existing Competitors; Lowering up-front price. This is unlikely as they cannot make any meaningful profit by selling monthly data. (see competitive advantage) 4. Program malfunction Once installed on the clients PC the program is completely stable and there have been very few malfunctions in 3 years in 1000 sites. Current standard internet services (56K modem)are adequate to run all internet operations and streaming audio services to even the most remote areas of Australia and overseas.

15. Company Valuation

No

16. Abridged Profit & Loss

 

Forecasts assume the full $750,000 is made available. We have kept the figures reasonably conservative and they may rise quite considerably on completion of distribution agreements. We carry the intellectual property rights at no value in our balance sheet. The company currently pays company tax and all foreseeable future distributions will carry tax credits. Employees are paid as contractors

17. Balance Sheet

18. Accumulated Sales since business started

Sales
$1,300,000

Years Established
3

19. Is the business solvent

yes

Solvency History

20. No. of Employees

6 to 10

21. Shareholding % to be issued to new investor for investing.

Neg

22. CAPstart Matching Product

  CM

23. Business Stage

Expansion

24. Role the investor would play

Non Executive Director
Part Time Executive
Investment Only

25. Main Location

WA