To a stock picker each year presents its own unique challenges.
Last year we were mired in a down market, Nasdaq had just
experienced the worst December ever and consumer confidence
was down near a seven year low. I remember saying then that it
was not the best time to be a stock picker. I was dead wrong.
Pennyheaven Super 7 (2003), as an index, finished the year
up 135%. Interestingly, the YTD high came on the last day of
trading (12/31/03).

This year, Nasdaq is up 50%, the NYSE composite is up 30%
and the Dow had its biggest yearly gain since 1996. Many
companies on the OTCBB have already seen their stock prices
climb 300, 400, 500% and more. That is this year's challenge.
We are no longer buying at the bottom.

Pennyheaven Super 7 (2004)
The #1 criterion this year is growth: sales, revenue, cash or
earnings had to be increasing; #2) No more than 50 million s/o;
#3) No convertible debentures or bridge loans (as far as I can tell);
#4) Under a buck; #5) OTCBB only.

Disclaimer: Yours truly reserves the right to trade in and out
of the these stocks at will. I have not been compensated by
any individual or company. I play with real money just like you.
Also, please be advised that past performance does not in any
way guarantee future performance.

Prices reflect close of business 12/31/03.

1) Basic Earth Science Systems BSIC (.305)
Basic Earth Science Systems, Inc. is principally engaged in the exploration,
acquisition, development, operation, production and sale of crude oil and
natural gas. The Company's primary areas of operation are the United
States and Canadian sides of the Williston basin in North Dakota, Montana
and Saskatchewan, south Texas and the Denver-Julesburg basin in
Colorado. Basic's oil and natural gas is sold to various purchasers in the
geographic area of its properties. During the fiscal year ended March 31,
2003 (fiscal 2003), the Company sold 63% of its oil and gas production
to two purchasers: Murphy Oil USA, Inc. (38%) and Valero Energy
Corporation (25%).

For the six months ended 9/30/03, revenues increased 19%
to $1.4 million. Net income before acct. change rose 60% to
$334 thousand.

16,530,487 s/o as of 11/10/03
Market Cap: $5.04 Million
YTD ~ up 100%

2) DataLogic International DLGI (.24)
DataLogic International, Inc. consists of two subsidiaries, DataLogic
Consulting, Inc. and IPN Communications, Inc. DataLogic Consulting, a
wholly owned subsidiary, is a professional service company dedicated to
solving its clients' business problems with technology-based solutions.
The Company services include Information Technology consultancy,
project management, software development, Internet solutions,
telecommunications/wireless integration, value added reselling/training
and IT outsourcing. The Company also provides short and long term
staffing solutions to IT clients and healthcare/medical providers. The
Company clients consist of commercial enterprises and local and state
governments.

For the nine months ended 9/30/03, net revenue totaled $7.8
million, up from $1.4 million. Net loss totaled $472 thousand,
up from a loss of $198 thousand.

DataLogic International to Report Record Sales and Profits
for Q4 2003
http://biz.yahoo.com/prnews/031222/lam049_1.html

35,824,996 s/o as of 11/12/03
Market Cap: $8.6 Million
YTD ~ up 600%
Website: http://www.dlgi.com/

3) Electronic Systems Technology ELST (.59)
Electronic Systems Technology, Inc. specializes in the
manufacturing and development of wireless modem products.

ELST was a Pennyheaven Super 7 pick for 2003.

For the nine months ended 9/30/03, revenues rose 12%
to $1.6 million. Net income fell 43% to $88 thousand.
Long Term Debt $0

5,098,667 s/o as of 9/30/03
Market Cap: $ 3.01 Million
YTD ~ up 50%
Website: http://www.esteem.com/

4) H-Quotient HQNT (.72)
H-Quotient creates and produces state-of-the art computer software
systems that collect and act upon real-time information critical to
improving the delivery of healthcare.

HQNT was a Pennyheaven Top 10 pick in 2002.
Since 1/01/02 the stock price is up 177%, however
since 1/01/03, the stock price is down almost 50%

9-month revenue ending 9/30/03 up 60%
9-month net income up 80% to .13/share.

Triples Sales Force
http://biz.yahoo.com/bw/031211/115294_1.html

Record Third Quarter Earnings
http://biz.yahoo.com/bw/031201/15382_1.html

34,830,413 s/o as of 10/10/03
Market Cap: $25.1 Million
YTD ~ down 40%
Website: www.hquotient.com

5) Janel World Trade JLWT (.90)
Janel World Trade, Ltd. is a logistics services provider for importers and
exporters worldwide. It is primarily engaged, through its wholly owned
subsidiaries, in full-service cargo transportation logistics management,
including freight forwarding (via air, ocean and land-based carriers),
customs brokerage services and warehousing and distribution services.
In addition to its traditional freight forwarding and customs brokerage
activities, Janel offers various related, value-added logistics services,
such as freight consolidation, insurance. a direct client computer access
interface, logistics planning, landed-cost calculations, in-house computer
tracking, product repackaging, online shipment tracking and electronic billing.

For the nine months ended 6/30/03: total revenues rose 31%
to $40.5 million, Net income totaled $170 thousand, up from
$64 thousand, $1.2 million cash.

16,843,000 s/o as of 6/30/03
Market Cap: $15.16 Million
YTD ~ up 350%
Website: www.janelgroup.net

With the success of TFAI last year I am including two companies
who do nothing but sit on cash. Both have sold the majority of
their assets and are currently weighing options.

6) TGFIN Holdings TGFN (.055)
TGFN sold their assets back in March 2003.
From 10Q (11/14/03):
"Management's Plans are to acquire, merge or otherwise combine with an
operating company. Management is currently seeking an entity with which
to affiliate. The Company is free to seek alternative businesses in its existing
or other industries. Management's main objective is to seek to increase
shareholder value."

22,431,168 s/o as of 9/30/03
~ $2.5 million cash
~ $1.23 million market cap

7) Tikro Technologies TKCRF (.33)
TKCRF, based in Tel Aviv, Israel, was formally engaged in
the design, development and marketing of digital subscriber
line (DSL) chips used by manufacturers of telecommunications
equipment.

"In the nine months ended September 30, 2003 net income was $11.8
million, including a capital gain in the amount of $12.7 million related to
the sale of its assets to STMicroelectronics.

Cash and cash equivalents and long-term investment amounted to $8.2
million at the conclusion of the third quarter. Cash in the amount of $1.4
million related to the agreements with STMicroelectronics in an escrow
account and receivables of $1.2 million are being held, pending further
discussion between the two companies.

Izhak Tamir, Chairman and CEO of Tikcro, said, "at this stage, the
Company's primary goal is to determine the best course of action going
forward. For that purpose, we are evaluating several strategic investment
alternatives."

~25 million s/o as of 9/30/03
~ $8 million cash
~ $8.25 million market cap
YTD ~ up 100%
Website: www.tikcro.com

Best of Luck and Happy New Year

I'll keep you posted.

GP@Pennyheaven.com

>>>>>>>>>> DISCLAIMER, PLEASE READ <<<<<<<<<<
Please be advised that nothing within this email shall constitute
a solicitation or an offer to buy or sell any security mentioned
herein. Pennyheaven.com is neither a registered investment
advisor nor affiliated with any broker or dealer. All statements
made are our express opinion only and should be treated as
such. We do not accept any paid promotion. Please do your
own DD and trade only what is right for you.

To Unsubscribe: Reply with Unsubscribe in subject heading
To Subscribe: Reply with Subscribe in subject heading to:
GP@Pennyheaven.com