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AlphaTrade.com

Stock symbol: OTC BB: APTD Float: 4,500,000 (est)
Stock price 9-16-05: $.45 Common shares O/S 6-30-05: 26,496,365
52-week price range: $.19 - $0.50 Equity market capitalization: $11.9mm

Stock Price, Charts, Headlines, Filings
Listen to the Interview with Penny Perfect, CEO

CORPORATE OVERVIEW AND SUMMARY

AlphaTrade (OTC BB: APTD) has a standard unique in the financial products market sector - huge value and an exceptional product. AlphaTrade provides a cost effective, web-based stock information system that rivals the quality and functionality of the products from companies such as Bloomberg and Reuters. Management at AlphaTrade believes the market for reliable and inexpensive stock market data is growing exponentially far eclipsing the growth in the institutional and professional market segments.

APTD's products are user-friendly and totally customizable: on a price comparative basis, AlphaTrade's stock quote service is by far the best value.

  • AlphaTrade - $27* per month
  • Bloomberg - over $1000* per month
  • Reuters - $300* per month and up
  • Thomson - $500* per month
    *exchange fees are additional

For more industry background read Reuters in crisis and Bloomberg, Reuters Face Challenge From New-Tech Upstarts

COMPANY HIGHLIGHTS

  • APTD is growing exponentially by providing competitive, customizable financial data via browser-based desktop and wireless platforms, primarily for the retail investor and trader
  • A winning combination for expansive growth is driven by ease of use and product mix sophistication
  • APTD products are priced more competitively, are customizable by the user, are multi-lingual and subscribers sign up online with no download required
  • The product mix includes stocks, options, e-minis, mutual funds, currencies and news for all major North American exchanges - other exchanges can be added as those markets develop

7-DAY FREE TRIAL, click here

Corporate Information:
Address: Suite 1322 - 1111 West Georgia St, Vancouver, BC V6E 4M3
Telephone: 604-681-7503      FAX: (604) 681-7710
CEO: Penny Perfect
Web Site: www.alphatrade.com
State of incorporation: Nevada
Transfer Agent: Signature Stock Transfer, Inc
Investor contact: James Chan, Operations Manager 800-681-7503, james@alphatrade.com

FINANCIAL HIGHLIGHTS

2003 2004 March, 05 June, 05
Revenue * $940 $1,919 $651 $697
GP% 10% 31% 50% 67%
Net -884% -107% -18% 3%
 
March, 04 June, 04
Revenue * $352 $461
GP% 43% 12%
Net -70% -208%

* thousands
Note: gross profit in the June quarter was high based on vendor credits If the credits are added back then the gross profit margin would be 56%, which is an improvement from 31% in 2004

RECENT DEVELOPMENTS

  • New products: joint marketing efforts with Nasdaq for their new Totalview product: AlphaTrade has added Nasdaq's TotalView as part of their E-Gate service. Totalview shows every order for each market maker quoting on a stock - now you can see the same NASDAQ liquidity that institutional traders see - more than fifteen times the liquidity shown in Level 2. TotalView shows aggregate size of all quotes and orders at each of the top five price levels in NASDAQ. Also published during the Opening and Closing Crosses is the valuable order imbalance data to help trade at the open and close of the trading day

  • Content expansion: most recently added fundamental data and pocket surfer capabilities

FAVORABLE MARKET TRENDS

Internet access is ubiquitous, more people are doing their own research for potential investments, people are more adept at using online internet tools, and more people are preferring to have their own personalized stock quote service so they have total control over accessibility, format and content. For example

  • Financial Internet interfaces are growing: an increasing number of consumers are using Internet interfaces to manage their money for other types of financial activities including retirement funds, insurance information and bank accounts. Some of the benefits characteristic of online financial accounts in general include convenience, transparency of information and money management options, wide availability of resources and flexibility.

  • Online trading gains consumer adoption: alongside a significant increase in the penetration of high-speed Internet connections in U.S. households. Opening and managing an online trading account is a trusted means to participate in the market for approximately $3.6 trillion in consumer assets. Many online trading firms also offer lower minimum account balances and easy-to-understand account management programs. As a vehicle for managing assets, online trading is clearly a mainstream-trading vehicle that is quickly becoming prevalent in the U.S.

  • History: in the US consumer trading of securities has changed dramatically over the last decade. Online trading through the Internet began as a niche retail market in the second half of the 1990s. Eventually, the technology grew into a major medium through which securities are traded, expanding from 3.1 million retail accounts in 1997 to an estimated 37 million in 2004. It is expected that this market will continue to enjoy tremendous growth as the interest in the stock market is fueled by outside stimulus.

GROWING TARGET MARKETS

The Internet is growing worldwide, click for statistics

  • Retail investors, day traders, high volume traders on a worldwide basis
  • Institutional -- brokerage firms, hedge funds, professional traders
  • Financial web sites, public company web sites, personal web sites

GROWTH DRIVERS

  • Retail investor markets are rapidly expanding, on a worldwide basis
  • Internet-based business model has high gross margin for new products
  • Multi-lingual products are easily accepted internationally
  • Modular format allows for enhancements & customization - ensuring the products are always at the forefront of the industry

ALPHATRADE'S REVENUE SOURCES

  • 90% of current recurring monthly subscription revenue is from AlphaTrade's stock quotations service, called E-Gate - the potential client base for this product is worldwide because it is multi-lingual
  • Advertising on the AlphaTrade web site is expected to escalate as the number of subscribers grow. The subscriber base is 90% male, 30-55 years of age, and the average annual, household income exceeds $60,000 - a demographic found very enticing by most companies.
  • Web-based financial products - this product allows AlphaTrade to generate revenue from corporate accounts as well as individuals - these products are ideal for those websites wanting to provide value-added products for their visitors
  • Mobile financial data products - for those subscribers on the go - any PDA or mobile phone with Internet access will be able to access this service.

PRODUCTS

DESKTOP

E-Gate: flagship state-of-the-art high-performance, real-time stock market quote system

  • Stock Quote Service that includes a comprehensive financial management system for retail and professional investors, including some accounting and record keeping functions.
  • Reliable, sophisticated and user-friendly so everyone - no matter how skilled in computers can access their personal stock portfolio
  • Investors can choose investments, keep track of their performance, and make appropriate investment decisions based on factual information in real time.
  • Professional investors can keep track of client portfolios and monitor large numbers of stock positions and activity.
    Click for more

WEBSITES

E-Trax Modules: Financial Content for Web sites

  • Set of fully customizable, financial modules that can be integrated into a business or personal website within minutes.
  • Detailed and specific financial content is combined with high performance and superior technology and will help in driving new traffic to client's web sites and lengthen the time each visitor stays at the website.
  • Financial applications include an array of individual modules such as Snap Quotes, Charts, Stock Watch List, SEC Fillings, Most Actives, News and Options.
    Click for more

WIRELESS -- miniature E-Gate

  • A unique application that delivers real-time, streaming financial information and services direct to your mobile device: stock quotes, NASDAQ TotalView and Level 2 data, market indices, dynamic and static intraday and historical charts, detailed quotes, company news, and more.
  • Is multi-lingual so people all over the world will be able to access financial information in their native language

BUSINESS DEVELOPMENT

  • AlphaTrade continues to add new products to provide up-sell options for the existing customer base and to garner new market share from competitors
  • AlphaTrade will add new stock market information from different countries and expand on the existing mix of products to ensure the potential market for new clients remains high. The greater the potential customer base, the greater potential for expanded and rapid growth for AlphaTrade

MARKETING APPROACH

AlphaTrade has an innovative method of generating new customers - each product marketed by AlphaTrade has the potential to be used by every customer of AlphaTrade and each customer of AlphaTrade is encouraged to "spread the word" by participating in AlphaTrade's affiliate program. This is the huge potential available to Internet based companies. For Internet products due to the very nature of having an endless supply of product, the Internet is like one huge selling force similar to a multi-level marketing company without the stigmatism associated with those organizations and with an unlimited market potential.

COMPETITION

  • Bloomberg, Reuters and Thomson Financial - these are the dominant companies in this market segment - since their main revenue source is the institutional customer, their web products are much more expensive and offer little if any, customization by the user
  • Relative to other financial web products - APTD's management believes AlphaTrade's product is superior because the datafeed is first class, the reliability is high, and the pricing is conducive to capturing a large segment of the market.
  • Stock quote services provided by online trading houses usually have stipulations as to their access and therefore could cause some interruptions of availability of data - according to APTD management
  • APTD products are modular and customizable which means subscribers are in control of the financial data they access and the format in which it is presented.
  • Click for a competition comparison with other web-base solutions

GROWTH PLAN

  • Increase monthly recurring subscribers for all products
  • Expand share of institutional and professional subscribers
  • Increase exposure on the Internet by adding more web-site partners
  • Continue adding to and enhancing product mix

MANAGEMENT

PENNY PERFECT, President & CEO, Board Member
Ms Perfect is one of the founders of AlphaTrade and has been with the company as a Director since October 21, 1999. Her expertise has been in understanding the marketplace where AlphaTrade conducts business and recognizing the opportunities available. She has built a team of committed individuals at AlphaTrade that have proven their skill in developing the appropriate product mix.

GORDON MUIR, Chairman & Chief Technology Officer, Board Member
Mr. Muir is also one of the founders of AlphaTrade and has served as Chairman and a Director of AlphaTrade since October 21, 1999. Mr. Muir is the visionary behind the ingenious and unique product development and continues to ensure that AlphaTrade is at the forefront of the industry by creating products that are ahead of their time.

KATHARINE JOHNSTON, Managing Director, Board Member
Ms Johnston was appointed a Director in January, 2005. Ms Johnston has been working with the Company since inception and holds the position of Managing Director of AlphaTrade. Ms Johnston ensures the entire company is united in their approach to business development and client retainment programs.

ADDITIONAL BOARD MEMBERS

RAYMOND A. HATCH, Board Member
Mr. Hatch was appointed as a Director on September 13, 2000. He started his own investment-banking boutique, Grady and Hatch & Company, Inc. in May of 1982. This organization focused on private placements, syndicate participations and the origination of its own underwritings. Mr. Hatch subsequently in 1999 joined Ridgewood Group International Ltd. (RGI) as a Managing Partner. During his career on Wall Street, Mr. Hatch was a regular member of the American Stock Exchange and an allied member of the NYSE on several occasions, a principal of the NASD and as a registered investment advisor with the SEC for over ten years.

LISA McVEIGH, Board Member
Ms McVeigh has served as a Director since January 21, 2000. Ms. McVeigh has held the position of Financial Officer with British Columbia Film for over fourteen years and serves on the audit committee for AlphaTrade.com.

Family Relationships: Penny Perfect, CEO & President and Gordon Muir, Chairman are married and both are founding members of AlphaTrade.com There are no other family relationships between any other Directors or executive Officers.


IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up to three thousand dollars from bzcommunications for preparation and posting of this report and other advertising services. This constitutes a conflict of interest as to ID's ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.

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