|From:||"Cristine Kerr" <email@example.com>|
|Date:||Mon, 26 Jan 2004 10:33:05 +1000|
Hope the following helps explain my personal enthusiasm for this opportunity, and why I believe their is a high probability of good returns on the stock and the 6c options.
In their half-year 30 June '03 report, the company stated;
' ... We expect that both the aforementioned commercialization activities and our membership of the ADF Team Australia supplier group will lead to a significant increase in revenue in the future and we plan to continue with an active R&D programme to broaden the product and technology base of the company. ... ' (extract 30 June '03 report).
For me, the statement is highly credible based on the following:
1) Revenue up 32.10% (half year report 30 June '03) - 19% drop in sales revenues due to delays in govt projects but propped up by 'AusIndustry R&D & export grant' of $400K (Sonacom was essentially a R&D entity prior to Zylotech acquisition in Aug '02)
2) Loss also up; 87.31%; but as a company that spends on research and development this is par for the course
3) Have not seen any entry related to debt exposure which is a big 'plus' for me - development has been funded by share issues
4) Zylotech is a member of Team Australia Supplier Group to provide Aust Defence Force with airborne acoustic sensor requirements
5) Demonstrations of long-life acoustic surveillance solution SeaWatch SW1 (released on schedule June '03) for commercial and civil defence coastal surveillance were scheduled over last two quarters
6) Second release - short-life rechargeable version - completion, testing and release to market end 2003
7) Commercialization Programme in place to appoint additional resellers in Aust and overseas + major teaming alliances with major organisations, eg; Fujitsu (refer ASX announcements); to push-market their acoustic and video surveillance solutions and facilitate bidding on govt tenders
We will soon hear details of Zylotech's Renounceable Rights Issue, 1:4 offer @ 1c each + 1 free attaching option (exercisable at 6c and expiring March 2006). For me, this company has presented me with a fabulous 'ground floor' opportunity.
With regard to the above, the present political climate, the business they are in, etc, etc, etc, I find it hard to believe the price will not be many multiples of the 6c option price within 2 years, i.e.; by March 2006. (Just my own opinion which is worth what you paid for it!!!)
Shares are trading .013 - .014 cents and the draw for me is the major potential upside.
Obviously there is risk attached to this stock and if my expectations are dashed by bad news, I have to also be prepared for the downside as must any other investor considering this stock.
For anyone interested, I recommend a long surf of their website to take in all the related info, including financial and Defence Magazine media release, etc, etc, to get a better feel for this company's potential or risk, and for the shareholder opportunity soon to be offered.