Forum Archive Index - February 2004

[David Maire <dmaire@xtra.co.nz>]

Two worries on this one

1.The very long sales cycle with Govt agencies esp defence.

2.The major shareholders consistently trade stock in their companies so any 
gains could be soaked up by volume selling from them.(Investika,Quicktrak,)
============================================================
From: "Cristine Kerr" <criskerr@optusnet.com.au>
Date: 2004/01/30 Fri PM 04:08:28 GMT+13:00
To: <sharechat@sharechat.co.nz>
Subject: Re: [sharechat] ZYL - Zylotech

Update re Rights Issue: ASX Notices at 1.20pm and 1.33pm today, Jan 30, 2004 
  ----- Original Message ----- 
  From: Cristine Kerr 
  To: sharechat@sharechat.co.nz 
  Sent: Monday, January 26, 2004 10:33 AM
  Subject: Re: Re: [sharechat] ZYL - Zylotech


  Hi Pete,


  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.


  Regards, 
  Cris

    ----- Original Message ----- 
    From: ShareChat 
    To: sharechat@sharechat.co.nz 
    Sent: Monday, January 26, 2004 8:34 AM
    Subject: Re: Re: [sharechat] ZYL - Zylotech


    Hey Cristine

    I also am looking at Zylotech ...

    You mentioned in previous posting:
    "the likelihood the share price will rise above 6c by March 2005"

    Are there some projected earnigs out for Zylotech somewhere?  What makes you
    think it might rise to above 6c?  Is it just that they have set the price
    for the options at 6c or someother reason?

    Thanks, Pete Cossey


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============================================================

Update re Rights Issue: ASX Notices at 1.20pm and 1.33pm today, Jan 30, 2004

----- Original Message -----

From: Cristine Kerr

To: sharechat@sharechat.co.nz

Sent: Monday, January 26, 2004 10:33 AM

Subject: Re: Re: [sharechat] ZYL - Zylotech

Hi Pete,

 

 

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.

 

 

Regards,

Cris

 

----- Original Message -----

From: ShareChat

To: sharechat@sharechat.co.nz

Sent: Monday, January 26, 2004 8:34 AM

Subject: Re: Re: [sharechat] ZYL - Zylotech

Hey Cristine

I also am looking at Zylotech ...

You mentioned in previous posting:
"the likelihood the share price will rise above 6c by March 2005"

Are there some projected earnigs out for Zylotech somewhere?  What makes you
think it might rise to above 6c?  Is it just that they have set the price
for the options at 6c or someother reason?

Thanks, Pete Cossey


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