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HI Malcolm,
My knowledge is limited to the ASX announcement,
some of which answers some of the questions you have raised so it may be worth
looking up - would provide a starting point for additional
research.
With this in mind, my last mail stated that I don't know anything about UAV's so I'm
unsure why you directed these questions to me?
I must get ready to go to lunch
now or face the wrath of my family.
Perhaps someone else would like to comment so I
catch up on this thread in the morning.
Regards,
Cris
----- Original Message -----
Sent: Sunday, February 01, 2004 10:16
AM
Subject: Re: Re: Re: [sharechat] ZYL -
Zylotech
Cristine where did they get this exclusive right to develop a
VTOL UAV from
Zambia or Zimbabwe. I cannot see America, Britain or most
European Contries
giving exclusive rights to this. Without Wide
exclusivity this statement is
gobbledy gook. Especially as they are likely
to infringe patents already in
existance. (IE Harrier Jump Jet Patents) I
believe American aviation
companies are expeimenting with catapult
launching systems. As UAV are in
most cases expendable the cheapest, small
lightweight satisfactorytechnology
will be what is used. As UAV style
spyplanes are being used in the middle
east now what technological
advantage does zylotech have.
Malcolm
>From:
"Cristine Kerr" <criskerr@optusnet.com.au>
>Reply-To:
sharechat@sharechat.co.nz
>To:
<sharechat@sharechat.co.nz>
>Subject:
Re: Re: Re: [sharechat] ZYL - Zylotech
>Date: Sun, 1 Feb 2004 09:35:20
+1000
>
>Hi again Pete,
>
>I'll address
both:
>
>1) Zylotech has secured one defence material contract to
conduct a study
>into the carriage and launch of sonobuoys by an
Independent UAV (unmanned
>ariel vehicle) platform. This work involves
the Strategic Airborne Sonar
>Program (SASP) as announced to ASX on
7.11.03. NB For anyone considering
>Zylotech, this announcement is
'must read' material along with anything
>else they can find on
Zylotech as it discusses Zylotech's exclusive right
>to commercialize a
vertical take-off and landing UAV. (Have to admit I
>don't know
anything about UAV's, however; this prospect really appeals to
>me.)
>
>Govt does have long sales cycles but Zylotech's
potential includes their
>complete product range which is suited to far
more than just defence
>application.eg; their 23.10.03 teaming
announcement with Fujitsu on closed
>circuit TV (CCTV) video
surveillance {digital and Internet Protocol (IP)
>enabled and
facilitated by Zylotech's IP smartcam IP video server} for
>Manly
Council.
>
>'Digital and internet protocol enabled' means the
video can be viewed
>remotely in 'real-time' on any PC monitor that is
connected to any
>broadband network that supports IP. Also, access to
the system can be
>provided via IP address, access authority and
password. This means in times
>of need, direct access can be provided
to Police, Fire or other emergency
>service
providers.
>
>It's possible there is a large number of antiquated
analogue video
>surveillance systems in use. Zylotech's system can be
utilised as a new
>installation, or alternately; it can be implemented
as an upgrade to an
>existing installation because Zylotech's system
supports conversion of
>analogue video signals to digital and IP. For
potential customers
>considering an upgrade, this means it would reduce
their cost because they
>would not need to replace all of their
analogue video cameras with digital
>cameras.
>
>Potential
customers, therefore; include anyone who is considering a video
>surveillance system, or; anyone thinking of upgrading an analogue
video
>surveillance system. As you would appreciate, this is not just
limited to
>councils but would also include any organisation that needs
to protect its
>human or material resources from theft, malicious
damage, etc. For example;
>one of Zylotech's recent sales involved a
dredging platform.
>
>Their sonobuoys also have applications other
than defence, eg; oyster
>farming, etc.
>
>In my opinion,
Zylotech's business model, R & D activities, product range,
>potential markets, and progress to-date hold promise of revenue
regardless
>of additional Govt contracts which (depending on their
size) could add
>substantial icing to the cake.
>
>2)
Agreed, volume selling by a large investor is a possibility but I don't
>see it as a large risk. Firstly because of Zylotech's potential - why
would
>they sell?. Secondly; Investika is a major shareholder but their
holding is
>only 12.9%. (I checked directly with them on 27.1.04 and
was impressed with
>their fast and courteous response:- They confirmed
their holding as at
>27.1.04 was 12.9%.) Of course, they could always
buy more.
>
>For those unaware, Investika was/is (unsure of
present position) also a
>major shareholder of Quicktrak. Quicktrak
developed a product that competes
>with Global Positioning System
(GPS), however; the Quiktrak system
>necessitates investment in
LAN-based (local area network) infrastructure
>where GPS does not. This
diminishes Quicktrak's capacity to compete
>commercially. With GPS all
you need is one hand-held device. Can't comment
>on cost comparison or
which of the two may be better suited to defence
>application.
>
>Suffice to say these are two very
different companies with different
>profiles.
>
>As always
there is risk to weigh up so your own homework is a must.
>
>Hey
Pete - hope this
helps,
>Cris
>
>
>
>--------------------------------------------------------------------------------
>
>
>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,)
>
>Pete
>
>
>--------------------------------------------------------------------------------
>
>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
>
>
>--------------------------------------------------------------------------------
>
>
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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