Forum Archive Index - February 2004

["Malcolm Cameron" <malharcameron@hotmail.com>]

Cristine I was just questioning the whole press release as I think most of 
it is a PR exercise to try and promote the company. Does this post make you 
rethink investing in this company. If this is a sample company announcement 
I don't think much of it's management or prospects. So will not put it on my 
Radar. This was just some quick research from news papers and general 
knowledge for your benefit to help in your analasis of ZYL

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 10:39:06 +1000
>
>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 -----
>   From: Malcolm Cameron
>   To: sharechat@sharechat.co.nz
>   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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