Forum Archive Index - February 2004

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

Cristine Have not done any major research ZYL but when a very minor player 
claims (as in your remail)
to have exclusive rights to a major development project in the aeronautical 
industry, it rings warning bells in my head. And the alarm was posted for 
the benefit of posters. To do there research very thoroughly if they 
interested in buying. My main interest is in stocks with growth possiblities 
that are yielding 6%plus when I purchase. But if technology and the 
possibilities are there I am prepared to buy and hold. For example I hold 
TNE on the asx and FTB. nzx looking for some GDY on asx at the right price. 
But when alarm bells have been rung it takes a lot to make me consider these 
stocks. Like I picked up alarm signals from NAB about 3 months ago. The 
events of this morning will make me start looking at this one again.
Thank you.

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: Mon, 2 Feb 2004 09:21:36 +1000
>
>Hi Malcolm,
>
>Always interested in learning more.
>
>Is there something in particular you don't like about ZYL or is it that it 
>doesn't provide a good 'fit' with your investment strategy?
>
>Regards,
>Cris
>   ----- Original Message -----
>   From: Malcolm Cameron
>   To: sharechat@sharechat.co.nz
>   Sent: Sunday, February 01, 2004 10:59 AM
>   Subject: Re: Re: Re: [sharechat] ZYL - Zylotech
>
>
>   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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