|
Hi Malcolm,
Research Port Douglas Reef Resorts (ASX -
PDR).
Selling at 11c and they recently announced they
will be returning capital to shareholders - likely to
return much better than your expected 6%.
In the meantime, I wish research the UAV aspect of
ZYL a bit deeper (though I stress this facet of their profile was not
considered as a weighting as it had no bearing on their defence
contract, their Fujitsu partnership, their opportunities, their
potential, etc which are all related to their present product
range.)
Regards,
Cris
----- Original Message -----
Sent: Monday, February 02, 2004 11:59
AM
Subject: Re: Re: Re: [sharechat] ZYL -
Zylotech
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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> >
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