Hi Malcolm,
Re: PDR's latest ASX announcement
A purchase of PDR at today's price of 11c would facilitate a return of
around 23% (i.e. 2.5c per share return of capital). PDR could be purchased as
high as 25c and still return 10% under this scenario.
Dependency: The 2.5c amount per share is dependent upon 100% of
PDR convertible noteholders converting to shares by a certain date.
Commitment has been received from 71% of PDR convertible noteholders
already, however; if no more than 71% are converted, return per share will be
reduced to 1.9c each. That means PDR could be purchased at anything up
to 19c and still return 10%.
I recommend researching.
Regards,
Cris
----- Original Message -----
Sent: Monday, February 02, 2004 12:16
PM
Subject: Re: Re: Re: [sharechat] ZYL -
Zylotech
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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