|
Van Ernst Jacobs Securities
103 Parnussweg
Amsterdam, Netherlands
Skinvisible Inc.
OTC-BB: SKVI $ 2 1/2 (10/19/99) Analyst: Franke Scheper
Date : 10/19/1999
Corporate Data
Historic Price Range: US$ 1 « - US$ 5 19/32
Shares outstanding : 10.209.000
Est. Public Float : 3.000.000
Insider ownership : 28%
P/E : n.m
Website : www.skinvisible.com
Revenues and EPS estimates:
Sales EPS
6 months (June 99) : 48.125 A (0.14) A
Q3?99 : 120.000 E (0.08) E
Q4?99 : 500.000 E (0.03) E
FY 99 : 668.125 E (0.25) E
FY 2000 : 12.000.000 E 0.50 E
FY 2001 : 24.000.000 E 1.00 E
Notes:
FY ends dec. 30
Sales and EPS in US$
The Company:
SKVI manufactures and markets a proprietary family of antiseptic
protect-the-skin products. It?s products destroy a broad spectrum
of viral and bacterial disease-producing agents.
The Technology:
SKVI?s products are based on the Jatex technology, of which the
company has exclusive worldwide rights, a proprietary
emulsification process for hydropholic and hydrophobic polymers.
Jatex, combined with antimicrobial agents, produces a
safe/effective prophylactic application that forms a protective
layer/shield across the skin with proven substantivity (the ability to
adhere to skin under normal working conditions!. This while
allowing the skin to breathe, maintaining the skin?s natural
moisture in addition to absorbing moisture from the air),
maintaining it?s effectiviness for up to 4 hours per application.
What does SKVI?s products offer:
Protection to the skin from most bacteria thus stopping the
spread of nosoconial infections, infectious pathogens, and
cross-contamination
Resistance to absorption by the skin of many industrial
chemicals by up to 99%.
An enhancement of the health, safety and environment of both
employees and all persons.
A tremendous costsaving to all kind of employers and
increased productivity due to a marked drop in employee
absentiesme due to illness.
No harmfull side effects: it?s products have been/are
extensively tested by FDA approved laboratories.
A potential new drug delivery system!
Page 2
Which products does SKVI currently offer:
1.Medical Formula: it?s a known fact that over 2 mln hospital
patients in the U.S. annually will acquire an infection they
didn?t check in with. And up to 80.000 patients will die this year
as a result of these infections. This product is marketed to
hospitals, nursing homes, doctors, nurses, dentists,
hygienists fire departments, police, ambulance and ancillary
services.
2.Industrial Formula: with Occupational Hand Disease (OHD)
increasing the claims for Worker?s Compensation, and
compliance with chemical safety regulations an
ever-increasing challenge and cost, SKVI offers a
cost-effective solution and an enhancement of the health,
safety and environment of employees. This product is
marketed at mechanics, painters, autobody workers, chemical
handlers, construction trades, gardeners, mill workers and
garbage/sanitation workers.
3.Food Service Formula: Foodborne bacteria are the No. 1 risk in
our food supply; infected food handlers are th No. 3 cause of
foodborne illness; and over 80 mln food-borne incidents occur
in the U.S. alone each year. And are most often spread
through hand contact. SKVI?s product protects against the
transmission of infectious pathogens and disease-causing
bacteria associated with food products, handling &
processing, while significantly reducing the harmful effects
and risk associated with cross-contamination, and the
negative effetcs of OHD.
4.Salon Formula: hand contact is the primary method by which
germs are transmitted, placing salon workers at high risk for
the contraction of infectious disease. Add to this risk the
exposure to harsh chemicals, dyes, acids and irritants. This
product is marketed to hairdressers, nail technicals,
beauticians, massage therapists, and tanning salons.
5.Personal Formula: anyone who uses public facilities, visit
public venues, travels, lives, works or comes into contact with
others can benefit from SKVI. SKVI can be used by all humans.
New products in development:
Sun Screen Protector: antimicrobial sunscreen that filters
harmful UV radiation; stays on for up to 4 hours and will not
wash off even after repeated entries into the water.
Skin Care: antimicrobial skin care for the control of facial acne.
Foot Cream: anti-fungal cream for general care and protection,
as well as prevention and protaction against athletes foot.
Liquid Diaper: antimicrobial skin care for protection against
diaper rash; ideal for babies and incontinent patients.
Other potential future products:
- Anti-insect repellant.
Possible new revolutionary drug delivery system: SKVI and
one of the biggest worldwide pharmaceutical companies are
currently evaluating SKVI?s technology for potential use for the
controlled delivery of medications through the skin.
Current Distribution of SKVI?s products:
In July 1999 SKVI signed an exclusive distributorship with the
leading network marketer "Essentially Yours Industries Corp "
(EYI) to distribute it?s products throughout NA to the personal
consumer and small business marketplace through it?s more
than 350.000 distributors.
In July 1999 SKVI also signed a distribution agreement , under
essentially the same terms and conditions as with EYI, with EYI
International Ltd for the international marketplace.
SKVI itself will continue to market directly, or through other
distribution channels, to the corporate,commercial and
industrial market place.
Page 3
Current clients of SKVI?s products:
EYI and EYI International Ltd.
Sahara Hotel, Las Vegas.
Ft.Lauderdale Police Department (Violent Crimes Unit), Fort
Lauderdale, FL.
University of Miami Hospital and Clinics (Central
Service/Infection Control), Miami, FL.
Boston Pizza restaurant chain, Canada.
Potential clients with whom SKVI is in discussions at the moment:
Dutch Diary Co.
Two of the biggest multinational food companies.
One of the biggest worldwide humanatirian aid agencies.
One of the biggest paint manufacturers of the world.
A major gaming company that operates various casino
entertainment facilities.
One of the leading multinational pharmaceutical companies.
Negatives:
SKVI just recently started marketing it?s products and thus has
not been able yet to show it?s real potential.
We believe that with SKVI will prove itself with outstanding
Revenues and EPS results as early as the Dec.?99 qtr and going
forward.
SKVI is traded on the OTC-BB market and thus cannot be
bought and/or promoted by most brokerage firms/banks
and/or institutions.
We believe that as early as the beginning of 2000 SKVI will prove
itself with it?s Dec?99 and March?2000 Quarterly results and thus
place itself on the radar screen of the investment community which
will lead to an appreciation of the stock price, increasing liquidity in
the stock and eventually coverage by brokerage firms/banks
and/or financial institutions.
Comments: we believe that SKVI will show accelerating high
growth in it?s Revenues and EPS results starting in Q4?1999 and
going forward. The co offers a simple, easy-to-use, user-friendly,
and effective solution to protect us against all kinds of diseases
transmitted by hand contact.
Although most people don?t even know this and/or don?t pay
attention to it we believe that the tremendous cost benefits (for all
kinds of companies due to less employee absenteisme leading to
lower healthcare costs and more productivity, and a better image
with both their employees, their customers and the general public;
less chance for people to get sick thus less medical/healthcare
costs and a better quality of life;) that SKVI?s products offer will
lead to more and more companies and starting to use SKVI?s
products. And we also believe that the awareness about the
transmission of diseases through hand contact will increase with
both public and private companies, government institutions and
the general public as more and more guidelines will be issued by
healthcare- and government - organizations worldwide. Especially
in light of the fact that the mobility of persons worldwide increases
day by day thus also increasing the transmission of diseases. An
additional major positive to SKVI?s potential is the use of it?s
technology for the delivery of medicines but it is still too early to
know if this can and will be achieved and when.
Recommendation: we are firmly convinced that SKVI will become
one of the leading suppliers of skin proctection products to all
kinds of industries and the general public worldwide. We thus
issue a Strong BUY on SKVI with a stock price target of $ 10 by
late 2000 and $ 15-20 by mid 2001. |
|
