GAPPER- THFZ -Mover-Being touted on MANY boards... An example of one... Greetings, fellow investors.
On May 4th, before the open, our Conglomerate of Newsletters profiled, amongst others, LNUX. It had closed the day before at $3.52. It reached an intra-day high of $6.00 that day and $6.00 again the next trading day for a percentage gain of a whopping 70%! Many of you have written in asking us to profile another stock with even better potential and one that is trading at a MUCH more reasonable price. We have it: Thermafreeze, Inc. OTC BB: THFZ. THFZ is a fairly low float stock meaning it moves rapidly on low volume.
Observe the increased volume the last several trading days and the accompanying upward price movement. This type of activity is very often a harbinger of the expectation of very good news to be released in the very near future. In fact we are hearing VERY strong rumours that THFZ will be releasing VERY good news within a couple trading days! We do not know the exact nature of the news, but the rumours are very very strong. Since THFZ moved up rapidly on decent volume, can you imagine where the price could move today, Monday, May 21 with the accompanying volume we anticipate? Hint: UP! In fact, we expect record volume on THFZ today that could *easily* exceed 7,000,000. Yes, seven million! With such volume THFZ has the distinct possibility to double or triple in value in the very short term. Our mid to long term price target is $0.60 to $0.85. There will be a plethora of Financial Newsletters profiling THFZ today as well as later this week. This very undervalued and under-recognized stock will be getting immense exposure. The time to seriously consider investing in THFZ is now, before the masses do.....
THERMAFREEZE INC (THFZ.OB) (May 16, 2001) Quarterly Report (SEC form 10QSB) ITEM 2 - MANAGEMENT DISCUSSION & ANALYSIS OF PLAN OF OPERATION The following discussion and analysis should be read in conjunction with the Company's Financial Statements and notes thereto included elsewhere in this Form 10-Q. Except for historical information contained herein, the discussion in this Form 10-Q contains certain forward looking statements that involve the risks and uncertainties, such as statements of the Company's plans, objectives, expectations and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. These statements include, without limitation, statements concerning potential operations and results of the company and information relating to Year 2000 matter, described below. The company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, without limitation, to those factors discussed herein and in the Company's Form 10-SB for the year ending December 31, 2000.
The first quarter of 2001 has been pivotal for the Company. As our core refrigeration technology emerged from research and development management conceived and executed a strategy to position ThermaFreeze as a major player in the environmental arena, performing as an operator and consolidator of this highly fragmented industry.
In this three month period the Company developed a compelling merger and acquisition strategy, recruited a highly qualified chairman to lead these efforts, acquired control of a strong environmental remediator, moved its ThermaFreeeze product line from research and development into manufacturing proto type and marketing, and recruited a top international merchant banker to assist in building the capital base of the Company and increase its acquisition inventory. We are delighted to report sales in this quarter, indicative of the move of ThermaFreeeze from development stage to operating.
We expect the Company to maintain this rapid pace of growth and development, especially during the second quarter. We have had a significant increase in the quality and number of number of possible mergers and acquisitions since we announced the acquisition of Environmental Reclamation Inc. (ERI). This increase has come from shareholders who have responded to our new initiative with opportunities and leads, from the stock brokerage community and from our merchant banker. We are focused on assembling the best grouping of these opportunities to establish a complete "design-to-build" capacity in the environmental industry.
The types of business we seek to acquire are those in which the owners want long-term exit strategies rather than immediate retirement. They have good business and want to continue running and expanding them. This means that our money can be used to drive new business and growth rather than being used to pay for acquisitions. The environmental industry is particularly sensitive to increased working capital, showing very high returns to profit for every available dollar of working capital. Thus, additional capital is important to our growth and operations. We have contracted with Falcon Financial Advisors of New York to raise $10,000,000 in additional capital. We intend to use these proceeds to fund internal growth and synergy and to manufacture the patented Hydra Freezers. The strong internal growth potential of this strategy can yield significant leverage of new dollars; a strategy we are finding is attractive to sophisticated, institutional level investors.
Our announced plans to enter the waste to energy sectors of the environmental industry addresses the need to provide cost effective methods of treating animal wastes as well as helping meet growing power shortages. We intend to focus on small plants capable of working profitably in small communities. Using a "franchise" approach to reduce the costs of engineering and permitting, we foresee a program in which we can rapidly deploy throughout the United States with community friendly, low capital cost systems. This program, in addition to adding to long-term assets, is expected to build long-term revenue and cash flow, providing additional shareholder values as merger and acquisition growth slows in coming years.
Operations of existing holdings are doing well. ERI is ahead of plan for sales and profit, expecting a solid 2nd quarter. HydraFreezer development is on schedule, with the first units expected to be ready for shipment in June this year. European environmental business opportunities continue to expand as we reap the rewards of three years of intensive sales and marketing investment made by ERI in the United Kingdom. We have a solid core of dedicated professionals committed to making ThermaFreeze one of the major providers of cost effective environmental services and technologies. We have timing and opportunity and fully expect to meet or exceed our expectations for the year. |