OGPS, nice profile here:
Patagonia Capital Corp. Initiates Investment Coverage Of:
Omicron Technologies, Inc. ("OGPS" on OTC-BB)
Suite 400 114 Magnolia Street Bellingham, Washington 98225
Toll-Free: (877) 903 - 2288
Website: omicrontechnologies.com
Omicron has acquired the revolutionary APS digital imaging technology
(developed by NASA), and is designing / developing consumer products for a
rapidly-growing, multi-billion dollar market !!
OGPS also offers investors a play on Internet gambling - the company's
first online casino is about to begin operations !!
Omicron is also developing a full-service financial information website
that will offer free, real-time quotes on all US & Canadian stocks !!
A significantly undervalued company, OGPS is recommended to investors
seeking exceptional capital appreciation over the medium to longer term!!
COMPANY PROFILE & PRODUCT LINE
Omicron Technologies, Inc. ("OGPS" on the OTC-BB) offers investors a rare
ground floor opportunity to participate in two new, high growth industries
– digital imaging and Internet gambling. Each of Omicron's business lines
are capable of driving the stock to much higher levels, and if both the
Internet gambling and the digital imaging are successful, well, who knows
how far the stock could go…
Omicron's management believes that opportunities for rapid growth lie in
bringing new technologies to market as popular consumer products. The
company's website (http://www.omicrontechnologies.com) has a wealth of
information on the technical aspects of OGPS business lines. The Omicron
discussion thread on Silicon Investor can be accessed at:
www3.techstocks.com ; for
Raging Bull:
ragingbull.com .
OMICRON's ACTIVE PIXEL SENSOR (APS) TECHNOLOGY
On October 16, 1998, Omicron entered into a joint venture with ViaSpace
Technologies LLC to develop new imaging systems based on Active Pixel
Sensor (APS) technology. OGPS owns 40% of the JV, and has a first right of
refusal to acquire an additional 40% interest in the technology.
Developed by NASA's Jet Propulsion Laboratory (JPL) and CalTech, the APS
technology is a light-gathering system or "eye" that utilizes amplified
pixels or picture elements in a semiconductor chip. This technology allows
for the miniaturization of a full-motion video camera to the size of a
microchip!
Presently, most electronic imaging products are based on a sensor
technology known as charge-coupled devices (CCD), which was developed by
Bell Labs in the late 1960s. Basically, CCD's operate an array of cells,
with each cell representing a picture element or pixel that converts light
into an electrical charge of varying intensity. CCD's work well, but are
difficult to produce and consume a good deal of power. APS technology, on
the other hand, contains an amplifier in each pixel – the net result being
superior performance, with greatly reduced power consumption, thereby
facilitating miniaturization.
APS digital imaging systems are smaller, have superior video imaging
capabilities, cost about one-fifth as much as existing CCD's, while using
100x less power than CCD products (imagine a camcorder battery that lasts
for a week between charges, rather than just an hour or so), Other
features of APS include the capability for wireless transmission of
real-time video over distances of up to one kilometer, and significantly
higher image and sound quality.
THE MARKET FOR CMOS APS TECHNOLOGY
The InStat Group estimates that the digital imaging chip market is growing
by 60% annually, and could be a US$20+ billion dollar market by 2002.
Peripheral Insight estimates that the potential market for digital imaging
chips will be 100 million units in the year 2002.
Omicron intends to adapt its CMOS APS digital imaging technology primarily
for new consumer products. The quicker that Omicron can get its products
to market, the greater the share of this multi-billion dollar market it is
likely to control.
INTERNET GAMBLING
Internet gambling is a rapidly-expanding business that began with a handful
of players in 1996. Today, Christensen/Cummings estimates that there are
about 25 million Internet gamblers; by 2001, upwards of 40 million people
are expected to be gambling online.
In terms of dollar amounts, Christensen/Cummings and DataMonitor estimate
total worldwide Internet gambling revenues of US$811 million this year,
increasing to US$1.52 billion in 2000 and US$10.2 billion in 2002. To put
these numbers into perspective, last year Americans spent about US$600
billion on baseball, movies and Disney products.
Millions are now using Internet gambling to wager on everything from
sporting events to slot machines, table games and even the success of the
new Star Wars movie. Australia and Antigua have licensed Internet gambling
and several European countries are taking a closer look at it. Many public
companies are participating in the growth, including some high-powered
software firms and credit card processors.
What's happening now, and why growth in this industry so large now, and why
will it be so great in the future, is simply the growth of the Internet.
Currently there are 147 million people online worldwide. By the year 2005,
experts predict that over 500 million people worldwide will be online, thus
making the Internet a truly global medium.
OMICRON's INTERNET GAMBLING VENTURES
Over the past six weeks, OGPS has made two major Internet gambling software
acquisitions, as well as announcing the launch of the Lucky Eight Casino.
Collectively, these agreements have firmly established Omicron as a
preferred supplier of online gaming systems and a leader in the Internet
gaming industry. In the future, Omicron intends to develop and operate
numerous casino websites targeting various market niches worldwide.
LUCKY EIGHT CASINO - On June 10th, Omicron Technologies announced the
impending launch of the Lucky Eight Casino, targeting the Chinese speaking
communities in Hong Kong, Mainland China, Singapore, Malaysia; the site
will also be available in Japanese, Korean and five other languages. The
Lucky Eight Casino website is intended for use by Asian web browsers and
operating systems.
Many industry experts perceive the Asian market as "an untapped gold mine"
for online gaming, with an estimated five million Internet users in China.
Computer Economics Inc. projects that by 2005, China will have 37.3 million
Internet users, second only in usage to the United States. More
importantly, total gambling turnover in Asia is the highest in the world,
surpassing US$600 billion in 1997.
OGPS projects that the Lucky Eight Casino website will begin generating
earnings within 90 days of start-up; income to Omicron will be based on a
percentage of the total net revenues generated, reaching 75% when total
monthly net revenues are over US$1,000,000.
ONLINE GAMING SOFTWARE ACQUISITIONS & JOINT VENTURES - The Lucky Eight
Casino announcements were followed by a joint venture agreement with Double
Mastery, Ltd, a private Nevis, West Indies corporation on June 29th.
Double Mastery and Omicron will each own 50% of the joint venture company,
which will license the premier turn-key Internet gaming software available
to those interested in entering the online gaming industry. Each licensee
would be supplied with a customized, full-service Internet gaming system,
including virtual casino games and sports betting. Customers would be able
to place wagers via a secure, online financial transaction system.
The gaming technology will be licensed to independent operators in exchange
for a percentage of the net revenues generated by their casino websites.
The joint venture expects to license over 50 casino websites within the
next six months generating in excess of US$10 million in total revenues and
over US$1 million in pre-tax income to Omicron.
On July 6th, OGPS acquired Cyberweb Systems Inc., a private company
specializing in Internet gaming software development.
Cyberweb's programming and systems expertise complement the development and
operations of Omicron's "Lucky Eight Casino" (particularly their online
contact directory for Asian businesses and individuals). In addition to
its focus on Internet gaming software development, Cyberweb also hosts and
designs websites; the company is currently hosting fifteen websites and has
the hardware capabilities to host thousands of websites.
As part of the acquisition, Omicron also gains control of a new,
full-service financial information website developed by Cyberweb. This
site, which Omicron will bring on line very shortly, will include free
real-time quotes on all US & Canadian stocks, Java charting, COMTEX news
and a free portfolio tracking system that will send an email when a stock
price reaches a high or low parameter set by an investor.
With the addition of Cyberweb, Omicron is strategically positioned to
expand its worldwide gaming and Internet-based business through software
and website development.
Lastly, OGPS announced on July 13th that it had begun formal negotiations
to acquire a private company engaged in the development of "next
generation" BINGO software for Internet gaming Web sites.
Internet BINGO business is in the early stages of its development, with
very few active gaming Web sites that provide the opportunity to play the
game of BINGO for money. Analysts familiar with the worldwide gaming
business predict that gross revenues from Internet Bingo could exceed US$4
billion over the next two years.
The unique BINGO software under development will not require the
downloading of software and will not use computer generated numbers to
play. Omicron's Bingo Web site will display, in real-time using a
JAVA-based camera system, a "Live Bingo Hall" from three different angles
showing the hall itself, the number board and the Bingo balls as they come
out of the machine. With an average of 100 people playing per hour, the
gross revenues generated could exceed US$26 million, of which Omicron would
receive 40% of the gross.
NATIONAL CAPITAL MERCHANT GROUP
On July 15th, Omicron announced that it had entered into a financial
consulting services agreement with National Capital Merchant Group, Ltd.
("NCMG"); NCMG will provide Omicron with advisory services regarding
investment banking & capital sources, mergers & acquisitions, capital
structures, financial transactions, broker/dealer & institutional investor
relations, and reporting & disclosure.
The NCMG agreement is a significant accomplishment for Omicron, and will
benefit the company in many ways!
First and foremost, NCMG is a well-capitalized fund that structures direct
equity investments, mezzanine financing, or commercial lending. The NCMG
fund was established to provide debt or equity financing to micro-cap or
small-cap companies such as Omicron; NCMG will become a strategic partner
of OGPS, and be very involved in the company's future development and
growth.
We believe that Omicron's association with NCMG and the National Capital
group of companies virtually assure OGPS' success in completing a
significant equity financing(s) in the near future.
As an active Omicron market maker, National Capital will strive to ensure
an orderly liquid market for OGPS shares. NCMG will also work within its
nationwide network of broker/dealer and investment banking firms to promote
Omicron as an attractive emerging growth company investment opportunity.
Lastly, NCMG and its Fast Track SEC Reporting Program will assist Omicron
in preparing the necessary documentation to become a fully reporting
company; OGPS expects to file its registration statement in August.
WHY YOU SHOULD CONSIDER ADDING OGPS TO YOUR PORTFOLIO !!
OGPS has a great future, and we recommend the company based on its strong
potential for significant capital appreciation over the next six to twelve
months.
We believe that Omicron offers investors a ground floor opportunity to
participate in two new, high growth industries – digital imaging and
Internet gambling. Each of OGPS' business lines are capable of driving the
stock to much higher levels, and if both the Internet gambling and the
digital imaging are successful, well, who knows how far the stock could go…
Omicron is well-positioned to take advantage of the explosive growth in
online gambling. The company's Lucky Eight online casino is scheduled to
begin operations in August, and will be a source of significant revenues.
Over the past six weeks, OGPS has made two significant Internet gambling
software acquisitions, with the goal of establishing Omicron as a preferred
supplier of online gaming systems. In the future, Omicron intends to
develop and operate numerous casino websites targeting various market
niches worldwide.
Though the money from the Internet gambling is huge, the CMOS APS
technology is a "company-maker" product that will drive the growth of
Omicron for many years to come.
The number of applications for the digital camera-on-a-chip technology are
almost limitless, and we believe that Omicron is correct in emphasizing
development of consumer product and digital imaging applications for this
revolutionary device. OGPS is well-positioned to achieve a dominant
position in what will become a multi-billion dollar industry in just a few
years.
With the involvement of National Capital Merchant Group, we believe that
OGPS is virtually assured of completing one or more significant equity
financings in the near future.
From our perspective as an independent third party observer, all signs do
point to the fact that OGPS must be very, very close to locking up a
multi-million dollar financing. Omicron has stepped up its marketing
campaign in recent weeks, while continuing to aggressively build its
Internet gambling business through acquisitions and joint ventures. We
don't believe that OGPS would be moving so aggressively on acquisitions and
IR unless the financing was nearly in place…
OGPS has all of the fundamentals in place – and now, with investors
concerns about financings answered by the NCMG relationship, we believe
that Omicron will have a very solid future, and that OGPS shares should
return to trading at levels seen earlier this year (US$4+)
We view OGPS as a STRONG BUY at current prices, with exceptional potential
for capital appreciation over both the medium and longer term.
CAPITAL STRUCTURE & TRADING RANGE (as of July 14, 1999)
Issued & Outstanding (fully-diluted): ~ 24.17 million shares
Est'd Float: ~ 2 million shares
1999 Trading Range: US$0.47 (low) by US$7.50 (high)
Current Bid & Ask: US$1.00 by US$1.13
Last Trade (July 14, 1999): US$1.12
For more information, please contact:
Gary Robinson or Rick Klassen - Investor Relations
Toll-Free: (877) 903 - 2288
E-mail: info@omicrontechnologies.com
DISCLAIMER
Patagonia Capital Corp. ("Patagonia Capital") is not a Registered
Investment Advisor or a Broker / Dealer. Patagonia Capital has
independently prepared this report, drawing upon a range of public news and
information sources. This report reflects opinions from Omicron
Technologies, Inc. (the "Company"). Readers are advised that this report
is issued solely for information purposes and is not to be construed as an
offer to sell or the solicitation of an offer to buy. The opinions and
analysis included herein are based on sources believed to be reliable and
in good faith but no representation or warranty, expressed or implied, is
made as to their accuracy, completeness or correctness. This information
is not intended to be used as the sole basis of any investment decisions,
nor should it be construed as advice designed to meet the investment needs
of any particular investor. The foregoing discussion contains
forward-looking statements that are based on current expectations and
differences can be expected.
The information contained herein has been provided by the Company to
Patagonia Capital for information purposes only; in addition, the
information contained in this report is not intended to be a complete
discussion of information regarding some of the current and/or intended
business activities of the Company. Readers are urged to consult with
independent financial advisors with respect to an investment in the shares
mentioned herein. Investors should review a complete information package
on the Company which should include, but not be limited to, the Company's
annual report, quarterly report, press releases, as well as all regulatory
filings. All information contained in this report should be independently
verified with the Company mentioned herein. Any opinions expressed in this
report are statements of judgment as of the date of publication (14 July
1999) and are subject to change without further notice, and may not
necessarily be reprinted in future publications or elsewhere. Neither
Patagonia Capital nor its officers, directors, partners or employees /
consultants accept no liability whatsoever for any direct or consequential
loss arising from any use of this report or its contents.
In order to be in full compliance with the Securities Act of 1933, Section
17(b), Patagonia Capital advises the readers of this document that it has
received a fee of 1,500 free-trading common shares of Omicron Technologies
from an unrelated third party as compensation for its efforts in
researching, writing and presenting the information contained herein.
Prior to Patagonia Capital issuing this report, the Company reviewed and
approved the contents hereof. Patagonia Capital, its officers, directors,
partners and employees / consultants may profit in the event the shares of
the Company increase in value. These positions may be liquidated from time
to time even after Patagonia Capital, its officers, directors, partners and
employees / consultants have made positive comments on the Company.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE
INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS
SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. We encourage U.S. readers
to review the investing information available with the Securities and
Exchange Commission ("SEC") at sec.gov and/or the National
Association of Securities Dealers ("NASD") at nasdr.com The
NASD has published information on how to invest carefully at its website.
Omicron Technologies is not yet a fully-reporting company with the SEC. The
process is expected to be completed later this year, at which time, readers
can review public filings (including financial information at the SEC's
EDGAR page freeedgar.com.
|
