More info:
This company has some unique features.
Its business includes personal computers, networking equipment, and
internet access. Also includes contract manufacturing of VCR's and
other consumer electronics in its excess space. This contract business
brought in $8M during 1996, and ther are orders for $15M more in
97 already. This is no insignificant piece of the business.
It is based in Miami, but basically runs a subsidiary called Bahia
in Brazil. It trains its own workers in Brazil, and pays its
Brazilian engineers around $500-$1000/month. It's lower level
workers make around $100-$200/month.
It has received favorable tax breaks from the local government, and
it is setting itself up with a new, quality manufacturing site
of around 70,000 sq feet. It expects ISO 9000 certification by
early 98.
This is something of a family business. The two top exectives are
brothers, and they turn to their father for favorable loans and
other favors. He recently bought a load of trade receivables from
them at a 30% discount. This is interesting, but hard to tell if
it is fishy.
The father also converted a $2M 9% note to 578,000 shares of VTCH
last November. He added to his investment with several purchases
totalling 40,000 shares in late December. He bought 100,000 shs
on Nov 1, bringing the total to around 720,000 shares. Interesting.
Helping his boys out? Hoping to cash in on some more favors like
that receivables deal?
The company advertises that it knows Brazil. Period. The way it
is growing revenues in a country where IBM, Acer, DEC, Compaq, etc.
are sure to have invested as well, I am inclined to believe them.
Mike |
