European Analyst Report- Great news!!!!! Earning projections
and filing commitment!!!!
kramc
Nevtah, Inc. (NASD OTC: BB: NTAH) is a U.S holding company that acquired 50% of Pamco in March 1998 and will be fully reporting to the SEC by December 1999. In April 1999, Nevtah and Pamco formed a new subsidiary called Cybersensor.com. Cybersensor.com was formed to develop and market a Web-based technology, called CyberVip?, which allows users access to remote locations via a direct satellite link by logging in to the Internet at www.cybersensor.com. Cybersensor's technology will target the demand for an efficient yet cost-effective method of controlling and monitoring field equipment from remote locations via satellite around the world as well as the tracking and monitoring of trucks and trailers, conveyor belts, vending machines, gas and flow meters, pump jacks, etc. In short, if something needs to be measured, Cybersensor's technology can do it. The wide application of this technology is expected to create a far-reaching demand with a high profit potential. The Company is initially targeting the oil and gas market in conjunction with Pamco's patented technology, the Wellminder?. The Wellminder? will replace the traditional pump jack by lifting oil to the surface of the ground via compressed air or gas. Remote control and monitoring are achieved through Cybersensor technology. Cybersensor's applications are almost endless. Several large manufacturers of meters in the United States have shown tremendous interest in Cybersensor's technology. They are especially excited about Cybersensor's applications regarding household gas, sewer and water meter telemetry as well as the monitoring of remote pumping stations. One of the largest computer engineering firms in the world is interested in forming an alliance with Cybersensor in order to develop new applications. The U.S. National Weather Service, together with other government agencies and Noaa, have set up a pilot program to evaluate Cybersensor's technology regarding the measurement of water levels in U.S. rivers, thus alerting them to potentially dangerous flood conditions. In May 1999, Cybersensor formed an alliance with ORBCOMM Global L.P., the world's largest low-earth orbit (LEO) satellite company. This alliance permits Cybersensor to become a Value-Added Reseller (VAR) and to market its technology to ORBCOMM users on Cybersensor's Web site. ORBCOMM has invited Cybersensor to share a booth at the Petrosat Trade Show for the Oil and Gas Industry on November 16th & 17th in Houston, Texas. This show will introduce new technology, software and communications equipment targeted to the oil and gas industry. Cybersensor will be the primary solution for remote monitoring and control, together with the ORBCOMM satellite system. At the conclusion of the show, Cybersensor and ORBCOMM will meet with several multi-national oil companies. Additionally, Cybersensor has entered into a strategic alliance with Stellar Satellite Communications. Stellar's data communicators are designed to work with the ORBCOMM network of LEO satellites. Stellar will supply the subscriber communicators that will act as both the field satellite link and the controller for the Cybersensor system. Cybersensor has placed an initial order for 11,300 Stellar data communicators in anticipation of its services during the coming year. Cybersensor has been granted an international patent for CyberVip? and will begin to market its technology in Europe in April or May of 2000. Nevtah will be responsible for the hiring of qualified persons in Europe to interface with Cybersensor.com and to develop its own customer base. Since the Cybersensor technology is being developed and tested in the United States, the Company's only job in Europe will be the recruiting of customers. ORBCOMM has made a commitment to Nevtah and Cybersensor to provide introductions to potential customers and to provide any needed support. We feel the Cybersensor technology should prove to be as needed and wanted in Europe as it is in the United States. The combination of good contacts, superior marketing and ORBCOMM support should result in the generation of significant business.
Selected Financial Data
US$ in million 1999E
2000E
2001E
2002E
2003E
Revenues 2.3
9.786
31.210
57.710
77.975
EPS -0.03
0.13
0.52
0.98
1.43
P/E N/A
4.7 x
1.2 x
0.6 x
0.4 x
Cybersensor's Internet based technology is highly unique, patented and suitable for application in many industries, both domestically and in Europe. Several large U.S. metric manufacturers as well as the U.S. National Weather Service have shown tremendous interest in the Cybersensor technology.
Strategic alliances with ORBCOMM and Stellar Satellite Communications will further enhance Nevtah's market presence. Cybersensor.com will market its technology to ORBCOMM users as a Value Added Reseller (VAR).
Cybersensor.com has ordered 11,300 Stellar communicator devices in expectation of the demand for Cybersensor technology. The customer base is expected to reach over 15,000 by the end of the year 2000. Profit is initially realized by selling the Stellar communicator devices, which have a high profit margin. The second revenue stream is derived from a one time hook up fee and the third, when Cybersensor charges each user a minimum fee per month, which entitles him to a certain amount of free monitoring time. The average customer is expected to have an online monitoring bill of approximately US$50 per month.
Based on our very conservative evaluation, the fair market value for NTAH is US$2.50 with a one year price target of US$7.50, a 57 times multiple of our forecasted 2000 EBIT of US$0.13 or a marketcap of four times sales, which is a fair valuation based on an average annual growth rate of approximately 100% over the next five years. We expect to raise our estimates in the first/second quarter of 2000 due to increased demand for Cybersensor services.
To request a copy of the complete, free research report or to inquire about the Company, please click here.
Web location that I got this from.
kramc
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