Just out today from Canaccord.
Solars Computing (SCS : CDNX : $0.93) David Wong (604) 643-7739
Recommendation: BUY
Web site address: www.solars.com
12-month target price: $2.25
52-week price range: $1.80-0.57
Shares O/S: basic 35.8M, fully diluted 44.3M
Major shareholders Mgmt. & Directors, 10.5%
Weekly trading volume: 282,810
Market capitalization: $41.2M (f.d.)
SCS Solars announced the addition of another seven long-term contracts
for a total of 28 tour operators and air consolidators using the
SOLARNET Travel System or NEWSWIRE service. Most of these contracts
are for five years with the exception of a one three-year contract.
The lengths of the contracts are significant but we believe investors
should be aware of the caliber and size of the clients SCS has been
able to sign onto its system. Two of the seven companies have sales
in excess of US$1B and are global players in the travel industry.
Guildfare is an air consolidator for the Guild of British Travel
Agents (GBTA) in the UK, which controls about 80% of the European
market. The company has been operating for over 30 years and reported
revenues of £6.89B in 1997 (see www.gbta-guild.com/gbta/business.htm).
Concorde International Travel is a unified travel organization in
Australia with over 50 years of experience in the travel industry.
The company has offices around the world, from Australia, Vietnam,
Canada, the US, and Europe, with revenues of over US$1B (see
www.concorde.com.au/home.asp).
We believe the addition of these two international travel operators
along with DER GmbH and P&O Travel, validate SCS' business-to-business
B2B) travel information model. Another benefit of this business model
is that it generates a recurring revenue stream, which can be
increased per tour operator as the company adds more services onto the
SOLARNET system, such as hotels and car rentals.
Moving forward, we are encouraged by developments with the company and
maintain our target price of $2.25. SCS is a BUY for the aggressive
investor.
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