A look at SeaView
fallingshort.com
Date written: Aug 07, 2000
By: Lou Ambio
SeaView Video Technology, Inc. (NASDAQ: SEVU) manufactures, distributes, and sells marine and security-related equipment for both recreational and commercial use. Though they are traded on the bulletin board the company is in no way small potatoes as they are actually the largest manufacturer of Infrared Underwater Camera Systems, with over 11,000 units in service. Furthermore, SeaView Marine Division products are now available through a Dealer Network consisting of over 700 retail store dealers, and the company is adding 20 more each week.
The increase in the amount of dealers has definitely helped increase the companies sales dramatically. At the end of July, SEVU released preliminary 2nd Quarter gross sales estimates totaling $1,496,518.79, which was an increase of 410% when compared to the same quarter a year ago. Furthermore, the company’s SecureView product is now being built entirely in its own housing of proprietary, which should dramatically increase sales. In the release, Rich McBride, SEVU’s CEO, commented, "This is what we've been waiting for. To watch a year and a half of work come together -- perfectly -- is the reward we all deserve. We have them 'in the box,' and as soon as testing is completed, we intend to start shipping!"
It should also be note that the company’s sales and earnings predictions almost look ridiculous. For 2000 SEVU is actually expecting gross sales of $46,500,000.00 and their project pre tax net income is $21,650,000.00. It definitely should also be noted that the company is actually expecting $168,000,000.00 in gross sales and $112,600,000.00. This is a company that maintains a market capitalization of only $130 million. So obviously the market does not really believe them.
However they definitely believe in themselves as they feel they can sustain their sales momentum through a national advertising campaign consisting of full-color ads in over 35 magazines. Furthermore, they also advertise nationwide on the Weather Channel, with an 80-million-household reach.
It should also be noted that SeaView should not be on the TC BB for long as they are planning a move to the American Stock Exchange. The American Stock Exchange has confirmed the symbol STV for SeaView and Rich McBride, commented in a PR, "We had asked for SUV as a symbol, but it was not available. We feel quite confident about the move, and have gotten very positive responses from the Exchange and from our market specialist."
Finally, I do not believe that SeaView will actually meat the lofty expectations that they have set for themselves, however, if they even come remotely close the company is definitely worth a look.
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