XCEL ASSOCIATES, INC.
SeaView UNDERWATER RESEARCH, INC (OTC: BB-SEVU $0.58)-
SeaView Underwater Research, Inc. Shares Outstanding 10,080,000
(OTC BB: "SEVU") Float 2,430,000
1999 Stock Price Range: $.56-$8.00
Market Capitalization: $7,250,000 = 150% of 1999 estimated revenues,
75% of Y 2000 revenues
21% of Y 2001 revenues
Estimated 1999 EPS: $.075 = P/E Ratio: 9.3X
Projected 2000 EPS: $.12 = P/E Ratio: 5.8X
Projected 2001 EPS: $.40 = P/E Ratio: 1.75X
SeaView, a fully reporting company, having begun its marketing effort in March 1998, has already proven itself to be the world's largest manufacture of underwater video cameras. SEVU, with its three distinctive divisions, MARINE, SECURITY and COMMERCIAL, has taken the marketplace by storm with enhanced use of its proprietary See-in-the-Dark technology. Keep in mind that SeaView is the only publicly traded company in this field.
(A) The MARINE Division consists of a wide variety of underwater cameras, lasers, radar hoods and underwater lights. These products enable divers and fishermen to find ledges, wrecks and other underwater structures, record dives and locations, check bait or lures, see what's on the line before reeling it in, attract fish, and to allow search and rescue dive teams to see, even in the worst conditions.
(B) The SECURITY division, perhaps the most explosive, heretofore unexploited, sector of SeaView, brings the Company's breakthrough technology to potentially every home and business. The SecureView(TM) incorporates patented technology, which uses the existing electrical wiring to carry a crisp, clear, high resolution picture to any number of TVs or VCRs in any building.
(C) The COMMERCIAL Division has developed a camera with a 10,000 foot drop range for the Oil and Gas Industry. The "Well-Cam"(TM) enables instantaneous monitoring for leaks and weak pipe connections and has the unique ability to provide a 360-degree view of the inside of a pipe, again in total darkness. A major oil company is preparing a purchase order for 500 cameras (approximately $1,000,000), and they estimate that the domestic market could approach 25,000 units, which could produce $50,000,000 in revenues.
GOVERNMENT MARKET
Many SeaView cameras are currently being used by several governmental agencies including, the Environmental Protection Agency, the Coast Guard, Customs Agencies and more than 100 Police and Fire Departments. This area is virtually untapped, and a significant marketing effort will be implemented during Y2000.
THE DRIVING FORCE!
Rich McBride, 46, President and Founder of SeaView, has many years experience in the video industry, marketing new products. He has been sought after to design sales and marketing strategies, using TV and Print Direct Response and today, many of the products in K-Mart, Walmart and Target were launched from his marketing plans. One of McBride's more notable efforts is the "VistaLight"(TM), the bright red, flashing LED safety lights for bicycles.
MARKETING PLAN
Aggressive marketing efforts at SeaView will increase its very successful print-driven campaign and will expand its dealer network and outbound sales force. In addition, Y2000 participation in boat shows will increase to as many as 8 per month as compared with only 16 in all of 1999. The Company is a member of many marine trade organizations, such as, NMNA, ASA and DIMA, through which SeaView could conceivably recruit many show vendors into becoming dealers.
1998
SeaView turned a healthy profit in only 10 months of operation in 1998, with revenues of $635,000 and over 19% to the bottom line. Recently, new molds were made to reduce costs, a new phone system was purchased, enabling SeaView to process hundreds of orders per day, and two facilities were combined into one, doubling warehouse capacity. In addition, production was turned over to an outside contractor, enabling SeaView to produce large quantities while concentrating its own people to facilitate custom orders and develop new products.
GROWTH POTENTIAL!
SeaView's potential growth is virtually unlimited. The Company plans to enter the International Market in Y2000, and with over 500 million boaters worldwide, coupled with the concern for more security in our homes and businesses, and with the commercial sector (particularly oil & gas) in need of a cost effective means of preventing accidents, SeaView is poised to grow astronomically.
Several major retail chains have shown an enthusiastic interest in SeaView's MARINE cameras and the SecureView(TM) security cameras. As meaningful discussions are ongoing, Management expects to announce substantial contracts in the very near future with a number of leading well-known mass-merchandizers, including Home Depot and Radio Shack.
Selected Financial Information
Calendar, 1998 (For 10 months, March thru December)
Gross Sales $635,486.00
Gross Profit 486,131.00
Net Profit 122,774.00
3 Mos. Ended March 1999 3 Mos. Ended June 1999
Gross Sales $300,869 $436,000
Gross profit 252,613 392,000
Net Profit 59,234 105,000
Shareholders Equity 229,692 318,000
Management's Financial Projections
Fiscal Year 1999 2000 2001
Total Revenues $4,800,000 $12,000,000 $35,000,000
Gross Profit 2,300,000 6,250,000 20,500,000
SeaView has just announced that it has filed to be listed with Moody's Investors Service, and will soon be changing its name to "SeaView Video Technology, Inc." According to SeaView President Rich McBride, "We felt the 'underwater research' part of our name didn't reflect our position as the largest manufacturer of underwater video cameras. There was a perception we did ocean studies, when in fact, we're a profitable manufacturing and marketing company."
In addition to its SeaView® line of underwater video products, the company recently entered the home-security arena with SecureView, a patented camera which screws into a light socket, transmits through existing electrical wires, and is viewable on any TV. Atlanta-based PRO Marketing is representing SeaView® and SecureView to its client list, which includes Home Depot (NYSE: "HD"), Lowe's Home Improvement (NYSE; "LOW"), Sears (NYSE: "S") Ace Hardware, and Bass Pro Shops. PRO also has offices in Dallas, Chicago, Tampa, and Charlotte, NC.
The listing with Moody's Investors Service, in the words of Vice President J.R. Cox, "will allow stockbrokers to recommend SEVU to their customers in all 50 states, where previously that was only possible in eight states." The company will list with Moody's under the revised corporate name of SeaView Video Technology, Inc.
CONCLUSION
We believe that SeaView Underwater Research, Inc. is one of those truly undervalued situations, and it won't be long before The Street takes notice. Based upon Management's estimates, we wouldn't be surprised if SEVU was trading in the $3.00 range by year-end and look for major development in Y2000 which could catapult the stock to the $5.00 by the spring.
DISCLAIMER
Although SeaView Underwater Research Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by SeaView Underwater Research Inc. or any other person that the objectives and plans of SeaView Underwater Research Inc. will be achieved.
CONTACT:
SeaView Underwater Research, Inc.
200 Madonna Blvd., St. Petersburg FL 33715
Investor Information Line: 727/866-3660 ext. 207
Fax 727-866-0813
Email: webmaster@seaviewresearch.com
or
sales@seaviewresearch.com
seaviewresearch.com
Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives, related to such securities ("related investments"). Xcel Associates, Inc. (Xcel) and its affiliates may trade for their own accounts in any securities of the issue(s) or in related involvement’s. Xcel, its affiliates, directors, officers and employees, may have a long or short position in any securities of this issue(s) or in related investments. Xcel or its affiliates may from time to time perform investment banking or other services for, or solicits investment banking or other business from any entity mentioned in this report.
This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objective, financial situation and the particular need of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any may fluctuate and that each security prices or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Copyright 1999 Xcel Associates, Inc. We own 12,500 shares @ $0.58.
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