Bloom's Investment Reporter concentrates on only a few select emerging North American small cap companies, from which
we receive no reporting fee. Upon request, we will fax you a few complementary editions for your perusal. However, please
note that our subscribers receive all fax/written reports prior to transmission of complementary editions. Subscription details
are below with a description of our services.
FAYMAR CAPITAL CORPORATION (ALBERTA STOCK EXCHANGE - SYMBOL: FAY)
IR Contact Gary Perkins 905-479-2800, Markham Ontario
Late in April, I sent a newsletter to subscribers informing them of a new opportunity called Faymar Capital Corporation
(Faymar) which was about to start trading on the Alberta Stock Exchange. It did, in fact, start trading at CDN$0.52. As of the
date of this edition, the stock is trading in the $2.50 range! Here's why. Faymar is scheduled to close its purchase of a
company named Valu- net International Ltd. (Valu-net) around the end of July. Valu-net facilitates and supports the use of
electronic commerce for internet transactions between merchants and consumers through internet web sites. The company
currently has an alliance with the National Bank, Canada's 6th largest bank with assets of CDN$57 Billion and should shortly
announce agreements with other major Canadian and American banks offering high security authorization and settlement of
Internet credit card transactions. Furthermore, the company recently completed a private placement and is adequately
capitalized for expansion of its electronic and internet commerce services. Having had several discussions with company
President, David Lucatch and other knowledgeable sources, I have concluded that there are two major factors that make this
company particularly exciting.
First, no one is doing exactly what they're doing. Other companies are setting up web sites, most at considerable expense and
inconvenience to the merchant. However, only Valu-net provides an integrated marketing package in addition to the creation
and management of the web site - and for as little as $300 a year. In fact, the company's approach won it the "Best of Show"
award in marketing and advertising at the trade show recently held by the Retail Council of Canada in Toronto. Even Robert
Wright of the Toronto Star seems impressed with Valu-net's formula, as he stated in a recent article (June 19, 1997 "On The
Edge") .
Second, observers agree that the current consumer culture of hands on buying will take time to shift its focus from browsing
store shelves to browsing the net- but the trend is definitely there. According to a recent Financial Post article (June 18, 1997
"Searching For The Holy Grail), the value of goods and services sold over the Internet last year was US$5.4 Billion and is
expected to jump to US$150 Billion in two years. And analysts agree that the strategy for success on the Internet will be for
merchants to tie their net presence to a real world business. Valu-net President David Lucatch is erudite enough to recognize
this fact and is targeting existing businesses eager to expand their market into cyberspace and thereby actively participate in,
and capitalize on that cultural transition. Furthermore, the PC manufacturers and telecommunications industry plan to facilitate
that transition by providing cheaper computers and, very soon, telephone instruments with a vision display that can directly
access the Internet.
My conclusion? Even though the stock has already moved significantly, it's still very early to get involved. |
