The Calandra Report's money wand is out and about. Those who are new to this report, and its text alerts, have some magic ahead of them. Those who have been with us these past eight months know what that magic can be -- in the good times that have accompanied our first-hand and on-site
research this past spring, summer and autumn.
Here's the next piece of the magic act. Remember SeaView Video Technology (SEVU)? We recommended it several months ago at 11 cents a share, and now, at 40 cents, I have some fresh developments. CEO George Bernardich got me on the horn this weekend to tell me about a name change -- and a few other things that fit The Calandra Report profile of
a promising investment. First and foremost is consistent sales growth -- attached to new products and engineered by a capable sales force.
Bernardich's little Florida company just completed a fifth consecutive quarter of sales improvement. The company also added two board members, and most importantly, is in the process of soliciting written consent from shareholders to change its name to Power-Linx Inc. "We acquired all of the rights to the name, website, etc.(www.power-linx.com). It better portrays the powerline communication business we are in," Bernardich tells me.
SeaView as it stands right now is one of those companies at an inflection point. Greater sales via cable television and other outlets are boosting sales of the products and applications it develops to transmit voice, video, audio and data via power lines. The company's "camera in a light bulb" screws into light sockets. Inside the "bulb" is a sophisticated low-light monochrome camera. I've used it, and it's so easy to install my 7-year-old son can handle it. The "bulb" is a camera security device that hooks to a TV monitor for live viewing. There are no wires (electrical lines in a home, or store, encode the video
signal).
In the current product mix as well are baby monitoring devices, doorbell monitors, and on a commercial scale, parking-lot surveillance systems, rear-view cameras for industrial truck haulers, and underwater video systems. Bernardich, for those who received the first write-up of the company at 11 cents, is a retailing veteran with experience at JC Penney and other large operations. With a $50 million market capitalization, the shares are not as cheap as they were earlier in the year. Especially
with a "run rate" of less than $2 million of yearly sales. Still, thanks to greater sales channel via cable-television and because of plans to sell PowerLine Transmission products that operate on mid-voltage and
high-voltage electrical transmission lines between buildings and electric sub-stations, SeaView is a proposition worth owning at some point.
Bernardich tells me he just checked out one of the company's newest digital products in this whole security area, "and it is as advertised."
More on that soon, he says. Bernardich is one of these guys who is anything but promotional. Some would say he is too methodical. "I would like things to move a lot faster, but we must be patient," he tells me about his company.
SeaView shares, which trade over the counter, are on The Recommended List, and have been for a while. Those fortunate enough to own them at 11 cents have the ultimate insurance. At some point, thanks to efforts by the Wal-Marts of the world to decrease the cost of their parking-lot and in-store surveillance systems, SeaView shares will command a greater price. The next rise in the shares likely will come along with one or two more quarters of 50 percent to 100 percent sales growth. I have no immediate targets for the share price, except to note that at some
point, they will reach $1. |
