David
I am one of the little guys that likes to hear news about any company that I have
a vested interest. I was fortunate to be able to arrange my day to be in on the conference
call from Aurthor and David Horrigan.
Aurthor started of the call with " Hello I don't have any new for you all". I thought o boy shut
the door there going to be alot of crying going on before this call is over with.
Boy was I wrong. In the meeting Aurthor held in St. Louis at A.G.Edwards, he keeped indicating
that the whole success of sands and the nuclues was riding on sands being able to sign a deal with
Digital. If they could not sign with them then the program would have been put back 18 to 24 mo.
and sands would have to wait for H.P. to come out with there 64 bit system.
The very next day Author announced the deal with Digital. I only bring this up just to remind us all
of the type of person we are dealing with. Shrewd, deliberate, cautious, and extremly confident in the
products that he has at his marketing disposal. I will list some of the items and ideas that were discussed
and will state so when it is my assumtion.
1. Announcement of a sale between 500,000 and a 1,000,000 will be announced any time.
2. Sands recieves approxitmately 20% on such sales were there is combination hardware and software.
3. 5 systems are up and running and I assume are under lease arrangements.
4. He did not confirm the Nations bank deal nor did he denie, but did indicate that company was
extremely happy and they would be bying additional systems in the near future.
5. H.D.S. as of August 27 has made the massive parallel server generally available.
6. H.D.S. has committed some 20 people in their organization to pursue putting this product into the
main frame of corporate America.
7. They (H.D.S.) has also invested at least 3mil into the project so far with additional outlays of close to
5mil in the very near future.
8. TWO major OEMS are in talks with sands on taking on the product. One is a hardware vender, I assume
Digital), the other a software company. BIG NEWS***** Both deals are close to completion.
My opinion the deals have all ready been signed especially with Digital. For if you remember from one of my
earlier post that when I was in Canada the Digital representatives were drulling all over themselves at the thought
of getting their hands on this product. And I cannot emphasies that enough they were elated to be able to have
the kind of particapation in the program that they were doing but did not shy away from indicating they definately
wanted more.
9. Back in the middle of 1996 Sands had 9 employes on the payroll after the sale of the printer
division to IBM. Today they have approximately 35 and 5 more are arriving with in the weeks to follow.
When asked why so many new engineers Aurthors reply was "so we can support the OEMS if we sign the
deals." IMHO you don't hire 135k a year engineers in anticipation of deals to come. Just think about that
comment for a minute. It dosn't take a registered genis to see what he is telling us.
10. H.D.S. just hired a new person from Oracle to help out with the nuclues sales division. His name escapes
me at this time , Jack V======= , Maybe some one who was on the call will help me out.
11. Kevin has just recently started to focus on the nuclues and give support where need be.
He had been working on some other areas concerning XDB systems.
12. Aurthor's goal has remained the same as it has for the past year and that is to have 12--15 major corporations
on line and using the nuclues by Christmas of this year. Either in the form of sales or leases. It looks like
he 40% there, and has no fear that Sands will be there where he wants it to be.
13. With 12--15 systems in the field and the new OEMS on line this stock will go "vertical".
14. There will be no need to "hype" the stock for the sales of the product will be all the hyping that is necessary.
15. He is extremely bullish and Kevin wished he could tell all he knows.
16.With the rate of burn on capital with all the new employees he said "we have enough funds in the bank to
get us through until Dec of 1998. And that is if there were no sales which I do not see happening."
17. Alot of corporations allocations for funds for new equipment has already been spent and therefore they are
on hold until there new fiscal allotments are approved by management.
If I have omitted anything maybe one of the other persons on the call will fill in.
This company is about to fly and I don't mean in a year or so. This companies main problem is not in marketing
or in selling the product, but in getting the corporate mentallity to understand what it is that this company has.
For it is not like AMD always behind the curve with Intel, but it is out front all alone, trying to teach and make
them understand what a great and wonderful tool that is at there disposal. Also 32 bit system is still in the works
and in 30 days of less should be complete. This product could be sold over the internet for individual use. I don't
know how much more convincing a CEO can be with out getting the SEC on his rear end. Those of you who have
not joined our little group of merry men please feel free to do so now, or you may just be kicking yourself in the ????????
in the very very very near future.
good trading
Gary |
