CHELEKIS' I &II on MKD
******************************************************************
GEORGE CHELEKIS'
HOT STOCKS CONFIDENTIAL
October 7 1996
*******************************************************************
WWW: hot-stocks.com OR whispernet.com
EMAIL: <hotstock@gate.net> NEW FAX #: 813-254-4142
RECORDED HOTLINE #: 813-251-0030
*******************************************************************
COPYRIGHT (c) 1996 by George Chelekis. ALL RIGHTS RESERVED.
*******************************************************************
NEW OFFICE NUMBER: 813-254-5599
(For Circulation & Corporate Profile Advertising Sales ONLY):
*******************************************************************
--MARKATECH INDUSTRIES, PART ONE......
I've been following Markatech (VSE:MKD) since last winter and
now see the different pieces falling into place. This is a storied
computer stock with a much-wanted niche in an overlooked,
potentially lucrative marketplace. SCOFFLAWS are those who fail to
pay their parking tickets and municipalities (in their infinite
wisdom) prioritize collecting on parking violations over crime-
stopping. And they fail on both fronts -- uncollected parking tickets
often run well into the tens of millions of dollars throughout North
America. Thus, the demand exists for MKD's AUTONET, a
computerized motor vehicle ticket information system. The AUTONET
system gives the police real-time capabilities in tracking down stolen
or scofflawed vehicles -- all the policeman has to do is punch in the
license plate number to get a full report on the car.
Vancouver's Metro Parking Ltd. has just announced to "beta
test" MKD's AUTONET system, which should give MKD the credentials,
upon completion of this test, to rack up enormous sales through
independent parking management companies throughout the USA
and Canada. Millions of dollars of revenues are at stake, when MKD
commences marketing their system into US parking garages and
municipalities. Did you know, for example, that parking garages
break-even on parking cars and make their real money by towing
scofflaws? Don't think those profiteers won't be ignoring yet another
way to line their pockets.....
The key element is the beta test, which is supposed to confirm
that the product works, and (of course) makes Metro Parking a
bundle of money (collecting towing fees). That opens the door to one
of the largest US parking management companies to order up MKD's
AUTONET system. And, with these guys, once one of them snaps up
the product, free-market competition should drive the others into
ordering the system. A domino effect of parking garages racing to get
AUTONET, while the municipalities drag their feet. Since you can't
invest (so easily) into independent privately owned parking garages,
MKD seems to offer the next best thing.
Stock-wise, MKD has 8.2 million shares out, has recently begun
trading above C$0.60 share. Because of other promotional activities
anticipated on MKD, I believe there is going to be a lot of demand for
the company's stock... unfortunately increasing the share price. There
will probably be a few runs on MKD between now and the end of
January, when Metro's beta test is completed. After that, MKD
expects to aggressively market the system and their share price
should be long gone from these levels. And you'll have missed out......
PART TWO on Tuesday. Phone: 800-338-7844 or 604-732-0302.******************************************************************
GEORGE CHELEKIS'
HOT STOCKS CONFIDENTIAL
October 9 1996
*******************************************************************
WWW: hot-stocks.com OR whispernet.com
EMAIL: <hotstock@gate.net> NEW FAX #: 813-254-4142
RECORDED HOTLINE #: 813-251-0030
*******************************************************************
COPYRIGHT (c) 1996 by George Chelekis. ALL RIGHTS RESERVED.
*******************************************************************
NEW OFFICE NUMBER: 813-254-5599
(For Circulation & Corporate Profile Advertising Sales ONLY):
*******************************************************************
--MARKATECH INDUSTRIES, PART TWO......
I've just now reviewed Markatech's (VSE:MKD) Private and
Confidential corporate synopsis on the company's AUTONET wireless
communication technology. AUTONET's advantage to the end-user is
it functions on-line in real time.... that is the benefit to the parking
garages, municipalities, etc. which buy the product. However, THE
reason for an on-going revenue stream that adds to the bottom line
is something I dug up deep within the company's confidential report:
MKD will profitably RESELL the wireless communication time to their
end user. It's sort of like investing in a TELEPHONE COMPANY,
whereas the end-user first buys their hand-held computer device
and then continues paying MKD more money by buying their "air
time." Is there a better way for a company (and its shareholders) to
enjoy continued growth, other than through the tried and true
method of the "razor and razor blade" concept? Which is what is
REALLY at the root of MKD's future success -- the customer keeps
coming back and gives you money.
MKD recently announced their beta test, but won't start
marketing AUTONET until the end of January, according to Keith
Balderson, MKD's VP/Product Development and Marketing. MKD
plans to sew up three value-added resellers (VARs) in selected
western Canadian cities by the end of April. I spoke with Chris
Livadas about MKD and he murmured that MKD is also working on
one of the USA's largest parking management companies.
AUTONET is a computerized real time wireless communication
technology designed to issue, process and provide collection
information for vehicle parking tickets issued by private parking
garage operators or by government and police enforcement agencies
in cities, countries, provinces, states, etc. The use of radio frequency
communication provides for instant database updating to the host
computer installation. MKD's target market is likely to be the
medium-sized USA & Canadian cities, which are most aggressive in
adopting this kind of technology, where that market has been
penetrated by 25%. However, New York City is currently going
through an evaluation process of such a technology and so is Chicago.
MKD has entered into an enormous market, which has
tremendous upside potential for them, if their beta test is successful
and no other obstacles come into play. For example, the North
American private parking lot industry, alone, is estimated at C$5
billion/annually, with more than 15,000 US parking lots -- each
which are a target candidate for the AUTONET system.
Not sexy enough? Hey, it's the "overlooked" revenue-producers
that most of us miss out on and which we don't hear about until
later, when they trade on NASDAQ at $10 or $25/share..... I suspect
that MKD is going to become a mass-media "poster child" as it holds
all the journalistic elements which attract business reporters. Did you
ever notice how the press swarms to "police stories"? Back in NYC,
we always enjoyed the good ole "scofflaw story" as it was always
good copy and sold papers. Press coverage has already started in
Canada and I expect that MKD is likely to become a media darling in
the USA. And that, by itself, will attract lots of investor interest.
Check the price a year from now.....
Phone MKD: 800-338-7844 or 604-732-0302. |
