Please Mr & Mrs Short Sellers. Say it ain't so....
And I was telling people about LOCK at .50 cents and the nays claimed it was
all hype. Well one more head handed to them in a LONG basket!
Riley G
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Tuesday February 17, 1:08 pm Eastern Time
State Street Securities Initiates Coverage on Saf T Lok With A Strong Buy
Recommendation
NEW YORK, Feb. 17 -- The author, Howard N. Stillman, is a
special situations analyst with over 25 years of experience and formerly
director of research for two N.Y.S.E. member firms and has been approved as
a supervisory analyst by the New York Stock Exchange. This reports was
prepared on a fee basis. Phone 760-737-9580.
Saf T Lok, Inc.
(Nasdaq: LOCK - $4.00)
Outstanding Shares: 9,887,077 30 Day Average Daily Volume: 536,100
Patented combination handgun locking devices that prevent usage by
unauthorized individuals yet allow instant access by the owner in seconds
-- even in the dark.
1. Saf T Lok has a rapidly increasing demand as national events, such as
President Clinton's appeal for safety locking devices on firearms and
pending legislation in population centers such as New York City, raise
product awareness and need simultaneously. There are approximately 200
million firearms in the United States and over 1 billion worldwide.
2. To date this year, the Company has received approval of all 12 claims
for its Magazine Lock, orders in excess of $6.5 million in less than a
month and anticipates substantial orders in the immediate future.
3. Saf T Lok's products were well received at the recent ''Shot Show'' in
Las Vegas, creating renewed and heightened interest among major gun
manufacturers, retailers, distributors, and representatives of the
international market.
4. Initial orders have been received from law enforcement agencies with a
keen interest displayed in many cities. All law enforcement agencies who
have seen on-site demonstrations have placed orders.
5. No competition of the product exists due to the unique and patented
attributes of the Saf T Lok. This should expedite product roll out and
potential for 40%-50% annual growth which would justify a price earnings
ratio of 25 or better on that kind of operating performance.
6. Based on existing orders currently in house, the company will earn 25
cents per hare on a fully diluted basis.
7. Penetrating at 2% of its vast market this year, Saf T Lok has potential
earnings of $1 per fully diluted share on a sales estimate of $60 million.
RECOMMENDATION:
Management at Saf T Lok refined the company's structure and raised
sufficient capital to market and meet the impending demand created by
legislation and growing public interest. In addition, the manufacturing
process is now ready and equipped to fulfill current and expected orders
with a sizable increase in the number of employees in the assembly phase.
Based on these factors, shares could rise to $20-$40 per share over the
next 12-24 month period.
NET SALES # OF UNITS FULLY DILUTED EARNINGS P.E. RATIO
1998E $60 million 2 million $1.00 per share 4.0%
1999E $90 million 3 million $1.50 per share 2.7%
Full text of this complete research report can be obtained from State
Street Securities at 516-365-5600. The information contained herein was
prepared by the author's research and is believed to be reliable but is not
guaranteed by State Street Securities.
SOURCE: State Street Securities |
