FYI...A bullish catharsis for Saf-T-Lock (Lock): Many reasons to justify a turnaround at LOCK.
1. We begin with the strong negative tone on message boards and its' hounding (albiet slanted and inaccurate) by "The Stock Detective." All the negatives are out, and even the positives have been convoluted into negatives by those who deride the stock. What the bears are doing is like "trying to drive a car solely looking through the rearview mirror."
2. From the web site:http://www.saf-t-lok.com
>>>Visit us at the following trade shows in '98
National Rifle Association - June 5-7
Philadelphia, PA
ALOA - June 18-20
Nashville, TN
National Sheriffs' Association - June 28-July 1
Phoenix, A Z.<<<
The NRA convention could be a significant breakthrough for the company. Work with Law Enforcement Officials continues..
3. Recent developments strongly positive. In March, 1998,>>>the Company entered into a distribution agreement with United Safety Action, Inc. and received a $6,000,000 purchase order from a wholesaler. The Company received a $1,000,000 deposit <<< (Source: SAF T LOK INC 10KSB/A SEC Filing on 5/22/98)
While detractors and the SEC filings both indicate that this distributor does not have experience in the Gun industry, there are indications that they will be conducting a strong marketing campaign. It allows LOCK to concentrate of product development, production, and sales to Law Enforcement.
4. >>>The Company believes that the demand for its products will increase as media
attention continues to focus on firearm related accidents. This media attention
has kept firearm safety at the forefront of public awareness. To the extent
firearm safety legislation results from such publicity, demand for the Company's
products may increase.<<<< (Source: 10k)
5. >>>The Distributor is obligated to create and place certain types of advertising
pursuant to an advertising plan to be approved by the Company for a total
$5,000,000 over the next two years. The Company has delivered to the Distributor
1,000,000 shares of its common stock in connection with the Distribution
Agreement. The Distributor has pledged this stock to the Company as security for
the Distributor's obligation to place the advertising. As the Distributor meets
its obligation to place advertising, the Company will release shares to the
Distributor at the rate of one share for each $5.00 of advertising placed by the
Distributor. It is the Distributor's obligation to pay for this advertising.<<< (10k)
This allows the company to retain its funds for R&D and production. Further, it is non-dilutive to current purchasers since the formula distributes shares in exchange for advertising at $5 a share.
6. >>>In connection with the Distribution Agreement, on February 11, 1998, the Company entered into an agreement with three unaffiliated companies, granting the three companies stock purchase warrants for an aggregate total of 2,000,000 shares of
common stock with an exercise price of $5.00 per share a term of 5 years. These
companies were instrumental in assisting the Company in finding the Wholesaler
and the Distributor.<<<<
These warrants will provide up to 10 million in financing to the company, on favourable terms and without excessive costs. It demonstrates the turnaround that the company has accomplished in the last year. The detractors have complained about the past dilutive (and desperate) financing, without recognizing the new non-dilutive financing.
7. Alliance with Semiconductor Laser International Corporation. biz.yahoo.com
This news is tentative, but potentially explosive. (pun intended)
In summary, the bears are prejudiced by their preconceived notions...They are in for a rude awakening whenever they awaken....
The NRA in Philadelphia later this week....(EOM) |
