Subj: Stock Genie's "New" Current Aug Profile of the month - VINF
Date: 98-08-14 19:20:44 EDT
From: contact@stockgenie.com (The Stock Genie)
To: contact@stockgenie.com (The Stock Genie's Privileged Subscribers)
Dear Valued E-Mail Subscribers:
****************************************************************************
The Stock Genie's August profile
(<http://www.stockgenie.com/>http://www.stockgenie.com)
August 14, 1998 (to coincide with the opening of trading on August 17, 1998.)
Questions: If you would like to be removed from our Database, or have
questions,
E-mail contact @stockgenie.com
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THE STOCK GENIE'S TRACK RECORD
In July of 1997 we profiled our first, Chromatics Color Sciences
(CCSI). Adjusted for a 3 for 2 split on 2/13/98, CCSI was $4.66 at
the time that we profiled it and has traded as high as $17.50 for a
gain of 276%. In August we profiled Ortec International (ORTC) at
$9.25 which has traded as high as $20.50 for a gain of 122%.
Micorgrafx (MGXI) profiled in September at $6.50 has traded as high as
$14.00 for a gain of 115%, Oxford Health (OXHP) profiled in December
of last year at $15.50 has traded as high as $20.87 for a gain of 35%.
Our February profile, Continental Investment Corporation (CICG) was
profiled at $12.37, and has since traded as high as $17.25 for a gain
of 40%. Our March profile, Pro Net Link (PNLK), was profiled at $2,
and traded to $8.09 for a gain of 304%. In April, we profiled Voxcom
Holdings, Inc. (VXCH) at $4.81 which has traded as high as $6.12 for a
gain of 27%. In June, we profiled CYFS at $2 per share and the stock
traded as high as $3 per share for a 50% gain. Last month we profiled
OCOM at $6.18 per share and the stock traded as high as 9 5/8 per
share for a 56% gain on a cash basis and a 111% gain on a margin
basis.
STOCK GENIE'S CURRENT PROFILE-OF-THE-MONTH: VISTA Information
Solutions, Inc. (NASDAQ small cap) SYMBOL: VINF
INDUSTRY BACKGROUND
The need for environmental risk information originated with the
enactment of the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (CERCLA) which imposes strict liability for
the full cost of cleanup of environmentally contaminated property
regardless of responsibility for the contamination or fault. The
Superfund Amendments and Reauthorization Act of 1986 (SARA)
established an "Innocent Landowner" defense which eliminated liability
provided certain due diligence was performed before acquisition. One
step in the process of satisfying the Innocent Landowners Defense
requires routine, timely and complete searching of government records
for notice of environmental risk. As a result this legislation and
additional enactments of state and federal environmental laws, banks,
corporations, attorneys, insurance companies and environmental
engineering firms have been and are continuing to seek efficient means
to gather environmental information. The consulting engineering
market segment has been serving bankers, developers, corporations and
others by providing Phase I and Phase II site assessments and many
other types of remediation and compliance review services. During
1993, the industry and its clientele adopted new standards, ASTM-E
1527 and E-1528, which, for the first time, provided clear guidelines
for environmental due diligence in commercial real estate
transactions. These guidelines require a search of government
environmental records to check the known risks associated with a
property. VINF provides a set of Software and services that meet the
requirements set out in the standards. VINF also provides
environmental Database reports to help this clientele conduct
compliance audits, waste disposal audits, benchmark reviews and
marketing for strategic planning programs.
In addition to using environmental information to establish the
Innocent Landowners Defense, the economic impact of environmental
problems on properties and companies arises in a number of other
contexts, all having potentially adverse effects on a company's
finances. For example, banks are monitored by the FDIC as to impact
of environmental risk on property values and the subsequent effect
this has on the value of collateral and on the banks' financial
stability. Also the federal securities laws require disclosure
regarding the material effects of compliance with federal, state and
local environmental laws and pending legal proceedings, and may
require discussion of the impact of such compliance.
MARKET SIZE
The market for hazard and environmental risk information is
potentially over $1 billion and is only 6%-7% penetrated.
THE COMPANY
VINF, originally known as DataMap, Inc. ("DMI"), was founded in 1975
to develop geographic-demographic analysis tools for business. From
inception until 1995, VINF focused on developing its geocoding
technologies (more fully explained below) and the related Databases
that provide small area demographic information and address-based
hazard and classification information, and preparing
geographically-based demographic reports used for direct marketing and
real estate site location. VINF focused its initial selling efforts
for its Database services on the insurance industry through a joint
venture arrangement with the Insurance Services Office, Inc. ("ISO").
In 1995, VINF expanded its product offerings by acquiring, through a
wholly owned subsidiary, VINF Environmental Information, Inc. The
acquisition of VINF Environmental expanded the company's existing
product line to include environmental risk information and
significantly increased the marketing capability within the Company.
On May 23, 1995, VINF changed its name from DataMap, Inc. to "VISTA
Information Solutions, Inc."
VINF provides detailed risk management reports and data that summarize
risk factors which influence insurance rates, property values and
lending decisions for businesses involved with property-related
transactions. VINF's target markets include insurance companies,
banks, environmental engineers, developers, appraisers, lawyers, and
large corporations. VINF possesses and updates over 50 million data
records by regularly monitoring more that 600 different federal,
state, local agency, or private data sources. VINF's products
automate tedious and otherwise error-prone manual operations and
highlight potential risks before transactions are completed. VINF's
products and services essentially help clients streamline processes,
reduce costs, and avoid expensive liabilities.
The company has 4 major divisions: 1) Starview, a family of
windows-based Software that provides environmental risk information;
2) GUS, a proprietary Database system that provides address-based
hazard information to property/casualty insurance underwriters; 3)
VISTACheck, an Internet-based information product for identifying
environmental liability; and 4) Home Disclosure, a new product
targeted at the residential real estate market that provides required
hazard disclosures.
SUBSIDIARIES
1) StarView is an off-the-shelf family of Windows-based Software that
provides environmental risk information to the desktop. Starview is
targeted at engineers, bankers, lawyers, real estate finance
companies, insurance companies and major corporations. Currently,
VINF licenses three Starview modules. The real estate module prepares
Site Assessments and Transaction Screen radius reports, which provide
information on known and potential environmental risks of a specific
property and its surrounding area. The TSDF (Treat, Store and Dispose
Facility) Performance Monitor module provides information about the
operating performance of facilities that are licensed to treat, store,
and dispose of hazardous wastes. Information on specific facilities
is aggregated into comprehensive facility audits. Nearly 700 audits
are included on the TSDF Performance Monitor CD ROM, which enable
users to easily screen and evaluate waste handler performance. The
third module, SEARCH, provides clients with desktop access to the
3.5-million-record VIDN Database. Using the information in this
Database, clients can prepare a variety of risk assessments reports
that summarize the environmental operating histories of specific
companies of properties. SEARCH also can be used to identify the
known and potential risk in a particular geographic area, defined in
such ways as by city or Zip code. With Starview, users can either
order reports directly from VINF or establish an online Internet
query.
2) Geographic Underwriting System (GUS) automates the underwriting
process for a property insurer. The user enters a street address for
the property in question. GUS then finds the geographic location and
provides key underwriting variables to help determine the proper risk
rating to assign. GUS essentially provides detailed hazard
information that eliminates the need for the user to maintain
proprietary internal systems and keep paper map libraries. This
analysis with GUS can be done on a case by case basis or by batch
processing. State Farm, for example will use GUS on a batch basis to
analyze the risk profile of its existing homeowners and automobile
policies. Thereafter, State Farm will use GUS to score new
applications. GUS provides information on the following:
ú Public Fire Protection Classifications (PPC)
ú Auto Territory Ratings
ú Historical Windstorm Activity
ú Crime Risk
ú Brush Fires (California)
ú Earthquake Loss Estimates
ú Hurricane Loss Estimates
ú Drive Distance Analysis (to/from work location)
3) VISTACheck is an Internet-based information product that enables
users to quickly search VINF's environmental Database and identify
environmental liability on any property, business or address anywhere
in the U.S. Users can access VISTACheck from their desktop 24 hours a
day to search the entire VINF environmental property, facility and
compliance Database for any address, state or Zip code in the U.S.
VISTACheck is the only complete source of environmental risk
management information on the Internet. Included within the Database
is more than 50 million records linked to over 600 government sources
of environmental and risk information. The Database contains
information on compliance and violation issues, spills, leaking tanks,
waste generators and landfills. With this information, users can
mitigate the potential risk related to the buying, selling, insuring
or lending on a property. The target industries for VISTACheck
include Banking, Engineering, Government, Insurance, Law and Real
Estate.
4) In May 1998, VINF launched Home Disclosure, which is a new
business unit focused on the residential real estate industry. The
two Home Disclosure services now marketed by the division are
California Natural Hazard Disclosure Reports and Environmental
Disclosure Reports. This relatively new area of business for VINF has
been spurred largely by developments in California real estate
regulations. A new law known as ABX1 6, the Natural Hazard Disclosure
Act, went into effect in that state on June 1, 1998. This law
requires a natural hazard disclosure statement, with disclosures in
six hazard categories, to be filed for virtually all residential real
estate transactions in California. This statement must indicate
whether the property is in a California Fire Protection Area, a High
Fire Area, a Federal Emergency Management Agency Flood Area, A
California Dam Inundation Area, a Seismic Risk Area (including
landslide), and /or an Earthquake Fault Zone.
Last year, over 550,000 residential properties were sold in
California, and estimates approximate 700,000 for this year. Based on
the current year's number, we believe that the home disclosure market
for California alone could total $70 million annually, and WE BELIEVE
VINF SHOULD DOMINATE THIS MARKET AS THE ONLY ONE-STOP SOLUTION. An
additional 12-15 states are considering similar legislation. Based
upon 7 million national housing transactions a year and a retail price
of $79 per disclosure report, the aggregate annual market would be in
excess of $500 million. By providing a one-stop solution, VINF has
established itself as a leader in helping sellers and agents limit
liability risks.
MANAGEMENT
Thomas R. Gay - has been the President and Chief Executive Officer of
the Company since February 1995. Mr. Gay was a co-founder of VINF
Environmental and served as the President and CEO of VINF
Environmental from August 1991 to February 1995. From 1988 to August
1991, Mr. Gay served as President of National Decision Systems, a
company involved in marketing information products, Databases and
Software, which he also co-founded.
E. Stevens Hamilton - has been the Chief Financial Officer of the
Company since January 1996. From January 1995 to December 1995, Mr.
Hamilton provided consulting services to emerging high technology
companies under the sponsorship of the High Technology Resource Center
of San Diego. From 1991 to January 1995, Mr. Hamilton was the Chief
Financial Officer of SECOR International, Inc., an environmental
engineering and information technology consulting company.
Howard Shuster - has been the Vice President of Sales of the Company
since September 1996. Mr. Shuster previously served as vice President
of Sales for HIS Engineering, Englewood CO. During his 19 year career
with HIS Mr. Shuster held numerous management positions including
service President of Logicraft Nashua, NH, an HIS subsidiary.
Arnold E. Jensen - has been Vice President and Manager, VINF
Information Center since February 1995. From 1990 to February 1995,
VINF Environmental employed Mr. Hensen as Vice President and Manager,
VINF Information Center. Prior to 1990, Mr. Jensen was Vice President
of Irving Trust Company, serving as a manager in the areas of
corporate finance consulting, mergers and acquisitions, marketing
research and customer service.
Mark F. Catone - has been Vice President of Product Development since
November 1996. Mr. Catone previously served as Vice President of
Systems Development and Product Marketing for National Decision
Systems, a San Diego-based division of Equifax, Inc., Atlanta, GA.
Mr. Catone began with Equifax in June 1985.
INTERNET OVERVIEW
Back in 1992, then candidates Bill Clinton and Al Gore, while
campaigning for their present offices, stressed the need for
technology and spoke of the potential of the Information Highway.
Today, what has evolved from the Information Highway is what everyone
calls the World Wide Web or better known as the Internet. What has
derived from the Internet are enormous business opportunities. In the
early stages of the Internet, people used it as a means of obtaining
free information. As technology improved, businesses were created to
support the expanding uses of the Internet. By doing so, companies
that have been first to the party in developing new applications,
whether technology, goods or services, have been handsomely rewarded
in terms of capital and wealth.
Now that most analysts agree that the Internet could potentially be a
part of every day life for all businesses and individuals around the
world by simply being connected via a phone line, the door has been
opened for vast opportunities. Today investors both individual and
institutional are paying HUGE premiums, betting on the future success
of an idea. Most Internet companies do not earn money and only a few
even generate revenues. For example, Yahoo on an annualized basis, in
calendar year 1998 will do approximately $200 million in revenues and
has a market cap close to $9 billion. Broadcast .Com, a company that
recently went public at $18 per share and is currently trading in the
mid-50's with no earnings and very little revenues, is being valued in
the market place at close to a billion dollars.
Today's businesses are constantly trying to develop new ways to
transact business over the Internet. What we are talking about is
Electronic Commerce, better known as E-Commerce. Various industries
which conducted business in conventional means to sell their goods and
services are now moving towards the Internet as a means of increasing
revenues and reducing operating costs to generate more profits.
Companies such as Egghead, Amazon and K-Tel have taken simple retail
concepts and transferred them to the Internet resulting in appreciable
stock gains.
THE INVESTMENT OPPORTUNITY
VINF is a technology leader with both proprietary platforms (GUS and
Starview) as well as Internet expertise. The company is moving to a
full Internet marketing model, but based on content as opposed to
advertising or other models. What this means is that one gets real
time valuable information when they use VINF on the WEB and their
business is supported by the underpinnings of meeting a proven market
need in a technically superior and easier to use WEB interface.
Unlike many other Internet companies, VINF is not waiting for the
dollars to flow, but is generating real revenues now. Expectations
are that this will always be the case regardless of where the
technology goes in the future, as content/reports solve ongoing high
input issues for their clients.
Over the last 5 years, VINF has spent approximately $15 million to
develop their environmental Database. With several key acquisitions
as well as new product development, VINF's revenues are starting to
grow at a rapid rate. Last year the company generated over $10
million in revenues and had a pre-tax loss due primarily to high
levels of depreciation and goodwill amortization. EBITDA was at
slightly less than $1 million.
Currently there are several firms on Wall St. that follow VINF on a
research basis. Based on the average estimates that the Stock Genie
has obtained, it is forecasted that VINF will generate approximately
$20 million in revenues this year and $35 million plus in fiscal year
1999. Earnings will go from a loss in 1997 to a profit of
approximately $3 million or EPS of approximately $.19 for the fiscal
year ending December 31, 1998. For the fiscal year 1999, it is
estimated that VINF will have net income in excess of $7 million or
EPS of approximately $.41 per share.
The real question is " how does someone value a company today that has
all the bells and whistles regarding the Internet and is actually
generating revenues and profits?" A good rule of thumb for valuing a
growth company is that a company should trade in the marketplace at a
multiple of its growth rate depending upon the industry that it is in.
Clearly valuations for pure Internet or Internet related companies are
extremely high. It is anticipated, based on the estimates that the
Stock Genie has obtained, that VINF in terms of revenues and income is
growing at a better than 50% rate.
Today VINF closed on NASDAQ small cap market at $6.75. Over the next
6-12 months, if VINF were to trade in the marketplace at a multiple of
its estimated growth rate (50%), using that as a P.E. multiple that
would imply a stock price of approximately $20.50 per share. This
would be a gain of 204%.
SUMMARY
VISTA Information Solutions, Inc. appears to be on the right track to
becoming the nation's premier provider of high quality, high-value,
real time business and property risk information products and
services. For these reasons and those stated above the Stock Genie is
proud to profile VISTA Information Solutions, Inc. (VINF) as its
current August profile.
For more information, please write or call VINF at the following:
VISTA Information Solutions, Inc.
5060 Shoreham Place
San Diego, California 92122
(619) 450-6100
Or visit their website at:
http//www.vistainfo.com
http//www.vistahomedisclosure.com
http//www.banking.com
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Disclaimer:
The Stock Genie is an independent electronic publication providing
information on selected public companies. Most companies profiled by
Stock Genie pay consideration in cash and/or stock to Stock Genie for
the electronic dissemination of company information and, in some
cases, web site development. Stock Genie has been retained as a
consultant to Vista Information Solutions for two years, pursuant to a
written agreement which provides for the immediate payment of fifty
thousand dollars and an additional one hundred thousand dollars for
the duration of the agreement for its services, including the
electronic dissemination of information concerning the profiled
company. Stock Genie did not receive any other compensation, of any
kind, for its services. At the time of this profile, no stockholders,
officers, employees, agents and/or affiliates of Stock Genie hold any
securities of Vista. Moreover, no stockholders, officers, employees,
agents and/or affiliates of Stock Genie can purchase any securities of
Vista for a period of forty eight (48) hours from the date of the
profile. All information is provided by the companies profiled and
Stock Genie makes no representations, warranties or guarantees as to
the accuracy or completeness of the disclosure by the profiled
companies. Stock Genie is not a registered investment advisor or a
broker dealer. Stock Genie has been advised that the investments in
companies profiled are considered to be high risk and use of the
information provided is at the investor s sole risk. Stock Genie has
also been advised that the purchase of such high risk securities may
result in the loss of some or all of the investment. The information
provided by the profiled companies may include information from
outside sources and interviews conducted by Stock Genie. Investors
should not rely solely on the information presented. Rather, investors
should use the information provided by the profiled companies as a
starting point for doing additional independent research on the
profiled companies in order to allow the investor to form his or her
own opinion regarding investing in the profiled companies. Factual
statements made by the profiled companies are made as of the date
stated and are subject to change without notice. The receipt of this
information shall not create, under any circumstances, any implication
that there has been no change in the affairs of the company profiled
since the date of review. Investing in micro^xcap securities is highly
speculative and carries an extremely high degree of risk. It is
possible that an investor s entire investment may be lost or impaired
due to the speculative nature of the companies profiled. Stock Genie
makes no recommendation that the securities of the companies profiled
should be purchased, sold or held by individuals or entities that
learn of the profiled companies through Stock Genie. Investing in
micro^xcap securities is highly speculative and carries an extremely
high degree of risk. It is possible that an investor s investment may
be lost or impaired due to the speculative nature of the companies
profiled.
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Subject: Stock Genie's "New" Current Aug Profile of the month - VINF
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