Info from the '98 Annual Report (http://www.emceebrd.com/Annual1998.pdf):
On Internet Services:
"EMCEE made a cash and product investment in an
Internet provider, and becam a value added
reseller for a co. that manufactures custom modems
and develops software for high-speed Internet access.
Also, last year EMCEE entered into an agreement w/an
electronics manufacture<sic> from the Peoples Rpblc
of China to supply its transmitters to it in semi
knock-down form, which will then perform final
assembly and marketing throughout China"
On Poor Revenues:
-many large cable tv providers are holding off on
capital spending due to the occurring swith-over
to digital broadcasting. To me, this represents
a temporary poor environment, as certainly, in the
future, these companies will actually make the
transition to digital.
-cancelled project in Saudi Arabia
Company Strategy:
-The co. recognizes that the national market for
low-power tv broadcast is very limited, and has
therefore, shifted into wireless transmission.
*has a VAR relationship with Hybrid Networks, which
delivers one-way and two-way wireless high speed
Internet access.
*co. has made an investment in an ISP, which will
use EMCEE's MMDS (microwave transmission) equipment.
*co. has signed a joint venture w/Chinese co. that has
offices in Toronto. Calls for final manufacture and
assembly of EMCEE's 10-watt MMDS transmitters in China.
There is huge potential in this market.
*co. is seeking acquisitions, joint ventures, and
partnerings.
-----------
Stuff I love about the co.:
+Continued reduction of debt
+Continued increase in Net Working Capital
+Continued profits, even in difficult environment
(-a lot of this is interest revenue and equity
sales, however)
+Long History of good products
+Options to employees have an average exercise price
of $5.50 (so,if they aren't adjusted down too much,
there is plenty of incentive to pull the stock out
of the doldrums)
--------------------------
So, there appear to be many potentials to contribute
to a higher share price, and there appears to be a
limited down side at these levels.
Aaron |
