Well TAP I took my little homework from this posting board. You can not find much info on these pump and dumps. In fact you can not find too much info on any BB stocks. But you read the following and then tell me if it is wrong, but this was in May 1998. You could be right I may not want to pay $.30 for this stock. But lets not count the chickens before the eggs hatch, huh? Lets just see how many public utilities do run and grab for this software. I have time. I doubt this stock will shoot up to $50 a share over night.
Started By: Shamus
Date: May 16 1998 2:54AM ET
Here is a copy of a profile from SuperStockPick superstockpick.com on WORC.
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May 1998 SuperStockPick Wordcraft, Inc. OTC: WORC
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You have heard the expression "Nowhere to go but up?" We believe that this phrase accurately describes the stock of Wordcraft Systems, Inc (OTC BB: WORC). Go to (http://www.1stnettech.com/worc/ for complete information about the company).
For starters, Oaktree Consulting Group of San Diego, California recently valued the Company at $18 million, subject to several significant upcoming events. Based on the number of shares outstanding, if Oaktree's assessment is correct, the stock should trade to about $1.40, representing a substantial profit for shareholders at current price levels.
Wordcraft Systems, Inc, (OTC BB: WORC) is a stock that was popular with investors in September of 1996, when it traded in the $1.50 range. Since that time investors have seemed to lose interest in this Company, and the stock has drifted down under $.30 per share with little volume to speak of. There are only 1.7 million shares publicly traded, so any interest in this stock could yield dramatic percentage increases in the price. As far as we have seen, nothing negative has changed the Company. Therefore, you can understand our observation that this stock has NOWHERE to go but UP!
Wordcraft Systems, Inc. (OTC BB: WORC) is an undiscovered little gem that has fallen off the radar screen of investors for two years, but is about to emerge in a major way. Wordcraft Systems, Inc. (OTC BB: WORC) is located in Irvine, California. It is a software technology company that developed and markets a system called HydraFax. HydraFax is a powerful network (LAN) or stand-alone system that integrates the multi-functional use of send/receive faxing along with the ability to print/scan documents. It is a powerful time
saving tool that can significantly increase productivity in organizations that send and receive large volumes of faxes from PC workstations.
They have also developed interactive versions of video poker and blackjack for use in gaming over the Internet. They intend to license the games to existing virtual casinos.
Their existing user base reads like A Who's Who of American blue chip companies. The following is a partial list of the companies that use HydraFax Software:
- America Online
- AT&T Capital Bayer
- Bear Stearns & Co.
- Bell Atlantic
- Boeing
- Colgate- Palmolive
- EXXON Co. (USA)
- Ford Motor Co.
- Holiday Inn
- Kellogg Co.
- Kodak
- Pacific Bell
- Prudential Insurance
- Sanyo
- Staples, Ltd.
- Texas A&M
- TRW
- Volkswagen of America
- Walt Disney Records
Over the past three years the Company's annual sales have remained static at just under $1 million, and the Company has been profitable in two of those years. However, over the same time period, the Company's stock (OTC BB: WORC) has drifted down to a mere 10% of where the stock traded in the fall of 1996.
Here's the exciting part... The Company (OTC BB: WORC) is about to undergo a major transformation. After three years of static growth, WORC will soon secure the marketing/distribution rights to a new, start-of-the-art software system for use by major public and private utility companies. We have seen this system in action and we believe it could literally revolutionize this industry.
The product is called SWIM, an acronym for Sewer/Water Infrastructure Management System. Both the software and its hardware interface were developed by San Diego Data Processing Corp. SDDP is a non-profit corporation that is owned by the City of San Diego, and exists to develop computer systems that run the city.
SDDP developed SWIM specifically for use by the Water Management bureau in the city of San Diego. The system begins with a map of the entire water and sewer system, which is available on the computer screen of anyone using the system. Field crews access the system through a very unique field computer that is rugged, submersible in water, about the size of a small briefcase, and is operated with a hand held plastic pointer on a touch screen.
There is no keyboard. Go to ( sddpc.org for more information. Look at the section on pen based computers.
When the field crew returns at the end of the day, the portable computer plugs into a harness. Information entered into the computer is then transferred to the main memory, and the portable then receives the following days' assignments. There is also a wireless feature that provides computer communication remotely.
The system has the capability of performing the following functions: It dispatches field crews, assigns work, records work performed, schedules preventive maintenance, provides automated field data collection, maintains facility information, maintains schematic drawings, identifies crew locations, supports decision making, and
generates reports. To this day, a lot of these tasks are still being done through antiquated, manual procedures in most major metropolitan utility systems. The reason is, until now, there has never been a comprehensive system developed that could feasible automate these
functions.
In short, the SWIM technology is the ultimate management tool for any utility or company with networks that serve large numbers of consumers within a geographic location. Other examples of companies that could use this system include electric and gas utilities, phone
companies, and cable companies. The SWIM technology is now perfected, and has been used by the city of San Diego's Water Management Bureau for 1.5 years. Over 200 maintenance trucks in San Diego have the portable computer installed.
Shortly, the SWIM system will be available commercially for the very first time. WORC, through its wholly owned subsidiary Next Century Systems, expects to obtain the, now exclusive, rights to market SWIM. Next Century has already received its Notice of Selection from San Diego Data Processing, and expects to finalize the contract within weeks.
The average water utility in the initial target market does about $30 million in annual sales. It is estimated that the average utility will need to invest $170,000 to get the system initiated, which is a relatively small investment. But, as is the case with most software, there will be add-on sales as the installation progresses.
Woodcraft informs us that there is already $1 million in sales indicated for by Utilities that have seen SWIM in action in Southern California. Sales for Woodcraft are estimated to ramp up into the $5 million range in their fiscal 1999, a 500% increase over current levels.
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Now, let's get down to fundamentals and breakdown the "Big Six." Each month we discuss and rate the "Big Six" factors on the companies we profile. The ratings are:
Management (Four ****)
Wordcraft (OTC BB:WORC)is run by Harrysen Mittler, the President, and Harry Jedig, the Chairman of the Board. Both bring extensive backgrounds to the Company.
Mr. Mittler has launched four successful businesses throughout his career. Mr. Jedig has an extensive background in international trade and commerce.
Wally Turner, the CEO of New Century Systems, joins them. New Century is a wholly owned subsidiary of Wordcraft, and will be responsible for launching SWIM. Mr. Turner has been marketing software systems for 25 years, and cut his teeth in the early 70's at IBM.
This combined management team will have the responsibility for launching this new and exciting product. We have a high level of confidence in their ability to move this product forward. For complete management biographies go to
(http://www.1stnettech.com/worc/management.htm
Financial Condition & Growth Potential(Four ****)
Wordcraft has been in a financially strong position for the last three years, with sales averaging a little under $1M annually. They were profitable for two of those three years. What's more, the Company has not needed to raise outside capital for their existing business focus, Hydrafax.
However, they will need to raise capital for the launch of SWIM. They are currently in discussions with an institutional investor to do a debt funding of $2.0 Million to fund the launch of SWIM. We view this as a very appropriate way to finance the launch of this new
product, and obviously it will not add dilution to the existing market. SSP has had several discussions with the brokers who are handling this transaction and we believe it will get done.
With the SWIM technology in place, the growth potential for WORC is staggering. It is believed that every medium to large municipality in this country could utilize at least a part of this SWIM system. And that is just for the Sewer/Water application. There are believed to be numerous other applications within the utility industry.
Market Capitalization (Three ***)
There are currently 13 million shares of common stock issued and outstanding in Wordcraft Systems. Based on the stock price as of the date of this release, the market capitalization of this Company is only $1.4 million. With the addition of SWIM, this market capitalization is ridiculously low.
Again, if the recent independent valuation prepared by Oaktree Consulting Group is fair and reasonable then the CURRENT market valuation per share should be $1.40. But this is a technology company and thus those multiples should be even higher.
Sex Appeal (Five *****)
What can we say but SOFTWARE/TECHNOLOGY. The stock market loves software and emerging technology companies because once the development costs have been absorbed, the margins for on-going sales are enormous. What's more, WORC is in the unique position of being able to obtain the rights to market the SWIM software with no
up-front or R & D costs.
Public Float (Three ***)
There are about 1.7 million shares in the public float. Management informs us that one "friendly" investor with no interest in selling at this time holds 600,000 of those shares.
Now we all know that the stock market functions on supply and demand. Consider this, at today's prices $357,000 could buy the ENTIRE public float. That is unfathomable for a company that is not completely dormant. We believe that as investors learn about SWIM,
the demand for a relatively small supply of stock will increase dramatically.
Corporate Exposure (Four ****)
Until now the management of WORC has devoted very little time and effort to making investors aware of the exciting developments with the Company. This could bode extremely well for SSP members.
Discussions with senior management reveal that the Company will embark on a strategic investor awareness campaign. Our understanding is that they will primarily target a comprehensive Internet program, designed to reach potential investors directly. Personally, we think that's a good idea.
Profile Summary
Our studied observation is that an investment in the stock of Wordcraft (OTC BB:WORC) is an opportunity to participate in the future of exciting technology that will computerize the utility industry.
WORC is a very low priced stock at this time. We believe that the Company's current market valuation is EXTREMELY favorable, and it will not stay this low for very long. In fact, because of the current low market capitalization, the downside risk is actually minimal compared with most micro-cap companies.
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