LOL...
CHECK THIS OUT...IT'S WORTH THE READ AND IS NOT A BUY RECOMMENDATION FROM ME....:-)
enhancementcapital.com
Every once in a while, there is an unknown company that is uniquely positioned to impact a number of industries. If such a company ‘had gone public’ without the backing of a major Initial Public Offering (IPO) House or without the exposure from important analysts, this company would be ‘under exposed’. However, this particular situation would be of great advantage to the investor denied participation in IPO’s that historically have been exclusive to only large investor groups and institutions. This ‘under exposed’ company could very well provide that investor with a huge opportunity for profit, and in all probability may be overlooked by the larger investor. This is especially true if the company is located in the right industry, with the right group of products, and it is at the right time. We are always on the “look out” for these situations, and in looking for one of these breakout investment opportunities, the following points should be carefully considered:
Market Potential – Companies today can support huge valuations if they are in vast underdeveloped markets that have the potential to grow at an exponential rate. We look for companies that have the potential to generate these top line revenues of $100 million and up.
Management – Analysts always value growth, while investors like to value talent. Are the people running the company proven their abilities? Can they manage rapid growth? Execution is if course, where everyone makes money.
Unfair Competitive Advantage – Technology used to be measured in ‘man-years’, however, now it’s ‘web weeks’. What leverage does the company have over its existing and potential competitors? Is there a proprietary, intellectual property (IP) position owned by the company, including patents or exclusive distribution agreements?
A Company should be researched thoroughly, always analyzing their competitors, investigating a company’s financial statements and interviewing the company’s management to ensure that the companies recommended have huge market potential.
In our opinion, Envirokare Tech, Inc., is one of those undiscovered gems. The company is extremely well positioned in three huge multi-billion dollar industries; these include the Shipping Industry, Wireless point to point inventory management and tracking (which would lead into the B2B E-Commerce industry) and the High-tech Plastics Industry. Envirokare has an exclusive niche position in each of these industries. The management team is top notch and is drawn from the ranks of the Fortune 500; they are experienced, aggressive and have already targeted a number of acquisitions that will ensure rapid growth. They are also in the process of adding to an already impressive portfolio of protected Intellectual Property (IP) that will ensure them an unfair and highly profitable competitive advantage.
Multinational Management
Mr. Charles H Stein, Chairman and CEO
The new company Chairman and CEO Charles H. Stein recently outlined Envirokare Tech Inc’s multi-pronged approach to combine the strengths of High-Tech Wireless Methodologies with a cutting edge thermoplastic composite manufacturing process, to produce an innovative solution for the transportation and material handling industries. He is also creating a strong presence in the thermoplastic composite manufacturing arena with a proprietary manufacturing process, and an equally strong presence in the exciting area of Internet E-Commerce.
Mr. Stein’s expertise is noteworthy. He has served as the director or advisor to a wide range of American, as well as international, public companies including: General Host Corporation (NYSE), Ward Foods (NYSE), Consolidation Foods Corporation (NYSE), Goldfeild Corp. (AMEX), Tokyu Corporation, Land Development Division (Tokyo Stock Exchange) and Watney Mann, LTD (London Stock Exchange), a British-Based brewer and hotel company.
He is a Director of New China Homes (NASDAQ).
Mr. Stein has been the President of Benihana of Tokyo, the first successful Japanese-style "Teppanaki" restaurant chain.
He has also pioneered the concept of fresh orange juice in "milk-type" cartons and other unique and innovative packaging and presentations of other chilled and frozen citrus products. He started this business in Florida and then sold it to Kraft Foods.
Mr. Stein has the managerial expertise to get the job done. He has successfully managed several thousand employees for nine years as a Kraft Foods Division Head, reporting directly to the CEO as a senior executive. Envirokare now has obtained the leadership to implement its new strategies.
Mr. Trevor John Bedford, Director
Mr. Trevor John Bedford has an extensive background in multinational upper level management. His managerial experience includes the positions of the Director and Advisor of the Hong Kong Bank and Chief Executive Officer and Director of the Hong Kong Land Group, which was the largest property group in the world, with extensive property, food, and hotel interests throughout the Pacific basin.
Mr. Bedford’s former and present executive positions include a wide range of multinational corporations from the Orient to Australia to Europe to North America. These include the following:
Chairman of New China Homes, Director and Advisor, Hong Kong Bank, Director, Hong Kong Electric Holdings, Director, Hong Kong Telephone Company, Director, Hong Kong Canton Railway Corp., Director, Hanson Green (England) Director, Royal Oak Hotel (England), Fortune Oil PlC (England), Director, Metallbau Gmbh (Germany), Director, Avista Resources Inc. (USA).
Richard M. Clark, Director
Mr. Clark brings almost 20 years of experience with technology companies with a focus on computer software companies.
He currently serves as President and CEO of HandTrade.com, a software applications company providing solutions for wireless devices.
Since leaving as Managing Partner with Price Waterhouse in charge of the NY metro region emerging technologies group, Mr. Clark was most recently President, and CEO and a director of Evolving Video Technologies ("EVT"), a software company providing graphics solutions for major broadcasters and post-production houses. EVT was merging with another venture capital financed company that recently completed an IPO. While running EVT, he had personally been involved in funding the by raised two rounds of capital investments, restructured the company, reorganizing the sales and marketing organization and builting necessary infrastructure.
Management Advisory Board
George Lois:
The legendary George Lois is arguably the most creative, prolific advertising communicator of our time. He is renowned for dozens of marketing miracles that triggered innovative and populist changes in American culture.
He introduced and popularized the Xerox culture, made a failing MTV a huge success with his " I want my MTV " campaign, created a new marketing category, gourmet frozen foods, with his name "Lean Cuisine", and (by inventing yet another new marketing phenomenon) persuading America to change their motor oil at JiffyLube stations.
Mr. Lois made the totally unknown Tommy Hilfiger immediately famous with just one ad, and saved USA Today from extinction with his breakthrough "singing" TV campaign.
In 1994, almost overnight, he changed the perception of ESPN from a "demolition derby" sports channel to the number one sports network with his dynamic "In Your Face" campaign.
George Lois is the only person inducted into The Art Directors Hall of Fame, The Copywriters Hall of Fame and The American Institute of Graphic Arts Hall of Fame.
Gary Garkowski:
Mr. Garkowski brings more than 30 years of logistics and transportation packaging industry marketing experience to the advisory board.
He was vice president of Marketing with Chep Americas for nearly eight years as a launch team member. Chep Americas is the largest pallet pooling company in the world with more than 120 million pallets in circulation.
Mr. Garkowski was instrumental in developing a sophisticated pallet and container pooling business, which is an innovative concept in distribution and control.
He developed marketing experience as strategic marketing consultant for clients such as Sealand Service Inc., Qantas Airlines, Seaboard World Airlines and as vice president Marketing for Purolator Courier Corp.
John Notarianni:
Mr. Notarianni is a wirless software development scientist specialist, with more tahn 20 years software technical experience with Grumman Aerospace Corp., CadVentures Ltd. and World Cyberlinks Inc. (and Ethernet docking station solution for 3Com Palm Pilot PDA.)
He held the position of Chief Technology Officer with CadVentures and World Cyberlinks and currently holds a number of patents for wireless technology products that are commercialized.
Mr. Notarianni is currently Chief Technology Officer with HandTrade.com Inc. HandTrade is a private venture company that specializes in development of wireless software technology
Together with their exceptional experience, international accomplishments and contacts, this management group will work toward rapidly positioning Envirokare in the global marketplace.
The Company
It is quite possible that the next Microsoft (“MSFT” - $325B cap - $60 5/16) will be built around a combination of the revenues of ‘Brick and Mortar’ manufacturing and the power of the Internet. Bill Gates became the worlds wealthiest man by creating a ‘platform’, while Warren Buffet, Chairman of Birkshire Hathaway (“BRK.A.B”-$99B cap-$2170) created a financial empire based primarily on manufacturing and revenues. A true platform is so flexible and so robust it becomes the center for an entire class of applications. A true ‘brick and mortar’ company consistently generates healthy revenues based on the manufacturing and marketing of a product or series of products. Recent market corrections show a flight to quality and revenues, while certain Internet applications still continue to drive interest. The new growth industries that are now emerging are hybrids formed by a convergence of the Cisco’s, Yahoo’s and Microsoft’s with the 3M’s, Monsanto’s and Dupont’s. Envirokare is extremely well positioned to become one of these leading hybrids by marrying advanced thermoplastics manufacturing with global E-Commerce shipping.
The global thermoplastics industry currently generates Billions in revenues and is growing. This does not include the larger mold category (automotive parts, containers, trusses, walls, marine hulls etc.), which has been deliberately ignored (until now) due to unfeasibility. International shipping produces over $400 Billion while pallet production in the U.S. generates $6 Billion in annual revenues. In today’s global economy, Businesses are flocking to the Internet for a number of reasons, the most paramount being that B to B platforms give them the ability to compete globally and expand their market share. The company that provides an-easy-to-use inexpensive platform for shipping services to these businesses will have the potential to generate huge revenues and profits. This of course will lead to appropriate rewards for the investors who understand what this all may mean to share prices.
Company Strategies
Envirokare (ENVK) will reposition itself into the forefront as a new-hybrid-of-technologies company; it will have a solid revenue base that is provided by the manufacture of thermoplastic parts and products. Envirokare will be in a position to generate profits early in the high-tech plastic composites industry. According to Company Management, these revenues are expected to catapult the company’s development into the Wireless point to point shipping and tracking (which would lead into the E-Commerce industry). To date, most other High-Tech Companies have not had this “extra-industry advantage”.
After interviewing the company management, we have learned its strategy. In the first part of this strategy, ENVK will set up a manufacturing facility to produce thermoplastic composite parts using a proprietary thermoplastic manufacturing process. The facility will be able to generate significant revenues based on the process’s high volume output. The first product to be introduced will be Envirokare’s new “E” Pallet. ENVK will quickly build a considerable customer base by offering the unfair advantage of a lighter, stronger, and less expensive recyclable pallet, created from primarily recyclable materials. This will generate revenues, while beta tests are conducted regarding wireless pallet tracking.
The second part of its strategy has ENVK creating and introducing mainstream products created from thermoplastic composite materials using the proprietary manufacturing process “thermoplastic flow forming” or TPF. TPF is an inexpensive method of reproducing molded parts and structures from thermoplastic composite materials. ENVK will also target the larger structural parts generating the larger than average profit-margins.
Typical thermoplastic composite materials will include structures that in the past have been made from wood, aluminum, steel and other metal alloys. The new parts will now be lighter, more profitable, and more environmentally robust. In this second phase ENVK will introduce its smart “E” pallet that will utilize an imbedded RF transceiver which will allow for wireless management and point to point tracking; this is supported by off–the-shelf equipment. This is a service that is inexpensive in its implementation, yet it is invaluable according to the market place of today. The smart “E” pallet will be introduced as part of the overall B-2-B E-Commerce component.
In the third part of its strategy, ENVK will build new manufacturing plants, in order to expand it’s presence globally, and thereby being able to service the demand for its thermoplastic composite parts and structures, that have been created through the introduction of its TPF manufacturing process.
It should be noted that there are several T.V. shows that will be airing, discussing the above. For live T. V. broadcast or recent updates, go to www.enhancementcapital.com and click the "TV show" icon.
Thermoplasatic Composite Designs, Inc. (TCD)
Envirokare Tech Inc. is pleased to announce a marketing expansion that it anticipates will revolutionize the plastics industry. Through a joint venture manufacturing arrangement with Thermoplastic Composite Designs, Inc. of Florida TCD, Envirokare has now acquired the capability to produce a new lighter, stronger, and more economical alternative to wood, aluminum, steel and other metallic alloys. In addition, their products will provide a new alternative to the existing non-recyclable thermoset plastic composites that exist today. The TCD proprietary manufacturing process known as “Thermoplastic Flow Forming” or TPF is uniquely designed to create large structural thermoplastic composite parts previously unknown in this industry. These new large thermoplastic composite parts are both highly profitable, as well as highly economical. They are made in a mechanically reproducible fashion which had been unthinkable in the past. This TPF process represents a genuine breakthrough in the Thermoplastic Composites Technology.
TCD has developed, and is in the process of developing, a number of different products. The interest that the TPF process has generated includes a wide range of industries and has transcended all of the inventor’s original expectations. In order for TCD to further it’s own product development, it has partnered up with a larger entity, Envirokare, in order to expand the company’s production capabilities. The following is a partial list of industries that have expressed an interest in the TPF process and some of the items which have been identified as having market potential:
Aerospace- fuselage skins, secondary air structures, leading and trailing flaps (control surfaces), and radomes.
Automotive- Exterior panels, bumpers, front end grill work, interior panels, light truck boxes, and oil pans.
Burial Industry- coffins
Construction- beams, trusses, roofing panels, fencing, decking, concrete forms, and exterior paneling.
Marine- construction materials for docks, boat hulls, and above the waterline parts.
Material Handling- pallets of varying sizes, skids and platforms, bins, totes, and containers (as well as ocean going containers)
Military- shelters, ordinance containers and dunnage, helicopter parts, reflectors, radomes, submarine parts, and sabot.
Transportation- truck decks, truck box exterior skins and interior skins, truck frames and trailers.
Telecommunications- microwave transmitters and collectors.
The biggest challenge facing Envirokare and TCD is not what products are they able to produce, but rather which products and industries they should target first. Any one of the industries previously mentioned has enough profit potential to require multiple manufacturing facilities to handle only a small fraction of the work for that particular industry. Of course what is paramount in any decision is the fact that the TPF process is most ideal for creating large structural parts, providing significant profit margins with cost-benefit savings to the end user.
There are also environmental benefits to the new TPF process as well. The new TPF process is capable of processing recycled resins or virgin resins, and the waste generated by this process can be immediately recycled back into the system for reuse. The products created are also recyclable and this new TPF system does not emit any Volatile Organic Contaminants present in many of today’s thermoset applications.
Envirokare is currently in the final stages of the Company’s development of a superior shipping pallet. The company is looking forward to starting production in the new year. With the TCD manufacturing agreement, the company will have a great opportunity to expand into a multitude of industries. We believe that this will be an enormously beneficial situation, both to Envirokare and its shareholders.
Financial Projections
Envirokare Tech Inc. Projected Statements of Income For Years Ending December 31, 2001, 2002 & 2003
F/Y/E 12/31/01 F/Y/E 12/31/02 F/Y/E 12/31/03
Sales $ 7,003, 657 $ 18, 422, 000 $ 24, 476, 000
Cost of Goods Sold $ 3,455,062 $ 8, 768, 345 $ 10,989,006
Gross Profit $ 3,548,595 $ 9,653,655 $ 13,486,994
Expenses $ 1,006,189 $ 3,890,007 $ 4,906,555
Operating Income $ 2,542,406 $ 5,763,648 $ 8,580,439
Provision for Income Taxes $ 370,100 $ 1,455,300 $ 1,988,750
Net Income $ 2,172,306 $ 4,308,348 $ 6,591,689
The Company is planning to set up a number of factory locations to meet its Sales needs. The above projections for the years 2001, 2002, and 2003 are based on very conservative sales figures and the actual production capabilities are believed by Management to be much higher. According to Management, each production line will have the capacity to generate in excess of twelve million dollars of Revenue when it is in full production. Envirokare Management has already made the commitment to put into effect, two full production lines in the year 2001. However, Management feels that while both of these lines will actually see revenues in the year 2001, it believes that production will be phased in over this one-year period. The Revenues for the year 2001 should reach about the $ 7,000,000.00 level based upon a 50% production capacity for one production line operating for a period of 6 months. The Revenues for the year 2002 should reach approximately $ 18,500,000.00 with the two lines phasing in production over that year. In the year 2003, the Company expects revenues for the two lines to increase to an amount of approximately $24,000,000.00. Should the production lines reach their full capacity before this time, the Company will put into operation, additional factory production lines. These projections do not include figures regarding wireless shipping and tracking, those figures will be added after beta tests have been conducted in 2001.
Capitalization Structure
Name of Company Envirokare Tech, Inc.
Symbol ENVK (OTC/BB)
Company Address c/o Envirokare Tech Inc.
2470 Chandler Ave, Suite 5
Las Vegas, Nevada 89120
Telephone Number (IR)
Enhancement Capital Corp. Toll-Free: 1-877-799-5599
E-mail: ecc@direct.ca
Website: www.enhancementcapital.com
Type of Security Domestic Security
State & Country of Corporation Nevada, United States of America
Complete Title & Class of Security Common Stock
CUSIP Number 29404N209
Par or Stated Value of Security $ 0.001
Total Security Outstanding at the End of the issuer's most Recent Fiscal Year Current 10QSB - November 3, 2000: 11,289,478 Shares of Common Stock
Name and Address of The Transfer Agent Pacific Stock Transfer Co.
P.O. Box 93385
5844 S. Pecos Rd., Suite D
Las Vegas, Nevada 89120-3484 |
