VERC-to be fair someone already sort of beat me to that
analysis......
Date: Sun, 14 Apr 2001 16:42:29 -0700
To: LANCEBPS@RAGINGBULL.COM
Subject: MOVE OVER NORTEL
--------------------------------------------------------------------------------VERSACOM IS A PROFITABLE & RAPIDLY-GROWING COMPANY
VersaCom International, Inc. ("VERC” on OTC-BB) is a full-service provider of
telecommunications systems, data networks and related services throughout the
United States, offering customers a single source solution for all their voice
and data communication requirements (complete details on VersaCOM’s products
and
services can be found at the Company’s website: www.VersacomInc.com).
TheSUBWAY.com just released an Investment Opinion on VersaCOM International,
Inc. (see:
thesubway.stockpoint.com
2\102b7869.xml&Symbo). Their report states that: “VERC is new to
TheSUBWAY.com,
and we are expecting great things to come from the company. With only 14
million
shares out and not much more than 6.5 in the float, the stock should move
quickly, and a forward split is not out of the question in the future. CRG
feels
that VERC will be trading over the $5.00 mark in the short term with a 6-12
month target of $12.” TheSUBWAY.com also released a positive report on AB
Watley Group Inc. (NASDAQ:ABWG) on April 4, 2001. Since then, ABWG traded at
record volumes and soared almost 100% from about $5 to $9.
VersaCom recently announced that it was selected as the first company in the
United States to enter into a Master Distributor Agreement with Telrad
Networks,
a major manufacturer of telecommunications equipment with worldwide sales in
excess of $500 million. The Telrad agreement represents about $6.5 million in
current (2001) business; VERC expects to earn a 25% margin on these sales.
Although VersaCOM primarily markets, installs and supports Telrad Networks'
telecommunications product line, the Company also provides various voice and
data networking equipment from other leading manufacturers such as Lucent,
Cisco, Valcom, and others.
VersaCOM’s revenues in its first full year of operations (2000) were in excess
of $3 million, with profits (before one time expenses) of $700,000. Over the
last 12 months, VersaCOM’s customers have included both large and small
companies from a wide variety of industries such as Rexall Sundown, The Check
Cashing Stores, PrimeSource Financial, American Association of Airports,
Suburban Hospital and ByeByeNow Travel
This year, VersaCOM estimates that it will earn a gross profit of $7.62 million
(about 53 cents per share) from sales of $18.09 million
VersaCOM has projected (conservatively) that by 2003 it will be generating
revenues of $100 million and approximately $25 million in profits (EBTDA). With
a successful and profitable business, at some point over the next several years
the possibility exists that VersaCOM will be purchased or merge with a larger
competitor.
VERSACOM HAS ENTERED INTO AN EXCLUSIVE DISTRIBUTION AGREEMENT WITH TELRAD
NETWORKS, A TELECOM EQUIPMENT MANUFACTURER DOING $500 MILLION IN SALES
VersaCOM is the first company in the United States to enter into a Master
Distributor Agreement with Telrad Networks, a leading supplier of telephony
equipment (http://biz.yahoo/com/bw/010410/2007.html). The agreement enables
VersaCOM to sell and service the full range of Telrad’s state-of-the-art
switches, PABX and telephone systems.
VersaCOM will provide Telrad products, technical support, and marketing and
sales support to Telrad's ``Service-Only Dealer'' base in the eastern U.S.
These Telrad Dealers currently generate sales of approximately $6.5 million
upon
which VersaCOM expects a 25 percent profit. VersaCOM is actively recruiting
other telecommunications equipment dealers to distribute Telrad’s product line.
Telrad Networks (www.Telrad.com/telrad.html) has over 30,000 customers
worldwide, and offers a wide range of telecommunications products and services
(www.telrad.com/t_busol.html). Telrad is owned by Koor Industries (NYSE:KOR -
news), Israel’s largest industrial company.
REASONS WHY THE TELRAD DEAL IS SO IMPORTANT TO VERSACOM’S FUTURE…
VersaCOM is now able to purchase telecom equipment from Telrad at significant
discounts - in fact, VERC receives a larger than does Nortel.
Compared to Nortel, VersaCOM has relatively low overhead. We believe that
VersaCOM can install telephone and computer systems for 10% to 15% less than
Nortel, while providing part-time Microsoft Certified Systems Engineers (MCSE)
to the client for about 50% less than Nortel can do the same installation for.
Nortel is VersaCOM’s main competitor, so the fact that VersaCOM can buy
equipment cheaper and has significantly lower overhead costs would lead one to
the conclusion that VersaCOM could significantly underbid Nortel on just about
any contract. Another key point is that VersaCOM gets a two year warranty on
all
telecommunications equipment purchased from Telrad, whereas Nortel only gets
one
year of coverage.
As VersaCOM gears up its sales and marketing efforts, we expect that these
competitive advantages will result in significant sales and profits accruing to
VERC’s accounts.
VERSACOM HAS ALSO ENTERED INTO A PARTNERSHIP AGREEMENT WITH BELL SOUTH
VersaCOM recently signed a partnership agreement with BellSouth Corp. (NYSE:BLS
- news) to become a BellSouth Business Partner (see:
biz.yahoo and
biz.yahoo.
Now, when VersaCOM sells and installs a voice network or data network system at
a client's facilities, as a BellSouth Business Partner, VERC can also sell
local
and long distance services as well as broadband services (DSL, T1, etc.)
provided by BellSouth. VersaCOM will earn monthly residual income from
customer
usage through BellSouth.
BellSouth serves most of the business and residential users in Alabama,
Florida,
Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and
Tennessee with one of the most modern telecommunications network in the world.
VERC Share Structure & Recent Trading Range
Shares Outstanding: 14,421,000 common
Public Float: Est’d @ 4 million
Last Trade (April 12, 2001): US$1.10
Current Quote for VERC
The Company’s officers, directors and other key employees own / control
approximately 10.6 million shares (~ 74%). We believe that a forward-split of
VERC’s stock is likely at some future date.
VersaCOM is a fully-reporting company with the SEC. All public filings can be
accessed through the FreeEdgar database: freeedgar.com VersaCOM
has
been approved for a complete corporate listing in Standard and Poor's
Corporation Records (http://biz.yahoo/com/bw/010406/0199.html).
For Additional Information, Please Contact:
Versacom International, Inc.
Toll-Free: (800) 531-1577
E-Mail: info@VersacomInc.com
Recent News Releases
VersaCOM Announces Listing in Standard & Poors
(http://biz.yahoo/com/bw/010406/0199.html)
VERC Named First U.S. Distributor for Telrad Networks
(http://biz.yahoo/com/bw/010410/2007.html)
VERC Signs Partnership Agreement with BellSouth Corp
(http://biz.yahoo/com/bw/010411/0192.html)
VERC Joins BellSouth Authorized Business Partner Program
(http://biz.yahoo/com/bw/010411/2056.html)
Investment Information
Noble House of Boston, Inc.
Toll-Free: (888) 217-2553
DISCLAIMER - PLEASE READ !!
The Publisher of this report is not a Registered Investment Advisor or a Broker
/ Dealer.
Readers are advised that this report is issued solely for information purposes
and is not to be construed as an offer to sell or the solicitation of an offer
to buy. Reproduction of this report, in whole or in part, by any means,
electronic or otherwise, including via the Internet, without prior written
permission, is strictly prohibited.
The Publisher has independently prepared this report, drawing upon a range of
public news and information sources, as well as data and opinions provided by
Versacom International, Inc. (“VERC” or “the Company”). Prior to publication
of
this report, the Company reviewed and approved the contents hereof. The
Publisher has not independently verified the Company 's representations. Any
opinions expressed in this report are statements of judgment as of the date of
publication (12 April 2001) and are subject to change without further notice,
and may not necessarily be reprinted in future publications or elsewhere.
Neither the Publisher nor its owners, employees or consultants accept any
liability whatsoever for any direct or consequential loss arising from any use
of this report or its contents.
The information contained herein is not intended to be used as the sole basis
of
any investment decisions, nor should it be construed as advice designed to meet
the investment needs of any particular investor. The opinions and analysis
included herein are based on sources believed by the Publisher to be reliable
and in good faith but no representation or warranty, expressed or implied, is
made as to their accuracy, completeness or correctness. The foregoing
discussion also contains forward-looking statements that are based on current
expectations and differences can be expected. The information and opinions
contained herein is not intended to be a complete discussion of information
regarding some of the current and/or intended business activities of the
Company, and all information contained in this report should be independently
verified with the Company. Readers are urged to consult with independent
financial advisors with respect to an investment in the shares mentioned
herein.
Investors should review a complete information package on the Company , which
should include, but not be limited to, the Company's annual report, quarterly
report, press releases, as well as all regulatory filings.
In order to be in full compliance with the Securities Act of 1933, Section
17(b), the Publisher advises readers of this report that it has received a fee
of 15,000 free-trading common shares of VERC from a third party for its efforts
in presenting and disseminating the information contained herein. The
Publisher, its owners, employees and consultants may profit in the event the
shares of the Company increase in value. These positions may be liquidated from
time to time even after the Publisher, its owners, employees and consultants
have made positive comments regarding the Company.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE
INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE
AND CARRIES A HIGH DEGREE OF RISK. INVESTORS MUST ALSO INDEPENDENTLY VERIFY
THE
“BLUE SKY” ELIGIBILITY OF THE SECURITY MENTIONED IN THIS REPORT BEFORE MAKING
ANY INVESTMENT DECISIONS. TIMING OF, AND ANY BUYING OR SELLING DECISIONS, IS
THE SOLE RESPONSIBILITY OF THE READER.
The Publisher encourages readers to review the investing information available
from the Securities and Exchange Commission ("SEC") at sec.gov
and/or the National Association of Securities Dealers ("NASD") |
