More information on the Koc that wrote the EGBT report
We recommend you use the information found here as an initial starting point for conducting your own research and conduct your own due diligence (DD) on the featured companies in order to determine your own personal opinion of the company before investing in these or any other companies. The opinions and analysis included herein are based from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made to their accuracy, completeness or correctness. We will not be held liable for any loss directly or indirectly incurred by anyone relying on any information obtained from this site. This includes, but is not limited to any loss caused in whole or part by reliance on the content, expression of opinions or interpretation of news, events, financial information or anything else found in the report. In order to be in full compliance with the Securities Act of 1933, Section 17(b), we disclose that the author, Blake Anthony Koc, has not been compensated for work involved in the production and preparation of this report. SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS: Except for historical information contained herein, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product volatility, product demand, market competition and risk inherent in the companies operations. Information herein contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believe(s)," "anticipate(s)," "plan(s)," "expect(s)," "project(s)" and similar expressions are intended to identify forward-looking statements. . There are a number of important factors that could cause actual events or actual results of the Companies profiled herein to differ materially from these indicated by such forward-looking statements. This memorandum may not be reproduced, republished or otherwise distributed without the prior written consent of the author.
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EQUITY RESEARCH PROFILE
EQUITY RESEARCH PROFILE November 6, 2001
Majestic Companies Ltd. (OTC BB: MJXC) Price: $0.022Shares Out: 149.8M Float: 133.3M Market Cap: $3.3M
INVESTMENT HIGHLIGHTS
· Majestic Companies Ltd. is a diversified holding company dedicated principally towards the development and production of innovative safety solutions for the nation’s school bus fleet through its subsidiary SAFE-T PRODUCTS Ltd. SAFE-T PRODUCTS has developed, and is beginning to bring to market, two groundbreaking and highly effective safety products designed to make transportation on the nation’s fleet of 450,000 school buses free from danger. SAFE-T-BAR is a seat restraint, similar to those used on roller coaster rides worldwide, that can be cost-effectively and rapidly installed on school buses, offering a superior degree of reliability and safety to conventional lap restraints, which are rarely used by passengers and can sometimes fail to prevent serious injury. SAFE-T-GARD is a patented rear wheel guard and deflector shield that will prevent children from being run over and crushed by the rear wheels of a school bus. These products meet a significant and growing public concern over the safety of the nation’s school bus fleet that has prompted legislative efforts in 17 states to mandate school bus restraints, and the Company believes that it has a potential market of approximately $2.9 billion from sale of these products. · The Company has recently acquired the assets and intellectual property rights of technology incubator Advanced Intellectual Properties, LLC. AIP has developed a number of innovative technologies and products that the Company intends to commercialize in the immediate-to-near term period. These products include: REFILTER, a recyclable, diesel energy filter system designed to meet impending US federal emissions standards designed to reduce diesel emission by 90% through 2007; and the DISPENSTEC Glove Box, a hands-free automatic glove dispenser that eliminates the risk of contamination and breakage of latex, sanitary gloves used in the healthcare industry and in clean rooms. · The Company’s recently acquired REFILTER recyclable, diesel-engine filtration system and technology is an innovative and highly advanced product designed to meet extensive particulate filtration standards set forth by US federal emissions standards designed to reduce diesel emissions by 90% over the next six years. Unlike competitive products, which use an ultrasonic burn process, and degrade substantially over time, REFILTER is a lifetime system that need only be maintained and serviced regularly. The Company believes that this system is especially well suited to meet the emission reduction demands of the fifteen million diesel engines operating in the US, presenting a long-term addressable market of over $7.6 billion. · With the DISPENSTEC Glove Box, the Company has acquired a highly marketable product that meets significant needs within the healthcare and electronics manufacturing industries. There is a high risk of contamination involved when sanitary, latex gloves are applied manually, often due to skin contact with the outside of the glove during application or through breakage. Within the healthcare industry this often results in “hospital acquired infections”, estimated by the CDC to number more than 2.4 million per year resulting in 88,000 deaths annually. Hospital acquired infections, according to the FDA, cost the industry approximately $4.3 billion per year. With DISPENSTEC, the current manual techniques for applying gloves can be materially improved, and the risk of contamination during application substantially reduced or eliminated. With over 20 billion latex gloves used every year, the Company believes that it has a tremendous market for this product. Additional applications for DISPENSTEC can also be found in the electronics, biotechnology research, and semi-conductor industries. COMPANY OVERVIEW
Majestic Companies, Ltd. (OTC BB: MJXC) is a diversified holding company principally involved, through its subsidiary Majestic SAFE-T-PRODUCTS, Ltd. in the development, design, and marketing of innovative safety solutions and equipment for the nation’s school bus transportation industry. The Company’s pioneering safety efforts for the educational transportation industry address significant and growing safety concerns, and Majestic has been fully committed to bringing the safety standards of school buses on par with passenger safety of other vehicles. The Company has developed two revolutionary products for use by the nation’s school bus fleet of 450,000 public and private vehicles: the SAFE-T-BAR bar-type occupant restraint system, and the SAFE-T-GARD, a patented rear wheel safety guard and deflector shield designed to prevent crippling injuries and fatalities from a child being run over by the rear wheels of a school bus. The Company is also composed of subsidiaries, Majestic de Mexico S.A. de C.V. and Majestic Financial, Ltd. Majestic de Mexico S.A. de C.V. is a (currently non-operative) manufacturing corporation registered in Mexico with unique maquiladora status. The Company anticipates this subsidiary becoming an integral factor in future manufacture of its SAFE-T-GARD and SAFE-T-BAR products, and maquiladora status (enabling the Company to import components into Mexico, where the labor is undertaken, and re-import finished products back into the US with an absolute minimum of import taxes and tariffs) will provide the Company with an efficient and cost effective Mexican manufacturing facility, providing finished products at a highly competitive price point. Majestic Financial, Ltd. is a provider of financing and leasing services to California public schools and school districts for the acquisition of modular (“portable”) structures and classrooms. This subsidiary was synergistic with the Company’s Majestic Modular Buildings, Ltd., a manufacturer of portable modular classrooms and commerical structures, principally oriented towards serving the developing need for additional classroom space in public schools at an affordable price point. In October of 2001, the Company divested itself of Majestic Modular Buildings, Ltd. for a combination of cash and stock to Global Foods Online (OTC BB: GFDO). This divestiture will remove a significant amount of short-term debt from the Company’s balance sheet, and should enable the Company to concentrate more effectively upon the rollout and marketing of its SAFE-T-GARD and SAFE-T-BAR product lines. In October 2001, the Company also acquired the assets and technology of San Diego technology incubator, Advanced Intellectual Properties, LLC. Included in the assets of AIP are two revolutionary products currently in the patent approval stage: REFILTER, an innovative, recyclable, diesel-engine filtration system designed to meet rigorous US federal emission standards mandating a 90% reduction in diesel emissions by 2007; and the DISPENSTEC Glove Box, a hands-free automatic latex glove dispenser that eliminates the significant risk of cross-contamination and breakage of sanitary latex gloves worn in the healthcare industry and in semi-conductor manufacturing clean rooms. These ground-breaking technologies will be marketed through the Company’s SAFE-T-PRODUCTS subsidiary and should significantly bolster the Company’s long-term revenue growth and open up significant potential revenue streams. PRODUCTS REFILTER is a tremendous advance in diesel filtration technologies and systems currently available. Diesel emissions are one of the single greatest sources of pollution in the US, and thus far have been only marginally regulated. Stringent new EPA standards, however, have mandated the reduction of diesel emissions in the US by 2007 of 90%. In order to meet these stringent new standards, the diesel manufacturing industry needs to make substantial amendments to current systems. While technologies and systems for reducing diesel emissions do exist, these systems are based upon an ultrasonic burn process, and have proven prohibitively expensive. In addition, these competitive filters often clog over the life of the engine requiring either expensive cleaning (with significant maintenance down-time for the engine) or replacement. These are not practicable solutions. With REFILTER, the Company has developed a highly cost effective solution utilizing existing technologies. REFILTER is based around a simple and removable filter and converter system that can be easily removed, cleaned, and replaced. The Company has already begun advanced development of the REFILTER product and is currently working on development of a working consortium of major producers who will license the technology from the Company. Majestic estimates that REILTER will be largely commercialized within 2003, and should produced revenues from licensing that exceed $25 million per annum in the long-term period. The DISPENSTEC Glove Box is an adaptive solution to the increasing problems of contamination from latex glove application in the healthcare industry, and in semi-conductor and electronics manufacture. Manual application of latex gloves often results in contamination due to the user touching the glove exterior with their hands to put them on. Often the gloves are broken, causing significant risk of contamination. Within the healthcare industry this risk is especially hazardous and serious, proving a major cause of “hospital acquired infections”, estimated by the CDC to number 2.4 million annually and the principal factor in 88,000 hospital deaths per year. In addition to this significant human toll, the FDA has estimated that “hospital acquired infections” cost the healthcare industry an estimated $4.3 billion per year for treatment. Currently available solutions, namely the application of multiple gloves, are both expensive (requiring the use of at least 200% more gloves than necessary) and time consuming (as critical workers must often don multiple gloves manually, a timely process, in order to prevent contamination). Another existing solution, the use of “tacky” powder on glove exteriors to make application easier, presents its own unique problems. Powder levels in the glove application process have been identified by the FDA as a cause of adverse health effects. DISPENSTEC utilizes a small amount of vacuum pressure within the dispenser to “open” the glove, enabling the wearer to easily insert his hands and don the gloves. This eliminates the need for powdered gloves, while significantly reducing the risk of breakage and contamination due to manual application. The Company intends to license the DISPENSTEC technology to major medical glove manufacturers, and derive revenues from licensing fees and a royalty based upon gloves dispensed, and intends to have the product ready for commercial deployment within 2003. The patented SAFE-T-BAR seat restraint is similar in design to roller-coaster restraints, and offers an unprecedented degree of safety, reliability, and flexibility to the otherwise unprotected 24 million schoolchildren who ride these buses every day. SAFE-T-BAR offers a superior degree of effectiveness and enforceability when compared to traditional two-point safety belt restraints, which offer a questionable amount of protection (especially given growing concerns, in recent years, that safety belts offer more danger for small children than protection) and are frequently not used by child passengers (industry studies have shown that over 90% of students do not use seat belts on school buses that offer them, and once the bus is in motion, effective monitoring and enforcement of seat belt use is nearly impossible, and highly impractical). The development of the SAFE-T-BAR product comes as a result of an increasing public demand for high standards of restraint safety on school buses to minimize the risk of fatality or injury from accidents, and there have been legislative efforts in over 17 states to mandate an effective safety restraint system in school buses. Currently, the majority of the nation’s school buses are not equipped with safety restraint equipment. Two-point safety belts, installed in some buses, have proven expensive to install (the cost to install seat belts in a new school bus is estimated at $1500), difficult to maintain, and their use has been difficult to enforce. In addition, additional concerns regarding seat belts effectiveness have been raised; with the use of safety belts children are not always properly restrained and in an accident can sustain serious head injuries. SAFE-T-BAR provides an effective, easy-to-use, and readily installable alternative. As it is installed on existing school bus seats, the product can be utilized in all of the nations school buses and rapidly rolled out and mounted. The use of a bar restraint has been proven successful in use in roller coasters throughout the United States and the world, and proves a superior method of passenger safety. The Company has already received strong interest in installing the SAFE-T-BAR products from over 35 school districts nationwide, and as the Company ramps up its marketing efforts we can expect to see significant sales within the near term period, especially as the product is validated through successful use and adoption. SAFE-T-GARD compliments the Company’s pioneering efforts in school bus safety through the SAFE-T-BAR restraint system. The SAFE-T-GARD is a deflector shield deployed under the rear wheels of the bus designed to prevent children from being unintentionally run over or drawn under the tires during the loading and unloading processes. This process is particularly dangerous, due to limited driver visibility, and the rear tire area has been dubbed the “danger zone” of school buses during this process. With SAFE-T-GARD, a polyurethane guard, similar to train mounted cattle guards, is mounted 2.5 inches from the road’s surface and will sweep children or other objects from this “danger zone”. The Company has received accolades from transportation and school officials with this innovative product, and based on strong initial demand projects sale of over 7,500 units during 2002. We recommend you use the information found here as an initial starting point for conducting your own research and conduct your own due diligence (DD) on the featured companies in order to determine your own personal opinion of the company before investing in these or any other companies. The opinions and analysis included herein are based from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made to their accuracy, completeness or correctness. We will not be held liable for any loss directly or indirectly incurred by anyone relying on any information obtained from this site. This includes, but is not limited to any loss caused in whole or part by reliance on the content, expression of opinions or interpretation of news, events, financial information or anything else found in the report. In order to be in full compliance with the Securities Act of 1933, Section 17(b), we disclose that the author, Blake Anthony Koc, has not been compensated for work involved in the production and preparation of this report. SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS: Except for historical information contained herein, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product volatility, product demand, market competition and risk inherent in the companies operations. Information herein contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believe(s)," "anticipate(s)," "plan(s)," "expect(s)," "project(s)" and similar expressions are intended to identify forward-looking statements. . There are a number of important factors that could cause actual events or actual results of the Companies profiled herein to differ materially from these indicated by such forward-looking statements. This memorandum may not be reproduced, republished or otherwise distributed without the prior written consent of the author. |
