....who dreamed this up?
Accesstel, Inc. (ASTI)Completes Acquisition of Global Invest Holdings, Inc.
Accesstel, Inc. (OTCBB: ASTI)
Common Shares Outstanding
30,791,740
Approx. Float:5,100,000
Recent Price:$5.00
PROFILE
Accesstel, Inc. (OTCBB: ASTI) Announced that it had completed the acquisition of Global Invest Holdings, Inc., a U.S. based company engaged in the production and marketing of textile products. Pursuant to this acquisition, a name change to Global Invest, Inc. and symbol change is pending.
Global Invest is the umbrella under which the manufacturer and marketing arms operate. The business has grown over the past eight years from a unique idea to generating profitable revenues. Today the company has over 1500 employees and emphasizes a humanitarian approach to textile production. Their unique concept has made them the largest employer in the country of Lebanon, where their manufacturing currently takes place. What makes this company unique, and what captures our interest is their “virtual manufacturing” concept. It is the best social and economical development project we’ve every encountered.
ASTI is proving it possible to deliver profits by enhancing employee motivation, dedication and willingness to collaborate.
The company started its unique manufacturing concept when U.S. orders for more products from Lebanon started increasing. In place of a full-fledged factory, ASTI built a new variable-cost infrastructure to take advantage of the unemployed labor force readily available, and very capable, in the villages of Lebanon. The developed mode that can be replicated across various villages involves hiring one manager per village who would be responsible for production, quality and schedules. Further, sewing machines would be employed in the homes of women who would produce items at their own time and schedule. Four different families make up one “factory”. The whole process is tracked by a state of the art software program at the Central Business office, enabling management to identify where the product is located and at what state it is in the manufacturing process.
Currently, the company has 2000 sewing machines in the field, and it can expand its existing business 4 fold without running into any labor problems. In the first village, where the concept started, there are 1350 woman actively producing 130,000 garments per month, generating approx. $350,000 monthly revenue for ASTI.
ASTI plans to “Globalize” this production model to include many other countries, as well as the U.S.,. Creating work opportunities for impoverished families.
ASTI’s concept will lead to the creation of a “home-grown” brand name product, advertised and promoted as such, further increasing revenues and profit., further increasing revenues and profit.
2004 revenues will reach 8 to 9 million dollars, and the company is poised to attain $48 million in revenues annually within the next 18 months with a projected 22% net profit to the bottom line.
INVESTMENT HIGHLIGHTS
DIFFERENTIATED BUSINESS MODE
* Low inventory risk as the company manufactures primarily to fill previously obtained orders.
*Cost structure tied to Lebanon’s labor rates which continue to experience downward pressure while demand and pricing are tied to the US Market
*Low fixed costs allow the company to price its margins on a purchase order basis by paying its labor pool on a per item basis rather than fixed salaries.
LARGE MARKET OPPORTUNITY
*The company has successfully penetrated the U.S. market at different levels of the supply chain, has generated repeat, increasing size orders from its customers, and is hence well poised for significant growth.
OPPORTUNITY
To date, ASTI has developed a network of customers in the U.S. spanning multiple geographical regions including New York, New Jersey, Baltimore, Chicago, Detroit, Boston, Philadelphia, Washington, Miami, and Texas. This network consists of 700 retailers, 40 wholesalers, 20 jobbers and 3 importers. The majority of accounts in this network have consistently increased their order size significantly, proving continued customer’s satisfaction. Up to now, demand has continuously exceeded production capacity, forcing the company to increase the number of new “factories” in the villages. Now that the company has developed training procedures and documented all of the tasks necessary to implement their plan, it takes only 7 working days to train the workers and set up a new “remote” operation.
While the price of ASTI stock has been holding strong in the $5 range, it is believed that the recent acquisition and phenomenal revenue growth will put enormous buying pressure on ASTI shares with levels never seen before.
Investors Information:
M.J.A.C.C. Corporation
Contact: Mark Johnson at: 1-410-637-3232
or Email: mjaccmail@aol.com
www.globalinvestholdings.com
investors.com |
