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To: creede who wrote (155)12/2/2005 1:08:00 PM
From: rrufff  Respond to of 371
 
HMSG .004 – Had a lengthy conversation with management last night and would like to profile this one here. I started following it when it was AMNI, selling for about this price. It has since moved up well over a penny and then back down.

I like it because of the principals involved and their rather straight forward approach to a business plan. They have extensive military backgrounds and decided to use their connections and knowledge of how the system works to put together a broad based supply and services business that would sell to the military, homeland security and to federal, state and local governments, as well as the private sector.

This is early stage and the business is developing. They have a hands on approach. They were able to quickly adapt to the Rita and Katrina emergencies in providing security and organizational services. From that, they have built up a security and investigation division that is rapidly expanding.

Products lines are varied, e.g., GPS software that has streets of Iraq and Afghanistan that can be fully loaded onto a Garmin GPS unit. Other products include lighting for safety, combat trauma bags, kit for easy entrance into homes and insurgent locations.

The potential home run here is in the area of ballistics as the principals have extensive knowledge and experience in testing and knowing what is needed.

Keep in mind that the company is a distributor, accumulating products and putting together a package for the customer with service, taking advantage of its knowledge of the customer and its goals.

Their goal and they claim to be on track is to have significant margins in each business, between 30% and 50% fairly quickly, given the nature of the varied business lines.

Take a look at the form filed pursuant to Pursuant to Rule 15c2-11, which you can find on pinksheets.com.

Pay attention to the profiles of management, decorated service heroes. My own discussion last night confirmed to me that these are people that are not likely to promote the company at the expense of dilution and dumping. Rather they are going to let performance speak for itself.

This is one that you will probably have to sit with for awhile, but I think it may be worth it, particularly if you believe that the people behind a company are the most important way of valuing a developing business.



To: creede who wrote (155)12/2/2005 1:11:55 PM
From: rrufff  Read Replies (1) | Respond to of 371
 
TA - for HMSG is one of those that says that their policy is to refer shareholder calls to the company. I argued a bit but they said that's their policy. I did speak directly to management not the IR guy and found them very straight forward and down to earth. No BS and I pull no punches when I call.

My conversation with management leads me to believe that there has been no significant change since the figures on file with pinksheets.com.

They say that they have been reluctant to promote and give up shares for dumping. Further, the nature of the business is that they are able to produce revenues right away. Further, they are working on traditional banking arrangements, including lines of credit, as well as negotiating terms that are fairly favorable from suppliers and manufacturers.