This repost is for all the boneheads who don't do any DD
Maedel's Mini-cap Report:
PINCH ME, I'm DREAMING....
Maedel's fax subscribers were treated to
a phenomenal reward in the last few
weeks following our initial
recommendation by fax of Napier
International Technologies (Toronto
Stock Exchange: $2.50) at 0.82.
Fortunately, Napier's trading after our
recommendation allowed all our fax
subscribers to get in below $1.00. Less then nine trading days later, it peaked at $3.15, a 284% gain.
Some of Our print subscribers called to express their disappoinment at not being able to buy Napier at below
our initially-recommended $1.00 ceiling price. We share that disappointment.You, our subscribers are our mostimportant asset and we hoped to render a valuable service by doing something we don't normally do; we mailed the bulletins usually reserved for fax
subscribers, knowing that it would be a few weeks before the regular month Issue was published. We thought Napier would move up, but not as much as it did. In the end,there's only so much we can do. There are always more opportunities and we will continue to bring them to you.
On the surface it would seem that this stock has moved so far so fast
that it couldn't possibly go higher in short term. The reality is, how even that this story is unfolding to be much MORE than we anticipated when we wrote about it three weeks ago. Clearly, based on past evidence and sales today, Napier is overvalued. In this article, however,you will see that what the company is working on is of HUGE magnitude, with a dramatic potential impact on its fortune EVEN IN NEAR TERM. Since we recommended the stock, Napier has announced a patent covering its chemical, an intended acquisition and the emerging prospect of licensing its products to one of the largest paint companies in the world. Not only has the stock move left us gasping for breath ,the business potential that we continue to learn about is also doing the same thing
For those of you who feel compelled by Napiers prospects, but
have yet to get in, keep in mind time following: the stock is way ahead of the company. There is, however significant market development activity and multiple prospects of deals with multinational companies with tremendous markting and distribtition capabilities. There is very little barring such deals from being able to startgenerating revenue in a relatively short time framee. We would recommend
buying half at its current prices and waiting
for a pullback to a conservative $1.90 to buy the second 50%. If the stock walks away, it walks away...
Napier's SV-35 series of chemical formulas are biodegradable, non-
toxic, nonbazardous strippers of paints and other coatings. If the word magic'was everusable in the context of aproduct like this, it certainly seems to apply here. We have seen a video and first hand demostrations of the product atwork. Itsperformancence is exceptional.
Now, validating its uniqueness, the inventor of the Napier product, Sergio Vitomi, has been awarded a US patent covering the the formulation andprocess for manufacturing fine product. The patent
is assigned to Napier and the company is now seeking International patent protection.
lts not that other products can't strip paint effectively- One of the key issues, howeveris the manner in which stripping is accomplished. paint is Intended to provide a protective coating
forunderlyirig surfaces; it is not itntended' to come off easily. Most of the stripping agents used today are acid-based.They dissolve the layers of paint down to the metaal or other substrate.The worst burn immediately through skin, are difficult to breathe, are being recognized as carcinogenic and present expensive disposal problems besides being toxic chemical in themselves, they also release the metals out of the dissolving paint).
The SV products take a different approach. Rather than dissolving
through layers of paint, the chemical softens the paint and penetrates through the pores of the substrate. On metal the chemical reacts and creates oxygen which literally lifts the paint of the
surface. On other surfaces, the chemical doesn't lift so much as just soften the paint which can then be readily wiped off. There is no acid and no dissolving involved.
No one has suggested that Napier's SV products will necessarily
outperform a product such as the toxic methylene chloride in terms of speed. But its products are proving to be equally effective in removing paint cleanly. When you look at the whole picture,
there is no comparison. Take, for example, the marketing which Napier is most advanced in terms of market development and sales:
civil aviation- Acids such as methylene chloride have been the standard for stripping paint from aircraft during the
usual five to seven year strip and repaint cycle. OSHA (Occupational
Safety & Health Association) has implemented new rule stating that the
allowable presence of methylene chloride in the air will be reduced from500 parts per million (ppm) to 25 ppm effective April, 1998. In August,methylene chloride can only be used in a facility that provides fresh air respiration space suits to workers,and workers can still only be exposed for a limited period of time. Only very
small quantities or methylene chloride will be allowed to be used per plane.
Napier's test bed for this development, Canoe Cove Marina,
British Columbias largest repair facilityfor pleasure craft, Napier is now operating a hull-stripping business on contract The marina is virtually adopting Napier's approach 100% -approach applies the SV chemical stripper plus a unique vacuuming process refined by Napier for rernovingthe paint residue. The system is working
well, The prospect for marinas; no fear of toxic, hazardous chemicals impacting personnel, the environment or sensitive, important gelcoat of the hull. No toxic dust floating around in the air The prospect for Napier: there are estamate 20,00Orepair and refurbishing
facilities in the US; according to US Coast Guard figures there are 11.8 million registered pleasure boats in the US and 16.7 M total in use.Take the 1l.8M boats apply an average length of 20 feet
(conservativebecause most small boats). Apply a conservative estimate of two gallons of stripper per boat Use a price of Cdn 2.00per gallon wholesale (less than is currently being charged). Assumee that stripping occurs only every three years because anti-fouling paint is often painted over top of existing layers. The annual US market potential for antifouling paint removal ( excluding the top side of a boat):$150 million US. This our own back-of-napkin calculation,
not one presented by the company Don't attach too much weight to the numbers.But recognize the gist: this market is far beyond tens of millions in value. The reality today: the distribution system,
marketing and selling for this market are not in place and likely won't be in full swing until 1999. The ideal would be
distribution directly to marinas and through retail hardware outlets via an established distributor of marine coating
products. This is hardly an unrealistic thought.
:
Bridges, merchant Marine (big ships),pulp & paper mills and other industrial plants, other equipment- these are all
markets with the need for and unique challenges of stripping and replacing coating. Ever think about how difficult
it is to remove graffiti, especially from the very sensitive Plexagas?
Napier has a solution. Ever think about how one might more easily clean and remove paint from brick buildings?Napier's SV such
a product.
*Think about the huge above ground storage tanks for petroleum
producers. There- are apparently 925,000 of these tanks worldwide.
Refurbishment of these tanks has in the past involved sandblasting. With the Napier/ Aquasolproducts, there would be a wash/striping wash process that would involve many tens of barrels of
chemicals, Using u lObarrels per tank(at$962 per barrel) results in a market potential measured in BILLIONS of dollars.
The company was willinging in a previous press release to suggest only that this market could be valued at S1OO million
annually.
In another unique example, a supposedly btilletproof reflective
coating developed by 3M especially for street signs was thought to be invincible by anystripping agent. When it was time to refurbish the signs, they had to be ground down, One of Napier's formulations lifts the coating easily and cost effectively; just as with any othar
coating on metal.
Retail: Few of us would have to furrow our eyebrows and ask with
respect to WD-40., 'What is it?'Like oil itself, there is such a thing as a widely usable, somewhat 'magical" solution that is an essenLal in any workshop. What aboutnontoxic paint and coating stripper applicable to a range of substrates, including metals, wood,cement and plastics? Somethibg that can remove paint.. varnish, stain, certain
adhesives,felt tip pen and crayon? Right now we have in our hands a sample of Napier's SV chemical in a foam formulation contained in an aerosol can.This product is currently over 55 days
into a 90 day test which apparently provides equivalency to about five years of shelf life. Its always good to know that the content isnt going to eat through the can). The product is being assessed
by a major consumer product packager with worldwide distribution- The result of a successful test can reasonably be expected to be a marketing and distribution contract of MAJOR PRPORTION.
AmaZ ingly enough, in virtually its own backyard Napier has come across another environmentally friendly solution which perfectly complements its own chemical. Developed by Aquasol
International, the chemical is used to wash metal surfaces prior to the application of paint. The purpose is to remove chlorides (salts). sulphates and hydrocarbons (oil) that can reside on
metals and consequently compromise the strength and longevity of coatings placed over top Coating failure is of concern particularly in industrial applications. While there are such
solutions out there today, they are applied independently for specific
purposes. None of them provide the combination of no toxicity,
biodegradability; cost effectiveness and ability to be an all-in-one solution. More important, one of the largest chemical,
specialty materials and paint companies in the world, Imperial Chemicals International ECI), has taken a keen interest in AquasolEs chemical: to the extent that they.have already shown up a
private labelling agreement
Aquasors solution is also used
to separate clilorides and hydrocarbons
from solids such as soil and sand.
Examples of applications are oil spills,
drilling muds and salt water spills/
floods, where remediated sands can
subsequently be disposed of easily.
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I lost some information during the conversion of the file... But it
pertains to on-going operation with the US NAVY, Civial Aviation, and other Military aviation divisions.
I think the report shows that we HAVE A WINNER....
Rich
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