To: KLAW97 who wrote (122 ) 9/13/1998 11:00:00 AM From: Jeffrey L. Henken Read Replies (1) | Respond to of 939
Environmental Digital Services Inc was formed through a 15c211 filing. This company has actually been around for many years and has been recently reorganized because their flagship product is nearing it's marketing release. That flagship product is the CAPSCAN device, which is an in tank inventory monitoring device accurate beyond EPA requirements. I know many of you might think that measuring the level of gasoline in an underground storage tank(UST) might not be all that sexy but it is because making money is definitely exciting. I like this company as much as any I have ever recommended in this newsletter and it is still dirt cheap closing Friday on the bid at 3/4's. Lets talk about the problem that EVDS is addressing with their CAPSCAN device. The EPA requires that all USTs be monitored with much greater accuracy than the outdated stick measurement was ever capable of delivering. The EPA requires reports be filed with them weekly on each tank showing that they are being monitored on a daily basis. EPA will be even more vigilant in 1999 and beyond because tank upgrades have been mandated by the end of 1998. 40% of all ground water contamination is due to gasoline leakage from these tanks. EPA fines are extremely high and the cost of clean up is even higher for those companies that do not accurately access their potential problems in time. The CAPSCAN device fills a void in this industry by supplying an inexpensive product that can literally save a gas station owner from a major financial crisis. There really is no competition for this device but I will discuss the two other companies in the business. The two other companies that have attempted to capture market share with their own technology are Veeder Root System and Arizona Instrument but their success has been limited due to the high expense of installing their technology. Veeder Root System's technology has to be installed as the tank is placed in the ground or added after an expensive retrofit. This can cost as much as $28,000 per tank. Arizona Instrument has actually given up on the monitoring business but still installs snifters for leaks. The cost of a retrofit for their system in around $25,000. As you can tell these are not inexpensive alternatives to the CAPSCAN system and as such Arizona Instrument appears to be abandoning the business. The CAPSCAN device simply screws into the fill pipe on any UST. The good news for EVDS shareholders is not only is this device patented but the use of any device to monitor a tank through the fill pipe is also protected by this patent. So how does this technology work? The CAPSCAN device is an electronic system set up to measure the tank through the use of sonar waves. It accurately monitors the tank and will deliver information to a hand held computer detailing the water content, gasoline levels and inventory management for the service station owner. The device is set up to monitor only the individual tank for which it is activated. The information recorded on the hand held computer can be sent to EVDS through a reverse 1-800 number who will supply the service station operator with a written report detailing the tanks activity which is then mailed weekly to the EPA. So how much does this cost? The average service station has 4 UST's and each one of them will need there own CAPSCAN device. The cost for a service station owner for these devices and the full monitoring system is as follows: $500 for the first tank and $400 for each tank there after. If the service station operator decides he wants to use EVDS's inventory reporting services then an additional $450 per year is added to the cost. The grand total for the service station would be $2150, 1/10th the cost of doing one single tank retrofit for a single tank by Veeder Root System. If a service station owner decides to move to a new location his CAPSCAN devices can be relocated and reactivated for the new tanks. This is the only inexpensive, movable device for monitoring tanks that actually exceeds EPA requirements. Essentially there is no competition for the CAPSCAN device. This device is so accurate that the EPA and insurance companies are getting behind it to give service station owners cost breaks on their Environmental Impact Liability insurance. Because of the high number of past incidences and the tremendous environmental impact on ground water and the ecosystem when leaks occur insurance companies are giving up to a 15% discount for the use of the CAPSCAN device. Manufactured prototypes of the device will be finished and at trade shows before the end of this month. The company anticipates SHIPPING EVERY SINGLE CAPSCAN DEVICE THEY CAN MANUFATURE THIS YEAR. And why not? The management and board of this company is a virtual who's who of past major petroleum company executives, insurance executives and data processing. It's my belief that many deals are already in the works and that EVDS can exceed the 6 cents in earnings that they are projecting for the 4th quarter of this year. Starting next year EVDS will have a product available for monitoring home healing oil tanks. The New England area alone has 2,000,000 installed home heating oil tanks. Customers have become accustomed to suffering short deliveries because they have had no method of accurately measuring their tanks before and after delivery. That will change next year when this device is marketed and sold at stores like Sears, K-Mart and WALMART. The cost of the device will be $100 or less. A single short delivery could cover the cost of this device. EVDS also has a traditional construction and remediation arm that has already booked a $4.5 million contract:biz.yahoo.com Please read this press release carefully and notice the tie to a major oil company. I expect we will see more individuals like Mr. James Bartel, formerly Texaco General Manager, International Marine, as well as Texaco's senior representative to Aramco added to the board soon. EVDS could be an outstanding opportunity for investors. It closed Sept 11th at 3/4 bid. The ask is 31/32's Contact: Jim Crehan (Chairman) 2700 Donald Ross Road Palm Beach Gardens, Fl 33410 (561) 630-0150 Fax (561) 630-0150 OTC BB: EVDS It's been a tough stock market to make money in lately but an investment in EVDS at these levels will be one way you can help keep your investment reserves from leaking away. Please feel free to contact me via e mail or better yet on the EVDS thread at Silicon Investor:Subject 22787 In case you are wondering Brenda did indeed call the bottom of this recent market correction on September 1st. Despite the trouble that President Clinton has found himself in I expect we will see continued volatility while the over all market recovers. This material is not to be regarded as investment advice and is only for informative purposes. Before making a purchase or sale of the said securities, we recommend consultation with a registered securities representative. If you have any friends who would like to be on this e mail list please have them contact me at jfhenken@ix.netcom.com Regards, Jeff