Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : EVDS Environmental Digital Services, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tensane 1 who wrote (42)	9/15/1998 10:55:00 AM
From: Jeffrey L. Henken	Respond to of 718

A couple of more questions, first, does the company have any other products in the pipeline, or are they betting mainly on CAPSCAN and the construction and remediation? The CAPSCAN is expected to be their main source of revenue. All the estimates that were included in your investor booklet are based on a penetration of as little as 10% of the market. EDSi Construction and Remediation is no doubt going to be highly successful as well. Look at the number of years of experience, and the high number of contacts, it's executives have formed over the years. We already have seen a $4.5 million contract announced. Next year EVDS will go after the home heating oil market with the CAPSCAN (a similar device), which might actually be even bigger than UST market at gas stations. There will also be some income derived from the insurance area which could add over a million dollars in revenue in 1999. New uses for the CAPSCAN, or another similar device, will be looked into as the company grows. Also, its been stated that gross margins are running in the 70% range, did this come from the company or from the company who wrote the report. On the surface, 70% sounds very high? I questioned Jim Crehan, Chairman of EVDS, on these numbers as well. They are indeed the company's own estimates. Gross margins will be extremely high due to tax loss carry overs and lack of competition. Also, as of now they do not have any competition for their new product, but will they have any in the near future? I was told that EVDS will be receiving two new patents in the short term future which will effectively prevent any competitor from using the fill pipe as a method to monitor and keep inventory on storage tanks. These patents will cover both the USTs used in your average service station and those used in the home heating oil market. Competition will drive down margins and will effect bottom lines eventually. Just some food for thought. I don't think they can get around those patents Kevin. If they could then some one could erode margins but it's not going to be possible. InvestRight Regards, Jeff