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Non-Tech : Titan Motorcycle Co. of America (TMOT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth V. McNutt who wrote (143)	10/6/1998 6:46:00 PM
From: Jim P	Read Replies (1) \| Respond to of 219

<color><param>0000,0000,ffff</param>INNER CIRCLE NEWSLETTER Inner Circle Vol 3 No.106 October 5, 1998 Inner Circle Publications Inc. Editor: Bill Ridley </color>Inner Circle Special Report -October '98 Bill Ridley, Investment Journalist, www.stockhouse.com/innercircle A Free Trial subscription is available by calling toll free 1-877-622-6333 or e-mail innercircle@sunshine.net Subject: Free Trial TITAN MOTORCYCLE CO. of AMERICA (TMOT-OTC BB) Shares Outstanding 16.4 million Float about 3 million For Investor information call 1-800-773-7317 PRODUCT OVERVIEW Founded in 1994, Titan Motorcycle Company is a manufacturer of high-end, custom designed, heavy weight performance motorcycles. This is a niche market where motor cycle enthusiasts will pay U.S.24,000 to $43,000 for their personalized dream motorcycles. The demand for custom heavy weight motorcycles has been very strong throughout the 1990's. The market leader in this category is Harley Davidson who has dominated the market but has not been able to keep up with demand nor have they completely satisfied their buyers with their finished product. THE HEAVY BIKE MARKET Presently, the market shortfall for heavy bikes is about 40,000 units. Harley plans on increasing production by 9% per year which will only keep up with the market growth but not meet the backlog of unfilled orders which can take six to twelve months to fill. Even though Harley Davidson has dominated the market, their customers have not been entirely satisfied with the end product. Many Harley owners will spend an additional 50% over the purchase price in order to customize the bikes with parts or custom paint work to meet their particular design taste or to increase power. Titan has filled this need for a heavy weight customized bike which can be ordered directly from the factory. Consequently, many former Harley Davidson owners are purchasing custom factory built bikes which can be delivered in eight to ten weeks. Titan now dominates this segment of the premium priced heavy weight market. This is not a price sensitive market. Most customers are "baby boomer" professionals who have a high disposable income and will spend the U.S. $23,000 or more needed to obtain these machines. Titan's highest priced motorcycle, the Gecko, accounts for 50% of the sales although it is priced 30% more than the top of the line Harley. What this means for the company, shareholders, and distributors is that better profit margins can be obtained. SATISFYING THE MARKET NICHE The company uses a cell production technique which is popular with premium car manufacturers in Europe. Highly skilled craftsmen work on their own or in groups to build these machines from start to finish. Customers can choose specific custom parts or paint requirements which will create a personalized art form for the motorcycle enthusiast. Titan also has the added prestige of having twice the horsepower and 15 to 20% less weight than Harley Davidson motorcycles. The end result is a very high quality motorcycle which has won them high marks from industry opinion leaders and media. "Titan Motorcycles has positioned itself to fill a special market niche that places a demand for machines that go beyond Harley." September 1996 edition of Hot Bikes The demand for heavy weight motorcycles is estimated to keep growing over the next 10 years as the "baby boomers" will continue to drive this market. The distributor network for Titan bikes is growing to meet this demand both in the U.S. and internationally with 62 domestic and 20 international retail outlets. Each distributor must have technicians trained at Titan's Phoenix plant, state of the art diagnostic equipment, and an inventory of components. FINANCIAL Titan has had a good year so far having posted its first profit. Titan's revenues for F1995 came to $625,000 and by F1997 they jumped significantly to $13 million. Halfway through 1998, the company has already recorded revenues of $12.9 million, setting another record growth year. Earnings growth has followed revenues. Net income for the first 6 months of 1998 is up 128% to $326,000 or $0.02 per share. Sales and Earnings Estimates Year 1998****** 1999 2000**E2002 Bikes Sold 1,100***1,9003000**7500 Net Sales $27.5 M$49.4M$78 M**$195M Net Income $723,500$ 2.49M*$5.69M25.9M Avg. Shares 17.5 M*20 M***20 M***20 M EPS $.04***$.12****$.28****$.83 Share Price^ $1.80 $4.20 $12.45 (^based on a multiple of 15) THE MOVE TO A NASDAQ SMALL CAP LISTING On October 5th 1998, the company announced that its form 10-SB registration statement had been cleared with the SEC and now Titan is a fully reporting company under 12(g) of the Securities Exchange Act of 1934. The 12(g) paves the way for Titan shares to be quoted on the Nasdaq SmallCap market which is expected to occur by the end of 1998. This will give the company greater recognition, improved liquidity, and a greater ability to raise capital. In anticipation of a move to NASDAQ SmallCap, the stock seems to have firmed up in price which could suggest greater investor confidence. SUMMARY Titan has created a potentially very profitable product niche within the under supplied heavy weight, twin engine motorcycle market. Titan's target market is growing and has the needed disposable income to sustain positive sales growth for many years to come. The revenue and earnings figures to date show that Titan is on track. Currently, sales are supporting a production of 35 motorcycles a week which if sustained, would put them in a strong position to hit the estimated 1999 sales and earnings estimates. An institutional report written in May of 1998 by CL King and Associates concluded that Titan was a strong buy. "The company's current growth trajectory should enable it to increase earnings exponentially over the next six to seven years." Based on the growth possibilities of Titan, this may be a good time to start a due diligence of your own. The company will provide you with the CL King report and other pertinent information. Give them a call at 1-800-773-7317 ****************************************************************** Please be aware that the Inner Circle newsletter is not an investment advisory service, it is recommended that you consult with a licensed financial advisor before making any investment decisions. The focus of the Inner Circle is to discuss the usage of technical buy and sell indicators and how they can be applied by using examples of high potential stocks. None of the information herein should be construed as an offer to buy or sell securities. The information is taken from sources thought to be accurate but there is no guarantee. All due diligence should be done by the reader or their financial advisor. E.&O.E.