More DD for PLRP
PACEL CORPORATION
(OTC-BB:PLRP)
Our next pick is PLRP (Pacel Corporation). Talk about an interesting
company with a revolutionary product. This is not your typical OTC stock
that is still in the developmental stage. Instead, they are a fully operational
software company, selling a finished product called the "Visual Writer." It
allows interactive electronic documents to be created without any
programming knowledge. The end goal is to eliminate the duplication
associated with keeping paper documents which eventually need to be
physically stored or undergo data entry into a computer system. People, this
is the future. We have been watching this one for weeks now, waiting for the
best entry point. We feel it is definitely undervalued at this point and will
move very fast. The float is very tight and minimum amounts of buying will
move it hard. They just released the news that they completed funding in the
amount of $3 million. They will also be releasing news very soon (this week
or next) announcing completion of their latest acquisition worth $4.5 million.
On top of this, the company just reached the conclusion of their pilot
program at a nuclear power plant and have been told that it has been
approved for full-time use. This deal is individually worth $2 to $4 million
over several years, but more importantly will open the flood gates by
encouraging other power plants to adopt the software. But wait, it gets
better. They are on the verge of a massive PR campaign that will include
being featured on a new investment website, a radio campaign in 7 national
markets, and cable TV spots across the country. The TV spot will be
recorded sometime this week in Miami and viewed nationwide in early
November. More important, there is also an email alert campaign that is
planned to go out tomorrow night to an initial 500,000 accredited investors.
They have a total of 20 million accredited investors on their email list and will
be sending out the email on a rolling basis over the next two weeks. In
conjunction, there will be buying recommendation reports, coupled with
serious block purchasing. This will be the mother of all PR campaigns.
Finally, as if all this wasn't enough, we have been told the company will be
releasing news tomorrow night or Wednesday that they will be buying back
1 million shares on the open market. At 7/32, it is a bargain. We anticipate
this one to move fast. It was trading at the 50¢ level just a few weeks ago.
Our target is $1.00 to $2.00 by the end of next week.
COMPANY INFORMATION.
Pacel Corporation
9248 Center Street
Manassas, VA 20110
(703)257-4759
info@pacel.com
pacel.com
CTM Automated Inc.
22446 Davis Drive, Suite 166
Sterling, VA 20164
(800)336-4286
info@ctmauto.com
ctmauto.com
OUTSTANDING: 20 million shares
FLOAT: 1.8 million shares
Using their life savings, David and Kay Calkins founded Pacel Corporation
in 1994. Pacel Corporation is a Manassas, Virginia based software
company that specializes in document archiving programs for regulated
firms. Their chief product is the Visual Writer System, a program that allows
companies to automate their operational procedures and documents. Visual
Writer System is designed for nuclear power plants, utilities, hospitals and
other businesses that use strictly regulated sets of procedures. It features
point-and-click technology, pop-up messaging and voice-activated
applications. Pacel's growth to date has been slow but steady. It recorded
sales of $250,000 in 1997, and expects to to gross $2.8 million for 1998
and over $5 million in 1999. The company already has received
pre-acquisition software orders worth $4 million for the next year.
Prominent current clients include the Edison Electric Power Research
Institute, Instrumental Technology Associates, Inc., NASA,
Reynolds Metals Corp., Baltimore Gas & Electric, Calvert Cliffs
Nuclear Power Plant in Maryland, and the New York Port Authority.
Management believes that a successful marketing effort could
propel Parcel's sales well above $50 million annually. To help deal with
its 1999 order, Pacel plans on hiring an additional 75 people early next year
and hopes to have a work force of 200 by the year 2000. They currently
have 25 employees.
NEW FUNDING AND AN ACQUISITION.
Pacel recently announced that they have completed the required operating
and acquisition funding for their business plan. The amount is for $3 million.
The securing of this funding will allow Pacel to acquire CTM Automated,
Inc., the Virginia-based hardware/imaging company. This purchase will
allow PACEL to offer a total hardware/software solution package to clients,
thereby breaking them into a whole new realm of clients and contacts. This
expansion of markets and market share will result in an immediate estimated
revenue increase of approximately $3 to $4 million per year. Pacel projects
annual revenues for the company to be $2.8 million in 1998 and over $5
million in 1999, compared to $250,000 in 1997. They are expecting to
close the first planned acquisition in the next few days and are still actively
searching for other acquisitions. Sometime either this week or next, Pacel
will put out the news release that it has acquired CTM Automation Inc. for
$1 million in cash and stock. The CTM Automated acquisition is part of
Pacel's effort to grow large enough to make a traditional public stock
offering between January 1 and March 31, 1999, thereby moving off the
OTC-BB market.
THE PRODUCTS.
The future of business is paperless. The Visual Writer System (version
3.0) requires no programming, allowing users to move from paper records
to electronic media quickly and easily. The reason this product will be so
influential is that it will eliminate the current two-step documentation
process. For example, companies will not have to use paper
documents and later load them manually into a computer database or
store them in paper files or microfiche. It is an interactive electronic
document and data acquisition software program for Microsoft Windows. It
is designed to address all phases of the procedure process including the
creation, development, review, approval, revision, version control, storage,
field implementation, data collection, and data storage and analysis. Its
automation capabilities provide pop-up messaging, jumping between
procedure steps, data field incorporation, process monitoring, browse
sequencing, electronic signature collection and automated procedure
approval. The existing 32-bit NT solution also includes hands-free voice
control procedures
Pacel is also developing a variation of software that will allow people to
study college course work at their own pace online and with related Internet
links. The software development is being done in collaboration with George
Mason University's new biotechnology institute, the Institute for Biosciences,
Bioinformatics and Biotechnology. George Mason University Professor Jim
Willet sits on Pacel's Board of Directors.
Pacel is also working to develop programs that would offer uniform
software templates to the ABA, and thereby to small and medium sized
banks across the country.
DOMESTIC AND INTERNATIONAL MARKETING.
Pacel has primarily focused marketing on its flagship product, a document
management program, to highly regulated clients such as utilities and
aerospace firms. Under its strategic marketing agreement, Science
Applications International Corporation (SAIC) is actively marketing the
product to the energy, environemntal and engineering sectors in the United
States. According to John M. Cassanto, President of Instrumental
Technology Associates, Inc. (ITA), the performance of Pacel's software is
so impressive that it was the single factor to put ITA at the forefront of
space technology and is probably the precursor to NASA using
voice-activated programs on the shuttle. The pact with the Electric Power
Research Institute (EPRI) might be even more important to Pacel's future.
The primary goal of the contract with them is to see if nuclear power plants
can use Pacel's program. EPRI's approval could trigger a wave sales to
nuclear power plants across the country.
Pacel also recently signed a strategic marketing and product distribution
agreement with de Beer and Associates, in London, England. They will
introduce Pacel's software products, particularly the Visual Writer System to
medical, energy and environmental companies throughout the European
Union and South Africa. de Beer & Associates provides high-level
information technology services and products to commercial and
government customers in the areas of information technology, systems
integration, telecommunications, health care systems and services,
transportation, energy, and environmental systems and engineering.
Capitalizing on this agreement and abilities of the Visual Writer System(TM),
de Beer & Associates has already made the short list on a Tender Offer for
Visual Writer System(TM) as part of an overall system for 54 hospitals in
South Africa. The Visual Writer System(TM) has received countless
inquiries. Projections are that de Beer will be taking orders for 10,000 units
each of the first two quarters and an additional 15,000 thereafter during the
first year. PACEL's estimated revenues on a 65% margin from these sales
shows a conservative estimate of $1,000,000 the first year with a moderate
growth of 20% the following year.
In addition, more distributors are showing a large interest in the Visual
Writer System. Pacel is currently in negotiations with these distributors and
expecting similar results. Other projects in the works also show promise in
working with some of the major computer vendors and possibly bundling the
software packages with sales. Rumor also has it that there is a similar
marketing deal being negotiated for the Japanese market.
HOT LINKS
Washington Post Article on the Acquisition
Strategic US Marketing Agreement With SAIC
CTM Automated's Website (Pacel's latest acquisition)
Pacel Corporation's Website
International Distribution Agreement with de Beer
Pacel Corp. Funding Completed
Pacel Corp. Signs Letter of Intent to Acquire Hardware/Imaging Company
Pacel goes public with development plan
Pacel Internet Study Project with George Mason University
Pacel Begins Move Into Larger Office Space
Prince William County Awards Software Contract to Pacel
Pacel Awarded Contract For Juvenile Detention Center System
Pacel Commences Trading
Having Launched Stock, Software Firm Seeks Place to Land
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