The Business Financial Network has advised us that they will be initiating a promotion of WAMC. The following is an intitial report
and anyone interested in this stock will find followup reports in the small cap section of :
bizfn.com
WEATHER ALL MANUFACTURING USA INC. ("WAMC" OTC - BB)
OFFERS INVESTORS GROUND FLOOR PARTICIPATION IN A COMPANY WITH PROPRIETARY
TECHNOLOGY AND PRODUCTS THAT WILL REVOLUTIONIZE THE US$16 BILLION PAINT &
SEALANTS INDUSTRY
WEATHER ALL MANUFACTURING USA INC.
885 West Georgia Street Suite 1500
Vancouver, B.C. V6C 3E8 Canada
Phone: (604) 685 - 5554 Fax: (604) 685 - 5750
Toll-Free: (877) 233 - 3131
website: weatherallusa.com
WAMC is poised to dominate the US$16 billion North American paint and
specialty coatings market; WAMC is a newly-listed, profitable business and
operating company trading at a P/E multiple of less than 2 (compared to
P/E's of 20 for peer companies)
CORPORATE BACKGROUND
Weather All Manufacturing USA Inc. ("WAMC" on the OTC BB) manufacturers and
distributes a new generation of proprietary, environmentally-friendly
elastomeric coatings ("paints"), sealers, binders, cleaners and degreasers.
With its revolutionary new formulations of water-based elastomeric
coatings, WAMC offers a totally-effective, long-lasting and
environmentally-safe solution. The company's unique formulations are safer,
easier and more cost-effective to manufacture using modern mixing technology.
In one step, WAMC products provide maximum protection from, with maximum
protection for the environment.
The company's headquarters and manufacturing facility is located in Port
Moody, British Columbia, Canada. Modern port facilities and proximity to
the U.S. Interstate highway systems enable WAMC to cost-effectively ship
its products to domestic and international markets. At present, WAMC is
aggressively marketing its products in the Washington, Oregon and
California markets.
The North American paint and coatings industry accounts for over US$16
billion in sales annually and is currently undergoing major structural
changes brought on by increasingly-stringent environmental regulations.
WAMC produces coatings products that confirm with, and exceed these new
regulations.
WAMC is poised to dominate the large specialty coatings market. Using
revolutionary new formulations of water-based coatings, sealants and other
products, WAMC offers an effective, long-lasting environmentally-safe
solutions to a wide range of construction and restoration market
requirements. The principle advantage of the WAMC product line is in the
inherent resiliency to long-term exposure of harsh climatic conditions and
the resulting cost savings to the consumer.
WAMC is currently negotiating a US$1 to US$3 million financing which will
be allocated for the upgrade of present plant facilities and further
expansion of the marketing of its products, including sales, licensing and
distribution agreements for the United States and Canada that will be made
available over the company's new e-commerce site (the Internet sales
component will be functional by the spring of 1999).
SHARE STRUCTURE & TRADING PRICES
Shares Issued: 4,807,000 Fully-Diluted: 8,807,000
52-week high: US$0.61 52-week low: US$0.19
Current bid/ask: US$0.32 / US$0.62 Last Trade: US$0.35
Included in the 8.8 million fully-diluted shares are four million pre-paid
performance shares, escrowed and subject to release on the basis of one
share per US$1 in pre-tax profit earned. Glenn Collick , WAMC's President,
owns over 65% of the issued and outstanding shares of WAMC.
MANAGEMENT
WAMC's management team is comprised of qualified, highly-motivated
individuals.
The management team has numerous affiliates and strong industry
associations which will provide WAMC with the expertise and dedication to
move the industry into the new millenium as a major force in the specialty
coatings market worldwide. In particular, WAMC's management has strong
experience in the concrete and building maintenance chemical markets.
The company has designed in-house formulations and manufacturing facilities
to use just-in-time techniques. In just three hours, WAMC can produce and
package 100 to 300 gallons of product; the unique chemistry of the
company's products allows for one-day, made to order production cycles,
yielding exceptional inventory turn-over and greatly reducing capital and
spatial requirements for finished goods.
MARKET OVERVIEW
According to the U.S. Department of Commerce, sales of paints and coatings
in North America in 1996 were US$16.4 billion. Of this amount,
architectural coatings - the product that everyone knows as "paints" -
accounted for about 38% of the industry's annual sales or roughly US$6.2
billion.
The U.S. Environmental Protection Administration (EPA) has enacted
legislation requiring the total elimination of Volatile Organic Compound
(VOC) emissions - a common ingredient in most paint and coating products -
by January 1, 2003. Canada and other countries are following this lead.
Using proprietary formulations, WAMC has developed a new generation of
elastomeric coatings and environmentally-safe products to provide consumers
with the most protection from the environment with the most protection for
the environment. WAMC's water-based formulations meet and exceed EPA
specifications, in addition to offering consumers a 15-year life expectancy.
Key to the durability of WAMC's products is the proprietary nature of the
elastomeric coatings, which form a secure waterproof sheet that will
stretch and flex. These superior characteristics have been tested and
verified by such reputable independent testing labs such as Warnock Hersey,
as well as having been successfully applied to a wide range of residential
and commercial buildings throughout the Pacific Northwest.
MARKETING STRATEGY & COMPETITIVE ADVANTAGES
WAMC's initial market strategy is to penetrate the distribution chain to
the home handy man market through outlets like Home Depot and Eagle
Hardware. Agreements with national retail organizations like these will
allow WAMC to rapidly expand its markets at minimal costs and establish a
stable sales base from which to fund development of additional
environmental-friendly products.
Given the water-based nature of WAMC's products, the fact that no special
application tools or complex chemical procedures are necessary, combined
with a 15-year life expectancy of its products, the major paint and sealant
distributors are eager to try WAMC's products, and will be doing so in the
spring of 1999.
COMPARISON WITH NAPIER INTERNATIONAL TECHNOLOGIES
There are a number of interesting comparisons that can be made between WAMC
and Napier International Technologies, an international chemical stripping
and refurbishment company. Earlier this year, shares of Napier ran from
Cdn$0.12 to Cdn$4.88 on the Toronto Stock Exchange.
The environmental regulatory climate is one that is driving the success of
both companies. Both utilize water-based formulations to conform with
stringent new environmental regulations. However, the most important factor
when comparing Napier and WAMC is the available markets for their
respective products.
The global market for Napier's product is on the order of US$500 million;
Napier has a specific product for a specific niche. WAMC, on the other
hand, has various product lines that have a much larger market place to
capitalize on - over US$16 billion just in North America.
Another significant difference in the companies is in regards to structure
and the amount of "paper out there". WAMC has 4.8 million shares in the
active float as opposed to 22 million for Napier. Napier has a market cap
of approximately US$50 million, whereas WAMC's market cap is just US$1.5
million.
Napier's market cap and share price levels are attributable to the growth
potential of their products, a rapid growth in sales, and investor
excitement about the company following completion of an aggressive PR
campaign.
WAMC is a new company - just beginning its first full year of production
and sales. Very few investors know about the company, and the WAMC story is
only just now coming to the attention of major market players, analysts and
newsletter writers.
OPPORTUNITY FOR INVESTORS
Weather All Manufacturing has all of the ingredients for success: excellent
technical management, an extensive product line currently being sold
internationally on a profitable basis, strong financial backing, and solid
growth prospects. We expect WAMC to do very well in the future.
>From a technical standpoint, we believe that WAMC has turned the corner,
breaking out of its recent trading range of US$0.20 to US$0.30. We see
solid investor support at current levels. Currently the company is trading
at about US$0.35 cents per share.
With increased market and investor awareness, it seems reasonable to expect
that WAMC's shares will be valued at higher P/E multiples than is presently
the case (15 to 20 versus the current 1 to 2).
For more information, please contact:
Toll-Free: (877) 233 - 3131
Investor Relations |
