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Superstockpick Newsletter
March 23, 1999 Volume II, Issue 16
Email : info@superstockpick.com
URL : superstockpick.com
To Superstockpick Members:
There are several news items to cover with you today. First, our March
Profile will be released sometime after the close this Friday. We will
re-release the profile Tuesday of the following for those that don't
receive it over the weekend.
1st Net (OTC BB: FNTT), our parent company, traded extremely well last
week hitting a high of $10.50 after starting the week at $3, and traded
over one million shares last week. The stock closed at $5 today,
providing a reasonable entry level for those that feel they might have
missed a great opportunity. However, don't ask us to make a short term
price projection. This stock could go anywhere.
Last but not least, there was great news from our current profile,
Engineering Power Systems Limited (OTC BB: EGPDF). While there was a
major power failure in the markets today, there was a major surge of
activity in the Power Generation business.
* In Brussels, ABB and Alstom announced the merger of their power
generation businesses. The surviving company will employ 54,000
people located in over 100 countries, and generate about $11
billion in annual sales.
* GE (NYSE: GE) announced an agreement to purchase the heavy duty gas
turbine business from Alstom.
* In San Jose, CA, Calpine Corporation (NYSE: CPN) announced the
filing of a registration statement to sell 6 million shares of
stock to the public at $31 per share.
* Edison International (NYSE: EIX) announced that it is acquiring all
the fossil fuel generating assets of Commonwealth Edison.
* In Chicago, Unicom Corporation (NYSE: UCM) announced the sale of
its six coal fired power generating plants to Edison International
for $4.8 billion.
All in all, a pretty explosive day in the Power Generation industry,
with billions of dollars changing hands.
Our favorite power generation company, Engineering Power Systems Limited
(OTC BB: EGPDF), announced the completion of the acquisition of the
remaining 49% of M&M Engineering, its largest and now wholly owned
subsidiary. In the fiscal year ending June, 1998, M&M did nearly $30
million (CDN) in sales, and made net profits of $1.35 million (CDN) in
after tax profits. The transaction was funded with stock only, proving
that the management of M&M knows when to get the most bang for their
buck.
With all this activity in the Power Generation business, and EGPDF
continuing to make fundamental improvements, it is just a matter of time
before someone besides Superstockpick recognizes the value of
Engineering Power.
Here is the complete text of the news release for your review:
Tuesday March 23, 9:55 am Eastern Time
Company Press Release
SOURCE: Engineering Power Systems Group Inc.
EPS Acquires Balance of Interest in M&M Engineering Limited
TORONTO, March 23 /CNW-PRN/ - ENGINEERING POWER SYSTEMS LIMITED, (''EPS'' or the
Company) (CDN: EPSL) (NASD Bulletin Board: EGPDF) (www.epsx.com) announces that
it has acquired the remaining 49% interest in the issued capital of its
subsidiary M&M Engineering Limited (M&M), a Newfoundland, Canada corporation.
The purchase price of $3,050,000 will be satisfied by the issuance of 1,694,000
units of the Company. Each unit consists of one common share and one common
share purchase warrant of EPS. Each warrant, subject to shareholder approval,
will entitle the holder to purchase one common share of EPS at a price of $2.50
for a period of three years from the date of issuance.
M&M incorporated in Newfoundland, Canada in February, 1968. M&M's business
includes installation of production equipment, industrial maintenance in support
of the resource industry's infrastructure projects, including offshore plants,
and fabrication and installation of process piping and pressure vessels. In 1987
M&M established a wholly owned subsidiary, M&M Offshore Limited to provide
specialised welding capabilities and servicing facilities to the Atlantic Canada
offshore oil industry and to manufacture oil tanks, silos, stacks, penstocks and
structural and miscellaneous steel components for the Atlantic Canada market. As
the exclusive service contractor for ABB Vetco Gray in eastern Canada,
management of M&M believes that M&M will realize substantial revenues for
maintenance services to the offshore industry over the next twenty years. ABB
Vetco Gray was awarded a multi-million dollar contract with Hibernia Management
and Development Corporation for the supply of wellhead, christmas trees and
other subsea equipment for the production phase of the project.
In December 1996, M&M became a co-founder of the Newfoundland Service Alliance
(NSA) alongside Siemans/Westinghouse, Sea Systems and two other contractors to
collaborate on offshore maintenance contracts. NSA has been successful securing
various fabrication, electrical, mechanical and instrumentation contracts for
the Hibernia production platform and expects to be similarly active as the
Atlantic Canada offshore development expands.
For the fiscal year ended June 30, 1998 M&M consolidated reported CDN $28.8
million in revenue and $1.35 million in after tax profit. The principal
contracts performed by M&M during this period included work on the Hibernia
transhipment terminal, the North Atlantic Oil Refinery and the Star Lake Hydro
Project. In the 6 month period ending December 31, 1998 M&M consolidated grossed
$14.6 million in revenues.
M&M consolidated has worked on a contract basis with over 500 local and
specialized subcontractors and tradesmen and can therefore select the people
with the precise skills, reputation and reliability required on a M&M project.
Throughout its 30 year history, M&M has extensive experience in mechanical
installation of component and auxiliary systems for land based power plants. As
EPS develops its barge mounted power projects in India, EPS will be relying on
the experience of M&M to assist in the engineering, procurement and construction
of EPS power barges.
EPS is also pleased to announce that the Company has completed a private
placement and issued 891,667 units of the Company for total proceeds of
$1,605,000. Each unit consists of one common share and one common share purchase
warrant exercisable at $2.00 for a period of three years. The common shares
issued pursuant to the private placement are subject to a regulatory hold
period. The proceeds from the private placement have been applied to working
capital.
Scott Hargreaves, Chief Financial Officer of EPS stated, ''the combination of
the private placement and the expanded ownership in M&M increases the net book
value of EPS by over $3 million or an increase of $0.25 per share. In the fiscal
year ending June 1998, M&M reported after tax earnings of $1.35 million but only
51% of these profits were consolidated by EPS. M&M is on course to report
another year of profits for fiscal year ending June 1999. One of the many
advantages of the M&M acquisition is that from now on, 100% of M&M's profits
will accrue to EPS.''
EPS is a vertically integrated builder and owner of independent power projects
and contractor of infrastructure projects. EPS is an Ontario corporation with
four subsidiaries. M&M Engineering Limited, of St. John's, Newfoundland, a
mechanical contracting and steel fabrication company, ASI Holdings Limited, of
Port aux Basques, Newfoundland, a marine refurbishment and fabrication company,
and Merlin Engineering AS., of Kristiansand, Norway, a design engineering and
contracting company, and EPS Oakwell Power Limited, of New Delhi, India an
independent power production company with a 200 mega watt barge mounted power
project under development in Andhra Pradesh, India.
Number of shares issued: 12,112,437
Certain statements contained herein constitute forward-looking statements. Such
statements include without limitation, statements regarding business and
financing plans, business trends and future operating revenues and expenses.
Although the Company believes that the statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Forward looking
statements are typically identified by the words: believe, expect, anticipate,
intend, estimate and similar expressions, or which by their nature refer to
future events. The Company cautions readers that any forward looking statements
made by the Company are not guarantees of future performance, and that actual
results may differ materially from those in the forward-looking statements as a
result of various factors, including but not limited to, the Company's ability
to continue its projected growth, or the Company's ability to fully implement
its business strategies.
SOURCE: Engineering Power Systems Group Inc.
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Disclaimer
The Superstockpick.com Newsletter is an independent electronic
publication committed to providing our readers with factual information
on selected publicly traded companies. All companies are chosen on the
basis of certain financial analysis and other pertinent criteria with a
view toward maximizing the upside potential for investors while
minimizing the downside risk, whenever possible. All statements and
expressions are the sole opinions of the editors and are subject to
change without notice. This profile is neither an offer nor solicitation
to buy or sell any securities mentioned. This newsletter is owned by
SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies,
Inc ("1st Net"). While we believe all sources of information to be
factual and reliable, in no way do we represent or guarantee the
accuracy thereof, nor the statements made herein. The editor, members of
the editor's family, and/or entities with which they are affiliated, may
own stock in and have other financial dealings with the companies who
appear in the publication. To that degree, this newsletter should not
be regarded to be an independent publication. 1st Net Technologies,
the parent company of SSP Management, which owns Superstockpick.com, has
received the following compensation from Engineering Power Systems
Limited: 75,000 options with an exercise price of $1.75. On the date of
the release of this profile, 1st Net Technologies has performed Web Site
Design Services and provided proprietary Internet Related Technologies
to Engineering Power Systems Limited for fees totaling $43,750. These
fees have been applied to the exercise of 25,000 options of Engineering
Power stock. 1st Net may not exercise the remaining options until June
1st, 1999, when 1st Net has the right to exercise 25,000 options, and
October 1st, 1999, when 1st Net can exercise the remaining 25,000
options. 1st Net retains the right to sell or buy shares of Engineering
Power Systems Limited at any time at its sole discretion. The
Superstockpick.com critiques may contain forward looking statements
relating to the expected capabilities of the companies mentioned herein.
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