SLEL looks interesting:
Special Marketing Exposure Report: April 30, 1999 HotStock News
The following report was written by Research Investment Group and was approved for release by SalientCyber.com ("the Company"). Research Investment Group has performed due diligence on the Company and selected it as a stock pick. HotStockNews.Com acts only as a distributor of this information to provide extra marketing exposure for the Company for a disclosed fee as provided in the disclaimer of this report.
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SalientCyber.com
(OTC BB: SLEL)
Bid - Ask: $1 3/8 - $1 15/32
Sloan Electronics (soon to be) SalientCyber.com
A Leading Provider of Internet-based Distance Learning Programs!
Company Profile: SalientCyber.com (formerly Sloan Electronics, Inc.) (OTC BB: SLEL) is an Internet holding company with a dominant position in the international, Internet-based distance learning business. The Company website at salientcyber.com, is expected to be fully operational in the first week of May, 1999.
The Internet side of SalientCyber.com's business is underpinned by a rapidly growing and extremely profitable electronics division: Sloan Electronics & RTI Global serve the criminal justice, long-term health care and electronic publishing industries.
Two Pending Acquisitions: Barrington University (http://www.Barrington.edu) and Spanish University (http://www.SpanishUniversity.edu) have given SLEL a dominant position in $150 billion global post-secondary education market that is currently growing at more than 30% per year. Barrington University and Spanish University believe that they can dominate the international, Internet-based distance learning marketplace by offering American educational degrees to people around the world. Barrington University is the world's largest Internet distance learning center with over 5000 students in 31 countries studying in 8 languages. Spanish University is the world's premiere Spanish-speaking institute of higher learning - offering degree programs in a language spoken by over 1.5 billion people worldwide.
Barrington University: On March 17th, SLEL announced that it has agreed to acquire Barrington University, an on-line distance learning institution with offices and campuses in the United States, Canada and Japan.
Barrington University is a registered-chartered institution of post-secondary education, offering Bachelor's or Master's degrees (including MBA's) as well as certificate programs in over 40 fields of study. Instruction is offered in eight languages: English, Spanish, Korean, Japanese, Arabic, Portuguese, French and Chinese.
Barrington degree programs are accredited globally by the International Association of Universities and Schools (IAUS), a non-profit independent accreditation association based in Geneva, Switzerland. Barrington University is also a member University of the United States Distance Learning Association, the American Management Association and the International Education Group.
Distance learning courses offer a unique opportunity to earn a university degree without classroom attendance. The hallmark of every notable degree program in a non-traditional setting is the institution's faculty and mentors. This is why Barrington University takes special pride with its instructors, which is comprised of outstanding part time educators from traditional worldwide universities. Because of Barrington's ability to choose part time faculty and mentors from traditional and prestigious universities and, its use of E-mail, Fax and the postal service rather than actual classrooms, Barrington maintains the capability of providing an affordable and rewarding education.
At present, students in 31 countries around the world are working towards their college degrees at Barrington University. 96% of the students are earning their degree through the Internet! The cost of a Barrington University degree ranges from $2,850 to $5,350 and is usually equal to or less than other distance learning schools.
More recently, Barrington University executed an agreement to be the exclusive online distance learning school for China's Hubei Province (which has a population of nearly 77 million); this agreement is projected to add at least one million dollars in annual revenues. Barrington believes that it is the only Internet company to have such an exclusive governmental arrangement. In addition, the Hubei University has approved Barrington University to provide online courses in both English and Chinese.
Barrington University is positioned for rapid growth in the 21st century with the introduction of the world's first international association of renowned educators, professors and research scientists. The new association's name is "CyberUniversity" cyberuniversity.com. These prominent educators will constantly be in touch with Barrington students by phone, e-mail, Internet, mail or interactive software.
Spanish University: Spanish University is the world's premiere Spanish-speaking institute of higher learning, as well as the only distance learning Spanish-speaking university accredited by the Ministry of Education and Culture in Spain. The University provides distance learning worldwide and is a wholly owned subsidiary of SalientCyber.com.
Spanish University's educational systems have no real competition. The school was the first to get into the Spanish language educational marketplace with proprietary programs and establish an Internet university offering degree programs in more than 20 subject areas, and catering to the needs of Spanish-speaking people - a language that is spoken by about 1.5 billion people worldwide.
Spanish University is also aggressively working to become a major designer and supplier of Spanish language employee training programs worldwide; already, Hyatt and Marriott have expressed a strong interest in this new type of interactive distant learning process.
Based on management's aggressive growth plans through multiple acquisitions through the Spanish University, annual revenues are projected to reach $10 million in 2 years and $20 million within in 3 years.
The Distance Learning Industry: "Distance Learning" is all the rage in academia these days, and the Internet is by far and away the fastest-growing segment in the distance learning industry.
Colleges and universities are studying ways of expanding their reach beyond their campuses while non-traditional, accredited distance learning institutions are seeking to tap the demand for university-caliber education at home or in the workplace. Many 4-year colleges, including the American Ivy League schools, are now offering distance learning courses and degrees, and in the process, lend significant credibility to the concept of distance learning. Research has proven the demand for education (both for trade and management purposes) and will explode over the next 20 years. However, because of the lack of time and means, more and more people will be forced to take advantage of the non-traditional way of obtaining an education along with earning an American university degree.
Furthermore, the entire global educational industry is in a state of flux, fragmented, and will stay that way for at least another 5 years. A few educational entities, such as SalientCyber.com, are moving quickly to capture significant segments of their respective markets or niches.
Fully Reporting Company: SalientCyber.com is in full compliance with all reporting requirements of the U.S. Securities and Exchange Commission. All Company filings can be viewed at freeedgar.com (type in "Sloan Electronics" for the Company name) or click here.
How big is the Internet distance learning market? Well, Investor's Business Daily (February 11, 1999) has reported that the online education industry is expected to grow at least 33% annually for the foreseeable future. According to a BT Alex Brown [Bankers Trust] research report issued in January 1999, it is expected that the global distance learning market is on the order of roughly US $150 billion dollars.
SalientCyber.com's Peers and Competitors: In the Internet / distance learning industry, SalientCyber.com has approximately 15 publicly traded educational-related peer companies, including: Berlitz International, California Culinary, Phoenix College (Apollo Group), Children's Discover Centers, KinderCare, Sylvan Learning Centers, ITT and others.
The average shareholder return (including dividends) for all companies in this sector over the past two years has been on the order of 50%, with the Apollo Group leading the pack at over 1000%.
We would suggest that the introduction and funding by Michael Milken of Knowledge Universe is a true indication of where this medium is going!
It is also important to note that SalientCyber.com's peers are essentially concentrating on the U.S. marketplace, while Barrington University and Spanish University are aggressively establishing themselves internationally. SalientCyber.com's ability to serve countries where Spanish, Arabic and Chinese are spoken provides exposure to a potential market of over three billion people - a market that SLEL's peers are apparently uninterested or unable to compete in!
Revenues From Distance Learning Programs: Last year, Barrington University did $3 million in revenues with $600,000 in net profits (a 20% profit margin)! In its first full year of operations, Spanish University did about $1 million in revenues and $75,000 in profits.
Over the next few years, Barrington University targets $7 to $8 million in annual Internet revenues, with Spanish University projecting sales of $10 million in 2001 and $20 million by 2004. Over the same time frame, SLEL's electronics / manufacturing division could easily add an additional $10 million or more in annual revenues.
Capital Structure & Trading Range:
Shares Issued & Outstanding ~ 12.1 million
Float ~ 1.3 million
52-week Low - High $0.875 - $5.00
Current Price $1 3/8 (bid) - $1 15/32 (offer)
Why We Are Enthusiastic About SalientCyber.com: SalientCyber.com is well positioned in the rapidly growing distance learning market. Through its recent acquisitions of Barrington University and Spanish University, SLEL has the infrastructure, management team, name recognition and credibility to provide undergraduate and graduate level learning as well as professional training services to individuals and corporations.
The significant growth of the distance learning market should provide the basis for rapid revenue growth and meaningful profitability as SalientCyber.com achieves critical mass over the next few years.
We believe that SalientCyber.com is establishing a leading-edge education distribution network to provide graduate-level learning and professional training services to individuals outside of the United States. In many ways, the company's business model represents the next generation in distance learning, a market which we believe has explosive growth potential over the next decade. Other items that we like about distance learning in general and SalientCyber.com in particular are:
An Attractive Industry Environment - the post-secondary education marketplace (and, particularly, Internet-based distance learning) is a large, rapidly growing, fragmented and changing industry - attributes that create an attractive backdrop for the growth of a tightly-focused playerlike SLEL.
Huge Growth Potential - we believe that SalientCyber.com is well positioned to establish itself as the leading player in the international distance learning market. The combined infrastructure represented by CyberUniversity.edu and VirtualAcademics.com give SLEL a significant advantage in this evolving market.
Limited Competition - high barriers to entry will likely limit the number of competitors for the foreseeable future, adding to SLEL's existing competitive advantages. These barriers include the time and cost of building a distribution network, the need to establish credibility in the educational training marketplace, hiring qualified faculty, developing multi-lingual instructional materials, etc.
Unlike so many high-profile Internet and high tech stocks, SalientCyber.com could generate the earnings and cash flow to justify much higher valuations than the market is currently awarding it.
From an investor standpoint, hardly anyone knows about SLEL, nor how big they are. Management is committed to an aggressive growth program through acquisitions, and we believe that there will be a solid flow of real and exciting news releases to follow in the coming weeks and months.
On the trading side, a dot.com stock with a float of just one million shares is an investor's dream.
Conclusion: SalientCyber.com has an opportunity to become the dominant international company in the $150 billion Internet distance learning industry that is growing at the rate of 33% per year. SLEL is on-track to achieve annual revenues on the order of $25 to $30 million per year in an industry where 20% (or better) profit margins are the norm, and peer companies are being valued by Wall Street investment banks at an average of 35x future earnings. Based on estimated 2001 EPS of $0.53 (20% margin on revenues of $28 million and 10.5 million shares outstanding) leads to a 12-month target price of over $18 per share. Once SLEL closes Barrington's and accelerates the marketing of the Barrington University and Spanish University distance learning programs faster than expected or if customer response boost utilization rates more quickly than we have anticipated, there is obviously potential upside to both our earnings expectations and the valuation of the shares.
Contacts:
Investor Relations:
Alon Kutai
Tel: (401) 846-5212
E-mail: itham@aol.com
Web Site: salientcyber.com
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Disclaimer of Research Investment Group
Research Investment Group is not a Registered Investment Advisor or a Broker / Dealer. Research Investment Group has been hired by the company profiled herein on a one-time, fee basis to prepare and disseminate a concise summary of our client's business activities. Research Investment Group then, in turn, contracts with (and pays fees to) reputable, independent, third party distribution services to disseminate these reports by e-mail to the international investment community.
This electronic communication reflects opinions from SalientCyber.com (the "Company"). Readers are advised that this publication is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. The opinions and analysis included herein are based on sources believed to be reliable and in good faith but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. The foregoing discussion contains forward-looking statements that are based on current expectations and differences can be expected.
The information contained herein has been provided by the Company to Research Investment Group for information purposes only; in addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities of the Company. Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned herein. Investors should review a complete information package on SalientCyber.com which should include, but not be limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. All information contained in this report should be independently verified with the Company mentioned herein. Any opinions expressed in this report are statements of judgment as of the date of publication and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. Neither Research Investment Group nor its officers, directors, partners or employees / consultants accept no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.
In order to be in full compliance with the Securities Act of 1933, Section 17(b), Research Investment Group advises the readers of this document that it has received a fee of 100,000 free trading common shares of the Company as compensation for its efforts in researching, writing, presenting and disseminating the information contained herein. Prior to Research Investment Group disseminating this information, the Company reviewed and approved the contents hereof. Research Investment Group, its officers, directors, partners and employees / consultants may profit in the event the shares of the Company increase in value. These positions may be liquidated from time to time even after Research Investment Group, its officers, directors, partners and employees / consultants have made positive comments on the Company.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage the reader to review the investing information available with the Securities and Exchange Commission ("SEC") at sec.gov and/or the National Association of Securities Dealers ("NASD") at nasd.com. The NASD has published information on how to invest carefully at its website. SalientCyber.com is a fully reporting company with the SEC; readers can review all SLEL public filings (including financial information) at the SEC's EDGAR page.
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We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: sec.gov and/or the National Association of Securities Dealers (NASD) at: nasd.com. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.
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