SLEL
Special Marketing Exposure Report: April 30, 1999
by HotStock News
Dear Subscriber,
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.
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).
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:
1. 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.
2. 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.
3. 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: mailto:itham@aol.com
Web Site: salientcyber.com
*************************************************************
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,
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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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This is not to be construed as a solicitation to buy or sell securities. As
with any penny stock, the Company "SalientCyber.com" involves a high degree
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the Securities Act of 1933, Section 17(b), HotStock News received a fee of
US $7,000 cash from SalientCyber.com as compensation for the distribution
of this report to their subscribers. This report was written by the
Research Investment Group and was approved for release by SalientCyber.com.
HotStock News acts only as a distributor of this report to provide extra
marketing exposure for the Company. This report is titled a "Special
Marketing Exposure Report". The various report classifications are listed
on our
web site at: hotstocknews.com.
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
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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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