And another from Stockwatch:
Sloan Electronics, Inc. (OTC BB: SLEL) soon to be Salient Cyber.com
SLOAN ELECTRONICS (soon to be Salient Cyber.com) (OTC BB: SLEL)
Web site: salientcyber.com
The leading provider of Internet-based distance learning programs!!
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!
Company Profile
Salient Cyber.com (formerly Sloan Electronics, Inc.) is an Internet holding
company with a dominant position in the international, Internet-based
distance learning business.
Two pending acquisitions - Barrington University
barrington.edu
and Spanish University
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.
The Internet side of Salient Cyber.com's business is underpinned by a
rapidly growing and extremely profitable electronics division: Sloan
Electronics & RTI Global - which serve the criminal justice, long term
health care and electronic publishing industries.
Salient Cyber.com is in full compliance with all reporting requirements of
the U.S. Securities and Exchange Commission.
Barrington University - The World's Largest Internet Distance Learning
School
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 barrington.edu
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 - Providing Distance Learning Worldwide
A wholly owned subsidiary of SalientCyber.com, 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.
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 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 - 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 Salient Cyber.com - are moving quickly to
capture significant segments of their respective markets or niches.
How big is this 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 BTAlex.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.
Salient Cyber.com's Peers and Competitors
In the Internet / distance learning industry, Salient Cyber.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.
We would suggest that the introduction and funding by Michael Milken of
KnowledgeUniverse is a true indication of where this medium is going!
It is also important to note that Salient Cyber.com's peers are essentially
concentrating on the U.S. marketplace, while Barrington University and
Spanish University are aggressively establishing themselves
internationally. Salient Cyber.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
Issued & Outstanding: ~ 12.1 million shares
Float: ~ 1.3 million shares
52-week Range: $0.875 (low) - $5.00 (high)
Current Bid & Ask: $1-1/4 by $1-15/32
Last trade (04/20/99): $1-1/4
Why We Are Enthusiastic About Salient Cyber.com
Salient Cyber.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 Salient
Cyber.com achieves critical mass over the next few years.
We believe that Salient Cyber.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 Salient Cyber.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 Salient Cyber.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.
To recap, Salient Cyber.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.
For more information, please contact:
Alon Kutai
Investor Relations
401-846-5212
Disclaimer
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 Salient Cyber.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
Salient Cyber.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 nasdr.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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