To: 1st.mate who wrote (308 ) 5/3/1999 11:40:00 PM From: Mr. Oil Read Replies (2) | Respond to of 457
For those just starting to join us I thought I would recap what is happening with RCC and offer a little summary of where the company is heading. Raytec Capital Corp. RCC.v 1. Has only 13,529,000 shares outstanding fully diluted. Of these, there is 12% held by the president and a total of about 55% held by insiders friend relatives and close business associates. 2. The company president is Mr. Jerry A. Minni, CGA and others with the company are mentioned here. Message 8520038 3. Revenues for the fiscal year 1998 were $7,372,696 up from $4,873,340 in 1997. 4. March 17 the company announced news of their patented dry media chlorine dioxide product achieved excellent results from an on-site test study conducted by independent auditor, Food Products Laboratory, Inc., of Oregon. These findings represent a significant market opportunity. The product known as ShrinkGUARD is a matting for use underneath perishable products, utilizes dry media chlorine dioxide technology. The matting, designed to reduce product shrink, to enhance product quality and to kill food borne pathogens was tested in three independent grocery stores. Testing of approximately 115 different product items demonstrated that an average of 40% reduction on overall product loss (shrink) was achieved with the Company's matting. 5. The company is currently the leader in perishable food control since 1985. They have 12,000 misting units installed in grocery stores in North America representing 60% of the market share. This positions them with the marketing infrastructure and client base to quickly sell it's chlorine dioxide based products which is approved by the FDA for use in the food based industry. 6. Markets for Raytec include Supermarket Chains through out North America, and around the world eventually. In North America there are $422 billion food products sold annually at the retail level. An estimated $5.8 billion is lost every year from spoilage. Raytec's anti-microbial products reduce shrink loss by a minimum of 20% and enhance product quality. This would amount to a savings of $1 billion annually. Raytec estimates the North American market to be at least $500 million. High profit margins on their products are achievable with no competition and Raytec expects sales in the first year to reach $1.9 million and approximately $12.3 million in the next year. This translates to a 3% market penetration this year and a 15% penetration in year two. This would translate to .06 earning/share this year and .37 earnings/share next year. At a PE ratio of only 20 this stock will trade at about $7 to $8. 7. The expected launch date of Raytecs Shrink GUARD is immanent. We understand that there are likely some purchase orders going to be announced in the near future along with the launch and that we will see RCC making steps to grow the business using other applications of the proprietary delivery system. 8. There is speculation that another company which trades on the NASDAQ exchange may be considering an alliance with or possible buyout of Raytec in the future which of course would enhance shareholder value significantly. 9. Shares are tightly held and have been rising in value quite nicely over the last few weeks as the market awakens to the highly developing potential for Raytec to produce significant rates of return on investment over the next 1 to 2 years. Volume has been gradually increasing as well. 10 This company has been recommended by a News Letter Writer Mr. Jay Taylor, listing it in the Moon Shot category and is currently being considered by other News letter writers. Future recommendations from these will help propel Raytecs share price ahead. It is my opinion that Raytec will continue it's excellent performance as we are at the beginning of many good news developments. It is nice to be invested with a company which has huge upside potential with an exclusive product and is already moving in spite of the relative few number of investors who are holding and watching it's development. Ray the 'Raytecer'