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SmarTire Systems Inc. (NASDAQ:SMTR) (VSE:SES.) launched its redesigned and updated Web site today, smartire.com. SmarTire develops and markets tire monitoring systems that provide tire pressure and temperature information to the driver. Their original market was long-haul trucks. More recently, SmarTire has targeted the automobile aftermarket. This market consists of both run-flat and conventional tires. The run-flat market requires tire monitoring, as the driver may not otherwise be aware that he is driving without any tire pressure. With conventional tires, the company cites several safety and economy factors in knowing tire status while driving. While the general trend towards auto safety can push this company forward, I see the real upside being in run-flat tires. SMTR has been beaten down to as low as $2.75 from the mid-teens, and continues to lose money. It is currently at about $4.00. In their favor, they have signed deals with TRW, Goodyear, Bridgestone, NTB, and Sears. Since they own the tire monitoring technology, much of their future success will depend on the robustness of the run-flat market. For the conventional tire market, SMTR needs to crank the PR machine to deliver a simple message of safety and economy to mainstream publications. | ||||||||||||
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