Brian De Champlain is executive VP, chief technology officer,
& co-founder. He has 16 years of management & RF electronic design
experience in communications, cable TV, broadcast, & consumer products,
& holds several patents. .... Frank Gerlach is VP, chief engineer,
& co-founder. He was a software design engineer & project engineer
with Northern Telecom, & senior project engineer at Spar Aerospace.
.... Mike Ivezic is managing director of Frankopan & Co., the merchant
bank that financed CNXX. Major shareholders of CNXX are Frankopan
clients. .... Stewart Somers is executive VP & CFO. He has 28 years
experience in several public & private corporations.
Financial Status (12/31/98)
CNXX is entering its demonstration phase in southern Ontario late
summer & anticipates revenue streams to begin in Q1 2000. The company
has strong financial backing & has zero debt. Management projects
$17 million revenues in 2000, & profitable operations in 2001.
I recommend CNXX for midterm & long-term appreciation. I interviewed
the inventor of the technology 6/24/99. As an engineer, I am satisfied
that the technology is based on principles I believe are workable
The advantages of the technology are impressive. They include
adequate positioning accuracy, excellent security that thieves are
very unlikely to be able to bypass, elegantly simple operation,
& the ability to create the necessary infrastructure needed to service
a large area at a relatively modest investment.
Centraxx should be able to rapidly roll out the system by enlisting
joint venture partners to underwrite the costs in specific territories.
I like the fact that the system only costs $130, plus $5/month for
monitoring, making it the first auto locating system priced for
mass market appeal.
Centraxx can easily expand its patent pending technology to many
other applications, including E-911, asset management, personal
& workplace safety... the list is extensive. The product has considerable
"peace of mind" mass appeal.
The market potential is substantial, with vertical marketing prospects.
I like the "Gillette factor" -- the fact that there will be a recurring
revenue stream from monitoring services.
The technology is proven, & R&D will continue to minimize the size
of the tag device. When that is complete, it will be easy to apply
the system to baby carriages, strollers, & even articles of a child's
clothing -- a vast market! It could also be used to protect & recover
such expensive items as purses, wallets, cameras, lap-top & palm
size computers, etc.
As you know, I like to expose you to situations that are at as
early a stage as possible, that have great potential, where the
R&D is complete, & the company is close to creating substantial
I see this as one of those situations. I suggest you check it
out yourself, before the investing public begins to recognize the
For more information, go to www.centraxx.com. Investor inquiries
should be directed to 800-355-1564 or 905-814-0030, or e-mail: firstname.lastname@example.org
These comments apply to every situation mentioned in Conserva-tive
Speculator. Special situation, low-priced, micro-cap, & high-gain-potential
stocks have high risk. Fortunately, not many speculative situations
turn out to be disasters, but some do -- that is a risk you must
accept. "Winning Investment Strategies," my 60-page guide to speculative
investing, is made available to every regular CS subscriber. Stated
extremely briefly, here are three of my most important strategies:
1. Be prudent -- the total funds allocated to speculative stocks
should be limited to a small percentage of your cash, certainly
no more than you could lose without discomfort. I then suggest
no more than 5% of that small portion be invested in any one stock,
to spread your risk.
2. Do not accept my opinion as the reason to invest. Call the
company. Get a feel yourself. If you are not totally comfortable,
pass. I give you an ample number of possibilities. My task is
to expose you to potentially profitable situations. You have the
responsibility of making any investment decision. Do not give
up that responsibility.
3. Since in a monthly newsletter it is not possible to tell
you when to sell, apply a moving stop-loss strategy. If the price
goes up, raise your stop-loss guideline point to something like
20% below the new price. Keep doing that as the price rises. If
the price goes down to your stop-loss point, grit your teeth &
sell. This limits loss, but lets profits increase.
This section does not include information from the news releases
I receive on situations I have covered in past recommen-dations
or Sneak Previews. If you hold any such stocks, please get your
news & updates from www.WallStreetCorner-.com by using "Financial
Just click of the "Go Search" button on the bottom right of the
home page. When the Financial Navigator page comes up, just type
in the symbol of the company. You'll get the current price & volume,
& can usually get almost anything else you want from the pull down
menus under "News," & the other categories of information at the
top of the screen.
I usually include only the one to three situations where I have
either personally interviewed management, or believe some personal
comment by me is appropriate. I do not have room for much detail,
but on each situation I cover, I include contact information for
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