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percent of the components required for product assembly in each
of the markets in which it has distribution relationships.
It has received over $22 million in pre-booked orders for consumer
electronics products for delivery between now & 8/30/2000. Its S.J.
Electronica del Caribe assembly facility commenced production 10/99.
This facility is now producing Philips, Sanyo, Samsung, General
Vision, & LEC color TV sets & black & white TV sets.
In the business equipment & supplies segment, it sources, consolidates,
& sells: computer components & peripherals by Acer, Epson, & Fujitsu;
document imaging equipment by Canon, Epson, Mita, Panasonic, & others;
& point-of-sale equipment by Omron.
In the construction technology & materials segment, it is under
contract to supply drywall & cement board exteriors to one of the
largest condo projects in Cuba. It also has sole rights to a state-of-the-art
construction technology that allows residential & commercial construction
in half the time.
CCZ is well financed. On 12/29/99, it secured a $9.5 million debt
financing from Caribbean Finance Investments Ltd., a joint venture
between the UK government operated Commonwealth Development Corporation,
& the Republic of Cuba government operated New Bank Group.
History
On 10/14/99, the company became public through a reverse takeover
of 1058199 Ontario Inc. by Balmoral Capital Corp. & a subsequent
name change to Commercial Consolidators Corp.
1058199 Ontario, prior to the takeover bid closing, completed
a private placement of C$3,335,000. The wholly owned subsidiary
of 1058199 Ontario Inc., Business Supplies Are Us Inc., manufactured
& distributed consumer electronics products, construction materials,
& technology, business, & office supply products & computer components.
It had Canadian, Cuban, & Panamanian operations. Trading began 10/15/99
as CCZ.
Business/Products
CCZ has built its business by securing solid relationships with
distribution partners, suppliers, & valued employees. It creates
exclusive alliances with large, well-known multinationals & the
government.
New companies that wish to enter the Latin American markets are
highly encouraged to deal with CCZ's dominant distribution & assembly
channels.
These policies & strategies have been proven successful. They
constitute a model that can easily be applied to acquisition candidates.
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Market
The Cuban economy is growing fast. Its sugar crop in 1999 was
3.78 million metric tons, up from 3.29 million metric tons in 1998.
The government has embraced a host of economic reforms, including
tax & financial changes that are designed to greatly encourage foreign
investment. The U.S. is expected to lift its embargo on Cuba --
when it does, there will be a rush of companies that want to take
advantage of the plentiful, skilled labor force & the Cuban & other
Latin American markets. Those companies like CCZ that are already
entrenched have a substantial advantage.
Incidentally, the fact that CCZ can provide instant access to
a huge market makes it a strong acquisition candidate for any U.S.
company that wants to instantly generate a large market share for
its products in Latin America.
Management
Michael S. Weingarten is CEO. He has 22 years of related
experience in domestic & international distribution channels, manufacturing,
& telecommunications.
Tomas Carlos Gonzales-Anleo is COO. He was general manager
of the Advanced Business Division of Comercial Cimex, S.A., a large
firm specializing in POS technology.
Ricardo Jose Alvarez San Pedro is CFO. He was CFO of Cubanacan
S.A., the major Cuban Tourism Group with annual revenues over $1
billion. He was CFO of Interholdings Group, managing state-owned
insurance company funds on an international level.
Leonard S. Black is president. He has 15 years experience
in manufacturing, distribution, & sales management.
Financial Status (11/30/99)
Current Assets: C$14,006,807
Total Assets: C$17,397,838
Current Liabilities: C$10,552,031
Advances from Related Parties: C$324,076
Shareholders' Equity: C$6,521,731
Revenues (9-Mos. 11/30/99): C$30,482,000
Net Income (9-Mos. 11/30/99): C$1,775,000
Revenues (9-Mos. 11/30/98): C$21,141,000
Net Income (9-Mos. 11/30/98): C$638,000
Recommendation
I recommend CCZ for both midterm & long-term appreciation. I like
situations that are operating profitably,
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