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presented to me each month by my network of brokers, market makers,
PR companies, investment bankers, venture capitalists, & key people
in various industries. My primary criterion is my opinion of the
stock's potential to double or better in the next six to 12 months.
Once a Sneak, a company becomes a candidate for a full recommendation.
My decision concerning which to recommend is based on what we find
in continuing investigation. I may cover a Sneak I did a year ago,
or one from the last issue; do not attach significance to timing.
While Sneaks are preliminary recommenda-tions, do not use them for
investment decisions unless you decide on the basis of facts you
uncover in your own investiga-tion. Keep in mind that the codes
listed after each Sneak are preliminary, reflecting my first impression.
They are subject to change based on further investigation.
Digital Armor, Inc. (OTC Bulletin Board/DGTL) may have invented
a "better mousetrap." The "mouse" in this case is the CD disc which
has dominated the recorded music field for 15 years. The "trap"
is an optically clear plastic shield that encases & locks onto each
side of your individual CDs to protect them from scratches or dirt
which would otherwise render them unplayable. These patent-pending
CD ARMORTM shields become semi-permanent protectors (both top &
bottom). They remain on the disc both in storage & in play. If the
clip-on shields were to become scratched, the CD itself is safe
& only the shields would have to be replaced. To music aficionados,
an unreadable disc is worse than the common cold... & a lot more
expensive. At $12 to $25 a pop, replacing injured CDs can become
a drain on the household budget.
The initial CD ARMOR system includes an easy-to-use plastic "installer"
device plus shields for six CDs. It retails at about $19.95. Refills
are priced at $9.95 for a pack of 15. The installer device assures
accurate positioning of the shields onto the disc. On average, the
cost to protect one CD is about $1.40. DGTL is exploring the use
of CD ARMOR in CD manufacturing & computer-related CD-ROM arenas.
CD ARMOR is the only product on the market which protects both sides
of the CD & uses unique clips rather than potentially harmful adhesives.
Audio clarity has been shown to be unaffected by the addition of
CD ARMOR.
Today, there are about 12 billion CD's in use, with 2 billion
more each year... just for music. CDs are sold in flimsy plastic
"jewel-cases" that frequently break & leave the disc unprotected.
Exposed discs are prone to careless handling in less-than-pristine
environments (read "the real world"). DGTL is supporting its growth
through a comprehensive corporate finance & consulting agreement
with Inc. Magazine Financial Resource Group, LLC. This relationship
allows DGTL to draw on the resources & expertise of 20 years of
Inc.'s experience in growing companies. Call TKO International @
303-850-7896, fax 303-850-7912, or call DGTL @ 800-942-5224, or
write Suite 600, 520-5th Ave S.W., Calgary, Alberta, Canada T2P
3R7. [R-5; M-6; L-7]
Global Payment Technologies, Inc. (NASDAQ/G-PTX) is a leading
manufacturer & innovator of currency acceptance systems used in
worldwide gaming (slots), beverage, & vending machines. These are
the devices that accept & validate paper money at the Coke machine,
or the self-service car wash. They accept paper money from more
than 40 countries. GPTX has a two-year supply agreement with Australia's
Aristocrat Leisure Industries, the second largest manufac-turer
of slot machines in the world.
GPTX's "Generation III" features the latest patented & proprietary
technologies & incorporates cost-saving injection molded plastic
components made by its Chinese joint venture partner. GPTX equipment
can keep all the funds secure & provide computer-based details for
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instantaneous utilization data along with theft prevention. In
development are products that will facilitate unattended checkout
registers whereby the consumer will feed bills into the reader,
a computer chip keeps track of the number of bills of each denomina-tion,
& then stores the money in a locked box.
The extension of Smart Card usage, now prevalent in Europe, to
the U.S. is seen as a major new area for GPTX's future growth. In
recognition of the company's outstanding performance over the past
several years, GPTX was listed as one of the "200 Best Small Companies"
in the November issue of Forbes magazine. Call CFO Thomas McNeill
@ 516-256-2162, fax 516-256-1620, or write 20 East Sunrise Highway,
Suite 201, Valley Stream, NY 11581. [R-7; M-7; L-8]
International Ostrich Corp. (OTC Bulletin Board/IOCX) The
Ostrich is one big, homely bird, but consider these facts: 1) a
pair of ostriches can produce an average of 25 chicks per year;
2) each bird yields an average of 65 to 70 pounds of low fat meat
(2/3 less than beef, earning it the American Heart Association's
"Heart Smart" designation) with an average wholesale cost about
$400 per bird; 3) each bird yields 14-16 square feet of highly prized
hide with a wholesale value of about $300 per bird (retail value
of finished goods up to $3,800); 4) many ostrich body parts have
value in scientific & medical research; 5) ostrich oil for use in
cosmetics fetches $75 per gallon; & 6) don't forget the feather-duster.
Let's look at the cost of raising an ostrich. In a fully integrated
operation (like IOCX), the economies of scale reduce the cost per
bird to $230. They are "harvested" at 8-10 months of age when they
weigh about 230 pounds... about $1 a pound. This makes the ungainly
ostrich look like a cash cow. IOCX operates its own hatcheries,
ranch facilities, feed supply, & processing facilities. It is positioned
to be the largest fully-integrated ostrich operation in the country.
In 1999, it will market between 10,000 & 12,000 birds & expects
to triple that number by the year 2000. This will give IOCX a significant
piece of the worldwide $500 million annual market for ostrich products.
IOCX is planning to market its products through a program of seminars
for food professionals & distributors as well as public education
as to the healthful benefits & good taste (like beef, they say)
of the ostrich meat. It is focusing on upscale resorts, hotels,
restaurants, high quality food markets, & specialty food stores.
It also has a website & a mail order operation & is planning a full-color
catalogue to promote ostrich leather goods. Call Pres. Theodore
M. Loeschner @ 888-355-IOCX, fax 805-269-8064, or write 3638 West
Smith Ave. #B, Acton, CA 93510. [R-6; M-6; L-7]
Juina Mining Corporation (OTC Bulletin Board/GEMM) is a
diamond resource & exploration company mining 2,471 acres of property
in Juina, Mato Grosso region of Brazil. A conservative estimate
of this property indicates 65 million carats with a recovered value
of $1.3 billion. GEMM will mine this concession at an average rate
of 3 million carats per year, giving the mine an economic life in
excess of 20 years.
This site produced numerous large & valuable diamonds during the
past decade; some as large as 312 carats in 1996, & a 452 carat
diamond recovered in 1994 which reportedly sold for $18 million
cut. Diamond quality in this district is estimated to be in the
range of $300 to several thousands of dollars per carat.
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