Zevotek Plans to Break Vegas

Did you know that indoor air quality is one of the top five threats to your health? Recent reports out of the U.S. Environmental Protection Agency (EPA) confirm the dirty truth.

In today's edition, I'll touch on the topic of indoor air pollution as well as portfolio favorite Zevotek Inc. (OTCBB: ZVTK), a company with a solution and plans to check out of Las Vegas at the end of this month with millions of dollars in sales.

Did you know that indoor air quality is one of the top five threats to your health? Recent reports out of the U.S. Environmental Protection Agency (EPA) confirm the dirty truth. In today's edition, I'll touch on the topic of indoor air pollution as well as portfolio favorite Zevotek Inc. , a company with a solution and plans to check out of Las Vegas at the end of this month with millions of dollars in sales.

Your Living Room Could be More Polluted Than Downtown LA

Research indicates that despite massive media focus on smog and coal plant emissions, indoor air can at times be up to 5X more contaminated than outdoor air. It's hard to imagine, but the air in your living room may be dirtier than that of downtown LA, even though you probably can see your hand 6 inches in front of your face in there.

In today’s edition we’ll take a look at one of our portfolio companies poised to drastically reduce indoor air pollution and make the world healthier, one room at a time. But first, let’s take a quick look at what exactly makes indoor air pollution responsible for nearly 3% of the global burden of disease.

Quote of the day: "All you need is ignorance and confidence and the success is sure." - Mark Twain

Enter the IONIC BULB

Besides the obvious - tobacco smoke - one of the primary culprits in the ongoing indoor health crisis is volatile organic compounds or VOCs. Reportedly 10 times more prominent indoors than out, VOCs are emitted by literally thousands of household products including some that may surprise you. In addition to pesticides and cleaning supplies, they are also discharged by everyday office equipment such as copiers and printers as well as permanent markers. But don't go throwing your laser jet or Marlboros out, there may be hope for you just yet.

One viable solution to the world’s worsening indoor air pollution problem is the IONIC BULB offered by Zevotek Inc.. According to Zevotek (3-month chart to right), its revolutionary product is 4 times more energy efficient, lasts up to 10X longer, and uses 50% to 80% less energy than the traditional incandescent light bulb. It also comes equipped with a patented air purifying microchip ion emitter that is powered by the bulb's own energy. The bulb silently emits negative ions that help clear the air of smoke, dust, pet dander, and odors.

Will Zevotek Leave Vegas with $5 Million?

CEO Adam Engel was quoted in today's release as saying that he believes exhibiting at the Vegas ERA show will yield unit sales of no less than 500,000 units. Even at $5 - waaaay below retail price - that would equate to $2.5M in sales or more than 7X last quarter's revenue. As an investor, that's a major development. Since I've never come home from Vegas with anything more than a headache and lint in my pockets, I'll be quite impressed if Adam can make good on his promise.

Functions of the Bulb

For the sake of today’s discussion, let’s take a look at the airborne contaminants the IONIC BULB helps eliminate and their impact on both indoor air pollution and our health.

Tobacco Smoke – In addition to emitting VOCs, tobacco smoke is a leading contributor to Cancer and Asthma. It is also reportedly a leading contributor to Sick Building Syndrome (SBS), defined by the EPA as situations in which building occupants experience acute health and comfort effects that appear to be linked to time spent in a building, but no specific illness or cause can be identified. I'll pass on that one, thanks.

Pet Dander – According to the Asthma and Allergy Foundation of America, 6 out of 10 Americans are exposed to dog or cat dander. Since pet dander can remain for months after an animal leaves a dwelling, it's extremely important to zap the allergens as they are released. Since I can't even be in the same room as a cat, I may have to keep a bulb on hand just in case I happen to have the opportunity to spend the night at the home of a female acquaintance sporting a herd of kitties (wishful thinking, I know).

Dust- According to the Ministry of Agriculture Food & Rural Affairs in Ontario, Canada, there are 3 categories of health effects brought on by exposure to dust: temporary damage, insidious respitory system damage (bronchitis, occupational asthma), and permanent lung damage. Dust makes me sneeze uncontrollably, another reason why I have one of these bad boys in every room of my dwelling (I admit, they're freebies, but still.)

Where's the News?
Since I am both the editor of this website and the lucky guy that gets to field investor calls for Zevotek, I'm quite aware of the company's lack of corporate announcements during the summer months. With Fall now ramping up, my recent discussions with both CEO Adam Engel and the developer of the Ionic Bulb, Jason Ryu, lead me to believe that more positive developments such as today's are on the horizon.

In my opinion, Zevotek's primary goal at this point in time - besides selling some darn bulbs - is getting their infomercial aired on television and developing the capability to field orders through their website. With the product now being sold in Walgreens and tested in CVS, Zevo definitely needs to begin pushing consumers into the story as opposed to having them stroll on in to their local drugstore and stumbling upon this cool little product. I've relayed my opinion to Adam and he's seemed pretty receptive. So, let's keep our fingers crossed here folks.

What about the Stock?

In all honesty, it hasn't been pretty. Since the reverse stock split (5-day chart to left) and increase in authorized shares, share price has decreased dramatically. Despite a 200% gain on Tuesday which propped the price up to $.06, shares have steadily lost value on relatively small volume.

Here's my take, the revenues logged during the most recent reporting period, which was in fact the first quarter of Ionic Bulb sales, were pretty impressive, all things considered, at about $348K. The product is now being tested at CVS and could lead to some solid sales if accepted and stock in their 6,000 plus stores. Also, the company has not yet aired its infomercial or added e-commerce capabilities to its corporate website.

In my opinion, if they can access the funding or in fact make enough through product sales this quarter to launch the aforementioned strategic initiatives, there's quite a bit of upside potential to consider from an investment standpoint going forward. I'd be on the lookout for announcement of this caliber and quite honestly, today's could be just that if the CEO's aspirations come to fruition.

Quarterly financial reports should be out in a month or so and that will give us all a better idea of how business is progressing. The company also noted today the belief that presenting at the Vegas ERA show will yield about 500,000 units worth of sales. At ten or eleven bucks a pop, that translates into more revenue than the previous quarter without CVS or Walgreens sales and also some funding to get the ad spot aired.

Net-Net

After a long silent period, Zevotek is back in the news today with a development that holds the potential to transform the business into a much larger competitor. If the company can in fact use the funds made through sales of 500,000 units to air its already filmed infomercial, we could be in for a very eventful Fall. In the meantime, I'll be watching the stock closely this morning as news like this should create some momentum in the market at the very least. Until next time....

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