
With the sluggish summer months just about behind us, things are beginning to heat up with our portfolio companies.
Electric Moto Corporation (OTCPK:
EMOT) has fulfilled its search for a qualified new CEO.
Union Dental Holdings Inc. (OTCBB:
UDHI) recently notched its second consecutive quarter of profitability, and
Legacy Holding (OTCPK:
LGYH) has made its fully audited 2007 financial results available to the public and announced a year-over-year revenue increase of 537% over 2006.
In the world of larger stocks, one of my recent favorites,
Sequenom (NASDAQ:
SQNM) continues to garner attention after running from $5 back in April to nearly $21 recently on news that its non-invasive Down Syndrome test could soon become standard protocol in a $6-$8 billion global market.
New CEO Hits the Ground Running at Electric Moto
EMOT announced last week that early-stage investor Abbie Zands has taken the helm as Chief Executive Officer. The move was designed to allow former CEO, Ely Schless to accept the newly created position of Chief Technology Consultant (CTC) and focus on his strengths in the area of electric vehicle development. Don’t forget; Mr. Schless is the principal designer of the world record holder for the most number of miles completed by an electric car (the GM battery-swap proof of concept car). He has also developed prototype electric vehicles for the likes of
Honda and
Volkswagen.
With Ely now free to concentrate solely on technology development and Mr. Zands focussed on day-to-day operations, the company should be better positioned for growth going forward than it was previously with tech-minded Schless running the show. As
Blade XT demo units begin shipping to both North American and European distributors employing a more business-minded CEO should be positive for the company as it transitions from R&D to production mode. For those of you not overly familiar with the company and its landmark product the Blade XT, here’s what Forbes Magazine writer Patrick Cooke had to say about
EMOT's Blade XTZ model in a 9/17/07 article:
". . .an astonishingly quick, battery-powered motorbike called the Blade XTZ that equals or outperforms every gas-powered bike in its weight class (200cc--250cc). Best of all, it does so without making a sound". . . "No high-pitched engine whine, no choking blue smoke, no teeth-grinding vibration. And at 178 pounds, it's 25 to 50 pounds lighter and creates more torque (250 pounds) than most of its competition."The company also plans to soon add electric scooters to its product mix. A move that I believe could help out the financial situation immensely. In my opinion the next 6 months are "make or break" time for
Electric Moto Corp. Initial
Blade XT units are hitting the market and the company is now run by both a highly esteemed technological mind and a long-time investor with optimizing shareholder value first on his list of priorities. Now it’s a matter of how well the offering is received by consumers. I'll be watching closely over the coming weeks for sales related news. If it surfaces, I suggest contemplating taking an ownership position in the stock. If it doesn't, there are plenty of other electric vehicle plays out there for you. One that I have come across recently and will speak about more in the future is
Zero Air Pollution (OTCBB:
ZAAP).
UDHI Reports Second Quarter Profit
Union Dental Holdings turned its second consecutive quarterly profit on revenues of $652,709 during Q2. The Company plans to grow significantly over the next 12-24 months by transitioning from itself from middle man to full service dental provider. I’ve been watching
UDHI rather closely for the past few years and am quite intrigued by their business model and the fact that its CEO has consistently purchased shares on the open market since I first began researching the company
If you’re unfamiliar with the Company, here’s their business plan in a nutshell:
UDHI aspires to become the premier dental service provider to America’s 15,000,000 plus labor union workers and their families. Recently surpassing the milestone of 1,9000 dental providers in its network,
Union Dental has already made inroads with some of the nation’s larger labor unions including:
(1) The Communications Workers of America (CWA) - (700,000 members); (2) The International Brotherhood of Electrical Workers (IBEW) – (750,000 members); (3) The United Association of Plumbers and Pipe Fitters (UA) – (300,000 members); and (4) The Association of Flight Attendants - Communications Workers of America (AFA-CWA) – (55,000 members).With more than 20 years worth of experience and a member base now possessing $192,000,000 in annual purchasing power,
UDHI is taking a major step in the right direction with its decision to open a full service dental facility in Coral Springs, FL. The new building is slated to open by the beginning of October and will perform all aspects of dentistry. Deeply rooted in the dental community and founded by a well-respected dentist,
UDHI has publicly stated its ability to save patients between 20% - 30% on Porcelain-fused-to-metal dental crowns which typically range in price from roughly $600 to $900, as well as other prosthetics. Since union workers typically receive only $1,500 in annual allowable dental expenditures - that type of discount should be a major selling point for the company going forward.
All in all, I’m pleased to see Doc Green’s master growth plan coming to fruition. Now priced under a penny with about 100 million shares out, the stock is surely worth a second look as the company prepares to embark on a new stage of growth.
Legacy Reports Annual Results
Legacy Holding Inc. (OTCPK:
LGYH) made its operating results for the 12 months ended 12/31/07 available to the public last week and they were pretty promising in my opinion. The emerging provider of green cleaning solutions for the semiconductor, solar cell, flat panel display and LED markets logged net income of $101,846 on revenues of nearly $1.1 million.
In addition,
Legacy unveiled plans to acquire a synergistic manufacturing company and begin introducing its process technology to tier-one customers including
Intel, Texas Instruments, and Samsung. With their cleaning equipment already gaining traction in the semiconductor space through repeat installs with
Tyco, licensing of
Legacy's process technology should provide a nice additional revenue stream going forward.
Zevotek is Still on Our Radar Screen
Although we haven't heard much out of the company in over a month,
Zevotek Inc. (OTCBB:
ZVTK) is still on our radar screen. The company's landmark
Ionic Bulb product generated nearly $350,000 in revenues during its first ever quarter of sales ended 3/31/08 and holds a great deal of potential for the future if properly marketed. The bulb has been stocked by the likes of
Walgreen's and
Amazon.com over the past 6 - 10 months and has sold quite well given the fact that is has been marketed pretty lightly to date. In effort to increase consumer awareness for the product,
Zevotek recently completed filming of a promotional infomercial that should be hitting the airwaves soon, one would think.
More on the product: In addition to being 4X more energy efficient, lasting up to 10X longer, and using 50% to 80% less energy than regular incandescent light bulbs, the
Ionic Bulb 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. In all honesty, I've seen it work in person and it is impressive.
Now all management needs to do is ramp up sales and advertising efforts to get some legs behind its product. The infomercial is complete, which is a big part of the battle. Next comes disseminating the spot. In my opinion, we are in for a very interesting fall and holiday season here if
Zevotek begins airing the piece and driving consumers into their local Walgreen's and online to see what all of the buzz is about. Only time will tell, but I'll be watching closely here over the next few weeks.
In Closing:Unfortunately for all of our stress levels but hopefully fortunately for our trading accounts, the slow summer months appear to be just about behind us. As news from our portfolio companies picks up, so will our coverage on the small-cap world. Until next time, I suggest delving a bit deeper into the business models of the companies mentioned above.
Labels: .Legacy Holdings, Electic Moto Corporation, EMOT, Emoto, LGYH, OTCBB: UDHI, OTCPK: EMOT, OTCPK: LGYH, UDHI, Union Dental, Union Dental Holdings Inc, Zevotek, ZVTK