Zevotek, Inc. plans to market and sell independently a range of distinct and independent lines of home care and household products. In May 2007, the company entered into a license agreement to sell an energy saving compact fluorescent light bulb named the Ionic Bulb. The company plans to market the Ionic Bulb through TV infomercials, catalogs, magazines and major U.S. retail and specialty stores and the websites www.zevo-tek.com and www.ionic-bulb.com.

Sometimes the psyche of the typical small cap investor more difficult to understand than that of the most difficult significant other that you’ve ever had. They state what they want, but when they get it, they’re still ultimately unappeased. Today, I’m speaking in regards to shareholders in ZVTK.

After months of silence, investors were foaming at the mouth for any type of update from the company. To appease these folks, ZVTK has noted its attendance of a major e-tail show in Las Vegas and scheduling of an aggressive sales meeting agenda there to help sell its core product to potential customers from around the globe.

ZVTK also noted recently that it has set up a merchant account, which will play a critical role in helping sell its landmark product via its website in the not so distant future. .

Merchant Account Not Major But Visibility Is!!

I realize that any 7th grader wishing to sell their David Ortiz rookie card on Ebay can set up a merchant account and that it’s not an earth shattering development by any means. However, the key underlying theme here is VISIBILITY over ZVTK’s operations and business strategy.

The account is the first step towards ZVTK being able to sell the bulbs, at higher margins than previously possible, through www.zevo-tek.com. ZVTK has also informed the public regarding its intent to outsource call center and fulfillment center operations, two more critical steps towards implementing click-to-buy functionality. After that, in a perfect world, the previously filmed infomercial will be aired by a media company – which costs money as well. By then, most of the heavy lifting required to get the product recognized by households around the world will be done.

My Gripe

Here’s my gripe. Investors beg for news and then “poo poo” ZVTK for keeping them in the loop in regards to what the company is doing to improve its business. If there was no mentioned of ZVTK striving to add click-to-buy to its website, there’d be whining about no news and not enough insight into what’s going on with the company.

So, let me tell you how I see things progressing from an unbiased point of view. If things go according to plan and logic, we’ll soon here about a toll free number posted on the site set up to field inbound sales calls for the IONIC BULB and also about a fulfillment center somewhere that will be responsible for getting the product to consumer doorsteps. We’ll also hopefully soon here of agreements with Media/Marketing firms capable of placing the advertising spot on television, possibly in multiple countries.

Moreover, we should also catch wind of just how well the sales meetings went in Vegas at the ERA show and what potential customers ZVTK is currently negotiating with. My conversations with Adam lead me to believe that the show generated some substantial oversees sales opportunities, so I’m anxious to see what materializes there.

Darkness Or Light? You Decide

All in all, would you rather have the company updating you step by step on its progress in bringing its product out of infancy stage and into the global spotlight, step by step. Or would you rather hang on to your hat until quarterly financial reports are issued? I think we all know the answer there and I also realize that by nature, myself included, everybody likes to have something complain about. But, let that be a potential late filing, less-than-stellar sales levels, or at least not some positive action that management is taking in effort to grow the company.

In closing, PLEASE use the blog as your direct link to ZVTK for questions and comments ranging from bickering about perceived “waste of paper” news releases to inquiries about what countries ZVTK may now have fostered potential sales relationships with. I’m here to be the conduit here. As long as you agree not to shoot the messenger, I’m happy to do my best to help. Best of luck today, folks.

ZVTK reached a recent high of $.12 Tuesday morning before settling back in for a close of $.09 on 138,139 shares traded. In addition, today’s closing price marked a 350% increase from ZVTK’s recent low of $.02 (on 9/10). Volume has also been trending upwards in recent days. 5-day volume is up 212% (618,761 vs. 198,154).

From a charting perspective, although ZVTK closed down nearly 25% today, the stock has continued to reach higher highs over the past 3 trading sessions. ZVTK has tested and broken the .09,.10, and .11 levels and teetered around .12 today before giving back 3 pennies. In my opinion, a move into the .125 to .13 range tomorrow will be a very bullish sign of what’s to come over the subsequent 3 trading days.

Quote of the day: “If past history was all there was to the game, the richest people would be librarians.” – Warren Buffet

Vegas ERA Show. Like Shooting Fish in a Barrel?

I had the chance to speak to ZVTK CEO Adam Engel this afternoon from the ERA convention in Las Vegas, where the company has publicly stated its intent to generate 500,000 unit orders and conduct a grueling schedule of sales meetings. Without divulging any non-public info, folks, things appear to be progressing nicely. From what he tells me, ZVTK is making good on their promise to conduct as many meetings as possible, many of them with massive international potential.

Adam has been keeping me in the loop in regards to what has been transpiring at the show and quite frankly, I’ve been impressed. All in all, I’d expect to hear something out of him soon in regards to how well things went in Vegas for ZVTK.

Although Vegas is surely “sin city” and a place to have a great time, the ERA convention is also one of the best places for a company like ZVTK to meet, greet, and present its product to the more than 3,000 electronic retailing executives from around the world in attendance.

For those of you grumbling over the CEO’s trip to Vegas, this jaunt is likely much more economically efficient than him making frequent multiple cross-continental sales trips. If he comes back with the aforementioned purchase orders in hand, I’d liken the trip to “shooting fish in a barrel”.

Today’s News: Click 2 Buy Coming Soon!

According to today’s press release, ZVTK has procured a merchant account which will allow the company to accept and process credit card transactions through its corporate website, www.zevo-tek.com. As I’ve stated in recent editions, adding click-to-buy functionality to the site is absolutely essential in order for ZVTK to grow efficiently going forward.

In all honesty, this should have been done long ago and most likely would have if cash flow wasn’t an issue. It’s an absolute no-brainer. Think about it, sales at big name retailers such as CVS and Walgreens are great. So are relationships with online retailers like the Amazon.coms of the world as well as International distributors. However, you have to pay to play in these types of relationships.

Simply put, partners such as those mentioned above don’t sell product for companies like ZVTK out of the kindness of their own hearts. They demand a piece of the pie (sale), which takes away from ZVTK’s margin. Surely, these relationships work wonders for the company’s revenues and ability to gain global brand recognition, but direct-to-consumer sales are what feeds the bottom line.

According to the release today, management is completely aware of this and is taking the steps necessary to begin selling its landmark product via zevo-tek.com, the merchant account being step #1. Next comes the establishment of a fulfillment center and inbound call center operations and then, as logic would dictate, the hiring of a marketing firm to get the ZVTK infomercial on the air.

Where’s the Infomercial?

The company announced back in July that the advertising spot was just about ready for production and I believe that it is now. Although sales have been surprisingly decent thus far, I can’t help but think the numbers at Walgreens and the test at CVS could have been better if the IONIC BULB had a little “push” from a television advertising spot that sent consumers into the stores in search of the product. Placement with these retailers is impressive for such a new product and company, but when was the last time you went to either establishment in search of a light bulb. Point taken?

Moreover, now that management is taking the steps necessary to take orders through its site and also working hard at the ERA show to foster new sales opportunities, I’m guessing that the spot will be hitting the air sometime in the relatively near future. I wouldn’t think that e-tailers from Europe, Asia, or wherever else would be too keen on purchasing a product with no push behind it. That’s just my opinion.

With the stock price moving in an upward direction and management making the right moves solidifying future sales and improving the bottom line, ZVTK is showing a great deal of promise for a stellar Fall season.

We’ll be keeping close watch on the movement of the stock over the next few days and whether or not the stock can manage to break through $0.12. A clean break through the 12 cent range should open the door to 15 cents and potentially $0.25. We’ll also be watching to see if the 500K unit sales objective is achieved. That’s all for now on ZVTK. Check the OutcastTrader Blog for updated coverage on the company.

Zevotek Inc. (OTCBB: ZVTK) is up nearly 100% to $.06 as of 11:47 ET today on nearly 80,000 shares traded. This morning, the company announced an aggressive sales meeting schedule for the upcoming ERA show in Vegas and also re-iterated its belief that coming home from Vegas with 500K in unit sales is a distinct possibility.

As we’ve mentioned before, a few hundred thousand in unit sales would go a long way for a company just getting its start. I’ll be watching closely to see how things develop over the next few weeks.

Commenting on the news, CEO Adam Engel stated ” Zevotek officials will be working non-stop for two days straight at the upcoming Las Vegas ERA show to meet our previously stated goal of generating orders for the sale of at least 500,000 Ionic Bulbs. I’m very excited about the opportunity to exhibit our landmark product to such a large pool of electronic retailing professionals, all of which hold the potential of strengthening our international reach‘.

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….

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.

Diet Coffee Inc. (OTCBB: DCFF) announced their financial results for the quarter ended 3/31 today and the results were actually a hair better than I had expected.

Revenues approached $350,000, just about the same as the corresponding quarter of ‘07 when the company was selling a completely different product, not yet the Ionic Bulb. This figure was higher than I expected.

One thing that becomes quite evident rather quickly while examining the recent Q is the need for the company to begin selling direct to consumer as it did in the past. The Walgreens and Amazon contracts are indeed invaluable for a company attempting to nationally launch a household consumer product. However, if the company can in fact begin airing its recently completed infomercial on t.v. and initiate some type of direct response marketing campaign, the higher margin direct sales could begin offsetting often lower retail margins.

All in all, I’m pleasantly surprised by the filing. The $350K in sales, although not monumental, is quite promising since the company’s marketing strategy has not yet come to fruition. The advertisement has been shot, it just needs to be aired on t.v. and the company needs to begin taking orders both online and through, I would guess, a toll-free sales hot line.

This type of effort would also in theory create more of a “push” effect on consumers into affiliated stores such as Walgreens and perhaps create more allure for the Ionic Bulb in other retail organizations.

DCFF gave investors what they wanted with today’s filing: a benchmark to judge future progress. I’ll be watching closely to see how things progress here. The stock gained nearly 20% today after dipping lately potentially on investor concern regarding the late filing. I’ll be curious how much investors are willing to pay for shares in the morning after digesting the filing.

Diet Coffee Inc. (OTCBB: DCFF) recently announced the completion of an infomercial for its IONIC BULB product. You can view the advertisement by visiting the company’s new homepage or by clicking here.

Shares gained nearly 6% Tuesday on above average volume of 13,923,020.