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The Beacon Lights Up Again |
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$10 million to $40 million
in new contracts for 2010. That's the Beacon investment thesis.
For those who need a refresher course, BEAC was my early November
idea, and one of the few domestic companies I'm interested in.
Here's why- the company offers a
unique and very valuable service for major companies who want to take advantage
of the new Enterprise systems available today. In short, BEAC paves
their information super highway.
All major companies use computer
systems to manage everything. The better it flows, the more efficient and
therefore more profitable the company. Inventory talks to sales, talks
to purchasing, talks to manufacturing, etc.
However, here's the problem. Many
of these major companies simply don't have the infrastructure to take advantage
of the Enterprise Systems that could make them more efficient. They need
to improve their infrastructure not only for the current generation of
available systems, but the next three generations as well.
Take their $27 million contract
with
Johnson
and Johnson (NYSE: JNJ). The map shows their office network in
Europe, most of which are in old buildings without the proper pre installed
wiring.
Over the next three years, JNJ
will be investing $27 million with BEAC to
retrofit all these locations with the latest and greatest infrastructure-
it's the highway of the Information Superhighway. It's good margin business
as well.
There's also a second gargantuan
contract- at least gargantuan for a company that delivered $10 million
in FY '09- end of September. BEAC is furiously working on a $24.8
million contract for a European networking company- this one is
not stretched over 3 years- it's all this year.
We started at $.90 with this
one in early November, and have since seen a low of $.80, and a
high of $1.35. Today, the stock closed at $1.05 as the company
has been a bit quiet of late and investors are getting bored waiting for
a more news.
However, today post close things
starting happening again. BEAC announced it is acquiring Belgium
Based NetConnect BVBA to give it a much needed infrastructure and presence
in Central Europe. According to the news, BEAC is not only buying
infrastructure and expertise, it is also buying over $5 million in revenues,
consistent growth, and profits.
Technically, stocks feel a bit heavy
to me right now, especially in the small cap arena. BEAC made a
nice run from mid December to early January, and since has been coming
back down. If you want to see a nearly perfect 61.8% retracement, check
out this chart. The move from $.82 to $1.35 retraces perfectly
to $1.02- just a touch above today's close.
If there's such a thing as the perfect
level to accumulate, this would be it. I'm sure there are those reading
today's edition who watched this one run up without participating. Ding,
ding, ding- it's time to get back in the starting gate.
Lots of news flow from here forward.
FY '10 Q1 numbers due out soon. A market correction that is getting a bit
long in the tooth. All of the ingredients for an strong entry level are
here.
Here's today's news for your review.
The Beacon is switching back on.
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Beacon Enterprise
Solutions to Acquire Belgium Based NetConnect BVBA
Press Release Source:
Beacon Enterprise Solutions Group, Inc. On Wednesday February 3, 2010,
4:01 pm EST
LOUISVILLE, Ky.--(BUSINESS
WIRE)--Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC - News) (www.askbeacon.com),
an emerging global leader in the design, implementation and management
of high performance Information Technology Systems (“ITS”) infrastructure
solutions, today announces that it has reached an agreement to acquire
NetConnect BVBA. The agreement and the purchase price, which will be paid
in a combination of cash and installment payments over time, are subject
to completion of due diligence and documentation.
Based in Pulderbos, Belgium,
NetConnect BVBA (“NetConnect”) is an ITS infrastructure design and installation
firm whose core business consists of the deployment of state of the art
IT infrastructure projects, network cabling, data rooms, and voice installations
throughout Central Europe. NetConnect services a wide variety of ITS infrastructure
projects, from sophisticated fiber optic cabling, to large government projects,
to clean room installations, and a diverse clientele that runs the gamut
from small and medium size businesses to providing outsourced IT services
to some of the world’s largest global enterprise clients.
“We are pleased to announce
our pending acquisition of Belgium based NetConnect and look forward to
integrating their systems knowledge and expertise,” said Bruce Widener,
CEO of Beacon Solutions. “NetConnect has demonstrated significant year-over-year
revenue growth during the past 3 years, along with consistent, positive
net income and has zero debt. We believe NetConnect’s capabilities serve
as an ideal complement to Beacon’s ITS managed services and the company’s
strategic location in central Europe will provide a central hub of operations
as we continue to penetrate the European market and extend our global reach.
We expect the acquisition to be accretive to earnings in FY 2010.”
Founded in 1998, NetConnect’s
management team and key personnel each have over 15 years of experience
in Europe’s ITS infrastructure industry. NetConnect has close ties with
several of the largest multinational corporations in central Europe and
has completed projects for the Belgian Government, as well as leading global
logistics providers in the world. NetConnect has shown steady growth of
9% over the past three years, with estimated revenue of approximately USD
$5.4 million in 2009.
NetConnect maintains
numerous industry certifications and credentials, including the Safety,
Health & Environment (SHE) management system certification through
AIB-Vinçotte (VCA), an independent foundation that assists organizations
with safeguarding life, property and the environment. NetConnect is also
a certified designer and installer for R&M products, which is one of
the leading suppliers of passive cabling solutions for high quality communication
networks around the world.
Kurt Cavens, Managing
Director and co-founder of NetConnect, commented, “As one of the only firms
dedicated exclusively to the design and installation of ITS infrastructure
in central Europe, we believe this acquisition represents an ideal combination
and we look forward to becoming part of the Beacon Solutions global team.”
About Beacon Enterprise
Solutions Group, Inc.
Beacon Enterprise Solutions
Group is an emerging global leader in the design, implementation and management
of high performance Information Technology Systems (“ITS”) infrastructure
solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions
capable of fully servicing the largest companies in the world as they increasingly
outsource to reduce costs while optimizing critical IT design and infrastructure
management. Through an integrated team approach, Beacon offers a broad
range of products and services including IT infrastructure design, implementation
and management, application development and voice/data/security system
integration, installation and maintenance. Beacon’s client roster includes
state and local agencies, educational institutions, and over 4,000 companies
ranging in size from mid-sized companies to the Fortune 500. Beacon is
headquartered in Louisville, Ky., with regional headquarters in Dublin,
Ireland, and Zurich, Switzerland, and personnel located throughout the
United States and Europe.
For comprehensive investor
relations material, including fact sheets, research reports, interviews
and video, please follow the appropriate link: Investor Relations Portal,
Investor Fact Sheet, Research Report and CEO Overview Video
For additional information,
please visit Beacon’s corporate website: www.askbeacon.com
This press release may
contain “forward looking statements.” Expressions of future goals and similar
expressions reflecting something other than historical fact are intended
to identify forward-looking statements, but are not the exclusive means
of identifying such statements. These forward-looking statements may include,
without limitation, statements about our market opportunity, strategies,
competition, expected activities and expenditures as we pursue our business
plan. Although we believe that the expectations reflected in any forward
looking statements are reasonable, we cannot predict the effect that market
conditions, customer acceptance of products, regulatory issues, competitive
factors, or other business circumstances and factors described in our filings
with the Securities and Exchange Commission may have on our results. The
company undertakes no obligation to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise after
the date of this press release.
Contact:
Beacon Enterprise Solutions
Group, Inc.
Bruce Widener, CEO
502-657-3507
investors@askbeacon.com
or
Porter, LeVay &
Rose, Inc.
Marlon Nurse, V.P. –
Investor Relations
212-564-4700
or
Trilogy Capital Partners
Darren Minton, Executive
Vice President
800-592-6067
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