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|November 13, 1999||
Volume II, Issue 57
To OTC Journal Members:
In our opinion the market correction that began in Mid-July for the small and micro cap stocks is now over. There may be some short term blips between now and the year 2,000, however, we believe that we will have a great market in our arena in the first six months of next year.
Many of the micro cap stocks that we follow are beginning to trade up off extended bottoms (recent examples include FNTTE and EGPDF), and there seems to be an absence of sellers. Large cap Technology and Internet stocks are tearing up the charts, and the NASDAQ is making new all time highs. Between now and the end of the year, we will be bringing you a number of new ideas and updates on some of the stocks we have previously covered, hopefully positioning you to make substantial profits in the first half of 2,000.
We are constantly on the outlook for exciting new Internet Related Technologies because the Internet is going to continue to grow at an astronomical rate. The Company we are featuring this month provides a glimpse into the future of the Internet and the technology revolution which will allow the Internet to integrate into more traditional types of media. If nothing else, this Company has one of the most unique and high impact web sites we have ever seen, and that alone is worth checking out.
Here is our November Profile:
Blue Zone, Inc.
Several centuries ago, the Printing Press was invented leading to the first form of media- the Newspaper. Today, we refer to this whole industry group which includes all published text as "PRINT MEDIA".
Next came Radio, followed by Television. Then, there was the recent phenomenal growth of the Internet. Until then, Print, Radio, and TV were the medium by which we got out daily news and information.
Over the next five years, these four major Media Venues; Print, Radio, TV, and the Internet will blend into one hybrid medium which will give the viewer more content choices then ever imagined.
The term Convergence
has been coined to describe the blending of all four forms of media, and
Blue Zone (OTC BB: BLZN) is positioned with proprietary technology
to be one of the leading companies in the business of providing broadcasters
the tools to Converge Media on the fly right as the news is happening.
This is the future of broadcast news on all mediums.
If you have a dial-up modem attached to your computer, and that's how you currently access the Internet, your technology in Internet Time is ancient history.
To provide you with quality content, both through your computer and your TV, bandwidth needs to increase to handle the enormous amounts of data and signals associated with enhanced content. If you're not already experiencing High speed Internet access, you will be soon, either through High Speed DSL phone lines, new wireless technologies, satellites or cable (Cable Modems).
The big players began positioning themselves in the world of high speed bandwidth back in 1997. Here are some recent events that demonstrate the importance of Bandwidth to the technology community:
The Internet has now proven itself to be a mass-market media. Media Companies are increasingly using their marketing power to drive traffic to the Web, thereby leveraging their power.
Every major Network, top magazine, newspaper, and movie studio has a presence on the Web and is fighting for a competitive position.
Traditional media has embraced the Web by adding content, driving traffic, and leading the consolidation charge. The Internet gives them the opportunity to leverage their mass market audiences to create new revenue opportunities.
Big Media is storming the Web because of the advantages it offers. Here is a list of characteristics that major media companies love about the Web:
Simply defined, the term "Convergence" describes the bridging of the gap between TV, Radio, Print, and the Internet.
There are no other public companies that we can find that compete with Blue Zone. They provide the tools required for TV, Radio, and Print media to converge with the Internet.
Their technologies allow producers to author Interactive News on the fly as it is happening.
Here is the way the Company describes itself:
"Blue Zone is an award-winning leader in interactive television, radio, advertising and the Web. Blue Zone is building a "convergence network" integrating TV, the Internet and print media. Through its on-air/online toolkits, Blue Zone delivers new revenue streams and audiences to broadcasters. For viewers world-wide, Blue Zone offers round-the-clock news, entertainment and e-commerce on TV, computers and hand-held devices."
On November 1st, Blue Zone announced the launch of its proprietary enhanced TV platform, which is an innovative product designed to reposition television stations at the center of the Interactive Universe. This is a milestone product which TV stations can use to create Interactive Content on the Fly.
It is difficult to describe in print how this actually works, but we've seen it, and we'll give it our best try.
Here are several
examples which may help you visualize Convergence:
You are sitting at home in the morning watching your favorite financial news station. There is a story on a stock you follow. You have WebTV on your television. You click on the name of the company on your TV screen. You are automatically connected to the Internet, and a browser opens at the bottom of the screen, leaving picture-on-picture with the news story at the top.
You immediately go to a chart on the stock, or other related stories you see through your browser, so that now you are in control of the content being routed to the bottom of your picture.
You quickly make a buy or sell decision on the stock based on instantaneous information you have chosen, and execute the transaction immediately through your on-line brokerage account.
You go to work during the Major League Baseball playoffs. You go to your favorite web site with the latest live scores and highlights from today's game.
Your team is winning, and you want to watch the Game. You go to a live video feed from the Web Site for the last couple of innings. Your team wins. You are so excited that you immediately connect to the team's Web Site which is linked at the bottom of your screen and purchase play off tickets. You then go to the team's on-line store, and order two commemorative T-shirts from the championship.
You are listening to the radio on the way to work, and they announce a special promotion for tickets to an upcoming concert which requires you to answer some trivia questions.
You get to work and on your PC you go to the Radio Station's Web Site, where there is a live video feed of the Radio Station's broadcast studio, a live broadcast of their show, and the contest is available to enter via a link at the bottom of your monitor screen. You open the contest window, submit you entry on-line, and win the tickets while listening to a live broadcast and watching the host of the show at the top of your screen.
attempt to describe Convergence paints a picture of the tremendous future
revenue possibilities, for advertisers and the networks. A lot of
what we have described here is currently available, however, bandwidth
to the average desktop prevents the delivery of much of this quality content.
Blue Zone is not a start-up. They have been in business for nearly a decade, and have an impressive track record. As long ago as November of 1997, Blue Zone won the award for "Best of Comdex" for technical achievement. The award was given for the Blue Zone designed BCTEL MultiMedia Gateway (MMG) Service. This high speed Internet service is built on ADSL technology, and provides the fastest consumer connection currently available (1.5 mbps).
Their client list includes the following well recognized names:
They have recently introduced several new Platforms by which Media Producers can create a live multimedia experience for viewers on the fly, or as it is happening. Click Here to read the press release.
The News Biz Platform allows producers to create "Lower Third" Graphics (the bottom third of your monitor) on which links can take viewers to related information.
and Film BZ are all tools that can be made available to content
creators. The Company creates revenues through strategic consulting,
production and maintenance fees for broadcaster's web sites, and shares
in revenues from these sites.
Blue Zone initially began to trade publicly on September 7th, via an RTO (reverse takeover) from a company formerly known as Western Foods. On October 14th, Western Foods officially changed names to Blue Zone, and the symbol became BLZN.
In the interim, on September 23rd, Blue Zone announced the completion of a private placement, yielding $5.25 million in proceeds to the Company. Click Here to read this press release.
This is important for two reasons. First, we know that the company has the capital it requires to launch these initial Convergence technologies.
Secondly, the pricing of the funding is very important to investors contemplating a purchase of shares in the open market. This private placement was done in the form of units priced at $5.63. Each unit contained one restricted share of common stock and 1/2 of a purchase warrant.
These restricted shares are not eligible to trade publicly for one year under SEC Rule 144. The associated warrant converts at $5.63.
Investors choosing to purchase shares in this Company that are restricted with a cost basis of $5.63 did so with the expectation of getting a return on their investment. However, shares of Blue Zone closed today at $5 in open market trading, allowing the individual investor an entrance level 11% lower than institutional investors paid two months ago without the burden of a one year restriction.
To us, this
entry level represents opportunity. As our members know, our theme
is to try to uncover young and exciting companies with new technologies
that you wouldn't be likely to find out about on your own. Very little
is known about Blue Zone, but if they become a leader in the new
Convergence Technologies that allow the Internet, TV, Radio,
and Print to blend successfully, it is a certainty that Wall Street will
learn about them and higher levels are a reasonable expectation.
Please visit their Web Site found at http://www.bluezone.net/, and check it out. The site has some of the most clever Internet tricks we have ever seen, and it is worth spending some time there. See if you can figure out how to access some of the information contained within. The Team and Projects sections are particularly clever. Hint: after you get past the Flash Clip, click on the word "SET".
When you get to the home page, you may not be able to view it if you don't have Flash 4 installed on your computer. The "ToolBox" will allow you to download the latest version.
You can also go to the HTML version if you are a less advanced Web Surfer for information on the Company.
been no financial statements published yet as the Company just became Public
two months ago. We will provide them for you as soon as they are
made public. However, the recent $5.25 million funding gave us a
comfort level that the company had the required capital to execute their
The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net"). While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with which they are affiliated, may own stock in and have other financial dealings with the companies who appear in the publication. To that degree, this newsletter should not be regarded to be an independent publication. SSP Management, the owner of the OTC Journal, has been paid a fee of $50,000 by The Investor Relations Group acting on behalf of Blue Zone for one year of representation. No other compensation has been paid, but SSP Management may accept future compensation which would be fully disclosed. The OTCjournal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein.
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of the Securities and Exchange Commission ("SEC") at http://www.sec.gov
and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com.
We also strongly recommend that you read the SEC advisory to investors
concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm.
Readers can review all public filings by companies at the SEC's EDGAR page.
The NASD has published information on how to invest carefully at its web
The OTC Journal Newsletter is an electronic publication committed to providing our readers with useful information on publicly traded companies. The Newsletter contracts with publicly traded companies and receives compensation from them or third parties as payment for publishing information and opinions about the company and the trading market for their securities. Principals of the Newsletter may also purchase or sell securities of the companies in the open market from time to time. The positions, if any, that the Newsletter or its principals presently maintain in the securities of the companies are disclosed here (click here) and should be considered in making an investment decision regarding these companies securities. The Newsletter and its principals reserve the right to acquire additional shares or liquidate some or all of the positions they may hold in the issuer’s securities at any time in the future without further notice. These publications should not be considered to be independent publications concerning the company.
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We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.finra.org. We also recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.
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