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There was a new BLOG entry
this week on American Water Star (AMEX: AMW) last week. The
stock has finally reopened for trading, and somehow managed to maintain
its AMEX listing. It has traded between $.25 and $.30 since reopening,
which is semi miraculous as compared to where it could be. Considering
the condition of the company, not a terrible haircut from when it was halted
for trading about 2 1/2 months ago.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG will scroll down automatically on the right side of your
screen. The most current journal entries appear in the middle of your screen.
Check back frequently for updates particularly when stocks are moving to
overbought or oversold levels or in volatile markets. Your questions and
postings do not automatically appear, so don't bother posting the same
question multiple times. I personally go through to moderate and respond
to every question.
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Global ePoint
(NASDAQ: GEPT) Breaks Out |
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Today's horrific terrorist event
in London served as a reminder that the International threat of violence
still exists.
In recent months the market has all
but abandoned the Defense/Homeland Security sector in favor of energy stocks.
With the price of oil hovering around $60 it only makes sense.
However, today's terrorist event
in London could serve as a reminder that the Defense/Homeland Security
sector has a multi year expansion phase ahead worldwide. The unfortunate
events in London could serve as a catalyst to bring market attention back
to this sector.
With fortuitous timing relative to
International events, Global ePoint was out with news just before
the open today. The company announced that Astrophysics, it's pending
acquisition target, signed a contract with a Chinese Custom
Agency for six baggage screening units.
New business with the ever expanding
Chinese market is the holy grail of a publicly traded company. Francois
Zayek, President and CTO of Astrophysics, Inc observes: "The China Customs
order for six XIS-100X systems represents our initial entry into the Chinese
market, which in the coming years is expected to become as large as the
U.S. market," ; "China now has over 230 airports and is adding new airports
rapidly, and by providing the systems to a government agency, Astrophysics
is well positioned to capitalize on the large market opportunity."
I've provided an extended version
of the same chart I published in my last BLOG on GEPT. The
neutral wedge which had been forming for a number of months (the highs
getting lower and the lows getting higher) has broken to the upside. The
stock has clearly broken out of the wedge in favor of the longs.
I have been forecasting a resurgence
of the Homeland Security/Defense sector in the Fall. The war effort in
Iraq has exhausted the US Defense budget for 2005. However, the $100 billion
recently passed supplemental budget should start showing up in the form
of new contracts, and the 2006 budget becomes available for defense spending
on October 1.
Global ePoint expects to close
the acquisition of Astrophysics sometime before the end of September.
I believe the transaction will get done. The terms have been agreed to
and GEPT is close to completing arrangement for the required capital.
The market is beginning to credit the stock with already owning Astrophysics.
A long term uptrend for this stock
has probably begun. Certainly there will be blips along the way. Buyers
might want to wait for a pullback. $3.06 would be a 38.2% retracement of
the recent surge, and $2.80 would be a 61.8% retracement. The $3.06 level
would be very favorable for long term investors.
You might want to look at two other
OTC
Journal offerings in this space as well. Virtra Systems (OTC BB:
VTSI) inked a new contract with a Mexican Police agency today, and
in last week's conference call Chairman Kelly Jones was extremely optimistic
about order flow from a major branch of the US Military in the near future.
Aegis Assessments (OTC BB: AGSI)
is another idea. I have reason to believe the sales cycle could finally
be picking up for this company. Neither of these two stocks has begun a
rebound phase in concert with GEPT, but if you believe this sector
will pick up in the latter half of the year, both offer significant upside
from current oversold levels and the opportunity to accumulate while they
remain cheap.
Here is today's news release for
your review:
| Press Release Source:
Global ePoint, Inc.
Global ePoint's Acquisition
Candidate Astrophysics Receives Order From Chinese Customs Agency
Thursday July 7, 8:25
am ET
Astrophysics Receives
First Order from Customs Agency for Baggage Screening Systems
CITY OF INDUSTRY, Calif.--(BUSINESS
WIRE)--July 7, 2005--Global ePoint, Inc. (NASDAQ: GEPT - News), a leading
manufacturer of security technologies for the aviation, law enforcement,
industrial and commercial markets, today announced that Astrophysics ,
a leading developer and manufacturer of x-ray scanning security systems,
had received an initial order from China's Customs Agency for six XIS-100X
Baggage Screening / Inspection systems to screen incoming cargo. The technologically
advanced X-ray inspection systems are designed to be controlled remotely
through a network and threat images transmitted to a remote server for
viewing, storage and/or printouts. Global ePoint recently entered into
a non-binding letter of intent to acquire Astrophysics. in a transaction
scheduled to close in the third quarter.
"The China Customs order
for six XIS-100X systems represents our initial entry into the Chinese
market, which in the coming years is expected to become as large as the
U.S. market," said Francois Zayek, President and CTO of Astrophysics, Inc.
"China now has over 230 airports and is adding new airports rapidly, and
by providing the systems to a government agency, Astrophysics is well positioned
to capitalize on the large market opportunity."
Astrophysics recently
announced that it had received an initial order from the Superior Court
of Orange County, California, California's highest court, for thirteen
model XIS-5335S Baggage Screening Inspection Systems. The Systems will
be installed in five Orange County Justice Centers located in Santa Ana,
Fullerton, Newport Beach, Westminster and Laguna Niguel.
About Astrophysics
Astrophysics delivers
turnkey x-ray inspection systems to customers worldwide for use at airports,
government buildings, customs, banks, courthouses, hospitals, prisons and
many other locations. Astrophysics' technology teams have developed leading
proprietary products in baggage and cargo inspection. For more information
please see www.astrophysicsinc.com .
About Global ePoint
Global ePoint designs,
manufactures and markets security products and systems for the aviation,
military, law enforcement and industrial markets. Its contract manufacturing
abilities not only provide a cost-advantage in the production of leading
security technology products but also a steady stream of reliable revenue
to help fund its expansion in to high growth, high technology markets related
to security. Its vertical integration allows it to maintain superior operating
efficiencies and to provide cost-advantaged products. For more information
please see www.globalepoint.com .
Subject to the completion
of definitive agreements to acquire Astrophysics, the Global ePoint intends
to file with the Securities and Exchange Commission a proxy statement,
and other relevant documents in connection with the proposed acquisition.
Investors and security holders are advised to read the proxy statement
regarding the proposed acquisition, if and when available, because it will
contain important information. Investors and security holders may obtain
a free copy of the proxy statement, if and when available, and other documents
filed by the company at the Securities and Exchange Commission's web site
at www.sec.gov. The proxy statement and such other documents may be obtained,
if and when available, from the company by directing such request to Global
ePoint, Inc. 339 S. Cheryl Lane, City of Industry, California 91789, Attention:
Investor Relations. A description of any interests that any of Global ePoint's
directors and executive officers have in the proposed acquisition is included
in a Current Report on Form 8-K filed with the SEC on June 3, 2005 and
will be available in the proxy statement.
This news release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, and actual circumstances, events or results may differ
materially from those projected in such forward-looking statements. Factors
that could cause or contribute to differences include, but are not limited
to, the risk that Astrophysics transaction may not be completed in 2005,
or at all; risks related to the inability to obtain, or meet conditions
to the consummation of the transaction, including approval by stockholders
of Global ePoint; risks related to any uncertainty surrounding the transaction,
and the costs related to the transaction; risks related to the integration
of Global ePoint's recently acquired operations; market acceptance of Global
ePoint's products; delays in the introduction of new products; production
and/or quality control problems; further approvals of regulatory authorities
and the denial, suspension or revocation of certifications and licenses
by governmental authorities; and Global ePoint's ability to obtain capital
as and when needed. For a discussion of these and other factors which may
cause actual events or results to differ from those projected, please refer
to the Company's most recent annual report on Form 10-KSB and quarterly
reports on Form 10-QSB, as well as other subsequent filings with the Securities
and Exchange Commission. The Company cautions readers not to place undue
reliance on any forward-looking statements. The Company does not undertake,
and specifically disclaims any obligation, to update or revise such statements
to reflect new circumstances or unanticipated events as they occur.
Contact:
Global ePoint, Inc.
John Price, 909-869-1688 ext 307
jprice@globalepoint.com
or
CEOcast, Inc. for Global ePoint
Ed Lewis, 212-732-4300
elewis@ceocast.com
Source: Global ePoint,
Inc. |
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