Newsletter

Hortitech (OTC BB: HTIC) Stock Analysis

 
OTC Journal
January 21, 2000
Volume III, Issue 5

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

We've done very well for our members recently.  Our November profile, Blue Zone (OTC BB: BLZN) closed today at $9.375, an 87.5% return from the profiled price.  Our December profile, Pawnbroker.com (OTC BB: PBRR) closed today at $7.69, a 7.5% premium.  Envoy Communications (TSE: ECG), a company we have been featuring a lot lately, closed today at $9.25 today after hitting a new all time high of $10.25 earlier in the day.

We've decided to think of our January Profile as our "JUST IN CASE" company of 2000.  We believe everybody should have at least a small amount of stock "JUST IN CASE" they really have developed the technology they say they have.  If they have it they will revolutionize the Microprocessor as we know it today.

Hortitech (OTC BB: HTIC)

According to an press release issued by Hortitech Wednesday, January 19th, they have signed a letter of intent to acquire 100% of the shares of NV Memory, Inc.  The press release further goes on to state that a special shareholders meeting will be held on February 1st to ratify the transaction, and a new Board of Directors will be appointed at that time.  Click Here to read Press Release.

The new company will be called MicroAccel, Inc, and there will be a symbol change associated with the new company.  Please keep in mind that Hortitech, the public company that you can invest in, does not own NV Memory as of the date of this publication.  However, we believe it is highly likely that this transaction will go smoothly, and Hortitech will become MicroAccel, Inc in early February.  If for any reason this transaction does not go through the stock will probably go down in value.

Before we start telling you about the revolutionary new technology that MicroAccel, Inc has developed, there are a number of disclaimer type statements we are compelled to provide.

First, nearly all the information we will provide for you concerning this technology has come to us in several interviews with Donald S. Stern, the developer of the technology and long time Silicon Valley veteran.  We have not seen it work, and there is no published information available on this technology.  Normally we recommend that you uncover third party verification for every statement we make.  In the case of Hortitech this will not be possible.  Therefore, if you have a more conservative outlook on investing it might be prudent to wait for verified facts to be published.  Other than experts that have examined the technology on behalf of Hortitech, no one will see the specifications on this until after a patent application has been filed.   Mr. Stern told us that the patent application is being worked on now, but he would not commit to a projected filing date.

We will be describing the technology of MicroAccel as it has been described to us by Mr. Stern, but Hortitech does not own this technology today.  They will not own it until after the February 1st shareholders meeting to ratify the transaction, and it is possible that something could derail the merger.

When we agreed to profile this company we made it a condition that we be the first to provide information on their technology to the investing public.  We wanted our members to read about this technology before any other formal publication.  This stock traded 4 million shares yesterday, so obviously the cat is out of the bag and someone knows about it.  However, we are the first to actually publish information about this.

Bear in mind that it is the theme of this newsletter to uncover investment opportunities that you would not be likely to find out about on your own through the Main Stream financial media.  Typically, these types of opportunities are very risky, but can be highly rewarding to early shareholders with one to two year's patience.

Quick Overview of the Microprocessor

The first Microprocessor or Computer chip was introduced by Intel (NASDAQ: INTC) in November of 1971.  It contained 2300 transistors, and could process 60,000 calculations in a second.

Today's microprocessors are the most complex product ever mass produced, and have 5.5 million transistors processing hundreds of millions of calculations per second.  The microprocessor is the brains of the computer, and Intel now has many competitors.

Microprocessors are the brains for nearly all electrical devices today.  Your car, cell phone, and calculator all depend on microprocessors to function properly.

Inefficiencies of the Computer

All the calculations being performed by the microprocessor need to be stored in the memory of your computer.  They can be stored in your RAM (Random Access Memory) for quicker access with no permanent memory, or they can be stored on your Hard Drive.

Today's high speed chips have gotten way ahead of memory in terms of performance.  The chip is processing information much faster than the memory can record it.  Furthermore, your RAM is volatile, meaning that it requires a power source to maintain its memory.   Your hard drive is non-volatile after information is recorded on it, meaning it will not be lost if you lose your power source.

The SemiConductor industry is struggling to create memory that will keep up with the speed of today's microprocessor.  In early October a consortium was formed by Intel, Hyundai Electronics, Infineon Technologies, Micron Technology Inc, NEC, and Samsung Electronics to start discussing the need identify a next-generation memory.

The Solution

Donald Stern believes that he has developed a solution to the memory problem.  Mr. Stern has developed a nonvolatile Computer Chip that contains its own memory.

He believes that eventually this technology will replace all the memory devices in your computer and every other electronic device that has microprocessors.   It will replace your RAM and your hard drive, and require no power to do so.

He also believes that this new technology will solve all the power source problems in portable devices since the memory is non-volatile and therefore requires no power to work.

He visualizes a future where computers don't have RAM or Hard Drives.  Computers will have circuit boards with microprocessors that remember their own calculations and programmed commands.  This memory will require very little space and no power.  The circuit boards will contain a series of interconnected microprocessors that will have many Gigabytes of memory, therefore fully replacing the hard drive.

Here is an excerpt taken directly from literature provided to us by Mr. Stern which describes the technology in the company's own words:
 

NV Memory, Inc. is developing a new type of nonvolatile computer memory that is a singular solution for the computer memory needs of the 21st century.  NV Memory’s nonvolatile memory is more reliable, faster and requires less power than Flash RAM, S-RAM or D-RAM.  This nonvolatile memory can simultaneously serve the functions of all types of computer memory: RAM, ROM, E-PROMs, fixed and removable magnetic and optical disk and cartridge drives.

NV Memory’s proprietary principles in memory circuit design and functionality have given rise to an entirely new and unique memory cell that achieves non-volatility with less operating power and at higher speeds than any prior technology.  NV Memory’s memory cell achieves these advantages with less circuitry than S-RAM, which means less architectural overhead, better circuit integrity, higher manufacturing yield and lower cost.

NV Memory meets the market’s needs for higher speed, more capacity, smaller size and less power.  NV Memory’s micro-circuitry can be densely packed, vertically stacked, and automatically error mapped to create continuous, nonvolatile memory arrays (chips) with virtually any desirable capacity, giving chip foundries (Fabs) the advanced technology they seek in order to secure their future in the marketplace.

NV Memory can retain data and operate flawlessly (almost indefinitely), read and write at high speeds, and fit many gigabytes into a small, portable, solid-state drive.  NV Memory’s nonvolatile memory is optimal for Intel’s new generation of always on? computers and is fundamental to the advancement of new technologies like digital 3D and robots that require large amounts of high-speed memory.  NV Memory is also ideal for portable computers, telecommunications, aerospace, medicine, education, the motion picture industry, video-on-demand and every memory application wherein speed, capacity, size, power-consumption, non-volatility, portability, reliability, and durability are taken into consideration.
 

How many times has your computer frozen or shut down it the middle of important work?  When you finally got it rebooted you lost all your work that had not been saved.

This non-volatile chip with memory will not lose this information.  When you get your computer up again your work will be just the way you left it.  Because it requires no power it is ideal for portable devices.  How would you like to own a lap top that is one half the weight of current models and doesn't need its batteries recharged for a full month?

Current State of the Technology

According to Mr. Stern, there is currently a working model of this new technology.  He described it as a "Bread Board" circuit.  It is not a true prototype because it was assembled from parts.  However, it is a micro circuit that has been assembled with bits of silicon.  Therefore, it is a wafer with circuits just like the ones in your computer.

The current working version only contains 4 bits of memory, which is next to nothing.  However, he anticipates that future versions will be upgraded with substantially more memory.

Original development of this technology grew out of demand for High Speed Multi Media applications from the movie industry.  He originally came up with the concept in 1982, but it lay dormant until 1997 when development work began in earnest.

Business Model

Management of MicroAccel does not intend to fully develop this technology and then try to dominate the world of computer components.  They intend to continue developing the technology while seeking out partners to whom they will license the technology.

Therefore, once a partner is licensed, millions of dollars will undoubtedly be committed to research and development which will accelerate development time.

Mr. Stern anticipates that the first commercial introduction of computer chips that contain their own memory will occur early next year.  If you don't understand the business model of licensing patented technology, take a look at the meteoric rise of Qualcomm (NASDAQ: QCOM) in 1999.  QCOM derives much of its profits from royalties and licensing fees on their patented CDMA wireless technology.

Management

At this point all we know is that Mr. Donald S. Stern will be the CEO of the Company.  At the upcoming shareholders meeting a new board will be elected, and hopefully there will be some high powered names in the Microprocessor industry appointed and willing to serve.

Since all of our information on this new technology came directly from Mr. Stern, it would be appropriate to review his professional history.

He was educated at the Ohio School of Technology and The University of Kentucky.

His Silicon Valley career began in 1979 at Amdahl Corporation.  He was with them until 1984, and then moved onto Indisys, DCA/Forte, Novellus Systems, Acume Tehcnologies, KnowledgeWare Inc, TV Interactive Corporation, Applied Process Technology, and finally Cisco Systems where he is currently employed.

We have reviewed a bio that covered all the projects and accomplishments of this lengthy technology career.  His five years at TV Interactive Corporation are where he first developed the concept.  During this time he developed and manufactured the 3-D Joystick for the popular Sega Games and simultaneously began to develop the concept of non-volatile memory within the microprocessor.

Conclusion

This is a high risk situation.  Now that you have read it you can understand why we are referring to it as our "Just In Case" pick of 2000.  You have to consider owning this stock at this early stage "Just In Case"  the acquisition of MicroAccel goes as planned on February 1st, and this technology is patented and then commercially developed.

There are many risk factors.  If they don't have this technology or it cannot be commercially developed it is likely that you will lose money if you invest in the stock.  It may take five years longer than Mr. Stern anticipates to have a commercially viable product, and who knows where the stock could go in that time frame.

On the other hand, if they do have this technology, and they can develop it for commercial application, the potential value for this stock over the coming years is unlimited.  The company will be worth billions.

If you are concerned about the entry level price we have no comment.  This stock was $8 earlier in January, and the $200 million market cap at the date of this publication is a non-event as far as we are concerned.  We believe that if Wall Street believes that they have this technology, and it can be commercially deployed, a one billion market cap will be just the beginning.  However, it could be a long road to that point or they may never reach it.  It may be early for us to write about this Company, but early stage/high risk is our theme.

Please examine your tolerance for risk before you invest in this stock.  Don't invest more than you can afford to lose, but you might want to invest "Just In Case".



Disclaimer

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 $100,000 to publish information on Hortitech for a period of one year.  The fee has been paid by the Investor Relations Group acting on behalf of Hortitech.  SSP Management has no formal direct affiliation with Hortitech.   The OTCjournal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein.

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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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