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Special
Alert: NetWork Installation Completes 2 for 1 Split |
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NetWork Installation announced
and completed a 2 for 1 split this morning. As a result, the symbol has
now changed from NWIS to NWKI. You now own
twice as many shares at one-half your former cost basis.
The stock is now trading at a multi
month high. The offer, as I write today's edition, is $1.65. This
equates to a pre-split price of $3.30, which is the highest the
stock has traded in quite some time.
Many quote and charting systems do
not have the most current data. Over the next several days it should all
populate the quote sites. Later this week I will publish a comprehensive
edition on the situation. I believe the stock could be getting ready to
trade back to former levels.
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Aegis Assessments
(OTC BB: AGSI) $12.50 One Year Price Target |
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Joe Blankenship, research
analyst for boutique brokerage firm Source Capital, issued a buy
recommendation on Aegis Assessments last week, and put a $12.50
one year price target on the stock. A PDF version of the report
has been posted on the OTC Journal web site, and can be accessed
by clicking
here.
Blankenship projects the company
will achieve $13.5 million in sales this fiscal year (end of July
'05), and deliver $.16 per share in earnings. He sees the company delivering
$.50
per share in earnings in fiscal '06, and arrives at $12.50 by
applying a 25 multiple to the stock. He also states other companies
in the space are currently trading at 41 PE's, making his price target
conservative as compared to Aegis's brethren.
Mr. Blankenship estimates the market
for the Aegis SafetyNet™ Radio Bridge system to be in the $1 billion
range, and take 10 years to fill. He points out there are 18,000 local
law enforcement agencies, 26,000 fire departments, and 6,000 emergency
medical responders. None of them has an effective method for talking to
each other at an emergency site. There is one available now.
The radio bridge product, which is
likely the best solution to the massive problem of First Responder interoperablity
communications, is now coming off the production line. The company is starting
to get some traction on multiple fronts.
The stock made a high of about $4.50
back
in May when the company announced an initial purchase order for 200 units
($2.4 million). After spending a several months gearing up for production,
the company is now delivering on the initial purchase order, and for the
first time has demo units to distribute to First Responders nationwide.
The LA Police and Fire Departments, along with the Anaheim Police Department,
are receiving demo units for field testing in the near future.
You are looking at the most current
picture of the Radio Bridge product as it is being marketed today.
It is now a DHS (Department of Homeland Security) approved product. You
can find it on the HMS Web site by clicking
here.
Today, just after the market closed,
Aegis
disclosed it has provided the Aegis SafetyNet™ Radio Bridge system
to the Department of Homeland Security/Immigration and Customs Enforcement
(DHS) in Miami, Florida to assist the DHS in its hurricane relief efforts.
The SafetyNet™ Radio Bridge interconnects incompatible radios and bridges
them beyond their normal capabilities to provide immediate radio interoperability
at an emergency site. Agencies are beginning to use the technology. Orders
will hopefully follow.
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Wireless
Life Safety Systems Being Installed in NY By Cushman & Wakefield |
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The Wireless Life Safety System is
the sister product to the SafetyNet™ Radio Bridge. This mobile device allows
First Responders (i.e. Police, Fire Fighters, Paramedics) to see inside
a building when they arrive at a disaster scene. The company is also starting
to gain some traction towards the eventual commercial deployment of this
technology.
The Wireless Life Safety System is
designed to help first responders at a high rise emergency. Once a building
has been fitted with battery powered, wireless, remote video cameras, First
Responders at the scene of a disaster can use this portable device to look
into rooms and hall ways without having to access the building's security
room which may or may not be available for use.
On August 23rd, Aegis announced
Cushman
& Wakefield would be installing the system in one of their mid
town Manhattan high rise office buildings. Cushman & Wakefield
is the world's largest privately held real estate services firm with a
reputation for investing in superior resources and technologies. Founded
in 1917, the firm has 164 offices in 49 countries and employs over 11,000
people. The firm's world headquarters is in New York City.
This first beta system will help
Aegis
prepare
the final system for market. They are testing in conjunction with a potential
large customer.
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Conclusion |
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The market is improving, and small
stocks are starting to firm up. WWAT- the subject of the weekend
edition, made a nice move today. The stock was up about 25% on 2.5 million
shares of volume, and closed back above the $.30 level.
As you can see from the chart, AGSI
has broken the multi month downtrend which began in earnest in June. The
rebound has been precipitated by improving market conditions, fundamental
developments, and the first recognition of the value of the company by
an independent outside source.
I have always thought the stock had
the potential to trade into the $8 to $10 range if the company could deliver
robust sales of both the Radio Bridge and Wireless Life Safety Systems.
Mr. Blankenship is more aggressive- he projects $12.50 for the stock over
the next year if the company can hit the targets he has projected.
Either way, the stock seems as if
it is poised to head for higher ground in light of current developments.
Now that they are delivering demo units to potential customers, orders
could help keep moving us in the right direction.
As far as recent press releases,
I could include the beta test with Cushman & Wakefield, or today's
release on the delivery of a unit to Homeland Defense for the hurricane
relief efforts in Florida. Instead, here is the recent press release which
matters to investors most:
| September 17, 2004 12:29
PM US Eastern Timezone
Source Capital Announces
Investment Opinion on Aegis Assessments Inc.: Initiating Coverage on Aegis
Assessments Inc. Buy Recommendation
NOTE TO EDITORS: The
following is an investment opinion issued by Source Capital Group Inc.
SCOTTSDALE, Ariz.--(BUSINESS
WIRE)--Sept. 17, 2004--Source Capital Group Inc. ("Source Capital") announced
today that it has initiated research coverage on Aegis Assessments Inc.
(OTCBB:AGSI) ("Aegis" or the "company") with a BUY recommendation. Aegis
designs and markets products that meet the need for improved coordination
and efficiency of first responders to emergency events, including homeland
security. The products are sold under the SafetyNet(TM) brand and include
its Radio Bridge, Mobile Command Post and Wireless Life Safety System.
"Our research indicates
that the Department of Homeland Security is working diligently to solve
the problem of first responder radio interoperability," stated Joe Blankenship,
vice president research for Source Capital. "There is a critical need for
improved coordination of different agencies at any emergency event, and
Aegis fills that need with its Radio Bridge, which can let responders on
different radio frequencies talk to each other," Blankenship continued.
"By linking police departments with fire departments and emergency medical
personnel, an incident commander can help to ensure the efficiency of the
emergency response as well an provide improved safety to the first responders.
This equipment is required for natural disasters, like the hurricanes plaguing
the Southeast, fires, hazardous waste spills and other emergencies as well
as for potential terrorist attacks."
"The company's Wireless
Life Safety System can augment current safety measures now being stipulated
by building codes that require radio interoperability in large buildings.
Scottsdale, Ariz., has been one of the first mover cities that have passed
such a code," stated Blankenship.
Aegis stock (AGSI - $2.45)
is selling at less than five times our fiscal year 2006 estimate of $0.50
per share in an industry that generally has much higher multiples for expected
growth.
Our 12-month price
target for Aegis stock is $12.50.
Source Capital Group:
Source Capital, headquartered in Westport, Conn., provides high-quality
independent investment services, removed from the typical Wall Street environment,
to individuals and institutions.
Contacts
Source Capital Group
Inc., Scottsdale
Joe Blankenship, 480-368-1488
Fax: 480-368-1319
jblankenship@sourcegrp.com
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