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Today was the day. In my view, today
was capitulation day for both the markets and for my favorite company,
Spicy
Pickle. The stop and reverse in that stock today was absolutely picture
perfect. It has been trading down of late as all the buyers who bought
it because it was going up have been sellers as it has been going down.
I know a lot of you have been looking for a lower risk entry point in the
stock- I believe today might have been the day. Read today's BLOG
for my thoughts. Now, you have a lower risk entry point. If you've taken
partial or full profits, time to take another look. Time to step back up
to the buffet for second helping of profits.
The BLOG is your opportunity
to ask questions and offer comments. I will make an effort to answer every
legitimate question. If I don't know the answer, I will contact the management
and get the answer. Alternatively, if you have questions you don't want
publicly displayed, you can always email me directly at editor@otcjournal.com.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG scrolls down from the upper right hand corner. The most
current journal entries appear on the right hand side of you screen. Check
back frequently for updates particularly when stocks are moving to overbought
or oversold levels in volatile markets.
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TraceGuard Systems
(OTC BB: TCGD): Now You Know Why |
|
TraceGuard, which was a bit
problematic out of the gates thanks to lousy timing on the trading side,
has turned around in the last couple of days, bucking the free fall in
the market. We're nearly back to where we started in the $.90 to
$.95
range, and could move into the black tomorrow based on today's post close
news.
A got a few emails from disciples
wondering why I would be covering a pre-revenue company like TCGD.
Sometimes I hear stories from management and they deliver the goods. Sometimes
they don't.
TCGD has already delivered
on one of their promises to me, which leads me to believe there could be
more to come. Those of you who read the original presentation know TCGD
has developed a machine to replace those swabs tests you see used at the
TSA
Security checkpoints in our airports. It takes 45 seconds from start
to finish for this machine to check your briefcase for explosives or toxic
chemicals- a huge time and efficiency savings. They have now proven it
works at Tel Aviv's Ben Gurion airport- widely considered the most secure
airport in the world.
Today, post close, TCGD announced
it has entered into a Letter of Intent with Smiths Detection. According
to the press release, Smiths Detection will be working towards a
definitive marketing agreement to get TCGD's products in front of
aviation and homeland security customers.
Two issues- first, who is Smiths
Detection?, and secondly- is a Letter of Intent worth acting on, as
it is not a binding contract- yet.
First- who is Smiths Detection?
You
might not know the name as it is not a household name in the US, but it
is in the United Kingdom. Smiths Detection is the second largest
company in the world in the homeland security and terrorist detection
space. It is second only to General Electric.
Pictured here is a typical airport
terminal, and Smiths Detection makes products that go everywhere
you see the orange dots. Security checkpoints, cargo, video surveillance:
you name it, they do it.
They are #2 in the world. I looked
up their numbers- they delivered 437 million pounds in revenues
in homeland security sales in fiscal 2007 which ended at the end of July.
I'm not sure how pounds translate to dollars these days, but I'm sure they
would rather be paid by the TSA in pounds.
How about the Letter of Intent? LOIs
are not binding contracts, so there is another step to go. However, the
press release states that Smiths will first help them get their
current machines to market, then look at integrating their unique explosive
detection technology into existing Smith detection systems- i.e.
the conveyor belt/x-ray machines your carry on bags and shoes through.
Smiths
makes a lot of the ones you see in airports.
Since it's not a binding contract
yet, there is still an element of risk that it might not come to fruition.
That's the nature of risk. You step in an own the stock before it is proven.
Then, once it is proven out, someone who is more risk averse is willing
to buy your stock at a higher price.
I realized this would probably be
a longer term idea as it is a pre revenue company. The stock sold off on
us out of the gates, but in the past week has been rebounding quite nicely,
as no doubt word was starting to circulate about their pending partnership
with Smith Detection, one of the behemoths in the industry.
Today's announcement makes the stock
less risky. A marketing partnership positions TCGD to deliver growth
much sooner than originally anticipated. If anyone can get their product
approved for sale to the TSA and the Israeli version of the TSA is pretty
short order, it's Smiths Detection.
Here's the absolute bottom line on
this one. Sometime next year, you could be going through security at a
US Airport, and they could put your briefcase in a TCGD detection
machine, which will take 45 seconds of your time. If it happens that way,
it will be too late to own the stock for the big gains. They will already
have been notched by investors at today's levels.
Now you know why I'm covering this
one. It's the real deal in new airport security technology, and a myriad
of other future applications.
Here is today's press release for
your review:
| Press Release Source:
TraceGuard Technologies Inc.
TraceGuard Technologies
Signs Letter of Intent with Smiths Detection
Thursday November 8,
4:01 pm ET
Companies Intend to Work Together
on Product Marketing and Co-Development
NEW YORK--(BUSINESS WIRE)--TraceGuard
Technologies Inc. – (OTC BB:TCGD - News), a developer of innovative systems
and solutions for improving detection of explosives and hazardous materials,
announced today that it has signed a Letter of Intent with Smiths Detection,
a world leader in airport and critical infrastructure security screening
systems.
Under the Letter of Intent,
Smiths and TraceGuard will work exclusively towards bringing about a definitive
agreement to accelerate TraceGuard’s Automated Trace Extraction (ATE) route
to market. In the first phase of the definitive agreement, the companies
would cooperate in marketing TraceGuard’s CompactSafe ATE system to select
aviation and homeland security customers.
Additionally, TraceGuard
and Smiths Detection may cooperate on integration of CompactSafe and other
TraceGuard products and capabilities for improving and automating trace
sample collection with Smiths Detection’s IONSCSAN IMS explosives trace
detectors.
Tony McEnroe, Smiths
Detection’s Vice President of Business Development stated:
“After an extensive review
across the sector, we concluded that TraceGuard offers considerable attractions
as a partner for developing enhanced capabilities in explosives detection
for homeland security. We look forward to working closely with TraceGuard
in the months ahead to explore the development of new and complementary
solutions for segments of the homeland security market.”
Dr. Ehud Ganani, TraceGuard’s
Chairman and CEO commented:
“Smiths Detection is
the global market leader in detection and we are proud to be working with
them. Combining TraceGuard’s own technological strengths with Smiths Detection’s
experience and extensive capabilities in the homeland security market offers
considerable synergies. We look forward to working together to develop
further breakthroughs in the explosives detection field.”
About Smiths Detection
Smiths Detection is part
of the global technology business Smiths Group. It offers advanced integrated
security solutions for customers in civil and military markets worldwide
and is a leading technology developer and manufacturer of sensors that
detect and identify explosives, chemical and biological agents, weapons,
and contraband. Its advanced technology security solutions also include
Smiths Heimann x-ray imaging systems, millimeter-wave technology and a
specialist software supply business for the management of large sensor
and video surveillance networks. Separate business units focus on related
products for the life sciences, and food manufacturing industries. For
more information please visit www.smithsdetection.com
About TraceGuard
TraceGuard Technologies
develops innovative security technologies and solutions for enabling explosives
detection through automated trace extraction. By advancing the efficacy
and efficiency of trace collection, TraceGuard’s product suite offers dramatic
improvement over the current mechanisms in place at present.
TraceGuard is a US public
company traded on the Over-The-Counter Bulletin Board (OTC BB:TCGD - News).
TraceGuard maintains a Research and Development Center in Tel Aviv, Israel
and has a Sales office in New York. For additional information on TraceGuard,
please contact TraceGuard at 1 866-401-5969 or visit www.traceguard.com.
Some of the statements
in this press release contain forward-looking statements that involve risks
and uncertainties. You can identify forward-looking statements by words
such as "may," "will," "should," "expect," "plan," "could," "anticipate,"
"intend," "believe," "estimate," "predict," "potential," "goal," or "continue"
or similar terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors, including, but
not limited to, the risks outlined in our filings with the US Securities
and Exchange Commission, that may cause our or our industry's actual results,
levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. For example, risks
that could cause actual results to vary materially from future results
include, but are not limited to: our lack of an operating history, issues
related to intellectual property infringement, issues relating to the introduction
of our products in target markets, the need to raise capital to fund operations,
our dependency on key personnel, approval of our products by regulatory
authorities, matters related to the location of our operations in Israel,
the extent of competition; technological developments in our target markets
and the development of alternate, competing technologies in them; and sales
of shares by existing shareholders. Although we believe that the expectations
reflected in the forward looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
Contact:
For Smiths Detection:
Laura Peek
+44 (0)20 8457 8238
+44 (0)7970 176314
or
For TraceGuard:
Investor Relations:
TraceGuard Technologies
Inc.
David Ben-Yair, CFO
+1 866-401-5969
david.ben-yair@traceguard.com
or
Media/Press:
Eric Leskly
Director, Marketing
and Business Development
+1 866-401-5969
eric.leskly@traceguard.com
Source: TraceGuard Technologies
Inc. |
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