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VOLUME 08 : ISSUE 61
In
This Edition...
I
love these double-barreled days, where not one but two of our small cap
followings release some kick-butt news. And I mean just that - both
announcements have serious revenue implications.
If
you're an owner of Bio-Matrix or Voyant, I think you're going to be quite
glad you are. If you're not an owner of either stock, well, today's
edition might convince you to become one.
Voyant's
Aviation Broadband Takes Flight ...Literally
Remember
last week when I mentioned Voyant
International's (OTCBB: VOYT) revamp of their 'aviation broadband'
seemed like a subtle hint the project was getting closer to the end goal?
Today's announcement further cements the notion; I think Voyant is getting
real
close to monetizing broadband access on passenger jets.
In
a nutshell, the technology works in a real-life (airborne) setting.
A test
was recently completed to ensure a plane's broadband antenna could stay
connected to a ground-based network. There are more tests and tweaks to
be done, but as I see it, the big hurdle has been jumped...it's viable.
The
press release did us all another favor though - me, in particular.
One
of the things I've been wrestling with is determining just what kind of
potential revenue could be generated with this venture. Fortunately, a
third party did the deed for me. A report from MultiMedia Intelligence
said aviation broadband is expected to be almost a $1 billion industry
per year by 2012. Nice, especially when Voyant's current market cap
is right at $20 million, and they're still basically pre-revenue (nowhere
to go but up).
The
thing is, even if the MultiMedia Intelligence report is only half right
- and the opportunity is only $500 million per year - that's still
a good-sized pool of money for Voyant to capture a piece of.
The
company still has all the other pieces of the revenue pie in development.
I think aviation broadband is the big enchilada though. The potential
numbers sure say it is. If it is, then Voyant's starting to take some
huge steps.
Now,
as for the stock, I'm looking for fireworks in the very near future...maybe
today.
After
peaking at 31 cents in late May, we've watched this stock settle back into
what has become a wedge. There are two of them actually, though
both share the same upper edge (the falling resistance line). As far as
wedges or triangles go, either is pretty ordinary.
So
what's this got to do with expecting fireworks? As most avid chart-watchers
will tell you, periods of low volatility are followed by periods
of high volatility, and vice versa. With both of the triangles getting
close to the tip, something's got to give soon. Usually when it does, it
does so in a big way.
What's
not
perfectly clear is which direction the wedge will send VOYT once the
coiled spring is released. In light of today's good news though, I've got
to think the pressure is going to be bullish. A break past resistance at
17 cents could really get the stock moving upward.
Bio-Matrix
Lining Up More Revenue Streams
Our
initial attraction to Bio-Matrix
Scientific Group (OTCBB: BMSN) in March was founded on the idea
of the company receiving a tissue bank license, and becoming a cryogenic
storage facility for adult stem cells. We estimated the potential annual
revenue for this venture to be somewhere in the $30 million neighborhood.
Not bad, considering they've had no serious revenue at all yet.
The
next big step the company needed to take, of course, was getting
said license. There's still no official word yet on when this might happen.
However, that hasn't stopped the company form moving forward with the
'business building' process...an encouraging sign.
The
best news of all? They gave us some numbers to work with.
Per
the press release, Bio-Matrix is in talks with four potential stem cell
storage customers. If all goes well, they're looking at storing up to 15,000
peripheral blood specimens at a time for these four outfits.
We're
also getting specifics on what each specimen might represent in terms of
revenue. For the first year, each unit could create about $650 in sales
(which
I believe includes the annual storage fee, plus some initial processing
fees). Multiply that by 15,000, and you come up with $9.7 million in
'first year' revenue.
And
that's just for starters. Don't forget, Bio-Matrix has the capacity to
store hundreds of thousands of samples indefinitely. Frankly, that's the
exciting part to me - easy recurring revenue once the initial processing
is completed.
But
wait - it gets even better.
Bio-Matrix
is also talking with a potential customer in need of cord blood specimen
storage. All told, this organization may need 38,000 samples tucked away
at Bio-Matrix's facility over the next twelve months. Assuming a similar
cost structure, their 'first year' potential tacks on another $24.7 million.
Knowing
all of this, now our early expectation of $30 million in revenue for the
first operational year seems plausible....even likely.
As
far as our readers are concerned, this doesn't really change anything.
We already knew this was the scope of the opportunity. To the rest
of the market though, the news may make the company 'real' enough to spur
some buying.
And
technically speaking, now may not be a bad time to do so. BMSN has eased
off the recent high of $1.29 to yesterday's low of 85 cents ...almost a
perfect 38.2% retracement. I can see the combination of that dip and today's
news stirring up the next round of buyers.
Here's
the Voyant news.
Voyant
Successfully Completes First Flight Test of Aviation Broadband Technology
Test represents
an important step toward commercializing true in-flight broadband service
for air travelers.
Mountain View,
Calif. and Melbourne, Fla., July 9, 2008 - Voyant
International Corporation (OTC-BB: VOYT), a diversified media and technology
holding company dedicated to improving the quality of the digital world
for businesses and consumers, announced today that it has successfully
completed the first of a series of flight tests in the development of its
aviation broadband service. With this service, Voyant intends to offer
commercial airplane passengers a true in-flight broadband experience, with
significantly higher bandwidth than competing narrowband services. While
giving airlines new ways to enhance customer satisfaction, the service
will also provide new revenue opportunities to the air carriers.
The in-flight
tests verified the successful transmission of packet data and streaming
video over a high-frequency link from an airplane to a fixed location on
the ground in a real-world, air-to-ground, long-distance environment. The
test results will be used by engineers to continue evolving the design
of the Voyant aviation broadband solution. Voyant intends to install its
service on commercial airplanes in order to provide broadband connectivity
at data rates as high as 10 to 35 Mbps to each airplane.
"There are no
substitutes for actual flight tests," observed Ed Gerhardt, Voyant's general
manager of wireless systems. "This first airborne test validates much of
our design and consequently represents a significant milestone in the development
of our aviation broadband solution. We are quite pleased with the outcome
of these tests."
"Airlines are
telling us that the narrowband links being contemplated or trialed on airplanes
today are insufficient to truly meet their passengers' needs going forward,"
added Steffen Koehler, chief marketing officer for Voyant. "Market research
suggests that passengers will demand a broadband experience comparable
to what they experience in their offices and homes. Anything less will
lead to customer disappointment.
"Voyant's Aviation
Broadband aims to deliver a high-performance broadband solution to commercial
air travelers," Koehler continued. "Our world is fast becoming a global
culture. Because so many people spend large amounts of precious time in
flight, many valuable hours are wasted every day that could be spent in
a more entertaining or productive fashion. Air travelers today are isolated
from the happenings of the world for the period of time they are in flight.
With a true aviation broadband service, they can instead forward a business
proposal, edit a presentation or legal contract, trade in the financial
markets, send a photo to a friend or family member, or simply watch video-on-demand."
The aviation broadband
industry is expected to reach $936 million by 2012, according to a recent
industry report from MultiMedia Intelligence. "As soon as air travelers
can replicate the quality of service they experience in their homes and
workplaces," declared Koehler, "this market is likely to accelerate. Voyant
has recently launched a website for its Aviation Broadband business, which
can be found at http://www.voyant.aero.
About Voyant
Voyant is a media
and technology holding company focused on bringing innovative technologies,
media assets, and strategic partnerships together to deliver next-generation
commercial and consumer solutions to empower, enhance, and enrich our digital
world. The company works with strategic partners in the technology and
entertainment sectors to locate, partner with, and acquire complementary
technologies and media assets that position the company in the value chain
from content creation to direct distribution to the consumer. More information
can be found at http://www.voyant.net.
To receive public information, including press releases, conference calls,
SEC filings, profiles, investor kits, news alerts and other pertinent information,
please register at http://www.voyant.net/investorpass.
Safe Harbor
This news release
contains forward-looking statements, including but not limited to, those
that refer to the company's future development plans or operating results.
Actual results could differ materially from those anticipated due to risk
factors that include, but are not limited to, lack of timely development
of products and services; lack of market acceptance of products, services
and technologies; adverse government regulations; competition; breach of
contract; inability to secure sufficient capital for continued operations;
inability to earn revenue or profits; dependence on and retention of key
individuals; inability to obtain or protect intellectual property rights;
lower sales and higher operating costs than expected; technological obsolescence
of the company's products; limited operating history and risks inherent
in the company's markets and business and other factors discussed on our
website on the "Investors" page, in our most recent Annual Report on Form
10-KSB and our Quarterly Reports on Form 10-QSB filed with the SEC. Investors
are advised to read our Annual Report, quarterly reports and current reports
on Form 8-K filed after our most recent annual or quarterly report. The
forward-looking statements in this press release represent our current
views as of the dates of individual pages and we disclaim any obligation
to update these forward-looking statements.
###
Media and Investor
Contact:
Sean Collins
CCG Investor
Relations
310-477-9800,
ext. 202
Sean.Collins@ccgir.com
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