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VOLUME
04: ISSUE 57
Feature:
Who'll Kerry the day? Superclick updates Q3 business.
According
to a CNBC poll, 94 percent of respondents couldn't care less about political
conventions. Shame, really, given the challenges that the US faces. If
all the conventions do is focus the electorate on these challenges--specifically
the economic ones--these partisan love-fests will have proved their value.
Interest rate cuts are over--that's
the bad news--but given the state of the debt picture, investors can remain
relatively confident that rates likely won't rise precipitously. With total
debt--from federal to household--approaching $40 trillion, anything but
small, measured rate rises would be disastrous. In twenty years that total
debt figure has risen roughly 146 percent--adding $15 trillion in the last
half decade alone. Since 2000, household debt alone has risen 36 percent
or almost $3 trillion. That's nasty.
Livin', and the credit was easy.
Tax cuts are likely over as well.
Kerry would reverse the Bush cuts, probably raise taxes and, given the
state of the debt and deficits, Bush may have to as well. Again, if all
we get is a solid economic plan out of these conventions, they will have
been worthwhile. At this point, I don't actually care who wins--well I do,
but it's not about me--I just want some concrete actions, not just lame
proposals that will won't quickly reverse the carnage of the last few years.
I understand the geo-political and
economic challenges addressed over the recent past, but doesn't prudence
dictate that both governments and individuals take decisive action? Of
course it does. Debt has become a black hole for all the constituents and
needs to be dealt with and reversed before it becomes unmanageable--if it
hasn't already.
It's
darkest just before it goes completely (into) black.
Though
oft accused of being acerbic, even cynical, my experience tells me that
all of these economic impediments will be mitigated or dealt with eventually.
Hopefully over the next couple of months as Kerry and Bush delineate their
respective plans, the light at the end of the tunnel will look less like
a hurtling freight train. My contrarian's heart is actually quite excited
at the prospects for the market over the next few months.
When the market weakened a few months
ago, the economy was cruising along nicely. The market, then, foretold
of the perceived economic weakness we are now experiencing. The continued
weakness likely portends that we aren't out of the woods yet, but as the
summer wanes, I believe markets will see beyond the current malaise and
share prices will improve, as usual, when we least expect it. Markets always
tend to go lower than we would like and higher than we predict.
When things economic are at their
most ugly the patient, risk-oriented investor invariably makes more money
over time than those who wait for the relative safety of benign or improving
statistics. And I don't need to tell you how appealing prices are becoming,
especially smallcap names.
Super-Clicks...
Case
in point: Superclick (OTCBB:
SPCK), which has experienced the same weakness recently as just
about every stock from Microsoft (NASDAQ:
MSFT) on down.
After hitting $1.05 in June, the
shares succumbed, as has the rest of the market and drifted down to the
65-cent level. We mentioned previously that the shares should be
accumulated on any pullbacks and feel that this level certainly qualifies
as a point at which to add to or initiate positions.
The
press release below details the significant progress the company has made
in it's third quarter (ending July 31st) in attracting, installing and
growing its customer base. As stated in our June
25th piece, the company has given guidance that it intends to do
and hopefully exceed $2 million in revenue for FY 2004.
During its third quarter, the company
not only added several significant brand-name hotel properties to its client
list, but also increased its installed room base and properties installed
base by 45 and 40 percent respectively.
Investors would be well advised to
look beyond the current market weakness and consider the significant gains
in both customers and market share that this cutting edge technology company
has managed to sew up. We feel that Superclick will have little trouble
meeting or exceeding its stated goal of installations in 150 properties,
globally, by the end of 2004. The deal with Verizon has bitten and hopefully
updated numbers as to the form and effect of this relationship--as well
as others--will be further delineated when the quarterly numbers are released
in mid-August.
Now a diversified Internet access
provider to hospitality properties, Multiple Tenant Units (MTU) and commercial
institutions, globally, Superclick came out of nowhere less than a year
ago. Already, it has developed significant partnerships--including Verizon--and
has put both a management team in place and significant business on the
books; from a standing start to potentially $2 million in revenue in its
first year.
And, unlike the Federal Government
and most of us, Superclick has sufficient cash to fund itself, no current
financing plans and no debt.
Wish I could be in that kind of shape.
Press Release
SUPERLCLICK ANNOUNCES
THIRD QUARTER BUSINESS UPDATE
LAGUNA HILLS, Calif.,
July 26, 2004 (PRIMEZONE via COMTEX) -- Superclick, Inc. (OTCBB:SPCK)
today provided an update as to its progress over the third quarter. Chairman
Todd M. Pitcher, commented that "Our business continues to demonstrate
strong growth in the midst of improving, yet still challenging market conditions.
We believe this is largely due to the fact that our differentiated value
proposition is rapidly gaining recognition in the hospitality industry.
Namely, we are committed to both provisioning them with complete Internet
access and management solutions which are not only cost-effective but enable
them to better drive revenues by leveraging their Internet service infrastructure."
Quarterly Update Highlights
Superclick grew its total
installed rooms base by more than 45%
Superclick grew its total
installed properties base by more than 40%
Leading brands which adopted
Superclick's SIMS solution over the third quarter include Quality Suites,
Comfort Inn, Holiday Inn, Radisson, Best Western, Travelodge, Hilton, InterContinental
and Candlewood Suites.
"We are extremely pleased
with the management team's execution and the business results over the
third quarter as they both continue to validate our technology and importantly,
bode well for continued revenue growth and increased recurring revenue
going-forward," Pitcher added Superclick's third quarter ends July 31.
About Superclick, Inc.
Superclick, Inc. (OTCBB:SPCK),
through its wholly owned, Montreal-based subsidiary Superclick Networks,
Inc., develops, manufactures, markets and supports the Superclick Internet
Management System (SIMS(tm)) in worldwide hospitality, multi-tenant unit
(MTU) and university markets. Superclick provides hotels, MTU residences
and universities with cost-effective Internet access utilizing high-speed
DSL, CAT5 wiring, wireless and dial-up modem technologies. Superclick's
proprietary technology converts dial-up analog Internet calls to digital
access, improves connection speeds, unclogs local trunks, consolidates
Internet traffic, supports flexible billing and provides targeted advertising
to end-users. Current clients include MTU residences and Crowne Plaza(r),
Four Points by Sheraton(r), InterContinental Hotels Group PLC, Hilton(r),
Holiday Inn(r), Holiday Inn Express(r), Hampton Inn(r), Marriott(r), Novotel(r),
Radisson(r), Sheraton(r), Westin(r) and Wyndham(r) hotels in Canada and
the United States.
Safe Harbor Statement:
Statements in this press
release that are not statements of historical or current fact constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve
known and unknown risks, uncertainties and other unknown factors that could
cause the actual results of the Company to be materially different from
the historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which explicitly
describe such risks and uncertainties, readers are urged to consider statements
with the terms "believes," "belief," "expects," "intends," "anticipates,"
"will" or "plans" to be uncertain and forward-looking. The forward-looking
statements contained herein are also subject generally to other risks and
uncertainties that are described from time to time in the Company's reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE:
Superclick, Inc.
By Staff
CONTACT:
Superclick, Inc.
John Bevilacqua
Investor Relations
(866) 405-3959
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