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VOLUME
04: ISSUE 19
Feature:
Superclick installations grow 55 percent. Overnight.
Two
weeks ago, we Alerted
SmallCap Digest readers to state of the art Internet access firm Superclick
Inc (OTCBB: SPCK).
We noted then that the company planned to triple its current installation
base of 55 properties to 150 by year-end 2004.
Well, it's only March and as the
attached press release notes, the company has secured an exclusive contract
for 30 property installations from international hotelier Westmont Hospitality.
Superclick will likely have to raise that 150 target. Upward.
In
fact, with 85 announced installations Superclick has more than surpassed
the halfway point of reaching its previous 150 milestone. And there's still
9.5 months left in 2004.
Accumulation of Superclick
shares between 50 and 65 cents is strongly recommended for risk-oriented
investors --based on the company's ability to acquire significant contracts
as well as the low penetration (4.5 percent) of the business travel high-speed
Internet access market.
With the recent announcement of John
Glazik as president and CEO, the company is well positioned to exceed its
goals for 2004. Mr. Glazik brings extensive senior management acumen by
way of substantial experience and expertise in the telecommunications and
technology sectors; with both startups and Fortune 500 companies.
The
other nugget in the announced contract represents an extension of the 14
Westmont properties already served by Superclick. There's little that speaks
better and highly validates a technology as much as the deepening of a
business relationship with an existing customer.
Westmont Hospitality holds ownership
interests in 250 hotels in North America and 130 properties in Europe.
More and more, business travelers
are seeking out (read demanding) robust and easy to use high-speed Internet
access when making hotel choices. This technology is quickly becoming not
only expected by travelers, but as a source of loyalty for both initial
and repeat bookings.
If
a property doesn't have high-speed internet access and the one across the
street does, the hotel will likely miss or lose the booking to that competitor
as well as the ever-elusive, highly coveted (and profitable) long-term
customer.
We firmly believe that Superclick
will exceed its stated installation goal of 150 properties by year-end
2004. Further, we believe that risk-oriented investors who begin accumulation
of shares now will participate in this growth as new contracts appear and
the company continues its R&D to stay well ahead of competitive offerings.
Speaking of competitors, there are
a few in the space and we will detail comparisons in future pieces. One
such company is Canadian firm Guest-tek that boasts 400 installations and
trades at a share price of C$8.50 ($6.40).
Back of the envelope calculations
for SPCK's share price potential: the market cap of Guest-tek is $85 million
and Superclick is $11.5 million. If Superclick merely hits its goal of
150 installations, that would make it roughly 40 percent of the size of
Guest-tek currently. With 23 million SPCK shares outstanding, at 40 percent
of Guest-tek's market cap, Superclick--with only 150 installations-- could
well rise to a market cap of $34 million, or around a $1.50 a share by
year-end.
Or
better.
As I said, back of the envelope,
as there are certainly other fundamental considerations. The point is that
given the values currently assigned to competitors, Superclick seems a
compelling value here.
Given Superclick's potential as well
its corporate progress to date, at least a modest position in the smallcap
portion of a portfolio appears to have a very decent risk/reward profile.
'Cause it likely won't be cheap forever.
PRESS RELEASE
WESTMONT HOSPITALITY SELECTS SUPERCLICK
NETWORKS AS ITS PROPERTY INTERNET SERVICE & SUPPORT PROVIDER
LAGUNA HILLS, Calif.,
Mar 11, 2004 /PRNewswire-FirstCall via COMTEX/ -- Superclick, Inc. (OTC
Bulletin Board: SPCK)
today announced that Westmont Hospitality has selected Superclick's SIMS?
Internet management solution exclusively for use in all high-speed and
low-speed Internet service deployments. Westmont's Director of Information
Technology, Steve Montague, stated that "At Westmont Hospitality, we are
committed to using proven technologies to ensure our guests have reliable
and effective solutions that they demand. The Superclick SIMS? solution
addresses several of Westmont's needs, including universal access to the
Internet via the Visitor Based Network (VBN) functionality, reduced trunking
requirements by re-routing dial-up traffic off the PBX and onto the Internet
where it belongs, and the ability to interact with every Internet user
in the hotel through the Superclick Portal."
According to Montague,
Westmont plans on placing orders for an additional thirty of its properties
over the second quarter to meet the demand for high-speed Internet service.
Increasingly, guests are basing their decision to stay at a hotel on whether
it provides high-speed Internet in each room. This dynamic is driving growth
in the marketplace and through its relationship with Westmont, and other
property management groups, Superclick is becoming increasingly well positioned
to expand its footprint. Superclick presently has completed fourteen installations
for Westmont. Westmont holds ownership interests in approximately 250 hotels
in the U.S and Canada, and approximately 130 European hotels.
"Being selected by Westmont
is an important achievement for Superclick, and a terrific endorsement
of our SIMS? Internet management and support solutions," commented Sandro
Natale, VP of Sales and Business Development, and continuing that "...our
history of effectively and efficiently delivering on previous Westmont
installations has resulted in renewed and greater commitments going forward."
About Superclick, Inc.
Superclick, Inc., through
its wholly owned, Montreal-based subsidiary, Superclick Networks, Inc.,
develops, manufactures, markets and supports the Superclick Internet Management
System (SIMS?) in worldwide hospitality and multi-tenant unit (MTU) markets.
Superclick provides hotels and MTU residences with cost-effective Internet
access utilizing high-speed DSL, CAT5 wiring, wireless and dial-up modem
technologies. Superclick's patented 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, Four Points by Sheraton, Hilton, Holiday Inn, Holiday
Inn Express, Hampton Inn, Marriott, Novotel, Radisson, Sheraton, Westin
and Wyndham hotels in Canada and the United States. For more information
please visit the Superclick website at www.superclick.com.
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 form
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.
CONTACT: Todd M. Pitcher
of Superclick, Inc., +1-858-518-1387, todd@superclick.com
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