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VOLUME
05: ISSUE 56
Feature:
Superclick - Selling Overdone. Xtreme - Big Time Deal.
Over
the last couple of weeks, the shares of internet solutions company Superclick
(OTCBB: SPCK)
declined nearly 40 percent for no substantive reason that we can ascertain.
We think there is a great opportunity to pick up shares at these depressed
levels, which haven't been seen in over a year. And we're confident
that investors who follow this unique company will agree the distance that
the company has come in that year warrants a markedly higher share price.
We
continue to suggest accumulation of Superclick shares at these levels and
on any further dips both for trading opportunities as well as long-term
investment potential.
The chart should be of keen interest
to investors. Fundamental reasons for purchase follow.
As you can see by the weekly chart
shown, the shares have been pounded. We believe that the longer-term picture
evidences an excellent risk/reward entry point, as the current price is
right around July 2004 level. The large volumes that accompanied this pullback
lead us to further believe that the shares may be in line for a good bounce
after the recent capitulation. Decent momentum may well take the shares
up to eventually retest the 2004 high north of $1.10.
Price down 40 percent. Company
40 percent larger. Huh?
Doesn't appear to make a lot of sense
to us either. The company recently announced a Letter of Intent to acquire
private Atlanta-based Hotel Net LLC. When consummated, the deal would increase
SPCK's installed footprint by 40 percent to 75,000 rooms.
The deal with Hotel Net is for 4.75
million SPCK shares and while dilution concerns might have been partially
--albeit wrongly in our opinion--responsible for the initial price decline,
we feel that the pullback has been way overdone and that the shares represent
compelling value here; both for the growth the company has enjoyed over
the last year as well as the benefits from this strategic acquisition.
Needless to say, we're expecting
more news from Superclick and are confident that those risk-oriented investors
who take advantage of this pullback will be pleased that they did.
We've been covering SPCK since February
2004 at 46 cents. Lots of trading opportunities have appeared, but the
bottom line is that the growth and potential of this company should well
see good gains in the near future as the company continues to execute.
XTREME
Inks Distribution Deal with Z Yachts
An
impressive sale and distribution deal with Georgia-based Z Yachts, a nationwide
brokerage for recreational boats and Xtreme (OTCBB:
XTME) was announced earlier today (release below). 'Z' is
in 17 states and has a network of 50 brokers responsible for marine basin
penetration nationwide. Z Yachts will distribute Xtreme's high quality
Challenger line of boats through its network as well as its security/patrol/rescue
First Responder watercraft.
The
relationship will put the Challenger line of quality boats in front of
a significant number of boat buyers on a daily and ongoing basis. Z Yachts
also boasts a significant used boat inventory under contract, which is
currently valued at over $60 million.
Make no mistake as to the significance
of this relationship. The more and motivated boat buyers exposed to the
high quality and competitively priced Challenger line, sales are bound
to increase significantly.
We mentioned XTME's potential in
our July
8th piece. We expected more sales and distribution deals, and we--as
well as shareholders--were not disappointed. Not only will the exposure
increase; other dealers will likely see the quality and interest in the
Challenger line, which we believe will translate into more distribution
deals down the road.
Z Yachts is a full service brokerage
arranging financing, warranties, insurance and USCG documentation. We believe
that this deal will markedly increase Challenger's market penetration and
sales will increase nicely as a result.
For a peek at the potential future,
investors should look at the stats and share price chart for MarineMax
(NYSE: HZO), arguably
the largest boat dealer/broker in the US. SmallCap actually profiled the
company in April
2003 at $11. The shares are trading at $33.50 today.
The recreational boat market is one
of the most attractive sectors to benefit from the rising baby boomer demographic
looking for ways to spend and enjoy their retirement funds.
We feel that for those looking for
a growing company in the leisure sector, XTME shares represent a decent
speculation within a demographic that will grow exponentially over the
next decade-plus.
PRESS RELEASE
JULY 26, 2005 - 07:00
ET
Z Yachts Inks Distribution Deal
with Challenger Offshore Manufacturer
ALPHARETTA, GEORGIA--(CCNMatthews
- July 26, 2005) -
New Partnership Allows
Z Yachts to Significantly Expand Product Offerings
Z Yachts, Inc., a nationwide
brokerage company for recreational boats, has partnered with Xtreme Companies,
the exclusive distributor manufacturer of the Challenger line of boats,
to serve as a direct sales and distribution arm for Challenger and Extreme's
first responder line of boats. Z Yachts has traditionally focused on selling
pre-owned boats, but the new partnership will allow the company to sell
new boats directly from the manufacturer to its retail customers.
"This contract allows
us to expand into new boat sales in multiple markets, thus increasing the
presence of the Z Yachts brand," said James Weller, president of Z Yachts.
"In return, the partnership allows Z Yachts to act as a ready-made sales
network for Challenger Offshore boats, giving the manufacturer an active,
national sales force that is dealing with consumers shopping for boats
every single day. As we continue to grow, we are constantly looking for
companies to complement our brand and we feel that Challenger Offshore
brings the same dedication to quality and customer satisfaction that we
strive to achieve for our customers and our shareholders."
As part of the new agreement,
Z Yachts has appointed a manufacturer representative to work with Challenger
Offshore. This representative is responsible for working directly with
the manufacturer to ensure correct listing specifications, warranty and
other relevant information about each boat, while acting as a singular
point of contact with the manufacturer. Each broker in Z Yachts' national
network is able to market and represent the brand in a local market, but
each sale will be coordinated through the manufacturer representative to
ensure customer satisfaction in every aspect of the sale. Z Yachts' agreement
with Xtreme Companies became effective on July 1, 2005.
Currently a privately
held company, Z Yachts is preparing the necessary paperwork for a public
offering. The company expects shares to be trading by the first quarter
of 2006.
About Challenger Offshore
The Challenger Offshore
brand (www.challengeroffshore.com)
is produced by Xtreme Companies, based in Washington, Mo. For more than
two decades, Challenger has worked to produce the best high-performance
boats in the industry. Challenger boats, which have received worldwide
recognition, include high-performance boats and a variety of sport boats
and family cruisers - open bows, cuddies, deck boats, cabin cruisers, fishing
yachts.
About Xtreme Companies,
Inc.
Xtreme Companies, Inc.
is engaged in manufacturing and marketing of mission-specific Fire-Rescue
and Patrol boats used in emergency, surveillance and defense deployments.
The boats have been marketed and sold directly to fire and police departments,
the U.S. Military and coastal port authorities throughout the United States.
About Z Yachts, Inc.
Founded in 2002, Z Yachts
is a full service marine brokerage currently operating in 17 states with
pre-owned boats under listing contract totaling more than $60 million.
The company maintains one of the largest levels of listing inventory in
the pre-owned marine industry today and also sells related products including
several brands of new boats and trailers, and charter services for yachts
in the Caribbean. Additionally, the company arranges related boat financing,
insurance, extended service contracts and USCG documentation services.
With a network of almost 50 brokers tasked with penetrating local marine
basins in their respective areas, Z Yachts acquires new listings every
day and closes boat sales daily during boating season. For additional information,
please visit www.zyachts.com.
Safe Harbor
This press release contains
or may contain forward-looking statements such as statements regarding
the Company's growth and profitability, growth strategy, liquidity and
access to public markets, operating expense reduction, and trends in the
industry in which the Company operates. The forward-looking statements
contained in this press release are also subject to other risks and uncertainties,
including those more fully described in the Company's filings with the
Securities and Exchange Commission. The Company assumes no obligation to
update these forward-looking statements to reflect actual results, changes
in risks, uncertainties or assumptions underlying or affecting such statements,
or for prospective events that may have a retroactive effect.
Z Yachts, Inc.
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