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VOLUME 07 : ISSUE 115
MGRW
Adds Viability Via a Big-Name Partner
Score
another one for Marine Growth Venture's (OTCBB:
MGRW). Today's news adds a layer of credibility to the business
model, thanks to a partnership with a big-name company, and an even
bigger name behind that company.
Anybody
who's bought or used a timeshare before is probably also familiar with
the name 'Group RCI', or Resort Condominiums International. The
news is simple - Marine Growth Venture's cruise ship condos will be
eligible for Group RCI's 'points' program, which just means an owner's
annual access to their condo/cabin can be exchanged for points to stay
in other vacation spots within the RCI network. In other words, any owners
of these condos can trade their 'time' with other owners of RCI-affiliated
condos.
Folks,
that's huge news - the marketability of Marine Growth Venture's condo-ized
cruise ships just went up several notches thanks the RCI announcement
(and it was pretty darn marketable to begin with).
But
wait, the idea's endorsement gets even better.
What
most investors, and even timeshare owners, may not realize is that
Group RCI is a division of Wyndham Worldwide (NYSE:
WYN)...one of the largest hospitality-related companies in the
world! They did about $4.3 billion in revenue last year.
Let
me just say this about that figure - you don't drive more than $4 billion
in sales for any year in any business without knowing what
you're doing.
From
my investor-oriented point of view the announcement only has one clear
message - the idea is now being backed by one of the premier names in
the leisure/travel market, and the premier name in timeshare
exchange. I can't imagine Wyndham Worldwide or one if its divisions getting
behind something it didn't fully believe in. If they like the concept
of condominium cruise ships, then I like the investment.
Of
course, I'm under no illusion you're not wondering about the metrics. Here's
another synopsis of the 'numbers' just from the first ship in the timeshare
venture...
The
company is projecting revenues of $15 million for the boat they're already
selling timeshares for - the one that's in the RCI Group network as of
today. For comparison, the company's current market cap is just
a hair more than that figure. A forecasted price/sales ratio of about
1.0 with just one cruise ship (a small one at that)? The company is
looking to eventually do between 2 to 4 boats per year. You tell
me
what's not to like.
And
we've yet to factor in the other businesses they plan in cultivating in
the near future. Those include the supply and freight of construction materials,
marine financing, ship management, and floating casinos - all high-margin
stuff.
One
of the questions here continues to be the stock's spread - the difference
between the bid and the ask. The situation seems to be improving though
- we're now seeing a bid/ask of 70 cents/75 cents on a regular basis, which
is more in line with a float and cap of this size. I'm still not totally
crazy about the depth yet, as I know many of you were looking to take on
sizable positions. Be patient though, because we are getting there. Each
new layer of credibility like today's garners more interest, which is why
I'm not surprised the spread tightens up each time there's good news.
To
that end, I'll repeat an idea I've mentioned in passing a few times (just
because I feel it merits repeating)...
I
think MGRW is a potential supernova. That just means I think we're
all going to wake up one day and find this stock shining big and brilliantly,
based on a windfall top line. Liquidity won't be an issue then, though
you probably won't be able to scoop shares up for anything less than $1.00
then either. (Welcome to the world of trade-offs.)
Maybe
it will be tomorrow, or next week. Maybe next month. I don't know for sure.
However, I do know how tough it is to chase a shooting star once
it's in motion.
The
press release is at the bottom of this newsletter.
Smart
Energy Catches a Big One
Smart
Energy Solutions has been 'fishing' for a little over a year now, and they've
really started to catch some pretty nice ones too. For perspective, in
2006, revenues of $1.8 million easily topped 2005's total of $151K.
As nice as those bigger fish were though, I have to say I think the
company just landed the proverbial 'whale'. Yesterday morning we learned
a multi-million dollar deal has been forged.
I'm
not going to review the entire Smart Energy Solutions (OTCBB:
SMGY) story again, as most all of you know it by now. I'll just
summarize it with this - Smarty Energy's 'Battery Brain' can drive revenue
in three ways...(1) retail, (2) wholesale , and (3) as a private-label
product.
To
date it seems like most of their business has been as a wholesaler. Yesterday's
private-label agreement, however, may have trumped all of their
combined business so far.
Though
there weren't many details added to the news release, a couple of different
times they specifically mentioned a couple of words I really like to hear
when it comes to young companies...multi-million.
All-Start
Battery will now be selling Smart Energy's auto battery-saving device (otherwise
known as a Battery Brain) as their own product, called the StarterGuard
Failsafe Battery System.
They
can call it whatever they want for all I care - it's their private-label
program to do with what they see best. The only thing I'm concerned about
is that Smart Energy is getting paid, and apparently getting paid
well.
They
didn't divulge the details, but they did mention a couple of times it was
a long-term, multi-million dollar deal. That can mean a lot of things,
but at a bare minimum I have to assume 'multi' means at least $2 million.
And frankly, I personally believe it means much more than that.
Regardless
of how much 'multi' is in this case, it's got to be big on a relative
basis. The company did $1.8 million in 2006, and has done $1.1 million
in business for the first three quarters of 2007. So no matter what,
we're talking about a very substantial increase in sales. Better yet, the
orders are in hand, and shipment will be immediate. And, those first All-Start
sales can be booked in Q4 of this year.
More
than that though, I think this news is an important assurance for investors
that the product is plenty marketable.
We
all know it's felt like a slow start for Battery Brain revenues, but that's
just the nature of the sales cycle in the automotive supplier world -
it can take months from the first contact to produce tangible results.
Once
you book one good one though, all of a sudden it was worth the wait.
Though
I don't know of any impending deals ready to roll, I do know that
we're now several months into the first major wave of the sales process.
I have to think the All-Start news is just the beginning.
Is
this going to be a spark of new life for the stock as well? I think
it could be.
In
the meantime, check out the news from Marine Growth Ventures. Big stuff,
and I foresee even bigger stuff on the way.
RCI Adds
the Pacific Aurora as One of the First Cruise Ship Affiliates in Canada
PARSIPPANY, NJ
and CAPE CANAVERAL, FL--Dec 12, 2007 -- RCI, the global leader in vacation
exchange and Marine Growth Ventures, Inc., a diversified high growth marine
holding company, today announced they have signed an agreement to add the
MV Pacific Aurora as one of the first Canadian cruise ship affiliates
in the RCI network.
The MV Pacific
Aurora will cruise Canadian waters offering both summer and winter itineraries.
Timeshare owners may enjoy seven day cruises for time periods of their
choosing in some of the most exotic and beautiful marine areas in the world.
The MV Pacific Aurora has been awarded RCI Gold Crown Resort(r) status
by RCI. Sales of vacation ownership in the MV Pacific Aurora will begin
in the coming months by Marine Growth Canada.
Marine Growth
Canada purchased the MV Pacific Aurora in the Spring, 2007 and completed
its shipyard renovations in Vancouver, Canada. Consistent with its September
18th announcement, "Strategic Initiatives for Accelerated Growth," issued
by MGV President and CEO Craig Hodgkins, MGV is focused on the timeshare
space and affiliated with Group RCI to help enhance the ownership experience
by offering additional vacation options.
"We're pleased
to add this exciting exchange option to our network of vacation options,"
said Ricardo Montaudon, president of Group RCI, The Americas. "By choosing
RCI as their exchange company, they recognize that we are the right company
to help achieve their goals."
The affiliation
agreement with RCI will enable MGV's customers to exchange with other exciting
properties in the RCI exchange network. RCI subscribing members will have
the opportunity to exchange their land based timeshare for a week onboard
the MV Pacific Aurora.
"RCI is the global
leader in the timeshare exchange program and we are honored to be accepted
into its affiliation program which is recognized around the world," said
Craig Hodgkins, president and CEO of MGV. "This arrangement will give our
marketing agents additional tools as they begin to promote our products
and an opportunity for increased benefit to our owners."
About Group RCI
Group RCI, part
of the Wyndham Worldwide family of companies (NYSE:WYN - News), is the
global leader in non-hotel leisure accommodations with exclusive access
for specified periods to more than 60,000 vacation properties in more than
100 countries. Organizationally, Group RCI is comprised of vacation exchange,
including RCI(r), the worldwide leader in vacation exchange and provider
of travel services to businesses and consumers and The Registry Collection(r),
the world's largest luxury exchange program; vacation rentals, including
Endless Vacation Rentals(SM) , Landal Greenparks(r), Novasol(r), and more
than 30 other vacation rental brands, through which vacationers can rent
a wide variety of property types, from city apartments to country cottages
to unique villas; and NorthCourse(SM) Leisure Real Estate Solutions, an
international leader in providing a full spectrum of advisory, research,
asset management and turnkey solutions and services. Collectively, the
company delivers vacation experiences to leisure travelers around the world
and provides products and services to business customers that support the
growth of the leisure real estate industry. Wyndham Worldwide Corporation
is one of the world's largest hospitality companies with leading brands
in lodging franchising, vacation ownership, vacation rentals and vacation
exchange. For additional information visit www.grouprci.com or the media
center of www.wyndhamworldwide.com.
About Marine Growth
Ventures, Inc. (www.MarineGrowthVentures.com):
Marine Growth's
mission is to find, develop, and place in service operating businesses
related to our oceans; our vision is to build successful businesses while
respecting and protecting our most important environmental resource --
our oceans. Marine Growth Ventures seeks marine related opportunities in
transportation, freight, aggregates, technology, energy, and homeland security.
Marine Growth
Ventures, Inc. Safe Harbor Statement Under the Private Securities Litigation
Act of 1995 -- With the exception of historical information, the matters
discussed in this press release are forward-looking statements that involve
a number of risks and uncertainties. The actual future results of MGRW
could differ significantly from those statements. Factors that could cause
actual results to differ materially include risks and uncertainties such
as the inability to finance the company's operations or expansion, inability
to hire and retain qualified personnel, changes in the general economic
climate, including rising interest rate and unanticipated events such as
terrorist activities. In some cases, you can identify forward-looking statements
by terminology such as "may," "will," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the negative
of such terms, or other comparable terminology. These statements are only
predictions. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, and such statements should not
be regarded as a representation by the Company, or any other person, that
such forward-looking statements will be achieved. We undertake no duty
to update any of the forward-looking statements, whether as a result of
new information, future events or otherwise. In light of the foregoing,
readers are cautioned not to place undue reliance on such forward-looking
statements. For further risk factors see the risk factors associated with
our Company, review our SEC filings.
Contact: Contact:
Susan McGowan
Group RCI
973-753-6482
We
Value Your Feedback
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the Editor
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or inquiry, please send it to our physical address:
TGR Group, LLC
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San Diego, CA 92130
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