News Details – Smallcapnetwork
MGRW Attracts a Big-Name Partner
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February 2, 2024

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Dow Jones 13610.38 +177.61 7:10 am PST, December 12, 2007 NASDAQ 2702.08 +49.73 For info, visit access.smallcapnetwork.com S & P 500 1500.31 +22.66 Change your subscription status here Russell 2000 783.19 +16.92 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   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Subscribe Information is power and timely information is profitable. 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