Undervalued Equity-Rising

From: The Countess <countess_at_upticks.com>
Date: Tue, 08 Apr 03 16:21:44 GMT
Message-ID: <0304081621446114_at_news.ttnet.net.tr>

EXECUTIVE SUMMARY VICTOR INDUSTRIES Victor Industries, Inc. ( OTCBB: VICI ) is beginning the transition from a development stage Company to the operating stage. Sales of its revolutionary moisture and fertilizer conservation tool, ENVIROLIZERTM , began in October of 2002. Additional sales have been booked for March, 2003. Nesland Enterprises of Snohomish, WA was the first distributor to successfully market the product. Nesland Enterprises is a regional distributor and the sales were relatively small, given the timing of introduction. (Apparently, not a lot of fertilizer is sold during the winter in the Northwest) The Company recently hired the Lawn and Garden Performance Group ( www.lgpg.com) to introduce ENVIROLIZERtm on a nationwide basis. The Lawn and Garden Performance Group has a twenty year track record of successfully introducing new products to the lawn and garden industry. (Progress Report available by contacting the VICI) Rumor is that ENVIROLIZERtm will be in the running to be voted on as a candidate for the best new lawn and garden product for 2004. ( Free samples are available by contacting VICI ) A successful launch of ENVIROLIZERtm sales on a nationwide basis would greatly enhance Victor Industries in the eyes of investors across the country. The manufacturing and shipment of ENVIROLIZERtm is largely out sourced and does not require a great deal of managements time. With the present pricing the gross margins are approximately 400 percent. Pre-tax net margins should equal approximately 25% so that 1mm in sales should result in $250,000 in EBITDA. In addition, the present management has the resources necessary to alter the strategy of Victor Industries to reflect a "holding company" mentality. Recently, the management provided the vision and resources to develop a new company that will be spun off to shareholders. New Wave Media Corporation began operating a new radio station in Great Falls, MT on February 1st, 2003. It is already, in the managements opinion, the first or second most popular radio station in Great Falls, MT. Josh Gager will be the Company's president. Mr. Gager's vision for New Wave Media is to own or operate 22 radio stations in Western, MT. Due to Montana's status as a relative economic back water there are operating radio stations that reach very small population centers, that with minor modifications could be transformed into radio stations reaching the major population centers in Montana. The economic growth in Western, MT has been very rapid. In short, Western Montana has been "discovered". This first station is owned by Flinn Broadcasting of Memphis, TN. Flinn currently owns approximately 40 radio stations. Flinn is in the business of acquiring radio stations and around the country and allowing "locals" to operate the stations through a"Local Marketing Agreement" for a set monthly amount. The communication companies that specialize in radio command high premiums to the market. Fisher Communications, Clear Channel and Westwood One are examples of the premiums commanded by the radio station industry. Mr. Gager believes that the stations will average approximately 1MM per station to the top line, annually, with about half dropping to the bottom line of the Company before taxes. These numbers, if realized, would place the Company's shares at slightly more than one times EBITDA, before accounting for any sales of ENVIROLIZERtm. Radio station companies such as Fischer Communications and Clear Channel Communications ( CCU ) sell for 30 times earnings. Further, Victor Industries is in the process of developing two additional shells that the management intends to merge operating company's into, and spin them off to shareholders as separately traded entities. In sum, Victor Industries offers exceptional growth opportunities through sales and profits via its revolutionary product ENVIROLIZERtm, rapid expansion of radio stations in a high growth area of the country and the potential to own four publicly traded companies. For the near term, over the next year, it is not unreasonable to assume 1mm in sales of ENVIROLIZERtm with $250,000 in EBITDA combined with $500,000 of EBITDA from the single radio station to total $750,000. The market cap at one cent is $1,250,000. At a multiple of 30 times EBITDA the stock would trade at 30 cents per share or 20 times today's price. Review: www.victorindustries.com www.geocities.com/stockrunner2003/stockrunner.html Received on Tue Apr 08 2003 - 18:21:44 CEST