ich werde diese empfehlung nicht großartig kommentieren. es ist ein anfang, mehr nicht. zuerst müssen mal umsatzzahlen kommen, die das ganze belegen. dann geht es ab. ansonsten wird diese warmduschermeldung für einen kleinen hype sorgen, mehr nicht.
Analyst Report: by Sussex Avenue Partners LLC
www.sussexavenueprofiles.com
Recommendation: Buy and Hold
OTC-BB: AGRI
Recent Share Price (Oct. 11, ‘04) $0.065
Reverse Split (announced Sept. ‘04) 100:1
Shares Outstanding (Oct. 7, ’04) 13,272,000
Market Cap (Oct. 11, ’04) $862,680
52-Week Range (adjusted for the reverse split) $0.03 to $6.20
Recent Daily Trade Volume (Oct. 11, ’04) 338,308
AuGRID Corporation (“AuGRID” or the “Company” operates subsidiaries within three business segments, each of which develops and markets high-tech products:
OptiPure LLC: Consumer electronics, principally plasma televisions.
Alysium Corp.: Nanotechnology-based products, including thermocouples and armor plating.
Codestar Corp.: Security systems and software utilizing Radio Frequency Identification (RFID) technology.
Key Points for Investors
Management reflects the energy of a team of bright, hard-working, focused professionals in their prime.
The Company is rapidly moving from R&D to commercialization of its products in multiple markets.
All of the markets of interest are large, fragmented, rapidly expanding, and potentially lucrative.
The Company has a strong portfolio of Intellectual Properties, which provides significant competitive advantages.
Short-term and mid-term prospects for the Company are strong.
Longer term prospects are very strong because of maturing market demand for the powerful mix of advanced technologies that constitute the Company’s core competence.
Management: Officers and Directors
M. J. Shaheed (37 years of age) serves as President, Chief Executive Officer, and Chairman of the Board of Directors. A native of Cleveland, Ohio, Mr. Shaheed attended Cleveland State University from 1986 to 1988, majoring in Physics and Computer Science. From 1986 through 1987, Mr. Shaheed assisted in the general instruction of math and science to children at the elementary level - specializing in teaching handicapped and children with severe behavioral problems. From 1987 to 1990, he was a manager with the National Theatre Corporation in Cleveland Heights. From 1990 through 1993, Mr. Shaheed was a systems engineer for Integrated Business Solutions located in Lyndhurst, Ohio, where he was responsible for the construction of computer hardware systems. He also worked on a program for the Dean of the Artificial Intelligence Department at Case Western Reserve. Since the founding of the Company, Mr. Shaheed has headed the research and development of flat panel technologies, and has provided clients with advanced engineering support in key areas of the Company’s core technologies.
Mary F. Horoszko (37 years) serves as Secretary and a Director of the Company. A graduate of Ohio State University, Ms. Sloat-Horoszko holds a Bachelor of Arts Journalism degree with specialization in Broadcast Communication and Marketing. From 1992 to 1994, Ms. Sloat-Horoszko was a Producer and On-Air Coordinator for Cleveland, Ohio-based WWWE Newsradio. From 1994 to 1996, she served as Director of Marketing for Illinois Insurance Brokerage Services in Chicago, Illinois. In 1996 and 1997, Ms. Sloat-Horoszko served as Director of Marketing and Sales for RAE Enterprises of Chagrin Falls, Ohio; RAE Enterprises’ clients included General Motors, IBM, UAW/Ford, and Rubbermaid. Since joining AuGRID Corporation in 1997, Ms. Sloat-Horoszko has managed the day-to-day office operations of the Company and has assisted in planning product lines and identifying target markets.
Stan Chapman (37 years) has held various positions with the Company in recent years, including his current service as Chief Financial Officer, Treasurer, and a Director of the Company. Mr. Chapman holds a B.S. in Business Administration and Accounting. With over 13 years of Public Accounting experience, Mr. Chapman has served as Controller for the Company, CEO of a private consulting firm, and Controller for public and private companies. Mr. Chapman also currently serves as Chief Financial Officer for a Cleveland not-for-profit organization. Mr. Chapman's financial services experience includes extensive auditing, projections, budget, and corporate tax returns.
Essa Mashni (38 years) is a Director of the Company. Since graduating from Wayne State College of Pharmacy with a degree in Pharmacy, Mr. Mashni has served as Chief Pharmacist of Arbor Drugs. Mr. Mashni is a member of the American Pharmaceutical Association, Michigan Pharmacy Association, American Ramallah Federation, and St. Mary's Antiochian Orthodox Church.
Key Products & Projects
Airport Security Systems
AuGRID’s team has conceived and developed a security program to provide increased security at airports. The airport security system includes low-cost Radio Frequency Identification (RDIF) technologies and a proprietary hardware/software program that allows people and baggage to be tracked throughout the airport. The system allows key personnel to be notified in a timely manner to interdict and maintain security. Expansion of the program includes tagging, tracking, and communications involving passengers and packages from curbside check-in to airborne flights.
Codestar Corporation, a subsidiary of AuGRID Corporation, is responsible for the ongoing development and marketing of these high-tech airport security systems.
Advanced Display Technology
The Company designs, manufactures, and distributes a new generation of Audio & Video devices for multiple markets, including high-end home theaters, interior architectural designs, specialty motor coaches, and high-end marine craft. The Company’s OptiPure LLC subsidiary promises products that deliver " pure sound, pure vision™” including optimal performance Liquid Crystal and Plasma Displays, ranging from 17-inch to 50-inch diagonal viewing size.
The Company is recognized as a leader in Field Emission Display (FED) research, which holds commercial promise for a new type of flat panel display. FED technology uses electron emitters in a grid, with individual emitters controlled by “cold” cathodes to generate colored light. FED technology produces thinner panels with higher image quality, wider field of view, and lower energy requirements.
Plasma Glass Front Plate Coating
The Company has applied for two patents for plasma glass technology. The Company’s U.S. Patent Application #10/465729 and International Patent Application #PCT/US2003/019479 cover proprietary plasma glass coating technology and the process of applying it to the front plate of the panel. These patent-pending innovations reduce ultraviolet and infrared light emissions, achieve better color balance, and significantly reduce fixed-image burn-in problems.
Advanced Industrial Measurement Devices
Alysium Corporation, a subsidiary of AuGRID Corporation, is a leading manufacturer of advanced industrial control devices, like the thermocouple (shown here). Thermocouples are high-accuracy thermometers that are used in industry to maintain manufacturing conditions. Alysium uses nanotechnology to develop materials, as well as trade secret manufacturing techniques to provide competitive products at affordable prices to multiple industries.
Armor Plates
The Company has developed a unique application of nanotechnology that involves material science and coating technologies. As a result, armor coatings can be applied that someday may provide added protection to the fighting forces of the United States and to the militaries of friendly nations. The Company is continuing to develop and test these technologies, addressing issues of patentability, and moving toward commercialization.
Market Opportunity: LCD and Plasma Televisions
According to research by Freedonia Group, the US market for electronic displays is $11.6 billion and will grow 12.4 percent annually through 2008. The best growth will remain in flat panel displays as they continue to use cathode ray tubes (CRTs) in desktop computer monitors and television screens. Thin-film transistor liquid crystal displays (TFT-LCDs) will remain dominant, especially in high-definition TVs.
According to TFCinfo Corp, the Plasma Display Panel (PDP) market in the U.S. in 2003 represented approx. 25% of the world market, with North America lagging behind Europe and Asia in PDP purchases.
The Company is interested in the niche mobile markets of luxury Recreational Vehicles (RVs) and other specialty motor coaches, as well as the high-end of the marine market.
Specialty motor coaches include buses converted to high-end RVs costing at least $1,000,000 and typically much more. Other specialty motor coaches involve bus conversions for use as mobile deluxe offices, traveling museums, command centers, etc. The robustness of the specialty motor coach market reflects trends in the larger RV market universe. RV travel and sales have increased substantially since September 11, 2001. Currently, a record 7.2 million RVs are on the roads in the United States, representing nearly 7 million U.S. households. There are as many as 30 million RV enthusiasts, including renters, nationwide, according to Recreation Vehicle Industry Association (RVIA) estimates. Long-term signs point to substantial RV market growth because of favorable demographic trends. The number of RV-owning households is projected to increase 15% between 2001 to 2010, to nearly 8 million.
The high end of the RV market is the custom production of luxury motor coaches. One of the largest companies that convert buses into million-dollar-plus RVs is Marathon Coach, Inc. in Oregon. As a sign of the strength of this niche market, Marathon recently announced that it is expanding its workforce from 350 employees to 450 employees to keep up with demand. Marathon’s customized bus-conversions and high-end RV makeovers typically involve several state-of-the-art plasma TVs per luxury vehicle.
According to the National Marine Manufacturers Association, 72 million Americans participated in boating last year, with 17.49 million boats afloat and total boating-related expenditures approaching $30 billion. From 2000 to 2003, the average annual growth in total U.S. boating expenditures was 8.9% per year. In 2003, the boating accessory aftermarket in the U.S. was $2.123 billion, an increase of 4.7% over the previous year. The boating accessory aftermarket, including advanced TVs, is strong.
Another market of interest to the Company is the high-end home theater market. In spite of the somewhat sluggish economy, U.S. consumers bought three times as many advanced TVs in 2003 ($4.3 billion) as in 2002 ($1.7 billion), which was almost triple the number purchased in 2001 ($0.6 billion).
In summary, the thin-film LCD and plasma display markets are experiencing significant growth, as are the Company’s market niches of interest: home theaters, luxury motor coaches, and the high-end marine aftermarket.
Market Opportunity: Nanotechnology
According to research published by Freedonia Group, Inc. (a Cleveland-based industrial market research firm), demand in the U.S. for nanomaterials will reach $35 billion in 2020, representing 33% annual growth.
The development of nanoscale materials (defined as substances with particle size between 1 and 100 nanometers) represents a key step in the eventual production of more sophisticated nanomachines, nanoelectronics etc.
The trend toward nanotechnology is a continuation of ongoing miniaturization efforts in multiple industries. Major trends include the reduction of the size of existing manufacturing materials such as metal oxides through the use of new production technologies, and the development of new nanoscale materials such as nanotubes and buckyballs.
Table 1. Projected U.S. Demand for Nanomaterials, in Millions of Dollars
Source: “Nanomaterials,” a study by The Freedonia Group, Inc.
Type of Nanomaterials 2002 2007 2020 % Annual Growth
2002-2020
All Nanomaterials $200 $1,100 $4,500 33%
Minerals 140 675 2,100 28%
Metals 45 150 500 26%
Polymers and Chemicals 5 175 1,400 56%
New Nanomaterials 10 100 500 41%
Early growth in the U.S. market for nanomaterials is projected to come from numerous niche applications that span the entire U.S. manufacturing sector. These include wafer polishing abrasives and high-density data storage media for the electronics industry; improved diagnostic aids for the medical community; transparent sunscreens, stain-resistant pants and wear-resistant flooring for consumers; cost-cutting equipment coatings for the defense industry; fuel-saving components for the auto industry; and better paper and ink for the printing industry. In the long run, however, the best opportunities are expected in health care and electronics, which together are expected to comprise nearly two-thirds of the market by 2020.
Conventional nano-products that essentially are smaller versions of existing materials, (such as silicon dioxide, titanium dioxide and clay) are projected to achieve strong growth for decades to come. However, new nanomaterials (many of which are not yet commercialized) are expected to have even better growth.
The Company is positioned to enjoy competitive advantages both in conventional and new nanomaterials in the coming years.
On October 6, 2004, the Company announced its provisional patent for an agricultural application of nanotechnology: AuGRID plans to provide products and systems to control soil depletion in the U.S.A. and abroad.
Market Opportunity: Radio Frequency Identification (RFID)
U.S. demand for Radio Frequency Identification (RFID) technology is an important part of the ongoing surge in demand for “smart labels” both in retailing and supply chain management.
The U.S. market for smart labels is projected by The Freedonia Group to grow 14% annually through 2007, with shipments of 11 billion units valued at $460 million. By 2012, the industry will ship more than 30 billion units worth more than $1.2 billion. Smart labels used in supply chain management applications are forecast to reach 7.6 billion units by 2012, accounting for one quarter of the total demand. The retail segment will account for the largest chunk of the market, shipping more than 8 billion units in 2007 and more than 18 billion units in 2012.
Demand for smart labels based on Radio Frequency Identification (RFID) technology will nearly triple each year. Both Wal-Mart and the Department of Defense are asking suppliers to tag pallets, cases, and items with RFID-based labels to improve supply chain visibility. RFID labels, in fact, will dominate the smart label market by 2012. Freedonia estimates that RFID will account for approximately 16% of the market in 2007, but grow to nearly 60% by 2012, with more than 17 billion units shipped.
In the near term, RFID market opportunities for RFID include labeling mail and packages, pallets, airline baggage, library books, and military asset tracking. The market drivers will include falling per-unit prices for RFID as a result of economies of scale, as well as the impact of technological advances and the establishment of uniform RFID standards.
Electronic article surveillance (EAS) anti-shoplifting labels will continue to dominate sales into the next decade. RFID are expected to replace traditional EAS labels in retail as manufacturers combine their security source tagging with RFID tracking in the supply chain, such that RFID tags that are embedded or attached at the factory will provide uninterrupted security and inventory tracking through the distribution channel to purchasing by the end-users. RFID systems can establish security zones within a store or military facility, and used with digital video surveillance to monitor and prevent problems – from shoplifting in WalMart to the unauthorized movement of secret documents or weapons at a military installation.
The Company’s RFID capabilities hold the potential for great commercial promise for supply chain management, retailing, and military applications, as well as the current focus on airport security.
According to a study by Scripps Howard News Services based on information from the General Services Administration, the Department of Homeland Security during its first year of operation paid private contractors at least $5 billion to make America safer from terrorist attack, including a strong focus on airport security. The $5 billion in contracts was about one-eighth of the department's $38 billion expenditure.
Success in airport security using RFID-based integrated computerized systems can be a springboard for entry into other markets.
Financials
AGRI.OB Financial Performance Summary: Quarterly Income Statements, in $ thousands
Period Ending 30-Jun-04 31-Mar-04 31-Dec-03 30-Sep-03
Gross Revenue $100 $154 $ 7 $104
Cost of Revenue 98 87 24 26
Gross Profit 2 67 (17) 78
Operating Expenses: Selling G&A 293 596 1,227 385
Operating Income or Loss (291) (529) (1,267) (307)
Net Income Applicable to Common Shares (291) (529) (1,267) (307)
The Company is generating revenues and substantially reducing operating expenses, as it continues on the path toward profitability.
Recent Press Releases
AuGRID's Optipure Division To Commence Distribution In Australia (Oct. 11, 2004)
AuGRID Corporation Investor Communication (Oct. 8, 2004)
AuGRID Is Awarded Provisionary Patent on Nano Particle Formulation - Agriculture Will Benefit from Nanotechnology (Oct. 6, 2004)
AuGRID Distribution Division Fast Tracks Business Plan (Oct. 5, 2004)
AuGRID Subsidiaries Continue To Develop And Extend Customer Base (Sept. 30, 2004)
AuGRID Corp Announces Alliance For Accelerating Growth (Aug. 25, 2004)
AuGRID's Subsidiary Awarded Fulfillment Contract (Aug. 19, 2004)
AuGRID Proceeds with Order Fulfillment for Z'Lektra Group (Aug. 11, 2004)
AuGRID Pushes to Advance Distribution Business (Aug. 10, 2004)
AuGRID R&D Team Develops New Taggant Terrorist Stealth Tracking as a New Tool to Assist in the War on Terror (Aug. 3, 2004)
AuGRID Team Obtains Positive Comments at IDGA Conference (Aug. 2, 2004)
AuGRID and EmInSys, Inc. Establish Partnership to Expedite Development of New Products and Technologies (July 27, 2004)
Company Websites
AuGRID Corporation: www.augridcorp.com
Company Subsidiaries:
o OptiPure LLC at www.opti-pure.com
o Alysium Corporation at www.alysiumcorp.com
o Codestar Corporation at www.codestar.net
Summary
AuGRID Corporation and its subsidiaries are in the business of commercializing advanced technologies, including specialization in the development, manufacturing, and distribution of electronic and display devices, thermocouples, silicon carbide tools, and nanoparticle technologies.
The Company is moving aggressively to capitalize on its past business acquisitions and R&D successes through commercialization of innovative products.
The markets of interest are large, fragmented, rapidly expanding, and potentially lucrative.
The Company has a strong portfolio of Intellectual Properties, which provide significant competitive advantages.
Recommendation
Buy and Hold.
For More Information
M.J. Shaheed Investor Relations
President, CEO, and Chairman of the Board John Hicks
AuGRID Corporation Sussex Avenue Partners LLC
10777 Westheimer Rd., Suite 1040 (760) 918-5592
Houston, Texas 77042-3453 Toll-Free: (866) 878-7739
(713) 532-2000 john@sussexavenuepartners.com
www.augridcorp.com www.sussexavenueprofiles.com
FORWARD-LOOKING STATEMENTS: This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding AuGRID Corporation in this release that are not historical in nature, particularly those that utilize terminology such as " may," " should," " likely," " expects," " anticipates," " estimates," " believes" or " plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which AuGRID Corporation has derived from the information currently available to it. These forward-looking statements involve known and unknown risks and uncertainties that may cause our results to be materially different from results implied in such forward-looking statements. Important factors known to AuGRID Corporation that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in AuGRID Corporation's filings with the Securities and Exchange Commission. The forward-looking statements contained in this report speak only as of the date hereof, and AuGRID Corporation undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.
