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A Few Reasons to Own SJET:
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| About SJET | ||||||
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SJET has two major divisions. Technical Solutions Group (TSG) manufactures the most effective mine-resistant, ballistically protected and clearance vehicles in the world for the military and law enforcement markets. Sonic Jet designs, manufactures and sells superior, quick response watercraft with commercial, industrial, municipal and military applications. With the acquisition of TSG last year, SJET is in the process of refocusing and rebranding itself to concentrate primarily on the lucrative Mine Protected Vehicles (MPV) industry. SJET vehicles utilize the latest technology to provide vehicles that protect personnel from landmines and hostile fire during transport, removal of landmines, route clearance through mine fields, humanitarian de-mining, and other missions that require protection from landmines and hostile fire. SJET’s technology employed in these vehicles has been developed over the last 20 years in response to the intense use of landmines by insurgents in several parts of the world, principally Africa. SJET has established a substantial competitive advantage by gathering the best mine and ballistic protection technology from all over the world and combining it with the most advanced heavy-duty commercial drive trains manufactured in the United States. As a result, SJET manufactures the most effective Mine Protected Vehicles (MPVs) in the world. Currently there are seven different types of vehicles in SJET’s product line. Continuous product improvement and focused product selection ensures that SJET is able to successfully compete in a large potential market with high barriers to entry and limited competition |
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| Investment Opportunity | ||||||
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“Since the advent of modern warfare, the presence of mines and minefields has hampered the freedom of movement of military forces. The origins of mine warfare may be traced back to crude explosive devices used during the Civil War. Since that time, the use of land mines has increased to a point where there are now over 750 types of land mines, ranging in sophistication from simple pressure- triggered explosives to more sophisticated devices that use advanced sensors Land mines are considered to be a valuable military asset since, by slowing, channeling, and possibly killing opponents, they multiply the combat impact of defending forces. Their attractiveness to smaller military and paramilitary organizations, such as those in the Third World, is further enhanced because they do not require complex logistics support and are readily available and inexpensive. Virtually every combatant can make effective mines, and they will continue to be a viable weapon for the future.” GAO-01-239 Landmines have become the weapon of choice for terrorists and insurgent groups worldwide. Government agencies and officials estimate that conflicts ranging from civil unrest to world wars have left in their wake more than 80 million landmines in more than 60 countries around the globe. Troop movements in operations overseas face a continuous threat because of the use of land mines. In addition, the presence of landmines forces troops to travel through tactically disadvantages routes, exposing them to increased possibility of ambush and enemy fire. This is a pressing issue in the Persian Gulf. Vehicles that move troops and are protected against ballistic, incendiary, and land mine hazards are in high demand. Despite the fact that Mine Protected Vehicles are very special, the market is reasonably large. More than 15,000 MPVs have been purchased worldwide and SJET estimates the number of MPVs to be purchased over the next five years at more than 3,000 and perhaps as high as 10,000. SJET's “Buffalo” is the world's leading mine protected and armored vehicle. The Buffalo's design results in the only mine-protected vehicle (“MPV") in its class with full 360-degree occupant protection. The Buffalo, with its capacity to clear in excess of 1,000 land mines each hour, is the most efficient and comprehensive mine clearing system in existence. After extensive testing, Colonel Brian Green of Fort Belvoir stated that the Buffalo "is the best I've seen, hands down." Also manufactured at the SJET facility is the COUGAR (TEMPEST, UK), several of which have already been delivered to the United Kingdom's Ministry of Defense. The COUGAR is a versatile, multi-purpose vehicle that can be configured to satisfy a wide variety of mission requirements. The purpose-built monocoque capsule is designed to protect both the driver and crew from both ballistic and mine blast threats, and is mated with the latest in American commercial automotive technology to produce the most user-friendly and adaptable vehicle in its class. SJET is the only American producer of these specialty military vehicles, and could be in a unique position to benefit from what is becoming a growing concern of government agencies around the world. |
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| Valuation | ||||||
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Think about it, why would CNBC feature SJET on Business Center? Maybe there is something here for investors. One never knows. SJET is now the only publicly traded U.S. based company to operate in the Multi-Billion Dollar Military MPV vehicle industry. Poised for profitability, SJET creates a dynamic wave of opportunity to increase shareholder value during these turbulent times, such as when they appeared on CNBC the very next day the stock almost doubled (got free exposure). In our opinion, SJET is coming to the helm as a company with significant prospects for growth in two multi-billion-dollar market niches. SJET could be poised to capture an increased share of the global defense, military, law enforcement and fire and rescue markets for MPV’s. In our opinion with the current World’s unrest from Afghanistan to Kosovo to Operation Iraqi Freedom, there is a large demand for MPV’s. The company projects revenue of $11,000,000 for fiscal year 2003, which includes the order from The U.S. Army of 10 Buffalo MPV’s for $8,000,000. SJET just this week was awarded an order from the US Army for spare parts for over $1,000,000. SJET anticipates revenues for 2004 of over $17,000,000. According to Multex, SJET should be classified as a Defense Company. Companies within this sector currently trade in the marketplace at about 1 times sales. If we add a War premium of an additional _ times multiple to SJET, when applying the comparative grouping’s price to revenue multiples to SJET we can arrive at a RELATIVE VALUATION of $.36 Per Share OVER THE NEAR TERM. |
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| Conclusion | ||||||
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Landmines are a major problem for many countries overseas. Here in America, where land battles are not fought, many Americans do not have a real concern or understanding to the true effects and real potential danger of landmines to innocent civilians and soldiers. On the humanitarian side, there are many high profiled people and celebrities who have made finding landmines one of their life missions. Before her tragic death, Princess Diana traveled the world bringing attention and awareness to landmines and the need to cleanse the world of all landmines. Due to the current situation in Iraq, recent past uprising’s in Eastern Europe, and the many years of unrest in Africa there is a real need for SJET’s products. Remember SJET does not make landmines they destroy them. We feel there is a real opportunity in SJET. With The U.S. Army and The British Ministry of Defense utilizing their recently delivered SJET’S MPV’s, this exposure, in our opinion, should bring many new orders to SJET from governments around the globe. Common sense tells us that the SJET’s MPV’s should be like the Honda and sell itself, by helping many countries protect their citizens from imminent danger. Remember, there are an estimated 80 million landmines and somehow they should all be destroyed. |
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******* Important Notice and Disclaimer: Please Read *******
Investor Insights, and affiliates (II), publishes reports providing information on selected companies that II believes has investment potential. II is not a registered investment advisor or broker-dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. II accepts no liability for any loss arising from an investor's reliance on or use of this report. An investment in SJET is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. An affiliate of II has been compensated five hundred thousand free trading shares of common stock by a third party for the publication and circulation of this report. II intends to sell all or a portion of the of the SJET stock at or about the time of publication of this report. II intends to sell all or a portion of the of the SJET stock at or about the time of publication of this report. Subsequently II may buy or sell shares of SJET stock in the open market. This report contains forward-looking statements, which involve risks, and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements. For further details concerning these risks and uncertainties, see the SEC filings of SJET including the company's most recent annual and quarterly reports. |
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