Computer Devices Inc. (CTDVB - NASDAQ BB). Our 900# and E-mail subscribers were informed on August 6, 1997.
The opportunity listed below offers unknown upside potential with limited downside. The company has introduced a product that can be easily understood, due to the fact that all investor types receiving this E-mail via the internet can easily figure out what hands-free means. Physically disabled persons can also benefit from this product and for that matter, stand to benefit the greatest. This investment is relatively unknown, under-followed and totally obscure. As the herd becomes more acquainted with this situation, we believe that the upside potential will become more and more positive.
The company, Computer Devices (CTDVB- NASDAQ BB) has introduced an internet product that deserves serious consideration by investors. The product, VOICE POWER, is the world’s only voice control system for personal computers which enables the user to both “surf” the internet and completely control application programs using only verbal commands. In addition to all keyboard and mouse functions, the system provides verbal control of Netscape Navigator and Microsoft Internet Explorer and retails for less than $100.
On July 30, 1997, Computer Devices announced that its wholly owned subsidiary, VoiSys International, had signed a marketing agreement with CompUSA. In the agreement CompUSA will sell the product through its chain of 130 Computer Superstores located in various areas within the US.
On August 7, 1997, Computer Devices announced that its new product, Voice Power, will be distributed by Best Buy Co., Inc. through its chain of more than 270 stores located in 32 states.
On August 29, 1997, CTDVB announced that its product, Voice Power, will be distributed by Cyberian Outpost through its global internet retail operations in 135 countries. Its web site is accessible in 11 different languages and daily home page hits average 22k.
The product was well received at the most recent Internet Expo and has had extremely positive reviewed from major trade magazines.
The product, which is completely voice activated, will surely be a blessing for those who suffer such ailments as Arthritis, Carpal Tunnel Syndrome, Repetitive Stress Injury, or a host of other injuries or physical conditions. It even can be used by the person who is just tired of the hands-on method of surfing the net!
In addition, the user can check their E-mail, jump from hot link to hot link, search the net, open URLs, or do anything else on the internet without ever touching the manual move or keyboard.
For less than $100 you can get a headset microphone, software, and proceed to just plug it in. No initial training is required; you simply "plug'n Say."
Upon our search of similar products, we found “Naturally Speaking”, which retails for $695, but you need heavy duty hardware to run it. And we are not sure that it is designed for the internet.
Computer Devices (CTDVB) at present has around 3.7 million shares outstanding. Management controls around half of that amount and has recently exercised an option to purchase 500K.
If you would like to review the product, go to http://www.voisys.com.
At present CTDVB trades at round 40¢.
Food for thought: from a base of 100K internet users at the end of 1994, internet membership grew to 10 million by the end of 1995, and is approaching 40 million today. By the year 2000, membership is expected to top 160 million.
The above information tells all. This is why investors must consider any tool that simplifies the use of the internet. The product, and for that matter the investment, deserves a serious look. This issue is speculative in nature, but attractive upside potential exists. With only a few shares outstanding earnings/share could expand quite rapidly. Again, at 40¢ the total market cap is less than $2 million.
Upon review of pie chart A and graph A it is easy to conclude that CTDVB has huge market penetration available due to the growth of the PC market just during the next four years, and in addition the relatively untapped home internet market that exist today and the huge untapped market that still exists.
In our opinion, if everything gels, which at present looks extremely promising and the consumer warms up rapidly to the product, this could be a $2.00 stock very rapidly. The profit margins in this product is huge.
We have heard, but not confirmed that the next generation is even more advanced than the current product.
Bottom line: we have a very unique and very inexpensive product that has great appeal to internet users, can greatly benefit disabled users, profit margins are huge, competition to date is very slim, the company is under-followed and unknown and the market cap is only $2 million.
In our opinion, this one smells like a big winner. Inotek (NASDAQ - INTK). Our 900# investors and E-mail subscribers were informed about this undervalued situation on August 9, 1997 @ 15/16. INTK is not a new situation to us. We initially recommended it on 10-8-93 @ .875 and is monitored in our 900# portfolio and we are also monitoring it in our 100K Master Portfolio. (5000 shares @ .875). Since that time INTK has fluctuated between .50 and $2.50. Finally, now it looks ready to really rock and roll.
Broker contact: Mike Chesler at 1-800-331-1355. Company 508-663-4980.
INTK is a marketing and service company for instrumentation, process controls, information management, and test and measurement equipment.
The industrial marketplace includes: (1) Process controls and instrumentation - products utilized in the manipulation of pressures, temperatures and flows and the measurement of their physical properties; (2) Test equipment - portable instrumentation used in diagnostic evaluation of electronic, process, or automation equipment; and (3) Information management - the computer hardware and software, the programmable logic controller, sensors, and final control devices responsible for the master control of a factory process. Among INOTEK’s major product lines are IBM industrial computers, Reliance programmable controls, OPTO 22, Fluke electronic test equipment and Tektronix oscilloscopes.
For the year ending May 30, 1997, sales reached $25 million and net income/share equalled .12. At present there are only 4.4 million shares outstanding. Even at the present share price of $1.12, INTK sports a trailing 12-month PE actual of 9.3x - currently the book value equals $1.38, so presently INTK trades at 23% below its stated book . The company also has no long-term debt. If we examine PSR (price to sale), the numbers are equally impressive; that is, INTK is only trading at 20% of sales. The current float is only 2.4 million. When one considers the current fundamental, it is easy to conclude that there is almost no risk in purchasing this opportunity at current prices. This is a no-brainer. Only draw back is that management does not spend much time promoting the undervalued nature of INTK. So patience may be necessary. INTK, in our opinion, should be worth around $2.00.
Broker: Mike Chesler at 1-800-331-1355. Corporate#: 972-243-7000.