I was just on the telephone with a long conversation with
Darryl Dennis and he had some interesting things to say about
SPZI:
The 141 Capital deal could be "finalized" as soon as the end
of next week which means the first $500,000 payment would be
made at that time.
They are still in talks with people about the financing of SPZI
and will let us know how that works out as soon as possible.
There are two important sources of revenues which have come up
fairly recently. The first is that they are working on putting
together a new type of SWARM using the Fractal model. This models main feature is that it "predicts pricing" and will
eventually be licensed out like SWARM was. So, it is a new
type of vehicle which can produce revenues for the company.
Related to that is that SWARM can still be licensed for Forex
(currency trading) and Equities. Forex is a 10X larger market
than Equities. They are in talks about this now but cannot
yet release this information.
Secondly, while we have all been waiting for the product release of STv2 to professional traders there is something
else going on which could provide revenues to spooz at very
attractive margins of profit. This has to do with say a bank
or a hedge fund or other proprietary trades organization that
comes to spooz and requests that certain modifications be
"customized" to fit the needs of their traders. As an example
such a company may offer say $500,000 to put such a package
together and then pay monthly subscriptions for it. This is
what they are calling "picking the low hanging fruit off the
branches first" before they release the product to the retail
professional traders. They have several such deals under
discussion at this time but these companies are secretive by
nature and we may not learn of any specifics....just know that
it is going on with more than one end user.
Interactive Brokers will be an important part of the release
of the STv2 product to the market place when they are done
cherry picking deals like those discussed above. IB has 650,000 clients with many of these being professional traders,
hedge funds, banks and others and they are going after this
market segment first. Again, they are not concerned about being able to sell the product to the marketplace but rather
about supporting the new clients which come on board. They
don't want to be swamped with communications right off the bat.
As to releasing the STv2 product to the professional traders
they want to use their resources to handle the custom jobs
which they have on the table first. We may not see an actual
release of STv2 to the public until early January. It will be
ready sooner but the month of December is a dead month and they
are not to thrilled about releasing the product then. It could be in November but the other choice is January 2008.
Darryl was saying that the most exciting time for them will be
over the next 12 months. This is another opportunity to pick
up shares at this level for the new developments which are soon to start flowing from the company.
