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Stronghold Industries (f/k/a SGDS) RSS Feed

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http://www.strongholdindustries.net Stronghold seeks to capitalize, through a collection of integrated subsidiary companies, on the burgeoning digital convergence and technology integration markets by offering end-to-end solutions to its established, growing and affluent residential client base. To that end, Stronghold has expanded its product and service capabilities from elite-class residential security systems to a comprehensive menu of leading edge residential technology-based systems including: * Security and Surveillance systems; * Real-Time Video Monitoring services; * Home Automation systems; * Networking and VOIP systems; * Lighting systems; * Fire Protection and Control; * HVAC and Digital Temperature Control Systems; * Automated Backflow prevention systems; and * Entertainment-Video, Audio & Home Theater systems Through this horizontally-integrated strategy, Stronghold plans to ride the new wave of digital home control and entertainment solutions, including more cost-effective, service-rich products and technologies such as home theaters and security, which are now experiencing record rates of penetration into the high demographic residential marketplace. Stronghold has historically targeted the most affluent residential market in the world. * There are 262,800 millionaire households in Los Angeles County. Orange County boasts 113,299 millionaire households and San Diego County boasts 100,030 millionaire households. San Francisco County has 75,371 millionaire households; * In the areas of Los Angeles that Stronghold now serves, the median home price is $1,300,000; and * There are 15,501 Million Dollar + houses in Greater Los Angeles alone, which represent about 5% of all million dollar + homes in the U.S. The primary target for Stronghold's technology and solutions, the affluent class, is growing rapidly. The top 20% of U.S. households by income collectively spend more than the bottom 60% on goods and services. The top fifth of households do nearly 40% of the nation's consumer spending. In an economic recovery driven by consumer spending, the rich paid more than their share: In 2004, the top fifth accounted for 48% of furniture, 38% of big appliances and 33% of consumer electronics. With long-standing relationships in the target fields, management sees the ability to consolidate strategic acquisitions at favorable valuations as one of the Company's key strengths. Stronghold has entered into discussions to acquire both an HVAC company and a fire protection/backflow company. In addition, Stronghold will actively seek to complete strategic mergers with philosophically aligned companies in the Home Theater, Home Automation, Wiring and Networking disciplines in order to fully solidify its market position. Management expects that future horizontal acquisitions should increase its average gross revenue per installation from the current average of $30,000 to over $100,000. There is, however, no guarantee that Stronghold will complete any such acquisitions or that such acquisitions will have the results anticipated by Management. Below are the competitive advantages that Stronghold holds in the industry: * Top Notch Professional Team with an Excellent Reputation - Stronghold's product and installation team collectively has over 90 years of experience in the component parts of home integration serving the high-end residential market. Members of this team are known and trusted throughout the metropolitan Los Angeles area and have long standing relationships with all of the major referral sources in the area: large general contractors, builders, architects, real estate agents, business managers, etc. In fact, Stronghold's relationships with high-end general contractors have grown from one to over forty contractors that have done repeat business with the Stronghold team. * Scalable Business Model - The problems of inefficiency exist in every metropolitan market. Therefore, the market is ripe for regional expansion using Stronghold's corporate template. * Public Status - Stronghold's liquidity makes acquisitions and raising capital for regional expansion more attractive. About Stronghold -- Stronghold is capitalizing on the burgeoning digital convergence and technology integration markets by offering end-to-end residential solutions to its growing and affluent client base. Through this horizontally-integrated strategy, Stronghold is set to ride the new wave of digital home control and entertainment solutions, including service-rich products and technologies such as home theaters and next-generation security systems. The company's website is: www.strongholdindustries.net. Contact: For Stronghold Industries, Inc. Investor Relations Cory Martins, 310-683-0410 info@sgtvinc.com or 5W Public Relations Mark Cohen, 212-584-4292 (IR) mcohen@5wpr.com Juda Engelmayer, 212-584-4287 (PR) jengelmayer@5wpr.com Source: Stronghold Industries, Inc.
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