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GACF WEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Global Aircraft Solutions – GACF (ex RDVN)
On old Buzz pick about 6 month ago. 2 weeks ago GACF was sitting idling in the 0.80’s minding its own business, when all of a sudden the OTCBB by a “clerical” mistake inadvertently slapped the dreaded “E” on the symbol. GACF fell like a rock to 0.59 before bouncing back into the lower 0.70’s after OTCBB issued an apology for the E. http://biz.yahoo.com/bw/050323/235533_1.html
Managed to catch a few in the 0.60s. WWEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
yesterday the 10-K came out.
Revenue Tops $30.8 Million for 2004
Net Income exceeds $2.5 Million, $.10 per share for 2004
Total revenue fourth quarter was $14,152,131, up over 500% compared to total revenue of $2,767,167 for fourth quarter of 2003.
Total annual revenue for 2004 was $30,851,118, up 200% compared to $15,378,352 for 2003.
Net income for 2004 was $2,510,662 compared to a net loss of $1,299,428 in 2003.
2004 EBITDA increased to $3,160,845 from negative $496,861 in 2003.
TT
Today sucked... All over. EOM
TT
TYRIA. The outstanding balance as of the end of business on March 18, 2005 is 54,578,072 shares.
Heidi Sadowski
Office Manager
Fidelity Transfer Company
1800 South West Temple, Ste. 301
Salt Lake City, UT 84115
Phone #801/484-7222
Fax #801/466-4122
Email: heidi@fidelitytransfer.com
Still diluting. 4.9 mill shares issued and 13.2 mill shares traded between 3/4/2005 and 3/18/2005....At least they were a week ago. The additional 650K shares should have little impact. Look for the MM TASL to do most of the selling for these guys
16-Mar-05 ROTH, JEFFREY D. 150,000 Planned Sale $9,1251
15-Mar-05 ROTH, JEFFREY D. Officer 500,000 Planned Sale $17,0001
25-Feb-05 MELLER, MARK 1,318,330 Planned Sale $46,1431
25-Feb-05 MAHONEY, JEROME R Officer 1,318,330 Planned Sale $46,1431
27-Jan-05 MAHONEY, JEROME R. Officer 1,759,691 Planned Sale $50,0001
24-Jan-05 MELLER, MARK Officer 1,759,691 Planned Sale $53,0381
Another Riff Raff checking in
TT
EARN YOUR OWN ROLLS ROYCE HERE'S YOUR CHANCE
*****ETCR*****ETCR*****ETCR****ETCR*****ETCR*****ETCR
HAVE YOU ALWAYS WANTED TO BE PART OF THE "EXPLOSION" OF A STOCK?
HERE'S YOUR CHANCE
THIS STOCK "ETCR" IS SET TO ADVANCE TO OVER $1.00
GET IN @.07 IF YOUR LUCKY
AFTER 4 YEARS WE FINALLY SEE THE LIGHT
VPS HAS BEEN ACCEPTED-=--ETCR---ETCR---ETCR
Physicians are invited to attend a special program to demonstrate Enhanced KASPER, Kentucky's new web-enabled Prescription Monitoring Program. This first public view of Enhanced KASPER will take place March 16, 2005, from 10:30 - 11:30 am at the Transportation Cabinet Auditorium, 200 Mero St., Frankfort. The program is presented by the Office of the Inspector General, Division of Fraud, Waste and Abuse/Identification and Prevention. Enhanced KASPER features realtime access with online review capabilities. Register for the program by e-mail to susanna.mays@ky.gov no later than March 9, 2005.
ETCR. WWWWWEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
TT
ETCR THE ANNUAL SPRING ROCKET IS TAKING OFF. HURRY.
NEXT GENESYS CORP
The new company was born Tuesday last week
Articles of Incorporation File Date: 02/08/2005 11:38:02 AM
Document Number: 20050012392-04
Corp Number: E0019032005-3
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?CorpID=564800
TT
ETCR THE ANNUAL SPRING BREAK ROCKET
START WATCHING TOMORROW.GOOD THINGS ARE COMING. BUY BUY BUY BUY NOW BEFORE TOO LATE.
THE TRAIN IS LEAVING CHUGA CHUGA CHOO CHOO!!!!
TO DA MOON
MM's ARE GETTING NERVOUS
ON THE LAUNCHPAD
MM MANIPULATION GONE WILD
THE MM'S ARE ACCUMULATING
THE ONLY REASON WHY THE STOCK IS DOWN IS BECAUSE OF THE MARKET MAKERS, THEY WANT YOUR SHARES CHEAP...DONT LET THEM HAVE ANY
KABOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOM
SOMEONE KNOWS SOMETHING..AND WANTS TO LOAD UP FOR THE NEXT RUN
WE ARE OFF TO THE RACES
ON THE LAUNCHPAD READY FOR TAKE OFF.............GET IN IF YOU CAN
GAPPAH ON FRIDAY,MONDAY TUESDAY WEDNESDAY, THE WEAK HANDS ARE BEING SHOOK!!!!!!!!!!!!!
TT
USWF. WEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE. EOM
ETCR…KAABBOOOMM ON FUTURE KENTUCKY CONTRACT.
MMs GIVE WAY!!!!! CAUSE HERE WE GO.
INSIDERS BUYING UP ENTIRE FLOAT…..HURRY….HURRY
NASDAQ IN 6 MONTHS
GET IN NOW OR YOU WILL BE SORRY
YOU CAN THANK ME LATER
REMEMBER I BROUGHT YOU MSFT AND GOOG
km3, no 10Q, it is the 10K next.
Due before end of March
TT
So far the best explanation of SHO's "grandfather" clause I have seen.
From the OMOG board
By: tchauncy
07 Jan 2005, 09:28 AM EST
Msg. 194523 of 194551
Jump to msg. #
I have had several people ask me this specific question having to do with Reg. SHO, so I will attempt to answer it here. The question is "What does the SEC mean when it says that all existing `Fails' (Naked Shorts) are `Grand fathered', and does this mean that all past fails will escape the new rules."
It is a confusing subject but let me make a stab at it as I think I understand it.
I assume that in order to attempt to cause the least amount of havoc as possible, the SEC decided to put the "grandfather" clause in since not doing it would probably mean that all naked shorts would have had to be covered within 13 days after Jan. 10th. But, don't misunderstand. This does NOT let all the old Naked Shorts off the hook. It just spreads the forced covering out over a longer period.
First of all, understand, all legal shorts, those that actually did borrow shares are not affected by the rule other than perhaps the natural supposition that if a company has a large legal short, there is a good chance it could also have a large naked short. Which would mean that "buy ins" that the naked shorts would have to make could drive the stock price up and create grief for the legitimate shorts.
Now lets go back and define a "naked short". As I have posted here many times, a naked short is illegal and is a stock that was sold without first having been bought. It is a "sale not long". In other words it would be like me calling my broker and telling him to sell 1000 shares of IBM that he does not have "long" in my account with him. (On line brokers do not allow this, but most full service brokers do) Now the discussion would probably go like this. My broker would probably say; "Tchauncy, you don't have any IBM with me". I would respond, "I know, I have it in my safe deposit box. I will bring it to you." With that said, he will sell the shares "long". (not mark the sell ticket "sell short" and borrow the shares as he would if he knew it was a short sale). Now while I have a good relationship with my full service broker, up until now, he would probably give me as long as month to deliver those share certificates. But, If I were a hedge fund that generated a lot of business, who worked through the "institutional desk", and gave such an order, most firms would let me skate for maybe a year or maybe forever unless they get a buyin notice. This is where DTC would come in and "lend" your certs to my broker to cover any buyins. If you know anything about all the lawsuits against DTC on the subject, the real problem is that DTC has in many cases electronically lent the same certificates over and over if enough shares are not in CEDE (their vault). The problem is that this is suppose to be illegal. But lending electronic shares has been so profitable for DTC over the years, it was never attacked .
Now what is wrong with what I just described and therefore illegal? And why might I not have just borrowed the shares and had my broker mark the ticket "sell short"? Well, here is why. Brokerage firms are only suppose to allow shares that are authorized for margin and are held in margin accounts to be legally lent. Only listed stocks are legally allowed to be marginable. So right off the bat, except for a minuscule set of circumstances, no pink sheet or BB stock is marginable, so it is not possible for your broker to borrow those shares so it is not possible to legitimately sell theses stocks short unless you are a MM. So up until Reg SHO, the only way Pinkies or BB's
could be shorted is naked. Reg SHO is suppose to eliminate this once and for all. (we hope)
Up until the last couple of years, the SEC either was in denial or just didn't care of the rampant abuse that was going on as describe above. Thanks to people like David Patch at investigatethesec.com and the campaign they have been weighing for the past three years, it appears that the SEC has finally awoken to what was happening and is trying to stop it. They have identified that over 20% of all stocks have abusive naked shorting going on. (The "threshold" of .05% of total shares outstanding or 10,000 shares). Many of these are listed
stock which might make one ask, why would a stock that is legally allowed to be shorted have a naked short? Well in many cases, the short is so big that all the legal shares that could be borrowed were. But in the past that has never stopped these hedge funds. They would then short more "naked" as I describe above. So the "threshold" describe above only has to do with the "naked shorts", not the legitimate ones.
So, with this background, back to my original subject, the
"Grandfather" clause and what penetrates its umbrella. Simply stated, it is volume that penetrates it. The bigger the short, the more volume, the more problems the naked shorts have. It doesn't make any difference if that volume is upside, or downside. IMO, it goes something like this, a couple of examples:
If a company has a 5% naked short fail position that is unresolved past settlement on January 3 and no shares traded this whole past week, then that naked short is not forced to do anything YET. But, lets say that I bought 10,000 shares of that stock from you on Wednesday and that was the only shares that traded that day, then, even though it was not the short seller who did anything, 500 shares under the "grandfather" umbrella would be penetrated. This happens because when I bought those shares from you DTC electronically transferred 10,000 shares on settlement date to my account, BUT due to the naked short, they really didn't have 10,000 "certificate backed" shares to legally transfer to me. They only had 9,500. So you can see
that 500 shares just went into a "fail". Now don't worry, you bought and paid for your shares, they are not going to go after you. BUT they will have to electronically trace back the genesis of the shares and eventually find who naked shorted those shares and he WILL receive a "buy in" notice on those shares. Which means he will then have 13 days from your settlement day to either buy in those 500 shares himself, or
if he doesn't, it will be bought in for him on the 14th day. (In the old days, it was still very possible on listed stocks that he could eventually receive a buy in notice, but he was given more time to try to go out an borrow the shares if he didn't want to cover. That rule to my understanding has changed. If he is caught now, he can no longer just go borrow shares, he WILL be "bought in", either willingly or unwillingly. Now this example is very simplistic but should get the intended concept across. Obviously if more shares are traded, say 100,000 then 5,000 shares are affected, etc.
Now with the above concept, you can extrapolate the situation for whatever percent naked shorts or fails are in the particular stock. If a company has 25% naked short, then 2,500 shares per 10,000 volume penetrates the Grandfather. 50% naked, 5000 shares, 100% naked, all the shares. So, the cute part about this situation is that it is so self perpetuating. If the short is large enough, even the short himself will further create his own problem with his future buy ins
Now with the above said, It might just explain why we have seen the stock move up so easily this week on very light volume. Big spreads by MM's are usually done when they want to dry up volume. Just as the day before when we spent four hours bid .016, offer .017, we spent four hours yesterday bid .017, offer .018.
BTW, as I have been posting for the past ten days, There is no question in my mind that we have a very large short here but I still don't know whether we are going to be on a "PUBLISHED" list or not since we are not reporting and there still doesn't seem to be a venue website to handle pinks, but the trading tells me, as it has for the past week, that something is different in the way this is trading here. But only time will tell if Reg. SHO is going to have a lasting affect on OMOG but the most important thing to remember is that the SEC has clearly stated that all future naked short selling will not be
tolerated.
Secure, thats perfectly allright. eom
Congratulation all USWF holders.
USWF is on the SHO restricted securities list.
http://www.nasdaqtrader.com/aspx/regsho.aspx
What does it mean?
From now on and until removed from the list shares of USWF cannot be traded unless the seller, i.e. the MM, can show verifiable and physical ownership of those shares.
Means that USWF has been "naked" shorted lately and it is now payup time for those shares. Could be an interesting Monday.
TT
secure is that you cortex
TT
Thanks for the invitation.
First off and as I have often posted on the RB board, I am not a holder of USWF shares. Once I see a true executeable contract or at least rumors thereof, I may jump in.
In the mean time, I'll try to help out if you guys have any question in term of trading, SEC regulations, MMs..whatever. Just don't expect on the spot immidiate answers.. I do have a life as well.
TT
Thanks Al.. EOM
Al4343. "There was some back & forth between the SEC and the Kelly holdings, but it should get ironed out soon"
Are you sure? Did this info come from kelly's or CDED? If you have any more info on this, please let us all know. I have suspected that this was the case, but had nothing to base my suspicion on.
TT
This is where balamidas will be spending all his time come Friday....lol
http://www.nasdaqtrader.com/aspx/regsho.aspx
Kidding aside, this is where all the Naz and OTC with "naked" shorts will be listed. These securities will be restricted. No physical shares, no trade.
Happy trading 05.
yes, the credit is tied to the merger being consumated. The SEC (if there is one) hold-up will eventually be resolved by the laywers.
TT
The 2 new subs created as a result of the merger were incorporated even before the announcement.
Name: PHARMA TECH SOLUTIONS, INC.
Type: Corporation File Number: C31125-2004 State: NEVADA Incorporated On: November 19, 2004
Status: Articles Filed Corp Type: Regular
Resident Agent: CORPORATE AGENTS OF NEVADA (Accepted)
Name: PDA SERVICES, INC.
Type: Corporation File Number: C31126-2004 State: NEVADA Incorporated On: November 19, 2004
Status: Articles Filed Corp Type: Regular
Resident Agent: CORPORATE AGENTS OF NEVADA (Accepted)
Hold-up is probably not with the SOS Nevada but more likely with the SEC or we should have seen the definite merger filing (DEFM14A) by now. I'll suggest somebody with inside connections give CDED a call.
TT
Hate to admit it but....
by: ballyhooo
15 Dec 2004, 10:48 AM EST
Msg. 410 of 421
(This msg. is a reply to 408 by michele_corleone.)
Jump to msg. #
thirsty_tigers figures are a little off! Read the filings for yourself! The $500k note only has $75k balance!
On February 20, 2004, the Company executed a promissory note with Cornell in the face amount of $500,000. The note reflected an interest rate of 12%. There were debt issue costs related to this promissory note of $50,746, which were capitalized as a debt issue cost asset on the balance sheet. The debt issue cost is being amortized over the life of the debt which had a 171 day term. The note is currently in default. The default rate of interest is 24%, however, the lender has waived this provision and retained an interest rate of 12% on the outstanding principal balance. The debt issue costs were fully amortized as of September 26, 2004. Debt issue cost expense for the three and nine months ended September 26, 2004 were $12,761 and $50,746, respectively. *The remaining balance at September 26, 2004 was $75,000*. $425,000 of the promissory note has been repaid through an escrow agent holding with 4,461,795 shares of common stock under the terms of the Equity Line of Credit.
My answer: I was wrong.
Appears that there already is another PharmaTechS out there and not even remotely connected to Kelly. What gives
This is a blank. eom
Pharma Tech Solutions, Inc
You’ll want to check this site
http://www.pharmatechsolutions.com/
TT
DesertRat, You got it.
Have been following HEXS for over a year now and owned it briefly when in the 50 cent range and later in the 10 cent range.
The divesture of their own restaurant was announced last spring. HEXS was loosing money on it and as I remember it the rental contract for the space expires end of Jan 2005.
Problem is, unless HEXS sells a lot of franchises, there will not be any revenue. HEXS is also in default on a February 20, 2004, $500,000 promissory note. and how do you think HEXS will resolved that??? Sale of more equity securities no doubt.
This thing is good for a swing trade now and then but thats about it. HEXS will have no other revenue until the sale of additional franchises except for the 3 and 4% franchise fees off the restaurant gross receipts. That's not going to cut it
TT
VIP Sports
Anybody got the number to the VIP chick in the ad window to the right. Nice boobs.
TT
NextGeneSys..???
After reading both the CC and the PRE14A filing certain things appear to changed from the time of the CC (11/16) to the time of the final agreement (11/24).
The NextGeneSys name and organization have disappeared. Instead, the Kelly owned CareGeneration businesses, clients, receivables and pharmaceutical distribution licenses will be merged into Pharma Tech Solutions, which will become a new subsidiary of CDED.
The new CDED will then have 3 subsidiaries: Pharma Tech Solutions, PDA Services and Medicius.
Also, reading section for Risk Factors very carefully I come to the conclusion that the new CDED will be run by Kelly not Cox and Berman. Read the following:
RISK FACTORS
The following discussion contains, in addition to historical information, forward-looking statements in relation to CareDecision Corporation that involve risks and uncertainties. Actual results could differ significantly from the results discussed in the forward-looking statements.
The company is, and will be, heavily dependent on the skill, acumen and services of our proposed new Chairman, Ronald Kelly, interim CEO Robert Cox, interim President, Secretary and Treasurer, Keith Berman, Chief Operating Officer Robert Ellis and Chief Financial Officer, Richard Foisy.
-------------------------------------------------------------------
Note that the discussion pertains to CDED Corporation not just Pharma Tech. So, Cox and Berman are out of the picture and CDED will become a Kelly run business.
There are a few other “non-conforming” details. I’ll post those during the weekend as time permits.
TT
The following rules apply if CDED can be defined as a "shell company", i.e. a company with no or nominal operations, and with no or nominal assets or assets consisting solely of cash and cash equivalents.
The private company shareholders receive a majority of the shares of the public company and the control of the board of directors.
Upon completion of the reverse merger, the name of the merged company is changed to reflect the name of the new company.
If the shell company has a trading symbol it is changed to reflect the name change.
An information statement, called an 8-K, must be filed within 15 days of the closing. The 8-K describes the newly combined company, stock issued, information of new officers and directors, and financial information.
The Financial statements must be audited to US GAAP, standards, and the SEC allows a maximum of 75 days to amend the 8-K with audited financials if necessary.
If the shell company is listed on the Bulletin board, the registered or “free trade” shares can continue to trade.
The company can do a private placement immediately.
To trade new shares offered by the public company, the newly combined public company must first register the shares with the SEC. This process takes three to four months and normally requires filing a Registration statement with the SEC under Reg. SB-2 or SB-1.
The merger transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement.
Interesting note. One of the requirements for the shell company is that all officers must resign their posts
Agreement for the Officers and Directors of the public shell to be replaced with the Officers and directors designated by the private company merger partner.
Reason for no proxy.
Since CDED is a Nevada Co, a vote by the CDED security holders is not needed. Because
NRS 92A.130 Approval of plan of merger for domestic corporation: Conditions under which action by stockholders of surviving corporation is not required.
1. Action by the stockholders of a surviving domestic orporation on a plan of merger is not required if:
(a) The articles of incorporation of the surviving domestic corporation will not differ from its articles before the merger;
(b) Each stockholder of the surviving domestic corporation whose shares were outstanding immediately before the effective date of the merger will hold the same number of shares, with identical designations, preferences, limitations and relative rights immediately after the merger;
(c)The number of voting shares outstanding immediately after the merger, plus the number of voting shares issued as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20 percent the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger; and
(d) The number of participating shares outstanding immediately after the merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20 percent the total number of participating shares outstanding immediately before the merger.
RFID
This is a story I put together from many sources (a lot of cut and paste). It’s a little lengthy, but I believe well worth the reading. This is what the Kelly Co - CDED merger is all about
RFID Technology
A technology that is changing the way almost every retail business in America will operate. This technology, called Radio Frequency Identification, or RFID for short, will change the course of business over the next 20 years.
An RFID chip is a very small radio transmitter. It’s inactive -- like a bar code -- until it receives a radio signal. When it does, it broadcasts one piece of information: its serial number. It sends its serial number back to a master radio, where it is recorded in a database. This isn’t some new, experimental technology, either. It’s already being used in the real world. For example, if you have “keyless” entry to your car, or an Exxon Speedpass to buy gas, you’re using RFID. If you live on the East or West coasts, you may also use FasTrak or EZPass… using a small box in your car, you can pay highway tolls without stopping. Both systems use RFID technology. In fact, many of the biggest companies in the world are using or testing RFID right now:
Ford uses RFID in its forklifts. It’s testing starters activated by RFID at many airports across the United States.
Avis is currently testing RFID in its rental cars in Puerto Rico. These RFID tags also keep track of mileage, fuel and servicing needs.
Boeing is testing RFID to track airplane parts.
Coors Brewing Company is using RFID to keep keg and cask inventory at its U.K. subsidiary.
Target, the US retailer, Metro, the largest German retailer, and Tesco, the largest food retailer in the United Kingdom, have begun to test RFID in their supply chains.
Getting raw materials onto the sales floor is one of the hardest and most expensive aspects of manufacturing, distribution and sales. But using an RFID tag, a supermarket can, for example, know exactly how many jars of peanut butter are on the shelves, in the warehouse, and on the way - instantly. In theory, every RFID-tracked inventory could stay in perfect balance. Before RFID, however, there has not been an effective way to reduce and control inventory costs.
“The buzz around RFID has built steadily over the past two years. Like the Internet, analysts say, RFID will touch every part of a retailer’s business. Using wireless technology inside tiny chips or smart tags RFID can track a product from the factory floor to store checkout. For retailers, the technology promises lower labor costs, more efficient inventory management, and the ability to market to individual shoppers.”-- The Boston Globe, Sept. 20, 2004
“The next big thing in this category is an explosion of wireless sensors, starting with radio-frequency identification (RFID) tags. Used by retailers to track inventory, they could also monitor the movement of pill bottles in smart medicine cabinets -- warning if you reach for the wrong pill.”-- Business Week, July 19, 2004
That’s why RFID technology can potentially reduce inventory costs as much as 90% or more. The benefits of this technology to America's biggest companies, like Wal-Mart, Gillette, and Proctor and Gamble, are enormous. For you, as an investor, it can mean a huge potential payday.
These small, passive RFID tags can track goods from every stage of production--from manufacturing, to shipping, to the store shelf. All you have to do is put a little tag on your product, and you’ll know exactly where it is at all times… in a truck… at a warehouse… in the store, etc. A study by AMR Research in Boston found RFID tracking can cut warehouse labor by 20%… slash inventory by 25%… and most importantly, boost sales by 3-4%, compared to current inventory methods, such as bar-coding.
Three or four percent doesn’t sound like much… until you realize that a company like Wal-Mart does about $250 BILLION in sales each year. A 3% boost for Wal-Mart could mean an extra $7 BILLION. Now you can see what all the excitement is about.
For the next generation of RFID tracking, EPC Global -- the RFID industry association -- will announce the new, official RFID industry standard. When the new standard is accepted, tag-makers, software producers, and retailers all over the world will race to implement it, spending a total of $4.6 billion per year by 2007, according to the Wall Street Journal.
Wal-Mart, for example, has required its top 100 suppliers (it has over 10,000) to deliver cases to Wal-Mart with RFID tags by January 2005. Barron’s reported that 130 of Wal-Mart’s suppliers have already committed to implementing RFID, no matter what it costs.
The U.S. Department of Defense has done the same. According to the Pentagon’s Alan Estevez, Assistant Deputy Secretary for military supply chain integration, “The new policy will cover everything purchased by the U.S. military -- from beans to bullets and from toothpaste to tank parts -- roughly 45 million line items” from over 43,000 suppliers.
In other words, if you want to do business with Wal-Mart or the Pentagon, you must be RFID-compliant next year. To do this, these companies will spend billions of dollars over the next 5 years.
Wal-Mart is leading the charge to roll out RFID. Wal-Mart has billions of items to track. That’s why Yankee Group Consulting expects Wal-Mart to spend between $515 million and $3.8 billion on RFID in 2004 alone. For Wal-Mart, this is key to bigger profits. That’s because they try to avoid overstock and under-stock. In other words, Wal-Mart doesn’t want to be stuck with 85 T-shirts that just went out of style. The same way they try to prevent any stores from running out of Air Conditioners in the middle of July. .
Currently, Wal-Mart has 2,322 stores worldwide. Their revenue is over $200 billion (it would take K-Mart 21 years to earn what Wal-Mart does in one quarter). Wal-Mart’s key to success was using barcodes to streamline their supply-chain. For the first time ever, they could track the shipment, delivery, sale and replenishment of their products. RFID could help Wal-Mart triple their profits over the next ten years… that’s why they’ll invest billions putting RFID in every single store. That’s why they can sell products cheaper than anyone.
And RFID technology helps Wal-Mart and other retailers streamline their supply-chain in ways that make barcodes look about as sophisticated as a typewriter compared to today’s computers. RFID could help Wal-Mart triple their profits over the next ten years… that’s why they’ll invest billions putting RFID in every single store.
A study done by EPC Global showed four ways retail businesses like Wal-Mart will help them make and save more money:
No more misplaced stock. Stores lose 4% of their sales per day because 8-10% of their stock is in the wrong place.
No more shoplifting or lost perishables. This is known as shrinkage. This costs stores over $500 billion per year.
No more counterfeit products. Currently 30% of the $50 billion spent on prescription drugs per year is spent on counterfeits.
20% less warehouse staff. With RFID most inventory tasks would be automated. No more overtime pay on inventory day either.
They’ll also be able to instantly price their stock to match the current demand of the market for each product. And, they can promote products -- by lowering prices - to each and every customer all day, every day, by simply pressing a button.
With over 50,000 suppliers committed to using RFID, the opportunity to make money on this situation is huge. By the time these suppliers are in compliance, billions of dollars will be spent… and RFID technology providers will see earnings and share prices soar. This is why so many companies are trying to get in on this revolutionary technology. Every retail store, warehouse, and manufacturer is hoping to benefit from it.
On June 26, 1974, a jumbo pack of Wrigley’s Spearmint gum made history…The cashier slid the pack of gum in front of the scanner. Instantly, the cash register knew which product it was and how much to charge the customer. The barcode was born. Barcodes use UPC (which stands for Universal Product Code) to identify every single product. It’s the black-and-white striped label that scanners read electronically.
Since 1984 when Wal-Mart mandated that their suppliers use them, barcodes have tripled profitability.
Today, over 10 billion barcodes are scanned every day. They track everything from donated blood, supermarket discounts, dry-cleaning, overnight deliveries, college students, endangered wildlife, DVD rentals, gym memberships, even prescriptions.
While there are moneymaking opportunities in RFID hardware manufacturing, the greatest potential for profit is in software. Just like it was with computers. Even at the best hardware companies, like IBM and HP, software makes more money.
That’s why investing in the right RFID companies could mean significant profits in the next year.
From the 10-QSB:
"During the three months ended June 30, 2004, we received a loan totaling $700,000 at an interest rate of 12% maturing September 25, 2004."
Any idea what has become of this???
TT