Execute Sports Inc. (OTCBB: EXCS)
EXCS Impresses Kawasaki.
Recent agreement with Kawasaki Motors Group has me very optimistic of what the future holds. Check out the new deal:
When Kawasaki Motors Group initially commercialized its Jet Ski® , product line back in the 1970's, it is very doubtful that even the global powerhouse itself envisioned the personal watercraft (PWC) market reaching today' s heights.
$1 Billion Base
With a total market size of nearly $1 billion and a dedicated user base surpassing 20 million, the PWC segment was more or less founded by Kawasaki when it released its Jet Ski® offering, the first commercially successful PWC in the United States.
Enjoying both unparalleled levels of global brand recognition and a unique first-to-market or "grandfather" position, Kawasaki also benefits from the fact it established itself as a leader in the market's nascent stage.
Now likely the top dog out of four leading suppliers in a billion dollar (and growing) market(http://www.pwia.org/faqs/background.html) that boasts approximately 1.6 million units in use; Kawasaki is an ideal partner for suppliers of complementary products such as safety and protective gear.
EXCS Inks Deal With PWC Market Leader
Announcing an agreement on Friday with Kawasaki Motors Corp. to design and produce a test line of Jet Ski® products for 2007, Execute Sports Inc., (OTCBB: EXCS), has aligned itself with a market leader that holds the potential to help EXCS establish itself as a key player in the $12 billion action sports industry.
With Celeste Berouty (ex-Director of sales at Body Glove) now on board and invaluable inroads being made with Kawasaki, it seems that Execute's restructuring and focus on its core capabilities are beginning to pay off in a major way.
PWC Growth
A bit of research uncovers that the PWC market grew nearly 10% during 2005, very promising when taking into consideration the fact that fuel prices (http://en.wikipedia.org/wiki/Oil_pr...es_of_2004-2006)skyrocketed to new highs after Hurricane Katrina.
Further digging also reveals that the market remained healthy in '06 with improved sales and a drop off in related accidents(http://www.pwia.org/news2006/083106.html).
After taking a quick peek at Kawasaki's 2006 annual report, we also found that the Jet Ski line is classified in the company's Consumer Products and Machinery segment, which consists largely of motorcycle, ATV, and Jet Ski shipments.
Accounting for nearly $3 billion in 20006 revenues and shipping 528,000 total units, the business segment outperformed 2005 operations by 8.4%. Furthermore, exhibiting its dominant and growing position in the region, the CPM segment's North American shipments grew by 10.6% in 2006.
Full Court Press on the PWC Market
In order to gain credibility and acceptance amongst the Generation Y demographic and PWC user population, EXCS has signed top-ranked pro PWC racer Craig Warner to help promote the line. Warner is a top competitor in the American Powerboat Association (APBA) world tour and a name that enthusiasts know.
At this point, it seems that Execute Sports Inc. (OTCBB: EXCS) has its rubber segment firing on all cylinders: With agreements in place with:
1. the top wetsuit/rubber sales executive, likely in the world;
2. one of the most well known PWC racers on the face of the planet; and
3. A leading supplier of Personal Watercraft;
I am very optimistic that 2007 could be a banner year for the company