Anyone see this?...
FULL RECOMMENDATION HERE:
From Tobin Smith and Jeff Levin - Microcap Investor
Zeros & Ones
OK folks, here's a company and a story that falls squarely under the proposition, "If you've got the guts, you could get the glory!"
We're excited about this potential 10- to 50-bagger disruptive technology investment and the time is at hand for this play. We've spent months researching and following this company, and it's time to act now before the story gets out to the rest of the world.
DEFINITELY HI-DEF!
The speed of the growth of High-Definition Video-over-Internet Protocol (HDVIP) revolution is definitely kicking into high gear. You only have to look at Cisco's recent earnings announcement to learn everything you need to know about the upward trajectory of the VIP growth wave.
We all know that e-mail was the '90s killer app, but e-mail does not require ubiquitous broadband everywhere and always.
And if there is one thing that's getting our attention with the same high level of enthusiasm that e-mail did in the '90s, John T. Chambers, chairman and CEO of Cisco, says it best, "If there is a killer app, it is video."
He is right on the money, but it's not just video -- hi-def video that is the real 21st-century killer value proposition. High-def movies, TV, sports and video conferencing are like the electric refrigerator was to the icebox in the 1920s -- once you tried it, you never went back to the ice-cooled fridge again.
Remember, when you hear Video-over-Internet, you should really be thinking High-Definition over Internet. And HDVIP literally requires a new way to transfer gigabytes of zeros and ones (the internal binary system used by almost all computers) over the Internet.
And this is where a company aptly named Zeros & Ones (ZROS) comes in. What's elegant about this company is what they do in a logical, simple and incredibly powerful way.
This story could very well be a 10-bagger for us for reasons that will become abundantly clear in a minute. What's important to us is that the stock has started to move as its beta test was announced last week. The rollout comes in early April.
A COMPANY NO ONE HAS HEARD OF, YET
ZROS is an Xtreme (maybe extreme Xtreme) company that gives us real management with billions of dollars in previous breakthrough technology success, real mega-customers at hand, a multibillion dollar market that exists now, no dilutive PIPE financing deals, and a go-to-market plan that starts in months, not years.
Why the excitement? We are talking the next generation of the Internet -- a digital revolution that is on now. Our newest recommendation has a de facto operating system (OS) for the next-generation digital highway -- in fact, it would be more accurate to call it the Internet Autobahn.
Zeros & Ones is a company with an unusual name -- but is also a company with a very "here-and-now" benefit for humans living on the digital highway. We are talking 100 times faster Internet over existing systems, and 800 times faster with an upgrade to fiber optics -- technology that ZROS controls.
Consumers now have high-speed Internet-enabled devices ranging from their desktop and laptop PCs to Treos, BlackBerries, Xbox 360s and PS3 game consoles. We have high-speed wireline broadband and 3-G wireless broadband rolling out throughout the world.
There is an explosion in consumer IP companies introducing one new broadband service after another. Just a quick scan of the news reports in the last few weeks gives you an idea of how real this is. The Financial Times reported on Sony improving its PlayStation Portable to a "more user-friendly device capable of downloading films, TV shows (and) back catalogue games."
And there are reports about TV and film downloads hitting the $6 billion-per-year mark by 2012 -- TiVo and Amazon are joining forces to put Web video on TV sets. And that's only the tip of the proverbial iceberg.
So, what's the big problem? An exponential growth of 2 gigabit high-def movies, TV shows and other streaming video, has the world's Internet infrastructure bulging at the seams. There are already reports that the key Amsterdam exchange for the World Wide Web is reaching capacity.
The High-Definition Video-over-Internet Protocol Wave is a trillion-dollar technology shift with two major hurdles: Internet speed and bandwidth.
TO THE RESCUE
Zeros & Ones solves both problems and does not require new devices, new boxes, new wires or new anything.
The system is called RocketStream and is software-based. It requires Internet users to do NOTHING different.
RocketStream is proven, has patents pending and is in beta-testing release right now! Full worldwide release could come in the next 60 days.
With RocketStream's software loaded on your PC or mobile phone, you have the dashboard you need to access the 92.5% of the Internet that stands empty.
RocketStream brings corporations and consumers a powerful, yet user-friendly, method of transferring, retrieving and uploading large files, databases and high-def media faster and more securely than traditional alternatives.
ZERO's technology provides an Internet signal with 100-times-faster data downloading to any device it's connected to over existing infrastructure.
The RocketStream suite is capable of delivering synchronized high-fidelity video, audio, text and VOIP over a centralized network to worldwide participants in less than a quarter-second. It enables point-to-point file transfers without the need for an interim server. And this software suite works in all languages, on existing desktop and server platforms. Even better, it requires no additional hardware to install and is priced way below competing solutions.
In short, the market for the RocketStream software platform applies to any device that connects to the Internet.
How?
The current protocol used for data delivery is File Transfer Protocol (FTP). It is insecure, and only uses 7.5% of the available bandwidth. The remaining 92.5% of bandwidth is not being used simply because FTP is not equipped to perform within today's existing TCP/IP protocol.
RocketStream provides the real-time encryption and automatic payload verification that FTP delivers -- minus all the competing data packets. It's like an open freeway running alongside a crowded highway -- it's really that simple.
What RocketStream software does is give a "handshake" and a security system to the other 92.5% of the Internet pipeline.
SHOW ME THE MONEY
There is no doubt, and we've said it over and over here at ChangeWave MicroCap Investor, that one of the major (if not "the" major) obstacles for microcaps is money -- they seldom have enough to see the dream through to reality and ultimately to positive cash flow.
Zeros & Ones has financed itself to this point with management money, and as a consequence it is very frugal with cash -- they're using their own. It's also important to note that management has significant net worth and enough money to get the product out, we believe, with no dilution. They are committed to success and are in this for the big pop!
Also, two events are possible in the near future that should make it even easier for ZROS to make it through to cash flow. The first could be a venture capital funding and the second is that ZROS would reasonably shop for deals with some big-name companies that will be the prime beneficiaries of the technology -- in fact, it wouldn't surprise us to see serious strategic money in the door before the big launch, or at least, soon afterward.
THIS IS THE DISCLAIMER, FOLKS
The company that solves the Internet speed problem will soon be a billion-dollar company. We think Zeros & Ones has the potential to be that company. It is certainly worth the risk IF you have some money to gamble that you wouldn't miss if it's lost.
It's a fact of life when we're playing on a field where the little guys are scratching and scrambling to make the "big score" that more of these companies go belly-up than survive. It's like open tryouts for the Philadelphia Eagles -- it's a one-in-a-thousand shot. But man, the reward if ZROS makes it huge -- and we think Zeros & Ones has a decent chance to make the cut -- could be magnificent.
THE BEST PART OF THE ZROS STORY ... THE MANAGEMENT TEAM
In microcap land, just having disruptive technology is not enough. There must be a management team that can deliver. Zeros & Ones has such a team and it reads like a Who's Who of Silicon Valley.
Mark Laisure is the CEO and one of the founders of Inktomi, which was acquired by Yahoo! for almost $2 billion. He managed to bring Amazon, eBay, Microsoft, HotBot and Wal-Mart on as partners. Laisure co-founded iNetNow, created MeshNetworks (a Phase II startup acquired by Motorola) and won the R&D 100 Award for "Most Technologically Significant New Product." Finally, he has won a number of s distinguished awards, including the R&D 100 award for the most technologically significant new product and BusinessWeek magazine's wireless product of the year.
Along with Laisure comes Dana Waldman, a director. He is former director of Lockheed Martin's Advanced Communication System, and CEO and co-founder of CenterPoint BroadBand -- a Lockheed spin-off.
Also on board is Scott Fairbairn, Zeros & Ones CTO. He is founder of Breakthrough Technologies, and since 1985 he has founded, funded and operated four entrepreneurial startups -- facilitating their successful M&As into both private and publicly traded entities.
It simply doesn't get any better than this when it comes to corporate management for a late-stage microcap startup.
WHAT'S ZERO'S MARKET TARGET?
Zeros & Ones will focus on the top of the pyramid in its quest for licensing deals.
Think any device that can connect to the net or can deliver an internet signal -- PCs, laptops, servers, cable modems, DSL, Wi-Fi, WiMAX, set-top boxes, Nintendo's Wii and Sony PlayStation.
This is the enterprise market -- a movie studio could license RocketStream for all of their users throughout the world. A radiology corporation like NightHawk Radiology could send CAT scans anywhere around the globe for diagnosis.
Then think even bigger -- financial, media, military and storage. Think about transferring large volumes of data (dynamic) -- real-time video, video games, IPTV and VOIP.
Then would come Amazon, iTunes, or Flickr. Users will download RocketStream in order to receive movies, podcasts and any other high-volume data, super quick. Think news corporations like Fox News Channel, Disney, Paramount, etc.
With ZROS we see a company that has positioned itself to provide the operating system for the Internet Autobahn.
RocketStream is a software platform that would make a great fit for Microsoft. In the battle against Apple, Microsoft could provide this as a simple update option for all OS users.
If Akamai (the distributed computing platform provider) just paid $179 million to buy Netli (another global application delivery network provider that just speeds up servers) then what kind of value does a system like RocketStream have!?
For less than 50 cents a share, where do you find a company with a market cap this small, coupled with a disruptive technology and a great management team?
Say it again slowly and out loud, "This is technology that speeds up data delivery on the Internet by up to 100 times, works on existing desktop and server platforms and requires no changes to network stacks or installation of hardware."
ONE MORE TIME: IT'S GOT GREAT POTENTIAL BECAUSE ...
We started out by telling you to strap yourself in for this ride -- and we mean it! It's going to be bumpy, even for the best of scenarios. Is this a sure bet? No. There's no such thing in microcap land, and Zeros & Ones is one of the edgiest of the edgy plays.
We can't guarantee investment success. That's why the stock is SO CHEAP. It's also why they call it an investment and not a #@&^*$ bond.
ZROS has a real patent-pending solution to a painful problem -- downloading 1-gig-plus multimedia files, and it's a real problem exists today. Zero & Ones has a laser-beam focus on solving that problem in a quick simple and elegant way -- RocketStream client and server software.
It is about to launch the solution at a time that no one has any other more elegant or powerful alternative -- including BitTorrent and other peer-to-peer solutions.
This management team lives in the here and now -- not the etherworld of the dream clouds. They've built several Internet-technology companies from nothing. In short, they have talked the talk and walked the walk before Zeros & Ones.
What made YouTube worth $1.5 billion and FaceBook worth almost a $2 billion? Huge worldwide potential and a business model to turn that value into cash, and it's the same potential that ZROS has.
Note, though, that ZROS recently announced its rollout plan in January 2007, and is soliciting beta customers and aiming for commercial availability late in the first quarter of 2007 -- that's not long, folks! We have 45-60 days to get in on the ground floor.
BUY RECOMMENDATION
We recommend buying ZROS under 50 cents, but with some cautions. The first is that this is a "Fly or Die" proposition. We're operating on the fringes of microcap land and we have to be aware of that reality here.
ZROS is a $35 million market cap company about to take on a multibillion opportunity. We'll say it again, this could be a 10-bagger, maybe even a 50-bagger -- or it could be worthless. Do not bet any money on this that you will miss should something go wrong and your money is lost. We believe that Zeros & Ones stands alone in a situation that is fraught with potential, but, again, in microcap land there are no sure bets.
Please don't place any market orders because this could move the stock 10% or more. It will take time to build positions under 50 cents as ZROS rolls out its breakthrough technology and launches around April.
AI
