| Current Price: | $0.036 | 52 Week Range: | $0.008 to $0.15 | Web Site: | |
| DRVW |
Happy New Year to all of our loyal readers! As you all know we closed out 2004 with one of our all time biggest gainers, VIVI. We brought VIVI to our readers at $.04 cents and watched it rocket to $.76 on huge volume, a 2000% gain in less than 1 month. If you had invested $500 at the time of our initial Trading Alert you could have sold your position within 30 days for almost $10,000. Now that is what I call a great trade. In the December 6th edition we issued a Profit Alert recommending our readers to sell their original investment in VIVI and take a profit. VIVI closed at $.65 that day, which means if you had followed our advice you would have locked in a profit of 1600 %.
We have been in touch with company managment and expect them to be reporting some newsworthy events in the very near future. So keep a watch out for company press releases and our next VIVI News Alert. Now that we have re-capped the end of 2004 lets look forward to 2005. I read a lot of financial papers trying to come up with new ideas and ways for our readers to profit in the financial market. In the January 5, 2005 edition of the WALL STREET JOURNAL there is a great article in the personal finance section (page 1) titled “Taking Risks With Your Play Money”. The initial paragraph reads, and I quote verbatim “With the widespread prognosis that stocks and bonds can expect only modest growth for the coming few years, small investors (that’s you and I) are continuing to seek ways to juice their portfolios. Increasingly, that means investors are setting aside a portion of their portfolios as “play money”, risky but potentially lucrative investments such as stock options, micro-cap stocks and venture capital funds, among others”. Gee, the venerable WALL STREET JOURNAL says you can make a lot of money on micro-cap stocks. Well if you bought VIVI on our initial alert at $.04 then that is the understatement of the year. They go on to say and once again, and I quote verbatim “Investing in micro-cap stocks is like foraging through an old mine-it is a dangerous place to play but potentially rewarding if you stumble upon a nugget of gold overlooked by others. That is especially true for the smallest micro-caps, known as penny stocks because their shares often trade for just pennies apiece-though some do fetch a few dollars a share. These tiny companies are far removed from Wall Street’s radar screen, and as such the market for their shares is wildly inefficient. With a little homework (SmallCap Investor Newsletter, we added this part ? ), you can often find financially solid companies trading at cheap multiples with great prospects”. With this in mind we would like to introduce our first great stock of 2005, DirectView Inc, (OTCBB: DRVW).
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| The Company |
DirectView, Inc. (OTCBB: DRVW) is a full-service provider of high-quality, cost efficient videoconferencing technologies and services. DirectView provides multipoint videoconferencing, network integration services, custom room design, staffing, document conferencing and IP / Webconferencing services to businesses and organizations in the United States and around the world. DirectView conferencing services enable its clients to cost-effectively, instantaneously conduct remote meetings by linking participants in geographically dispersed locations.
The company's mission is to provide customized videoconferencing solutions and services to businesses and organizations, such as professional service firms, investment banks, high tech companies, law firms, state and local government agencies, investor relations firms, and other domestic and multi-national companies. From design to installation, DirectView prides itself on delivering products and services that are simple to understand, easy to implement and even easier to use.
DirectView has provided services to clients including The New York City Police Department, BellSouth, Burger King, Coca Cola, Tropicana, The New York City Housing Authority, The New York Taxi and Limousine Commission, The International Longshoremen's Association, The United States Courts, and the Central Intelligence Agency.
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| Investment Opportunity |
DirectView, Inc. has a very aggressive plan for industry consolidation. The company has a strong client base across the U.S. with many Fortune 500 customers as clients. DirectView is emerging as a significant player in the videoconferencing industry but that is not the only thing that appeals to us. DRVW over the past couple of weeks has made announcements about a new Video Phone they plan to Patent. The unit will be aimed at the explosive broadband internet market. The unit will have a high end speed of a minimum of 2mbps and have the ability to operate on any standard broadband cable or DSL line.
Click Here for the Full Story
Jeffrey Robbins, President of DirectView, Inc., said: "We are extremely happy to announce this new initiative. We expect the unit to be ready for market before Q2 2005. Initial testing of the product has been very positive."
Then they went on to announce the potential market for these phones and this is why we are so bullish on the Company. Here is an excerpt from the press release.
DirectView has reviewed the broadband subscribers as reported by the Leichtman Research Group for the end of Q3 2004. The potential results are quite impressive. The table below provides a potential example of new clients and revenues.
| Broadband Internet Provider | Subscribers
at End of
Q3 2004 | Potential Market Penetration | Potential
Direct View
new clients | Potential revenue per new client | Potential
revenue
Total |
--------- ----------- ----------- ---------- --------- ------------
Total Top
Cable 18,774,986 1% 187,750 $499.00 $93,687,180 Total Top
DSL 12,177,654 1% 121,777 $499.00 $60,766,493 Total
Broadband 30,952,640 1% 309,526 $499.00 $154,453,674
Michael Perry, CEO of DirectView, Inc., said: "We are very excited about the potential of the new DirectView Broadband Videophone initiative. We believe the market place is ready to move to the next generation of communication, Video communication."
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In essence, these two press releases placed DRVW at the forefront of the next internet explosion, the video explosion. DRVW came out and stated that there goal was to capture 1% of the market for a staggering $154 million in gross sales. Now we believe that might be an aggressive undertaking but if they can capture only 20% of their stated goal that would still be over $30 million in sales. If they are able to achieve that and assuming they receive the same multiple times sales as their competitors (NASDAQ:GLOW) of 5 times sales that would equate to a market cap of $150 million or $.45 a share. At these levels we believe that DRVW is worth taking a position and obviously the street agrees. DRVW is up 300% the past month and volume has increased steadily to its 10 day average of over 1.6 million shares. In conclusion we believe DRVW is headed higher and we are putting a short term (4 week) price target of $.12 cents, an increase of over a 300% from Fridays close.
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| Products & Services | DirectView offers full service, custom tailored, turn key, visual conferencing solutions. Initially they provided consultation to address and evaluate the project requirements and to offer expert advice on the perfect technology solution for their customer's specific application. DirectView assess the customer's needs, desires and existing communications equipment, as well as cost-justification and return-on-investment analysis for system installations. DirectView products and services include multipoint video conferencing, network integration services, custom room design, staffing, document conferencing and IP/web conferencing services.
![]() A multipoint video conference is a video conference involving more than two sites. As a participant speaks, video is switched at all sites to broadcast the person speaking by a device called a multi-control unit. This switching unit is sound activated and can distinguish between short ambient sounds and long sustained sounds. It can also be set up in a "Hollywood Squares" type of look where all participants see each other. The call can also be set in a "chairperson mode" in which all sites see only the person heading the call.
The company also offers its clients document conferencing and IP/Web conferencing services. Document conferencing affords the ability to bring people together to discuss, review and collaborate as a group, and to make on-line, real-time decisions regardless of the locations of the participants. IP/web conferencing services provides the client with a reliable and affordable way to share software applications, PowerPoint presentations, or anything running on a PC with others in online meetings. With these systems, meeting participants can view with clarity what is displayed on a desktop. DirectView utilizes third party software and applications to provide these services to its clients.
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| The Market |
![]() Video conferencing is changing the way many companies do business. As the extended enterprise of employees, customers, suppliers and partners becomes larger and more geographically dispersed, video conferencing has become a critical medium for conducting business globally. This expanded market opportunity has also been fueled by improvements in technology, transition to IP networks, declining prices, and the restructuring of distribution strategies.
DirectView believes that the growing base of users with in-house systems, combined with the greater bandwidth now available through the integrated services digital network, or ISDN, and improved business quality internet bandwidth, will contribute to the increased usage of video conferencing. Frost & Sullivan (http://www.frost.com), World Videoconferencing Infrastructure Systems Market: A Strategic Analysis of Growth Opportunities reveals that the video conferencing market reported total U.S. revenues of approximately $161 million in 2002 and forecasted that this market segment could expand to $488.7 million by 2009.
The company's products and services are marketed and sold to the commercial, government, medical and educational sectors through a direct sales force as well as through resellers.
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| Disclaimer |
The purpose of this advertisement is to provide publicity for the advertised company, its products or services. This advertisement is not a solicitation or recommendation to buy, sell or hold securities and does not provide an analysis of the financial position of the company. SCI is not a registered investment advisor or broker-dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. SCI accepts no liability for any loss arising from an investor's reliance on or use of this report. An investment in DRVW is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. An affiliate of SCI has been hired by NDE Group and Ken Shenkman for the publication and circulation of this report, and received from NDE one million free trading shares of common stock of DRVW and by Ken Shenkman two million free trading shares of common stock of DRVW for a total of three million shares. SCI has also been promised an additional one million shares that have not yet been delivered and SCI and affiliates have no other relationship to NDE or Ken Shenkman. SCI has sold zero shares of DRVW stock at the writing of this advertisement. Subsequently SCI may buy or sell shares of DRVW stock in the open market. Since an affiliate of SCI has been compensated there is an inherent conflict of interest. This report contains forward-looking statements, which involve risks, and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements. For further details concerning these risks and uncertainties, see the SEC filings of DRVW including the company's most recent annual and quarterly reports.
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