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Strategies & Market Trends : JCI Technologies Inc.

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To: gar peter who wrote (28)5/23/1998 9:48:00 AM
From: Mephistopheles   of 88
 
Good news. Here is what I found from StockHouse/StockMans Forum:
Subject: JCI TECHNOLOGIES
SYMBOL: JCI- CALGARY EXCHANGE
CLOSING: 14 CENTS
FROM: 3bagger

INTEREST: I AM A HOLDER OF 50 000 SHARES AND WILL ADD TO MY POSITION IN THE NEAR FUTURE

LeRoy,

JCI- A promising investment opportunity has landed right in my lap that is almost too good to be true. The company I am referring to is JCI Technologies. Here is a company with a solid board of directors, a succesful entrepeneural chairman of the board, and basic ideas for the internet that are going to reward them and their shareholders with some very handsome rewards not too far down the line.

JCI, the company, consists of three websites that link the consumer to the corporations via the internet. These three sites are JOBS CANADA< AUTOMATCH, and MLS ONLINE. While Jobs Canada, in my mind, will generate the least amount of revenue in the short term (due to the fact it is still being developed), it has the potential to be the largest revenue producer for the company. The other two sites, Automatch and MLS online could potentially bring JCI's earnings into the 10 cent a share range within one year from now! Not bad for a company that is currently trading at 17 cents as i write this.

So why is the stock at 14 cents? The answer to this question is quite simple...they have been victims of circumstance for the last two years. Back in 1996 JCI was trading over 3 dollars a share. the two largest shareholders were Torstar and Southam Corp. They were the primary financers for JCI, and were extremely excited about the future potential of the company. Torstar and Southam enjoyed a great relationship with eachother, as well as JCI. Unfortunately , Southam was taken over by Hollinger ( owners of The Toronto Sun amongst other papers). This caused a problem, as Hollinger and Torstar were bitter enemies for obvious reasons. They battled for quite some time and the stock of JCI began its descent to the 1.50 level. Finally, one pulled out, followed by the other who did not want to go it alone. The end result was an almost overnight drop in JCI from 1.50 to 6 cents!! The remaining positions were crossed out at 10 cents and put into good hands. In 1997 JCI needed more money, as they were still at the developmental stage. They arranged a private placement at 15 cents with warrants attached at 25 cents. The stock climbed and remained steady at .35 cents until a week before the warrants were to come due...then came BRE-X...WHAM!! down under 10 cents in a heartbeat, no money raised from the warrants. since then the company has survived on a bridge financing and now their time has come. Their products are attracting a great deal of attention, and the revenues are sure to pick up at a rapid pace.

So what is MLS Online? MLS Online is JCI's website that lists properties and houses for sale across the country. The website received 16.5 MILLION confirmed hits in the month of March!! The company is projecting 20 million in April when the numbers come in. JCI has existing agreements with banks and other financial institutions for third party advertising. The company company will continue to expand revenues in the future in this area which would add significantly to the botoom line. The real estate brokers will pay a fee to advertise their houses on the site ( through the CREA, and are expected to come in the range of .50-.75 cents per new listing). Who wouldn't pay 50 cents a listing to advertise on a site that gets 16.5 million hits a month and growing? I'll tell you who would..the agents that currently have 240 000 houses listed on MLS Online!!! Let's multiply that 240 000 by 50 cents... that's 120 000 on the books of JCI. Now let's assume that there are 20 000 new listings a month...I think you get the idea. This 50 cent number is on the conservative side, and I feel safe using it as a measuring stick. Mcleans magazine rated JCI's MLS Online site as one of the top five personal financial websites in Canada. Check the website out yourself at mls.ca , I guarranty you will be impresssed.

AUTOMATCH, JCI's recently trademarked internet site offers the convenience of searching out a car in a virtual auto dealers parking lot from your home computer. JCI receives (again, an introductory fee) of 5 dollars a car listing. They are signing up car dealerships across the country to list their entire lots. Third party advertising will also be signed up bringing in significant revenue. This site could be a major cash cow. Check this site out at automatch.com

Finally, there is JOBMATCH. This site allows the average individual to showcase his/her resume to over 4500 different corporations. The corporations pay 5-25 dollars per resume viewed. The system matches the skills of the individual to the neeeds of the corporation (in essence JCI is a very cheap headhunter with a broader employment pool to draw from). The Canadian government is currently negotiating with JCI to kick in 25 dollars for every job JCI finds for the job seekers. JCI has 75000 resumes on file at present. To view the site go to jobmatch.com

I apoligize for being so long winded, but I still feel I haven't even begun to touch on the full potential of JCI. They are currently working on plans to bring their MLS into the United States (I don't think I need to explain what this could mean to earnings). In talking to people in the business, I have learned that though JCI has competitors in the USA, JCI is by far the cheapest and best that they know of. In talking with the company, I have learned that they are in talks with several parties that are interested in doing a non- dilutional financing. I have also been told that JCI is looking to enhance their stocks exposure in the USA , and are in talks with several financial corporations across the border with regards to this.

JCI is unbelievably cheap at these levels considering the unlimited growth potential. With an exremely conservative earnings estimate of 5 cents a share earnings in the next year how can you justify a 17 cent stock price? If JCI was followed by analysts in the USA they would surely have to give it at least a 30 times multiple. that equates to 1.50. let's cut that in half... 75 cents...and hell let's do it again...37.5 cents...you starting to see what I mean? Do your own DD, check out the sites, talk to the company, I think you will be pleasently suprised.

JCI TECHNOLOGIES: 1 (250) 881-8104 GEOFF EDMUNDS

shares oustanding f/d- 28.6 million
approx. float - 8 million

Press Release:

JCI Technologies Inc -

Agreement to create Real Logic Inc.

JCI Technologies Inc JCI

Shares issued 26419682
1998-05-13 close $0.165
Thursday May 14 1998

Mr. Geoff Edmunds reports

JCI Technologies has signed a memorandum of understanding to form an agreement with the Real Logic group and create a company known as Real Logic Inc., a private software and Internet technology company. Management believes this agreement will greatly enhance JCI's future business development and expansion plans. Under the terms of the agreement, Real Logic will acquire Realty Match, the subsidiary of JCI, which operates MLS Online, the largest real estate Internet service in Canada. Under the terms of the memorandum of understanding, Real Logic will pay JCI $750,000 as follows: $250,000 by way of cash payment, $375,000 by way of the issuance of common shares in Real Logic, including the right to maintain a 25 per cent carried interest, and $125,000 by way of advertising credit and/or technology transfers to be applied to other JCI products or services. Management anticipates that the final documentation and agreements will be closed prior to June 30, 1998.

The new venture will incorporate state of the art technologies and sophisticated information systems with the intent of creating the most advanced real estate information system in North America. Real Logic will specialize in the design and development of intelligent agent information retrieval systems. Based on ActiveX compliant technologies and a low bandwidth based push technology, Real Logic will provide up to the minute information, delivered directly to the user's desktop via the Internet, in an attractive, easy to use, graphical user interface and a smooth scrolling ticker display. Real Logic will introduce improvements and enhancements to the existing MLS Online web site immediately to increase functionality, improve performance and add compelling site content.

The benefits of this agreement to JCI are:

1. An immediate cash injection to the company's treasury will afford JCI the resources to aggressively market its other Internet products - AutoMatch and Jobs Canada which both feature JCI's - remote access technology.

2. A right to maintain a 25 per cent interest in the combined company which has tremendous revenue and profit potential and the capability of marketing its products worldwide.

3. A close agreement with an innovative marketing and development group, that will bring value added products and services to other JCI entities.

4. Improved financial status and greatly increased opportunity for renewal of the existing contract with CREA, The Canadian Real Estate Association, for the continued operation of the MLS Online web site, due to the enhancements under the Real Logic agreement.

5. The opportunity to apply new complimentary technologies and marketing programs to core JCI projects.
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