broker presentation, page-12

All,
I am a bit late, but I live on a farm outside Perth and I took the opportunity also to see other friends etc.
I attended a presentation given by Mike Otten, Andrew Sigalla and John Wilson in the office of Argonaut Securities. The other people attending were private clients of the firm as well as senior client advisers. After that they had two other presentations as well.
Although I thought my current TZL knowledge was up to date, the presentation had some surprises.
I see you guys always complaining about the lack of information. Potential earnings have been expressed but nobody knows where it comes from. This will change in a couple of weeks.
Credit Suisse New York research analysts are working on an extensive piece of TZL research and have asked all the companies TZL is working with if they could mention their names on the basis of not mentioning the exact product they are developing. As a result the presentation showed an impressive list of Fortune 500 companies.
John Wilson was explaining a couple of applications. One of them was to secure/lock a computer so that nobody in the office can get hold of your hard disc.
One and one makes two. The aforementioned list showed Dell computers. Now we sure have never seen an announcement that TZL has done a deal with Dell. But I bet they have. We all think they are working on the Airbus interiors. Yes thats right, but I never knew they were doing the same with Boeing and that in 2010/2012 there is no airplane in the world that is not using TZL technology.
As we all know after Intevia take-over their margins have increased to 55% and this will all be recurring income year after year and growing. Suffice it to say that Nasdaq listing (This is my opinion) will create earnings multiples of 50 and more.
Timing of Nasdaq listing is dependant on take-overs.
These are necessary to get the wanted bodymass and immediate cashflow for Nasdaq listing. They are working on two at this moment. One of them the biggest has not gone through yet because of not meeting budgetary targets and consequently TZL has lowered their offer. Its now all about the seller accepting the offer. The other one, smaller will probably happen in a couple of weeks, so when Sigalla was asked when Nasdaq listing would take place he could not say this year. Its all depending on bodymass. But sooner or later CS corporate will find another company to provide this so called bodymass. A big acquisition would be funded by debt. CS seems to think that buying a company for a multiple of 6 would enable them to privide a junk bond with an 11 or 12% coupon.
Chris Keliher and the new CEO, sorry I forgot his name will start presentations next week in the U.S.
Apart from the impact this might have there is something else that I believe will give solid buying next week. But I have been wrong before with my timing.
Klaas