Overview
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Research, Report & Profiling Services
by IPOdesktop.com
San West, Inc. (SNWT.OB) |
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Stock symbol: SNWT.OB…...…..…..……..….…..…..……..…….………Float (9/30/09): 22mm
Stock price 12/1/09: $.214……...…….Common shares 9/30/09: 111.5mm adj for forward split
52 week Range: $0.012 to $.35 …………………………Equity market capitalization: $22.3mm |
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Recent News…..Stock Price…..Chart…..SEC Filings |
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CEO Audio Interview, Dec 2, 2009 (click) |
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HIGHLIGHTS |
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For the fourth quarter (Dec), SNWT expects revenue to exceed $800,000, or more than three times the revenue generated in the third quarter, driven by rapid growth from SNWT’s internet marketing initiatives and initial success from the sales and marketing strategy at trade shows and industry events. |
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BUSINESS |
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Designs, manufacturers, sells and repairs off-road buggies, and additionally provides after market performance products and accessories for buggies. |
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Products are sold both at a physical locations and online. Repair services are sold and fulfilled at the physical locations. |
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RECENT DEVELOPMENTS |
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(1) San West Inc. Announces Addition to Grand Prize Buggy Giveaway, Dec 1 read more |
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(2) SNWT and Buggy World Poised for Additional Sales and Exposure Heading Into Season's Largest Event, Nov 19 read more |
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(3) Enters Into 3.2 Million Dollar Partnership With Second Largest Online Dealer in U.S., Oct 9 read more |
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(4) Partners With Leading Retailer and Expects to Add $700,000 to Top Line Revenues, Oct 7 read more |
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TARGET MARKETS & STRATEGY |
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The motorsports industry is highly fragmented with an estimated 4,000 retail stores throughout the United States. San West’s goal is to become one of the largest dealers of off-road buggies in the U.S. through accretive acquisitions and internal growth. |
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SNWT’s strategy is to capitalize on the growth of the U.S. market for Chinese-made off-road buggies and go karts, as well as to establish master dealer arrangements with leading brands, enabling SNWT to continue to expand online sales and to leverage equity to negotiate and acquire synergistic businesses. |
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SNWT specifically targets dealers in markets with strong buyer demographics that, due to under-management or under-capitalization, are unable to realize their market share potential and can benefit substantially from San West’s systems and operating strategy. |
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FINANCIAL ESTIMATES |
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Based on the above recent developments (2, 3 & 4) it is reasonable to estimate 2010 sales to be in the $5mm range and trending upwards. |
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Looking into 2011 its seems reasonable that SNWT will extend its growth plan and though internal growth and strategic, accretive acquisitions could achieve revenue in the $10mm range, with a run combined run rate by June 2011 of $15mm in annualized sales. |
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POTENTIAL MARKET CAPITALIZATION |
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Amazon’s gross profit is in the 22% and it seems reasonable that SNWT’s combined gross profits will be in the same range because much of SNWT’s growth is expected from online, Internet-based sales. Amazon is selling around 3 times trailing 12 months sales, and 81 times trailing 12 months earnings. |
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The key metric for investor’s to follow is SNWT’s ability to control SG&A (selling, general & administrative) costs. If they do then their price to sales multiple could be in the 4x annualized revenue run rate range, or $60mm or the $.50 to $.55 cents per share range. |
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In addition, SNWT’s with success pattern coming out of the consumer recession and with SNWT"s relatively dominate public vehicle in the sector, SNWT could attract other (profitable) industry participants who want access to public markets. There are 4,000 dealerships in the country who could also benefit from SNWT’s success pattern, according to SNWT management. |
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Address : 10350 Mission Gorge Road, Santee, California 92071
Telephone: (619) 258-8770
CEO: Frank Drechsler
Web Sites: www.sanwestinc.com www.buggyworld.net www.countyimports.com
State or other jurisdiction of incorporation or organization: CA
Transfer Agent: First American Stock Transfer Inc
Investor contact: Hayden IR, Brett Maas, brett@haydenir.com (646) 536-7331 |
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MANAGEMENT & DIRECTORS |
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Frank J. Drechsler, Chief Executive Officer |
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Frank J. Drechsler has been San West’s chief executive officer, president, treasurer and a director since inception, and served as corporate secretary until July 2005. Since 2002, Mr. Drechsler has been an officer and director of Krinner USA, Inc., a privately-held Nevada corporation which markets and sells Christmas tree stands designed in Germany. Mr. Drechsler also works as a sales agent for Krinner but receives no compensation from Krinner when its products are sold on the Company’s online store. Since July 2001, Mr. Drechsler has also been the president, secretary and a director of Finger Tip Drive, Inc., a Nevada corporation, which provides online computer data storage services. From October 1998 to May 2001, Mr. Drechsler was the president and a director of Pacific Trading Post, Inc., a Nevada corporation, which marketed and sold products on the Internet within the outdoor sports industries, specifically in the areas of skate, surf and snow. In January 1998, Mr. Drechsler co-founded and developed the business model for skatesurfsnow.com, where he was responsible for the day-to-day operations. During 1997, Mr. Drechsler was self-employed as a consultant and helped start up companies develop sales and marketing programs. From 1995 to December 1996, Mr. Drechsler was the international sales manager for Select Distribution. Mr. Drechsler graduated from California State University, Fullerton with a Bachelor of Science degree in International Business in 1992. Mr. Drechsler was previously an officer and director of Zowcom, Inc. a Nevada corporation, JPAL, Inc., a Nevada corporation, and Expressions Graphics, Inc., a Nevada corporation. |
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Bryan Britton, Vice President and Chief Financial Officer |
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Bryan Britton has been chief financial officer since June 2009. Mr. Britton co-founded LGR with Mr. Drechsler in August 2008. Between August 2004 and June 2007, Mr. Britton worked to develop aftermarket turbo kits, king shocks and other high performance accessories for the imported market. In August 2004, Mr. Britton founded Letz Go Racing Off-Road Center in Lake Havasu City, Arizona, strictly importing off-road mini buggies, and managing operations. In June 1980, Mr. Britton founded Britton’s Unique Auto Service, Inc., d.b.a. Britton’s Automotive Group in Huntington Beach, California. Mr. Britton graduated with a master degree in all phases of automotive, service, repair and diagnosis from the Arizona Automotive Institute in Glendale, Arizona in 1979. He also holds a master ASE certification.
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IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information. |
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DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up eighty five hundred dollars from a third party or the company for preparation and posting of this report and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page. |
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