Undiscovered Canadian gem M.SMYFor those seeking to diversify. Great technology and company, do your research on this one.
Investor Digest of Canada
February 18th 2000
"Two small-cap techs making waves
This is the age of information, where knowledge is both power and money.
In
an increasingly global marketplace, where 'just in time' delivery saves
inventory costs and keeps customers happy, knowing where the widgets are
at
every stage of the distribution chain is a huge competitive advantage.
The new hands-off Auto ID technology that will make it all happen is
Radio Frequency Identification, and Toronto-based SAMSys (SMY-ME,
888-483-6646) is emerging quickly as an RFID leader. I introduced SMY in
the
Digest one year ago, then trading at $0.50
The only major impediment to widespread adoption of RFID is the issue of
mutual exclusivity in competing products. Many major Auto ID companies
are
developing RFID tags and readers that use distinctive protocols and
operate
on a specific frequency. This can make efficient tracking across a
global
supply chain impractical.
SMY is evolving quickly. Recent announcements of product completion,
certification and patent applications have driven the stock to current
highs.
In an industry where ownership of patented intellectual property is
crucial to leadership, SAMSys preempted the competition in December by
announcing it had applied to patent a highly accurate ''universal method
and
system''.
It is a real-world solution to a problem where there is virtually and
physically no other way of doing the job. RFID complements rather than
replaces bar-codes, magnetic strips and other wireless ID solutions.
Recent developments
On January 7, SMY announced patent application for its Multi-Protocol,
Multi-Frequency RFID Tag Reader, a product developed in-house and
heralded
as a ''major industry breakthrough.'' Virtually any RFID tag can be
interrogated by this Universal Reader.
This overcomes the ''buy my tag - buy my reader'' dilemma for global
distributors, who do not want to install multiple readers or risk
obsolescence with the wrong choice. The SMY reader activates passive
RFID
tags, then acts as a translator to turn each protocol into a common
language.
Then, on January 11, SMY announced that its ISO-9001 certified Universal
Reader has received certification for off-the-shelf sale in North
America
and Europe. This opens the door for widespread commercialization of
RFID,
not only for SMY but for the entire industry.
Just as Microsoft Windows enabled a whole generation of mutually
exclusive computer technologies to interact, SMY technology is leveling
the
playing field for all RFID providers. SMY will play the role of
gatekeeper
with its new technology, placing the company in a strong negotiating
position with competitors.
SMY is known to expect to announce partners and commercial contracts in
the very near term.
End-users might be investing several billion dollars in RFID technology
over the next several years, and SMY needs major strategic partners to
provide the resources and worldwide representation needed to facilitate
optimal speed to market.
CEO Cliff Horwitz says he is in advanced discussions with a number of
multinational companies and expects to seal strategic alliances with two
or
three sizable companies in the short term.
SAMSys is debt-free and has 18.7 million shares, fully diluted.
AdvantEdge International (AII-CDNX, $0.48, 905-761-5969) is another
Canadian pioneer using RFID.
Both companies should be considered speculative investments.
Laurel de Yturralde is editor of Bidding On Bay Street.
( www.biddingonbaystreet.com target="new_window"> ) She or her
subscribers might have a position in
securities mentioned. "
Investor's Digest of Canada
What the Market Letters Say
"Emerging Growth Stocks, 102-2020 Comox St., Vancouver, B.C. V6G
1R9;(604)
687 5772; $149 a year. CCZ-CDNX, SMY:ME
Mr. Louis Paquette, editor of this advisory, sees a bright future for
'' Mr. Paquette also
continues to be enthusiastic about SamSys (SMY-ME, $2.50), a company
that
designs and supplies Radio Frequency Identification hardware solutions
for
pallet and reusable container tracking. ''SamSys is certainly on a roll
these days, starting with news out on patent applications December 17
and
January 7. On January 11, the company announced that authorities of RFID
in
Europe have certified SMY's products for use. The street is expecting
more
news, specifically an important alliance with possibly a big player
soon,
and dare I say it, leading to orders for SMY's leading edge RFID
systems.
Heaven help us if it doesn't happen. Heaven help us, if it does, and we
were
to sell it all off too soon. For that reason, I will hang on to a
portion of
SMY for the big one. My target for my core position is too high to put
into
print until we receive more news. Specifically, real orders.'' "
Gerry Wimmer
Investor Relations
InvestorFile.com
Direct: (416) 360-8895
Fax (416) 360-0787
Toll Free: 1-888-894-8222
EML: gwimmer@investorfile.com
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