Canadian Small-Cap Conference- Vancouver May 20th 2010

[Tara]

May 20, 2010
6:00pm to 9:00pm
Vancouver Convention Centre (West Building - Rooms 118-120)
1055 Canada Place
**free admission**

Schedule: www.smallcapconference.ca/vancouver0510.php




Presenters selected meet some of the most stringent investment criteria, showing clear "undervalued state" by most commonly used accounting metrics, and business logic.



Here's a summary of three companies which will benefit from the exposure:




NTG Clarity (NCI.v), trading @ .07$


• Profitable in 16 of the past 20 quarters
• Trading at working capital per share ( .08$)
• Trading below accounts receivables per share (.15$)
• 2009 Q4 EPS = +.014$/share (+349k); if we discount foreign exchange loss of 131k, the net profits would have been 480k or +.019$/share
• Forward looking 2010 EPS based on Q4 results is +.06$/share, and possibly up to +.08$/share if they curtail foreign exchange losses with hedging, keeping in mind this excludes growth
• Gross margin stood at 49% in 2009 (financial crisis)
• Free cash flow positive
• Market cap is about 2M$, and the company has 2M$ of working capital (+.08$/share), thus no value is being attributed to the business, net earnings potential and cash generation
• The company’s marketing program is coming to fruition, as more than 1M$ of contract was announced in April 2010, with several other bids in the pipeline
• Plenty of backlog going into 2010
• Long term debt is negligible, only 368k
• Book value is +.07$/share, with no goodwill and intangibles
• No lawsuits that I’m aware of
• A share buyback is in place
• Expenses are well under control with reasonable salaries
• The company has hired QIS Capital for IR, and will be presenting at the Small- Cap Conference may 20th in Vancouver ( http://www.smallcapconference.ca/register )
• The company has a team of high calibre experts with contacts, and over 100 employees/consultants with almost 20 years of existence; Rogers Communications has been their customer for over 10 years
• The company recently announced an important joint venture in the middle East, along with opening an office in the region; Middle east investment(direct stock purchase, not a dilutive financing) being touted by the principals


Recent comments from QIS Capital included the following forward looking statement:

( http://www.qiscapital.com/showpage.php?article_id=456 )

“…Given the recent contract announcements and continued expansion plans, we anticipate further revenue growth to be in the 35% to 50% range for 2010 with a more defined increased in net earnings. “




and also



Bluerush Media (BTV.v), currently trading @ .09$


- Positive net earnings in Q1/Q2 totalling +.01$/share
- Positive working capital of about +1.1M$ (+0.034$/share)
- Positive free cash flow
- No long term debt
- High gross margin around 50%
- Forward looking EPS multiple stand at about 6x, but the company is forecasting growing sales and EPS (trading at 4x when working capital is removed)
- Book value +.035$/share ( No goodwill and intangibles )
- Healthcare recurring revenue stream in the making; Just introduced a new product Digital Rush for mobile devices
- Have not seen any lawsuits pending
- High insider ownership with very small real free float
- Recent insider buying in the .10$ range ( http://www.canadianinsider.com/coReport/allTransactions.php?ticker=btv
- Market cap hovering around 3M$, less than 1x forecasted sales
- Large clients: Eli Llilly, Bell, ReMax, Manulife, ScotiaBank, Fidelity, CIBC, Canada Post for example
- Investor relation and media campaign underway (QIS Capital, Bob Weir from eResearch and Razor Voice for public media); Bluerush will be presenting at Vancouver Small-Cap Conference May 20th 2010



and finally



Alphinat (NPA.v), trading @ .115$


• Profitable in Q1 and Q2 for a total of +.01$/share
• Q2 showed incredible net margins of 33% but one has to acknowledge 92k of foreign exchange loss, which would have brought the net margins to 48%, a true spectacle in itself
• The company remains long term debt free
• Working capital needs further analysis, as 455k are deferred revenues and 325k owed to directors/friends, thus there is no more deficit
• Extremely high gross margin with a low cost structure
• Plenty of backlog with the French and Quebec government, and waiting impact from the Bell Canada joint venture; Swiss Government expansion are still in the wings
• The company has no lawsuits
• Expenses are well under control with reasonable salaries
• Appointed QIS Capital for investor relations
• A large block of shares was purchased recently at .155$


Important statements to highlight from the Q2 MD&A are the following:

From page 2 : “…In Europe, commercial activities are under way with large systems integrators with whom Alphinat has delivered various projects…”

From page 2: “…Finally, Alphinat has undertaken steps to position itself on the American market. The Company has initiated a recruiting process for commercial and sales talent and has entered into partnership discussions with firms that have a strong US presence. “





Of course, the above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, promoter, director, manager or employee of the aforementioned companies, just a shareholder. Some typos could have occurred, do your own due diligence.