Thursday, January 13, 2011

New IT utilization

By Erik Peters


The Internet has completing changed our society and our world. The Internet has shaped the way we shop for food, pay our bills and do banking, the way we work, shop, learn, and interact with one another. It has given us the ability to multi-task in ways we would never have thought possible.

The Internet is made up of computer networks which gives computers the ability to communicate with one another worldwide. Even though it may seem like the Internet has only been around for a little more than a decade, it was actually first invented in the 1960s. It's sole purpose was to help the government and the military. The network in which computers use to communicate is known as the Internet Protocol Suite, or TCP/IP. When we think Internet, we think data and information and how fast we can receive it. The faster the Internet connection, be it Ethernet or Wi-Fi, the better it is.

You might be asking yourself how the Internet works. The network that computers use to communicate is what is called the Internet Protocol Suite (TCP/IP). As we all know, the Internet is a vast resource for data and information. It is all about how fast we can receive information, which is probably why the military used it.

You could write a book on all the things one can do with the Internet. Some of the popular choices include messaging and friending on Facebook, downloading, uploading and watching home videos and even clips of your favorite TV shows on Youtube, or buying and downloading music on iTunes. It is easy to bookmark these sites by using the "favorites" or "bookmarks" tool in your Internet browser and visit them whenever you want. These sites see millions and millions of users and visitors each day.

Today, the Internet is everywhere. More and more organizations are setting up wireless systems such as Wi-Fi for customers and coworkers and affiliate businesses. Cell phones, Smartphones, and even iPods all have Internet or Wi-Fi capabilities. You can check your email, call someone on Skype, and listen to your favorite song all on one handheld device. It's truly amazing.

The Internet has made our lives easier and more difficult at the same time. Relying on the Internet TOO much can have its pitfalls. For example, logging on to your bank's website to make a transfer that you know you need to do and the bank's website is down for "maintenance". Trying to purchase items at a store and the store's credit card machine system is down can be frustrating. Bandwidth usage can also cause issues and can be frustrating for users. Too many people using the same network can make the network run slow and almost nonexistent.

The Internet is like anything else. It can be really beneficial, but too much of it can lead to problems. It is probably safe to say that in another decade or less, we will be able to connect to the Internet from anywhere using any kind of device. With 2011 just beyond the horizon, we can walk into a McDonald's and check our email or Facebook pages by using a cell phone or iPod.

Many believe that in the future we will no longer have to go to work or school. All business and education will be done solely from a computer. There are already education portals that children and teachers use to communicate with one another on homework, tests, and other projects. There are entire advanced degree programs that are 100% Internet based. It is very easy for people to work from home with external email and VPN access. There are even some companies who let their employees work from home several days per week! It's not that far off.




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Computer Software: Auto Performance

By Robert Barnes


"Are you one of those passionate drivers, looking to extract maximum power from their engines without having to sacrifice the simplicity, safety and comfort that come with owning a European car? You now have but one choice - getting a big turbo software!

There are many available now on the market! The unitronic turbo software comes in a number of hardware configurations for most Volkswagen, Audi, Porsche and Volvo applications. There are also programs for all setups: from street/track monsters to quarter mile beasts. For certain setups that are not yet available, you can choose the dyno tuned custom software, tailored to your needs. There are many factors that determine how any software will react to your specific setup. This turbo software I'm telling you about is developed in house along with a network of enthusiasts constantly testing and data-logging to ensure the best drivability. In certain cases, there will be free software updates released, providing the best in drivability and performance.

The benefit of this special software over standalone engine management is that all the original manufacturers' safety limits and functions are retained. By properly modifying the parameters which manage the engines power delivery and output, the original startup and driving characteristics will be maintained in all climates.

The performance software version introduces to you the smoothest and most reliable power gains available for your vehicle. All programs are precisely tuned for all driving conditions to bring you the most reliability. Professionals know that dynamometer test results are an over simplifications. They only tell part of the story since the engine is tested only at full throttle. You don't drive all day with your foot to the floor. That's why you need a performance software, one that will maximize the power and torque you need in everyday driving conditions, where (we drivers know!) running smooth and brisk acceleration are equally as important. The unitronic performance software comes with an unconditional 30 day money back guarantee. The 30 day grace period will ensure that your expectations are met. If for any reason you are not satisfied, you may return it to your place of purchase for a full refund. Unitronics is all about your driving satisfaction. A risk-free satisfaction guarantee gives you total peace of mind.

And if you didn't know, last year, in April, UNISetting was released. This useful application, developed by unitronic for the Bosch Motronic Me7 system, allows the user to manipulate and adjust the built-in ECM adaptation channels to enhance the enthusiast's particular setup - from stock to modified, oct specific tweaks and adjusting for larger Injectors to better suit performance and drivability. The application is, in fact, a USB based interface (the first of its kind!) to work with any Communication interface.




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Take Your Company Public and Globalize With Strategic Partners

By James Scott


As a consultant in the business of structuring companies, setting up strategic alliances for clients, writing business plans and PPM's and taking companies public on the OTCBB, I must admit I've seen my share of scams and swindling of uninformed clients. One sad issue that permeates the industry is clients who believe that their only option is to give up substantial equity while paying hefty fees to consultants who take your company public.

Here is the reality. When you are investigating the industry to find a consulting firm to work with to facilitate your 'go public' process, the first thing you need to do is make sure you are hiring a 'turn-key' solutions consulting group; meaning they need to offer everything soup to nuts in house because the second your consultant outsources anything, accountability is lost.

Next, on the issue of paying fees and also giving up equity, it should be either or, not both. If a company tells you that they want you to pay them in both upfront fees and in equity, you should laugh and walk away. In actuality the best deals for the client are those that are simply fee based, not equity based.

It's better to pay 100k in a few easy installments than to pay millions in stock that will only be liquidated after the IPO which will completely obliterate your stock price and almost certainly ruin your company's chances of success. It baffles me to see the scenarios that uninformed company owners accept. Currently there is a company that is promoting all over Google Adwords that they will take your company public for $25k and after a month of talking to the company, when you finally agree to use them they break the bad news that they are not going to charge you $25k or anything even close to that, they are, in fact, going to charge you $125k upfront, plus $10k to $20k for your initial SEC audit and on top of all of that they are going to take 30% of your company! It's shocking but this group of consultants, because of their extensive advertising, has no problem bringing in clients and turning the tables on them at the last minute and sadly, because the client is uninformed, they accept the contract and pay the fees.

If you are going to give up any amount of equity in exchange for the process of going public, it should be with a licensed broker dealer and there should be zero out of pocket expenses from you. Your broker dealer should pay for the SEC audit, S-1 filing, SEC approval, FINRA approval, Symbol achievement and ongoing investor relations to keep your stock price solid. Unless your broker dealer is doing all of this, you need to find a new, full service broker.

Keep in mind, each consulting firm you talk to will give you a million reasons as to why their fee structure and process is the best but here are some comparable facts so that you can make the right decision on how to proceed. First of all, if you get an emotional consultant that acts like he is excited about your project and 'can't wait to get started' this is bogus and you should walk away. The best consultants keep clients at arm's length and never get emotional because it clouds the process and makes them ineffective. Besides, if they are acting so excited about your company it's probably because they are trying to convince you of their legitimacy that won't stand on its own merit.

Next you want to make sure that you are getting a quote on your specific company type which includes at a minimum: corporate structuring, strategic alliance facilitation, board of directors evaluation, business plan authoring built for IPO, investor finder service, SEC audit (the should be able to give you a general idea of the cost of the audit and have a company that you can use as most consultants don't employ an auditor on staff), S-1 filing, SEC approval, FINRA approval, symbol achievement, market maker or broker dealer relationship/contract setup and investor relations for long term success.

Clean OTCBB shells that are ready for a reverse merger are like the legends of White Elephants, the Chupacabre and Bigfoot. Everyone has heard of them but no one has seen one. I have seen so many fly-by-night consulting firms pop up in the past year it's depressing. Of course the claim to have 17 years in the industry with 100's of reverse mergers tomb stoned on a page that 'they just can't remember the link to'.

I'll tell you what, if you're sold on going public with a shell and won't consider any other way, make it easy on yourself walk into your local Burger King, give the cashier $200,000, lay down behind a Mack Truck that is backing out of a parking space and fill your bathtub with razorblades and rubbing alcohol and dive in face first, be sure to set yourself on fire before the dive. Believe me, the above is far less painful than a messy reverse merger.

Sure, solid shells exist but it will cost you a ton of equity, $500k + in upfront fees and an ongoing Sumo Wrestling match with FINRA and inherited shareholders. That said, I have seen a few successful reverse mergers into Pink Sheet shells with the intent of qualifying for the BB. The bad news is, they didn't and don't have a chance in hell of ascending to another exchange (well maybe Frankfurt and other pump and dump domains) and the good news is, they did successfully merge while simultaneously being 80% diluted within three months with a par value of .007 per share. So they succeeded in merging but completely failed at the attempt to fund their company or secure actual trading volume.

Going public is a big decision and if done properly can be incredibly rewarding for the company, shareholders and the company's strategic partners who find themselves in the spotlight and mentioned on press releases, webinars, roadshows and other investor relations branding and promotion. Do yourself a favor, if you care about your company at all; if you want to survive and thrive in the public realm and don't have $200m in annual revenues, file an S1. It takes a few months longer but it's a move that will create a foundation for a customized filing.

Consulting firms that actually care about their clients and truly make their money on the back end once the company is public as opposed to front heavy fee oriented structures will always do an S1 to preserve the longevity of their client's company. Think about it!




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Loans On Stock And Non Recourse Stock Loan

By James Scott


There is a lot of confusion about stock and securities backed, non-recourse lending. Here is a case study for three different scenarios of what can be done for ultimate capitalization if one owns stock and wants to monetize without selling their shares.

Client A is in the gaming business based in the Southeast and had problems getting conventional financing to fund their growth. The project was a bid and fulfillment of contract to place gaming machines in new locations recently approved for gaming. The need was $1.2 million and while the company itself could not fund its growth, the owner's personal portfolio of mostly blue chip stocks got a loan to value of 85% and a rate of 0.75% with a cap at 1.75% for 5 yrs. He has the option to renew for 2 additional 5 year periods.

Client B has substantial real estate holdings both residential and commercial. One of his larger commercial mortgages was getting ready to reset with a large balloon payment due. Not having the money and not being able to refinance with his bank he came to us. The need was $1.4 million and in this case the portfolio consisted of only one stock. That stock was a large cap stock nearly a 'blue chip' company that got a loan to value of 82% and a rate of 1.05% with a cap of 2.05% over a period of 3 yrs. He has the option of renewing for 2 additional 3 year periods.

Client C has a company that is ready to go public. They are already on board with an investment bank and their IPO has already been priced and is ready for sale to the underwriting syndicate prior to its listing and trading on the NASDAQ stock exchange. The company needed a bridge loan as well additional funding to pay the substantial investment banking and stock exchange fees to complete their listing. The need was $1.5 million and we used the Treasury stock of the Company itself that was going to be issued to do a loan at 78% loan to value at a rate of 1.00% and a cap of 2.00% over a period of 3 years. They have the option of renewing for 2 additional 3-year periods.

Raising fast capital for any reason, regardless of credit is easy if you know how!




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Taking Your Company Public: Good Luck, You're Going To Need It

By James Scott


Taking a company public has multiple intricacies. I get calls and emails daily from people who want a quote for taking their company public and I respond the same way each time, "No Thanks and good luck, you're going to need it if this is how you're approaching the process of going public". Business owners who are seeking a 'competitive quote' from a consultant to take them public are asking for trouble and just begging to attract the wolves. Its shocking how many startup consultants are crouched over in darkened alleyways waiting to pounce on unsuspecting entrepreneurs and take their money and deliver absolutely nothing.

If you want to find a consultant worth their weight in salt you need to take the approach of general evaluation using targeted questions to find out if they are truly qualified to take your company to the next level. First and most basic, ask them if they are offering a turn-key public offering service, meaning do they participate in everything from soup to nuts including but not limited to: S1 filing and comments completion for SEC approval and market maker designation and 15c211 filing with FINRA to obtain symbol.

Think of this as the stuffing between the OREO cookies. Now you need to qualify them for their pre public and post public solutions. Pre public you need to make sure they will assist you with corporate structuring, expansion strategies, board of adviser selection, board of director election, executive pedigree evaluation for a public company, corporate and executive publicity generation using traditional means of radio and TV expert panel participation and viral publicity branding.

Your post public strategy is crucial and should be set in motion pre public so that you can hit the public market full throttle from the onset of your public offering. Post public strategies should entail a vast and in-depth investor relations strategy using stock alerts, press releases, promotion to market makers and other advisers, TV and radio interviews, article publishing and growth through acquisition just to name a few strategies.

You shouldn't come out of the gate and lead the consultant to answer with the above information but target your questions so that they are general enough so that the consultant gives you their pre customized, boilerplate template strategy.

Going public can be extremely rewarding if done properly. Don't try to do this on your own. Find qualified professionals to take you through the process in a structured and orderly manner.




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