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Why We Are Invested (June 2008)

Below are summary points of why The Howard Group invested in its client companies. While we invite you to read below, we emphasize that each individual looking at investing in a company should conduct their own detailed review before making any decisions. We are not investment advisors. As in every case, one must balance risk and reward and their personal tolerance when looking at micro and small cap companies.

aeromechanical

AeroMechanical Services Ltd. (AMA - TSX V)

  • The company has breakthrough technology that will increase aircraft safety and could fundamentally change airline operations.
  • Recurring revenue model that stretches out up to 30 years on each aircraft installation.
  • Dramatic cost savings for the airlines.
  • Years invested in developing the technology.
  • Huge financial and time barriers for competitors.
  • More than 120 aircraft now equipped with the AFIRs technology, with a backlog of 600+ aircraft
  • An analyst target price of $1.63/share.

For more information on AeroMechanical, click here.

anglo swiss

Anglo Swiss Resources (ASW – TSX V)

  • Its Kenville property near Nelson, British Columbia is a past producing gold mine. The property holds the potential for large gold/copper (porphyry) concentrations in a shallow play.   It also has excellent road and rail networks.
  • High gold values have been found at Kenville in a mineral dense system called the Eagle Vein. New technology combined with a history of previous drill results  holds out the promise of a short time line to discovery.
  • Projected cash flow in Q3/08 from gold extraction in old mine workings as well as selling crushed rock for construction. 
  • A second property in the NWT called Lac de Gras is close to Canada’s first two producing diamond mines. Past drill results have encountered Kimberlite and micro diamonds.
  • 2008 programs are fully funded with its phase two, 10,000 meter drilling program now underway
  • Strong drilling results could result in a swift stock price move.
For more information on Anglo Swiss, click here.

asia now

Asia Now Resources (NOW – TSX V)

  • Globally experienced mining group with in depth knowledge of operating in China.
  • Holds large land packages, one of which is beside a producing open pit gold operation.
  • Funded for 2008 exploration programs.
  • Low cost to operate and mine in China.
  • Management is focused on proving a large shallow goldsystem.
  • Key partnerships in place including a recent alliance with global giant, Lippo Corp.
For more information on Asia Now, click here.

brainhunter

Brainhunter Inc. (BH - TSX)

  • Professional staffing business grows through boom and bust periods.
  • Organic growth has taken hold following a string of acquisitions, which moved sales through $220 million in Fiscal 2007 (September 30).
  • Balance sheet is strengthened through concerted debt reduction.
  • Unrecognized value in its proprietary technologies.
  • Trading at extremely low three times trailing EBITDA/share valuation, well below industry comparatives.
  • An analyst target price of $1.75/share, which is several times the current trading price.
For more information on Brainhunter, click here.

lms

LMS Medical Systems (LMZ – TSX)

  • Predictive set of risk management technologies for Obstetrics is ground breaking.
  • Technology is gaining strong acceptance with close to 100 hospitals projected to be clients at the end of Fiscal 2008 (March 31).
  • Attractive high margin recurring revenue model.
  • Company has reduced its research and development expenditures and shifted its emphasis to sales & marketing.
  • The current potential market size is $750 million (USD) annually based on 3,500 hospitals with obstetric units in the U.S. alone.
  • 12 years and $57 million into research, analysis and development of current commercialized products and further technologies to be launched.
  • Direct sales team and distribution agreements with Aon Risk Services (NYSE: AOC), McKesson (NYSE: MCK) and Endurance Specialty Holdings (NYSE: ENH).
  • High barriers to entry, currently holds over 30 patents and patents pending.
  • The technology is FDA & Health Canada approved.
For more information on LMS, click here.

med biogene

Med BioGene (MBI – TSX V)

  • Focused on commercialization deal with a global diagnostics / pharmaceutical company for a lymphoma diagnostic tool by the end of 2008.
  • Approximately 75,000 people/year are diagnosed in North America with lymphoma.
  • Success with this first diagnostic tool should lead to the development of new diagnostic tools for other diseases.
  • Leading the development of Med BioGene’s lymphoma diagnostic tool is Duke University’s Dr. Sandeep Dave, a world renowned expert in the research of gene expression profiling of lymphoma.
  • Top tier university research collaborations.
  • Experienced management & Board of Directors.
  • Final validation of its science and a successful licensing deal could result in strong stock price appreciation.

For more information on Med BioGene, click here.

planet organic

Planet Organic Health Corp. (POH - TSX V)

  • The company is in the organic/natural food and products retail space that has shown extremely strong growth for over 20 years.
  • Vertically integrated from production of vitamins and supplements to retail.
  • Only publicly traded natural foods and organic retailer in Canada.
  • Growth rates are accelerating with projected sales to exceed $100 million in Fiscal 2008 (June 30).
  • Excellent management team - hard-charging, visionary founder Darren Krissie coupled with accomplished, business-savvy senior statesman, Ron Francisco, owner of the second largest natural products and beverages distributor in Canada.
  • Two analysts with 12 month target prices of $3.75 and $4/share, which are well above current trading levels.

Form more information on Planet Organic, click here.

pure nickel

Pure Nickel (NIC- TSX)

  • Holds one of the largest, premium nickel exploration packages in North America. 
  • In respect of one of its projects, the company is the largest land-holder in the rich Thompson Nickel Belt in Manitoba.
  • Its main Thompson property near the town of William Lake is an advanced play providing the company with years of historical drilling information.
  • A second property in Alaska is called Man and holds tremendous potential over the long-term.
  • The company is well funded with sufficient cash to take it into 2009.
  • Strong and dedicated management team.
  • Successful drilling results on any of its properties could result in a significant rise in stock valuation.

For more information on Pure Nickel, click here.

 
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