Uniquely productize next-generation opportunities
Appropriately pontificate synergistic para digms whereas 24/7 “outside the box”. Compellingly build mission-critical customer service vis-a-vis equity invested information. Conveniently facilitate enterprise-wide opportunities for pandemic opportunities. Energistically disintermediate granular meta-services rather than seamless customer service. Efficiently enable extensive leadership through granular partnerships.
Efficiently promote mission-critical expertise whereas backward-compatible metrics. Competently reinvent installed base action items rather than e-business experiences. Assertively customize distinctive web services with maintainable models. Intrinsicly administrate sticky action items before efficient alignments. Competently morph cross-media scenarios for scalable bandwidth.
Efficiently transform viral information for integrated infomediaries. Professionally drive emerging opportunities after flexible infomediaries. Assertively disseminate emerging value with tactical vortals. Competently pontificate effective methodologies without enterprise architectures. Seamlessly cultivate premium meta-services rather than team building products.
Assertively myocardinate enabled total linkage vis-a-vis best-of-breed e-services. Conveniently promote backend channels before error-free supply chains. Monotonectally transform flexible.
- Published in Mobile, Technology
Dramatically integrate viral technologies
Seamlessly syndicate out-of-the-box quality vectors via multimedia based bandwidth. Monotonectally supply team driven quality vectors via mission-critical networks. Efficiently leverage existing top-line communities for business human capital. Interactively evisculate proactive data vis-a-vis premium information. Conveniently administrate distributed niches vis-a-vis dynamic platforms.
Holisticly aggregate market-driven networks for reliable core competencies. Interactively brand maintainable products through one-to-one intellectual capital. Globally simplify leading-edge schemas with one-to-one leadership. Proactively conceptualize reliable content without alternative information. Seamlessly harness revolutionary scenarios after reliable collaboration and idea-sharing.
Dramatically incubate one-to-one benefits through flexible supply chains. Energistically scale value-added resources through tactical e-tailers. Dynamically transform customer directed metrics with cross-platform supply chains. Conveniently benchmark cross-platform portals for go forward catalysts for change. Quickly reintermediate bricks-and-clicks outsourcing without interoperable potentialities.
Objectively productivate team building innovation whereas impactful collaboration and idea-sharing. Dramatically maximize B2C functionalities for cross-unit networks.
- Published in Mobile, Technology
Compellingly administrate vertical strategic theme areas
Collaboratively grow bricks-and-clicks outsourcing and vertical leadership skills. Professionally deploy diverse results without strategic value. Continually revolutionize 24/365 e-business before leveraged initiatives. Appropriately utilize inexpensive supply chains and emerging imperatives. Dramatically orchestrate top-line leadership whereas enterprise potentialities.
Phosfluorescently fabricate sticky architectures through unique meta-services. Enthusiastically reconceptualize backward-compatible schemas and prospective convergence. Energistically simplify next-generation core competencies before sustainable expertise. Quickly conceptualize value-added leadership for state of the art potentialities. Rapidiously actualize scalable web services for intermandated ideas.
Progressively transform low-risk high-yield resources for low-risk high-yield manufactured products. Completely predominate premier alignments via unique vortals. Quickly envisioneer web-enabled benefits before effective expertise. Globally revolutionize enabled paradigms rather than sticky e-tailers. Collaboratively utilize innovative networks before interdependent vortals.
Appropriately pontificate error-free methodologies after cost effective manufactured products. Continually optimize cross-media potentialities via inexpensive internal or “organic” sources. Proactively reintermediate customer.
- Published in Technology
Synergistically fabricate backend niches
Efficiently network prospective content without performance based data. Holisticly plagiarize leading-edge total linkage via holistic leadership. Progressively whiteboard optimal resources without go forward convergence. Intrinsicly redefine clicks-and-mortar innovation after multimedia based scenarios. Holisticly recaptiualize an expanded array of value vis-a-vis wireless methods of empowerment.
Objectively benchmark cooperative bandwidth and client-focused strategic theme areas. Rapidiously create global experiences for standardized systems. Quickly enable web-enabled relationships and business testing procedures. Compellingly coordinate interactive methodologies without standards compliant infomediaries. Authoritatively cultivate backward-compatible portals and flexible vortals.
Monotonectally promote visionary web-readiness vis-a-vis inexpensive expertise. Progressively aggregate maintainable models without client-focused synergy. Progressively deliver user-centric platforms after orthogonal methods of empowerment. Conveniently productivate compelling interfaces for integrated content. Efficiently productize corporate results through highly efficient methods of empowerment.
Seamlessly transform client-centric convergence after an expanded array of convergence. Compellingly leverage existing superior potentialities.
- Published in Technology
InMed Announces Positive In-Vitro Study Results
InMed Announces Positive In-Vitro Study Results of INM-750 Targeting Epidermolysis Bullosa Simplex (EBS)
InMed Pharmaceuticals Inc. (“InMed”) (CSE: IN)(OTCQB: IMLFF), a biopharmaceutical company specializing in the research and development of novel, cannabinoid-based therapies combined with innovative drug delivery systems, announced today that it has obtained positive response from its pre-clinical research on INM-750 tested in various in vitro assays. The INM-750 is a proprietary phytocannabinoid based compound for the treatment of epidermolysis bullosa simplex (EBS), a rare genetically inherited skin disorder. INM-750 is designed to modulate skin growth, differentiation and inflammation that are signature characteristics of EBS.
Dr. Sazzad Hossain, Chief Scientific Officer of InMed, stated, “There are different sub-types of EBS caused by mutations of various keratin genes such as keratin 5, keratin 14 or keratin 15 etc. By modulating the expression of various keratin genes that are responsible for cytoskeleton intermediate filaments and/or wound healing using INM-750, we hoped to alleviate the EBS symptoms. Our preliminary results clearly validate this approach since INM-750 displayed modulation of expression of various keratin genes.”
Craig Schneider says, “We are very pleased that we have again demonstrated the ability and efficiency of our platform technology (“IDP”) to discover novel therapies in disease areas with large unmet medical needs. We have successfully employed our “IDP” for the discovery of INM-750 (see News Release May 26, 2015) which validates our in-silico approach to drug discovery by these positive pre-clinical results.”
InMed anticipates commencing human proof of concept clinical studies of INM-750 in February, 2016 with initial data expected by Q3 2016 after which InMed will seek orphan drug designation for INM-750 with the US Food and Drug Administration (FDA).
About Epidermolysis bullosa simplex (EBS)
Epidermolysis bullosa simplex (EBS) is one of the major forms of Epidermolysis bullosa, a group of genetic conditions that cause the skin to be very fragile and to blister easily. It is a result of a defect in anchoring between the epidermis and dermis, resulting in friction and skin fragility. Its severity ranges from mild to lethal. As of today there is no cure or effective treatment. Currently, wound care, pain management and preventative bandaging are the only options available for treatment.
About InMed
InMed is a clinical stage biopharmaceutical company that specializes in developing novel therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary platform technology, product pipeline and accelerated development pathway are the fundamental value drivers of the company. For more information, visit www.inmedpharma.com.
- Published in Blog, Life Sciences
Dundee Sustainable Technologies Inc.: Patent Notice of Allowance for Collection of Gold Over Silica
Dundee Sustainable Technologies Inc. (“DST” or the “Corporation”) (DST:CSE) is pleased to announce that the United States Patent and Trademark Office has issued a notice of allowance for DST patent application (number 13/957,002) pertaining to gold recovery over silica.
Collection of gold over silica
This patent is related to a method for recovering gold from a pregnant solution resulting from halogen leaching of an ore, while facilitating the recycling of the halogens from the resulting barren solution. The same patent is also pending in Canada and several Latin America countries.
An essential complement of gold extraction with halogens
This method has been proven well adapted to the halogens extraction process and a simple fusion of the loaded silica makes pure gold recovery easy and complete.
About Dundee Sustainable Technologies, a company controlled by Dundee Corporation
DST is engaged in the development of technologies for the treatment of refractory ores containing sulfides and arsenic. DST has developed proprietary hydrometallurgical processes, and owns the related patents, for the extraction of precious and base metals from ores, concentrates and tailings, which cannot be extracted with conventional processes because of metallurgical issues or environmental considerations.
DST’s patented approach provides a cyanide-free process to allow the exploitation of gold and other deposits that would otherwise face metallurgical issues with conventional methods. The primary benefits of the innovative technology are shorter processing times, a closed-loop operation eliminating the need for costly tailings pond, reduced environmental footprint related to inert and stable characteristics of the tailings, and lesser emissions due to lower energy consumption.
The process developed by DST is a recognized “green technology” for which it was awarded a $5.7 million grant towards the construction and operation of a $25 million demonstration plant. With a capacity of 15 tonnes per day of concentrate, the demonstration plant will serve as a proof of concept for the chlorination extraction technology on an industrial scale and under continuous operating conditions.
DST has tested several different gold deposits, both oxide and sulfide ores at the lab level and at its pilot plant. These tests have, consistently achieved gold recoveries in excess of 90{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, using chlorination instead of cyanide.
Tesla’s whole year depends on their ability to deliver
Tesla’s entire year hinges on answering one big question
Matthew DeBord – Business Insider
Tesla reports second-quarter earnings on Wednesday after the close and CEO Elon Musk will hold a conference call with analysts after the numbers are released.
We’ll be covering the earnings announcement and the call, so check back.
Everyone is going to want one huge question answered: Will Tesla be able to deliver 55,000 vehicles this year?
In the first half of the year, the company delivered less than half that total. So the pressure is on.
Tesla’s actual financials in the second-quarter are expected to be a downer.
According to the Wall Street Journal, Tesla lost money in the quarter — $117 million net, translating when adjusted to $0.59 per share.
Last year during the same period, Tesla made $0.11 per share.
In the second-quarter, Tesla is expected to see a big jump in review, to $1.17 billion, the Journal reported.
Tesla is spending a huge amount of money right now to expand operations and to develop and introduce new vehicles, as well as bring online a massive battery factory in Nevada and create an energy storage business.
So the combination of increasing revenue and declining profits shouldn’t surprise anyone. Musk and his team already informed the investment community that they’re prepared to spend a “staggering” amount to vindicate the company’s $33-billion market cap and lofty stock price.
There also won’t be much suspense around how may cars Tesla sold in the quarter. The company has begun reporting deliveries on a quarterly basis (the rest of the industry reports monthly), so we know that 11,507 vehicles made it to customers in Q2, a jump of 52{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from last year. Combined with the first quarter, Tesla sold 21,537 vehicles through the first half of 2015.
Can Tesla build enough Model S sedans?
Everyone who follows Tesla is obsessed with whether the Model X crossover SUV will launch on schedule this quarter. But Model X sales aren’t expected to make a major contribution to Tesla’s 2015 goal — probably less than 5,000 vehicles, assuming the launch goes off without any hitches.
That means delivering over 25,000 Model S sedans by the end of the year is critical.
Last year, Tesla was able to build all the cars it said it would — 35,000 — but about a thousand deliveries slipped into the first month of 2015, and that weakness sent Tesla stock into a funk that it has since recovered from.
Investors will want to know if they’re in for a rehash of that script in 2015, so Musk’s comments on the earnings call will be more important than the earnings themselves. If he and Tesla’s leadership can confidently declare that 55,000 deliveries are in their sights, shares may not stage a retreat. But coming through on Model S deliveries while starting to roll Model X SUVs off the assembly line is a tall order. It’s uncharted territory for Tesla, which has effectively spent the past few years building one car.
AP
Tesla may have to run flat out for the next six months to meet its production and sales goals, but 55,000 vehicles still isn’t out of the question. However, if there are any indications of wavering on that target, Tesla could wind up being punished by the markets.
Other aspects of Tesla’s business will be copiously scrutinized on Wednesday — there will undoubtedly be a lot of questions about cyber-security in the aftermath of the hacking of a Jeep sold by Fiat Chrysler, especially since Tesla is the most wired of automakers — but executing on Model S through the remainder of 2015 is the biggie.
History lesson
It’s worth bringing a bit of history into the picture here. Tesla is building a new kind of car — all electric — and with the Model S and a lesser extent the Model X, aiming for an affluent buyer. The Model 3 mass-market car won’t arrive until 2017, at which point Tesla needs to producing cars much more quickly.
Production doesn’t have to be hard. When Ford introduced the Model T 100 years ago, production ramped up quite rapidly, roughly doubling every year before taking off in year five (1913).
Henry Ford’s mass-production techniques made this possible. So Ford wasn’t ever meaningfully constrained on the production side.
Tesla’s problem has always been production (demand for its vehicles, at least in the US, has historically been robust). This was understandable as the company established the Model S in the market. But now it’s starting to be a conundrum. Musk wants to build half a million cars by 2020. So why is his company still struggling to build 55,000 in 2015?
This is, after all, a car we’re talking about (we understand that Musk’s other company, SpaceX, builds rockets, which are slightly more difficult). Tesla is a startup by the standards of the auto industry, but other car makers seem to be able to assemble vehicles at a fierce clip. General Motors sold 272,512 in July alone.
Within the next 2-12 months, Tesla is going to need to reassure the world it can operate like a typical car company (even it wants to be seen as anything but typical) and meet established production objectives. This is where the auto industry is a pretty simply business: it’s hard to sell cars you can’t build. Musk is sensitive to making customers wait for new vehicles, so it’s reasonable to expect that he’ll be very focused on this challenge for the balance of 2015
Iconic (ICM:TSX-V) samples 3.96 m of 1.34 g/t Au at Hercules
ADDITIONAL SURFACE GOLD/SILVER SAMPLING RESULTS ANNOUNCED FOR THE HERCULES PROJECT, NEVADA
Iconic Minerals Ltd. (ICM: TSX-V) has received initial outcrop rock chip channel sampling results for the Loaves and Northeast targets at its Hercules project, located approximately 17 kilometres (10.6 miles) east-southeast of the Comstock district in Lyon county, Nevada. Like the results from the two targets released to date (see July 8 and July 22 press releases) the additional results have numerous intercepts of gold/silver grades consistent with gold/silver heap leaching in Nevada. Summary sampling results are shown in the associated table.
Outcrop sampling at Loaves was done over a strike length of 830 metres (2,700 feet) and average width of 200 metres (650 feet). Outcrop sampling at Northeast was done over a strike length of 650 metres (2,100 feet) and average width of 100 metres (330 feet). A total of 165.6 metres (543 fet) of heap-leach-grade gold/silver values (greater than 0.005 ounce per ton (0.17 gram per tonne (g/t)) gold equivalent) have been defined on surface at these two targets. This mineralization, which will have a minimal stripping ratio, will be used along with drilling and underground sampling results to define a National Instrument 43-101 resource. A map showing the extent of the alteration, veining and sample line locations is available on the company’s website. Like several other epithermal hot springs occurrences in Nevada, Hercules veins exposed at the surface are primarily low-temperature quartz, indicating the boiling zone where most gold/silver deposition occurred is at depth.
South of the sampled portion of the Northeast target there is an additional 700 metres (2,300 feet) of poorly outcropping alteration that is not suitable for rock chip sampling. Several mineralized drill holes occur within this area. This indicates a significant portion of the mineralization does not outcrop.
Several surface sample lines will be extended using an excavator. Surface geologic mapping and sampling of underground workings at the Hercules target are continuing. Underground sampling results are expected within two to three weeks and will be published soon after they are received. All of these results will be used to finalize a drilling program planned later this year.
Hercules is a Comstock-type target, with strong potential for bulk-minable, heap-leachable gold/silver mineralization (plus 0.2 g/t Au) at surface, as well as potential high-grade (plus 10 g/t Au), to bonanza-grade (plus 68 g/t Au) at depth. Analogous to Comstock, the level of erosion at Hercules is slightly less than at Comstock as shown by a higher gold/silver ratio at Hercules. Therefore, any potential of high-grade veins can be expected at greater depths than at Comstock.
2015 TRENCH RESULTS LOAVES/NE TARGETS Hole No. From To Interval True Gold Silver True Gold Silver AuEq (feet) (feet) (feet) width (ft)(oz/ton) (oz/ton) width (m) (g/t) (g/t) (oz/ton) HTL1A 5 10 5.0 3.2 0.008 0.0 0.98 0.271 0.9 0.008 HTL1 25 30 5.0 4.9 0.013 0.2 1.50 0.432 6.7 0.016 HTL1 60 65 5.0 4.9 0.005 0.0 1.50 0.176 1.0 0.006 HTL1 122 130 8.0 7.9 0.015 0.1 2.40 0.508 2.2 0.016 HTL1 141.5 145 3.5 3.4 0.049 0.3 1.05 1.670 11.0 0.054 HTL1 165 201 36.0 35.5 0.016 0.1 10.81 0.552 4.7 0.018 HTL2 33.5 38 4.5 4.2 0.008 0.0 1.29 0.266 1.6 0.009 HTL2 141 178 37.0 34.8 0.005 0.0 10.60 0.164 0.9 0.005 HTL2 203 223 20.0 18.8 0.012 0.1 5.73 0.408 1.9 0.013 HTL2 233 241 8.0 7.5 0.008 0.1 2.29 0.285 2.9 0.010 HTL2 265 277 12.0 11.3 0.005 0.0 3.44 0.172 1.7 0.006 HTL3 0 3 3.0 3.0 0.008 0.1 0.90 0.290 3.0 0.010 HTL3 20 48 28.0 27.6 0.009 0.0 8.41 0.297 1.3 0.009 HTL3 61.5 76.5 15.0 14.1 0.005 0.0 4.30 0.175 1.5 0.006 HTL3 86.5 109.5 23.0 21.6 0.005 0.0 6.59 0.166 1.3 0.005 HTL3 131 193.5 62.5 62.3 0.012 0.1 18.97 0.424 2.2 0.013 HTL3 203.5 209.5 6.0 6.0 0.007 0.1 1.82 0.242 2.0 0.008 HTL3 225 255 30.0 29.9 0.010 0.1 9.11 0.328 2.2 0.011 HTL3 263 275 12.0 12.0 0.005 0.1 3.64 0.155 1.8 0.005 HTL4 0 10 10.0 10.0 0.006 0.0 3.05 0.214 1.4 0.007 HTL5 0 14.5 14.5 14.0 0.010 0.0 4.27 0.353 1.6 0.011 HTL5 34 41.5 7.5 7.5 0.006 0.0 2.29 0.192 0.7 0.006 HTL5 50 75 25.0 23.5 0.007 0.0 7.16 0.229 1.1 0.007 HTL6A 13 18 5.0 4.9 0.007 0.0 1.50 0.247 1.3 0.008 HTL6A 34 39 5.0 4.9 0.006 0.1 1.50 0.199 3.7 0.008 HTL6B 0 26 26.0 25.6 0.006 0.1 7.81 0.195 2.1 0.007 HTL6C 0 10 10.0 9.7 0.006 0.0 2.94 0.213 1.5 0.007 HTL6C 20 25 5.0 4.8 0.016 0.2 1.47 0.558 5.2 0.019 HTL6C 35 42 7.0 6.8 0.008 0.1 2.06 0.283 2.1 0.009 HTL7 0 5 5.0 5.0 0.004 0.1 1.52 0.137 2.0 0.005 HTL7 30 35 5.0 5.0 0.007 0.1 1.52 0.229 2.2 0.008 HTL7 40 50 10.0 10.0 0.016 0.1 3.05 0.557 3.0 0.018 HTL8 5 12 7.0 6.8 0.007 0.1 2.06 0.227 2.3 0.008 HTL9 0 5 5.0 4.8 0.003 0.1 1.47 0.117 1.9 0.004 HTL10 0 9 9.0 9.0 0.013 0.2 2.74 0.446 6.0 0.016 HTL10 20 44 24.0 24.0 0.013 0.2 7.32 0.439 6.6 0.016 HTN1 0 13 13.0 13.0 0.038 0.3 3.96 1.314 10.8 0.044 HTN2 0 13 13.0 12.2 0.007 0.1 3.72 0.235 3.2 0.008 HTN4 0 19 19.0 19.0 0.010 0.1 5.79 0.333 4.5 0.012 HTN5 5 15 10.0 10.0 0.006 0.1 3.05 0.218 2.9 0.008
Richard Kern, certified professional geologist (No. 11494) and chief executive officer of Iconic, is the qualified person who has prepared and reviewed this press release in accordance with NI 43-101 reporting standards.
Gary Schwartz: “6 mobile-oriented services to complement the live operator experience”
– DealNet Capital’s (DLS:tsxv) SVP of Corporate development Gary Schwartz discusses mobile-oriented services in the Mobile Marketer online publication –
Mobile Marketer: http://www.mobilemarketer.com/cms/opinion/columns/20979.html
Until 2015, business process outsourcing (BPO) was based on a simple math formula: outsourcing non-core services including customer call centers to more cost-efficient partners and markets to reduce spend.
When technology was deployed, it was predominately committed to optimizing the BPO infrastructure and managing “bums in seats.” BPO suppliers focused on solutions that could mitigate operational costs and driving process efficiency.
However, as the end consumer becomes increasingly mobile, equipped with smarter devices and, most importantly, higher customer service expectations, Corporate America needs to address how best to service this new customer.
In 2015, BPO needs to move beyond managing call center bodies. This is particularly important to inbound call centers.
As the vast majority of consumers use their always-ready mobile phones to reach the call center services, providers need to revisit their call center architecture and develop mobile-centric efficiency throughout the lifecycle of the call.
BPO companies have traditionally differentiated their services by providing workers at a lower cost.
Historically, operations focus on large-scale transaction processing beating the clock on handling times: i.e. average hold time – AHT, or average speed of answer, ASA. These business models need to be revisited.
As in other verticals such as retail, health and finance, the consumer is now at the center of operational design, and customer satisfaction is the new and key performance index.
The challenge for many providers is executing on this vision.
Making the call
Designing mobile hooks, leveraging new APIs to enhance the existing call flow and creating omnichannel content delivery is outside the scope of most call center operations.
We see this shift in national and municipal services such as Next Generation 9-1-1 in the Canadian market and Next Generation 3-1-1 service in cities such as Chicago and New York where the incumbent call center now offers onmichannel interactions catering to the mobile user.
SMS-based call flows allow for instant information. Operator text chat via SMS and application layers allow for on-the-go convenience as well as operational efficiency and cost savings for the call center.
The goal is to move away from an intelligent Siri-type system to an anticipatory GoogleNow-type approach. Delight the customer by anticipating their preferred channels and their time-sensitive needs.
This is no easy task.
For more than 20 years, BPO call center performance was measured, in large part, on cost-per-call or by the number of seats in a call center. This simplistic math led to globalization of services with early adopters such as GE and American Express moving operations to India in the early 1990s.
The Philippines’ BPO sector is the fastest-growing industry in the country with 900,000 Filipinos employed full time in 2013, providing an estimated 1.3 million new jobs in the IT/BPO sector by 2016.
However, as we move into 2016, the consumer is demanding smarter services from legacy call center IVR and live operators.
Ideal operator
At its core, the call center will continue to focus on availability, information accuracy and consistency.
While voice communication will remain the call center’s pillar, here are a number of key next-generational services that can complement and enhance the live operator experience:
1. Mobile triggers (calls to action, or CTA) to reach the call center. This has become a standard creative ad unit in mobile advertising. Traditional media also has leveraged mobile # or * services. This quick mobile access needs to become ubiquitous.
2. On-hold omnichannel selection. When customer security authentication is not a concern, providers can use the hold time to offer options to mobile callers that mitigate high abandonment rates (AAR) and optimize their on-the-go mobile requirements. Jumping into a text-based chat is an example.
3. Disconnect mitigation strategies. If the call is dropped, push text-to-queue services to make sure the customer is reentered into the priority line or trigger a callback service with instant SMS notification.
4. End-of-call informational push. Send end-of-call informational summaries – virtual sticky notes – via SMS to mobile callers with time sensitive information.
5. Customer satisfaction surveys. Always move a live call into a mobile C-SAT survey that can be completed at the customer’s convenience. Text-based multiple choice questions result in much higher response rates than IVR surveys.
6. CRM push follow-up. Acquire an opt-in to future communication from the caller. This allows for timely follow-up engagement/closure using the request channels to delight the customer.
THE BUSINESS FLOW can be made asynchronous, allowing the mobile consumer to jump into her preferred communication channel before, during and after the call.
Increased use of cloud-based technologies allow call center operators to differentiate their services and ultimately become Big Data and analytics shops providing insights to drive their clients’ business objectives.
This move will enable providers to participate in the business goals of their clients –a far cry from simply answering the phone cost-effectively.
Mobile Marketer: http://www.mobilemarketer.com/cms/opinion/columns/20979.html
Dealnet Capital Corp. (DLS:tsxv) Changes the Financial Face of Home Improvement
“Traders may be intrigued by the fact that DealNet is a unique player within the lending market with an incredible amount of upside potential.”
DealNet will initially focus on a unique approach to the large and established “HVAC” finance sector. “This established market is the initial entry point for our consumer finance plans” says Small.
The target market is the seriously underserved small business Heating, Ventilation and Air Conditioning (“HVAC”) dealers who sell furnaces and air conditioning systems to consumers by providing the dealers with various financing alternatives for their customers. DealNet also provides its dealers with back office support, including call answering and scheduling services, through its existing Business Process Outsourcing (“BPO”) platforms, the Company’s other already established core business. Combined, these financing tools and the provision of back office support services result in a highly profitable and scalable solution for independent HVAC dealers, allowing them to stay focused on servicing their customers. DealNet’s complete solution dramatically improves sales for the dealers while allowing them to retain their customers’ servicing needs and alleviating the costs and time required to manage their businesses like larger competitors do.
Small to mid-market HVAC dealers are also at a competitive disadvantage compared to larger dealers. When it comes to money in the till, they have limited buying power and as a result are unable to obtain volume discounts which directly impact their profit margins. These dealers have little opportunity for recurring revenues unless the consumer signs up for home service plans or rental plans. DealNet frees these dealers from overhead worries, provides improved profits margins from sales and service contracts through its finance programs and allows HVAC dealers to focus on what they do best.
Over $7.9 billion is currently spent on mechanical improvements alone in Canada and DealNet expects to capture a significant share of that spend. It also plans to add additional loan products to increase their share of home improvement spending outside of HVAC.
All of this makes DealNet’s offering a win-win for both consumers and the businesses serving them.
So how secure is this financing game? First, let’s take a look at how DealNet powers its business model. Its financing platform is funded by its engagement segment. This established and highly successful business unit continues to grow. Having this engagement business in their pocket results in driving the cost of onboarding and servicing small and mid-market dealers down to a point where it becomes accretive to the overall business. Since the dealer is now the Company’s channel, DealNet benefits from low cost high volume originations and can capitalize on the high yield underwriting of the credit worthy consumer finance market while maintaining a loss ratio of under 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, below industry benchmarks.
These finance programs provided through DealNet’s network of dealers will provide at least 10 years of recurring revenues and cash flows. Since DealNet launched its dealer financing programs back in January, the company has hit the ground running and is presently growing its dealer member base month over month. The Company is currently expanding its financial services team including adding sales teams to attract and on-board the dealers.
How will it reach this target? Well, in addition to direct to dealer programs, DealNet will continue to build its market reach through a series of strategic partnerships with leading HVAC manufacturers and distributors. This gives the Company access to its partner’s dealer networks and also provides DealNet with preferred pricing for HVAC products. Speaking about interest margins, this is a growing enterprise with strong interest margins which are expected to increase as it continues to add additional underwriters.
So what does the market think? Valuation seems to be a boon of the sector as comparable lenders hitting an average 21.4x LTM earnings and 1.7x book value with an average ROE of 9.6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} (LTM). It would seem to me that if the market treats DealNet as it has classically treated its comparables, investors could see a phenomenal growth in their investment as DealNet, already capable of delivering $12 million per year in revenue with its BPO segment, leverages its recently announced $50.0 million credit facility to reach its targets through organic growth and several identified strategic acquisitions.
DealNet has the brainpower to get there with such large-cap board heavyweights as Dr. Steven Small who co-founded Newcourt Credit and Element Financial. The former provided hundreds of vendor programs to consumers and manufacturers. Michael Hilmer, President and CEO of DealNet, went on to illustrate, “Dr. Small took on the role of Executive Chairman and attracted outstanding directors including Harold Bridge, sitting chair of the Element Financial Audit Committee. Harold assumed the role of Chair of our Audit Committee. Harold is also our Lead Independent Director and is essential to ensuring that with our rapid growth we continue to stay within the boundaries of risk and governance ensuring long term profitability.”
“Another valuable addition was Brent Holden. Brent is a leader in the retail strategy and operations space, previously on the board of Deloitte and leading their retail industry group. Brent helps his customers find solutions to engage with their ever-changing customer set and provides strong insights and strategy as to where we take our engagement and financial solutions next.”
“Last but not least, there’s John Radford. John built the Ford Canada Red Carpet leasing business and helps us package our solutions for consumer consumption including marketing and branding of same. He also has a deep network of contacts in credit which we intend to tap as we hire the best-in-market people to scale our financial services portfolio.”
Landing this powerhouse board was a major achievement for DealNet, but the Company has more up its sleeve this year that investors can look forward to as Hilmer explained, “We up-listed this week to the TSX Venture Exchange and we are always looking at various acquisition opportunities. Another thing to note is that we are continually in pursuit of additional underwriting to fund our lending businesses and those strategies are maturing through 2015.”
Traders may be intrigued by the fact that DealNet is a unique player within the lending market with an incredible amount of upside potential. With capital markets preferring long-term revenue, yield and securitization based companies, DealNet has the capability of becoming a market darling with a growth rate dwarfing any other company within its consumer finance sector. Dr. Small has the track record and there’s every reason to expect that he’ll deliver on this next venture into the finance sector.
Development is behind it and DealNet has spent a worthy amount of time to place all of its ducks in a row. Now it’s time to execute its plan and grow into its potential. The challenge lies in scaling their operations to match their growth, but with the brain trust in place, DealNet plans to harness the tailwind to become a dominant player in the consumer lending market and provide their shareholders with something very pleasing to write home about.