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General Info on Systems Evolution, Inc (SEVI)
Systems Evolution, Inc (SEVI) consists of two divisions: a network systems Consulting Division (a Microsoft Gold Partner Master Services Agreement provider—one of just 200 nationwide), and a personnel placement Next Hire Division (places full-time oil and gas engineering staff, as well as technology project staff). Headquarters are in Houston with additional major offices in Austin and San Antonio. The company's primary customers are the State of Texas Government, Shell Oil, MedDorna, Staffing Technologies, and Petrobras Oil.
For any of you who followed SEVI during last year, it is beginning to show life again. It bottomed out around 0.0012-0.0014 and held steady for the last few months on very little volume. Over the last week, volume has been picking up and the stock price is around 0.0020.
Revenue is projected at $5-7 million with 66% margins as in previous years. The current outstanding shares, as of 3/1/07, is 725 million (out of an allowed 750 million). The float is estimated at 425 million, and about 33% of the float traded over the past week at 0.0017-0.0024. Based on these estimates, here is a projected valuation for the stock (using maximum allowed shares):
HIGH end ~ $0.0310 Gross Profit = ($7 million revenue) x 0.66 = $4.62 million $4.62 million / 750 million shares = $0.0062/share If PPS reaches 5X gross profit/share => $0.0310/share
LOW end ~ $0.0220 Gross Profit = ($5 million revenue) x 0.66 = $3.30 million $3.30 million / 750 million shares = $0.0044/share If PPS = 5X gross profit/share => $0.0220/share
(Note: the average U.S. equity Price/Earnings ratio from 1900 to 2005 is 14, so using 5 may be a low estimate. In any regard, this is meant as a modest, though arbitrary guess.)
Hence, a target of $0.0220-$0.0310. These share prices would raise the market cap of SEVI from its current $1.5 million to $16-23 million. The company's target as stated by the CEO last spring was to reach $25 million over the next couple of years, so these share price targets appear to be in line with the company's internal estimates. Thus, it appears the current share price of approximately $0.0020 is at a 90-95% discount.
-Asklepidaurus
DATA SUMMARY: SEVI currently trades on the Pink Sheets Revenue target: $5-7 million Outstanding shares: 725 million (as of 3/1/07) Allowed shares: 750 million Estimated Float: 435 million Transfer agent (to verify O/S): Atlas Transfer 801-266-7151 Current share price: 0.0020 (as of 3/2/07) 52-week high: 0.0700 52-week low: 0.0010 (a 70X drop in share price following a 3X share dilution) Target: 0.0220-0.0310, based on gross profits
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Fall, '03: -Wallace Resources acquires Systems Evolution, Inc and renames itself SEVI -SEVI becomes a public company -SEVI develops financing agreement ($3.3 million) to allow several acquisitions:
Spring, '04: acquires AXP Technologies, Inc
Summer, '04: -acquires eLead Solutions, Inc -acquires CMS Technology Services to create its "Managed Services Practice", based in San Antoio, TX
Fall, '04: -acquires Next Hire Consultants, Inc (continues as a wholly owned subsidiary) -acquires Duration Software, Inc to create its "Solutions Practice", based in Austin, TX
Fall, '04-'05: integration of these various companies into a functional whole
Fall, '05: SEVI recognized as fastest growing technology company in Houston, TX, with 472% revenue growth
Spring, '06: -SEVI's Consulting Division achieves Microsoft Gold Partner status (one of only 200 such companies in the U.S.) -SEVI reports first operational profits -SEVI's Next Hire Division shows 130% earning increase -SEVI launches its "Enterprise Project Management Practice" -SEVI's stock price skyrockets about 1000% on huge increase in volume and then levels out at 300% (0.03-0.025)
Late Spring/Summer, '06: market downturn drives stock down to 0.01
Late Summer/Fall, '06: -SEVI announces 1X stock dilution to write off part of its initial financing loans -SEVI delays reporting in order to fully comply with new reporting guidelines regarding derivatives and its trading symbol temporarily changes to SEVIE -SEVI's stock price plummets to 0.003 -SEVI opens second Next Hire Division office in Austin
Fall, '06: -SEVI announces its first fully managed recruiting services contract with Petrobras Oil, the 14th largest oil company in the world, to staff its new U.S. drilling facility -SEVI announces additional 0.5X stock dilution to write off more of its loans -SEVI achieves 20% rise in revenue for 2006 -SEVI achieves first overall profitable quarter -SEVI announces plans to almost double its workforce to deal with the increased demand for its services -SEVI moves its listing from OTCBB to PK in order to save $500,000+/year in reporting fees. -SEVI's stock price drops further to 0.0011-0.0014
Spring, '07: -In the absence of news releases, the stock price gradually rises toward 0.0020 on low volume. -Late February/early March, the volume increases 20-fold and the stock price rises over 0.0020.
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