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Nutek, Inc. (NUTK: OTCBB)
Nutek, Inc.
15722 Chemical Lane
Huntington Beach, CA 92649
Tel : (714) 799-7266
Fax : (714) 799-5466
email: [log in to unmask]
President/CEO: Murray Conradie
Investor Relations: Richard Overdorf
Authorized Shares: 50,000,000
Outstanding Shares: 43,523,675
Preferred Shares Authorized: 5,000,000
Outstanding Preferred Shares: 793,500
Float: Approximately 27,000,000
Number of shareholder: Approx. 437.
Number of Shareholders in street name: Approx. 1,063.
Website: Nutek Inc. Home Page ( http://www.nutk.com/ )
Their website has a great deal of information, including links to all the
divisions within Nutek, Inc. and links to their press releases. So, instead
of providing live links to these items, we decided to direct you right to
their website.
SEC Filings: FreeEDGAR: Free Real-Time SEC EDGAR Filings
(http://www.freeedgar.com/Search/FilingsResults.asp?SourcePage=CompanyList&
CIK=795824&UseFrame=1&FormType=&DateFiled=&CompanyName=NUTEK+INC)
After what seems forever with NUTK being on the pink sheets, we have
excellent news! They have cleared SEC comments and are about to become a
fully reporting, compliant OTCBB company. The press release was issued today,
12-4-2000:
Bloomberg.com : Quotes
http://quote.bloomberg.com/analytics/bquote.cgi?ticker=NUTK_US_2&
version=marketslong99.cfg&view=bq#NEWS
Because they had to be careful what kind of information they released during
this re-listing process, there wasn't much in the way of press releases. They
did not want to have to include any new information in their filings, which
would have delayed the process even longer. So, you can imagine that after
having been on the pinks for so long, and because they have so many different
things going for them, they have plenty of pr's lined up ready to go.
Due to the fact that this company has been off the radar screen of investors
for so long, most people have completely forgotten about it. That's about to
change.
Much has transpired over the months. To bring you quickly up to speed, the
first two big items are OIL and NATURAL GAS! They currently have 70 - 80
wells on about 5,000 acres of Texas land, pumping oil out of the ground.
However, it is our understanding that they have already signed the paperwork
to purchase an additional 46,000 acres. Recent rule changes in Texas has
given NUTK the right to increase the number of current wells to one every 10
acres, instead of one every 20 acres. These new wells will be drilled between
the existing wells. In other words, they will not have to spend more money
exploring for oil on this property. They can simply place the wells between
let's say, well #1 and well #2, which means a virtual guarantee that these
extra wells will be pumping oil immediately. NUTK currently has an oil asset
that is the equivalent of almost $10 per share depending on the price per
bar! rel. It is estimated that there are 90 million barrels in place at a 12%
recovery factor, i.e., approximately 10,800,000 barrels are recoverable!
In regard to the Natural Gas, they estimate their reserves are worth at least
$30,000,000! This will be fully developed in the very near future.
The great part about this entire oil producing venture is the fact that there
is very little overhead. The wells are all automatic, and just keep pumping
away. NUTK has contracted with oil companies to simply stop buy and pump out
NUTK's storage tanks -- that's it. NUTK does have an experienced geologist on
site to keep an eye on things, plus, they contract with an oil crew, but only
when they are needed. With the additional wells that NUTK will have
available, just the oil portion of their business could be spectacular! Then
add to that, the potential profits of the Electrostatic Light Switch, and you
could be talking about really huge revenues. Then you have the other
divisions within their company that will add even more revenues.
Their second big item 2) The Electrostatic Switch Cover Plate. (ESCP.) This
remarkable device has the potential to become as prolific as the smoke
detector. The ESCP fits right over the normal light switch cover plate. No
wiring is required. You simply replace the cover plate with this device. In
the event of a power failure, an LCD safety light will come on and provide
emergency lighting for an area 30' x 30' for up to 16 hours. We understand
that the demand for this device is big. TV adds along with several big
hardware stores are being worked on right now for distribution of this
product. There are also contracts of over $6M with Korea that they are
working on. We also have learned that there are about 72 representatives from
the big hotels, motels, businesses, etc., around the country that are waiting
to purchase the ESCP. The market for this device is virtually unlimited. Full
production of the Electros! tatic Switch Cover Plate is scheduled to commence
very soon.
If you were to add the potential profits of just the Oil business and the
Electrostatic Switch Cover Plate, we're talking about huge revenues. However,
add to this the revenues from the other divisions within their company:
Century Clocks; Elite Fitness; Kristi & Co; Handi-Plate; SRC International,
Inc. and you have a diversified, multidivisional company on their way to
producing great revenue.
$5M Funding:
We also have learned that NUTK has a Letter Of Intent for a $5M funding
package as soon as they come off the pinks sheets, with another $5M to follow.
3 straight quarters of profit while on the pinks:
Nutek, Inc. had a TOTAL Asset valuation of $1,002,745 on 03/31/1999 when Mr.
Conradie took over as CEO. This number has now increased to $4,738,926 as
shown in their latest SEC filing dated 11/28/2000, an increase of 473%!!!
Sales for the first 3 quarters of 2000 compared to the WHOLE of 1999 are up
455%!!! These increases have been made while the company's hands have been
tied while on the pink sheets. Think of what we can expect from the company
in the next 12 months following a return to the OTCBB!
Another interesting comparison is the level of debt when Mr. Conradie took
over the company on 03/31/1999. Total liabilities were $1,254,107. As of the
filing on 11/28/2000, this figure is now $1,901,683. Yet, what you have to
understand here is that of the $1,901,683, there are three amounts that were
added to the liabilities. In August 1999, the Electrostatic Switch Plate
Cover was purchased, and has a balance of $670,000 for royalties which will
come from the sale of the light switch. $639,948 for the balance of the Oil
assets purchase and finally, $57,000 owed to Mr. Conradie for providing cash
for the purchase of the clock molds. If you remove these 3 amounts from the
$1,901,683 balance, we have a revised balance of the liabilities from those
1999 liabilities of $1,254,107, of only $534,735. This shows that of those
03/31/1999 liabilities, the company has reduced them by 57%.
Ever since taking over the company, Mr. Conradie has been, and is continuing
to work very diligently on reducing the debt to $0. When this is
accomplished, you'll have a debt free company pulling in big time revenues!
This company has all the makings of being the sleeper of 2000/2001 and
beyond. Mr. Conradie is very determined to make this company a success. He
has systematically gotten this company back into great shape. He has
retrieved the 1,000,000 shares owed back to NUTK (stated in their filings),
cleared the books of any outstanding lawsuits, hired an in-house Investor
Relations representative, and has some great products already producing, and
about to produce, what we believe will be big revenues.
As always, it is up to you to decide what to do. We do not tell anyone to buy
into any stock. We simply give you the best facts that we can. However, in
our opinion, this company has real potential.
Thank you for your time!
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