Stockprowler’s pick this month...

SeaView Video Technology (OTC BB: SEVU)
200 Madonna Blvd.

St. Petersburg, FL 33701

Phone: (727) 866-7440
Corporate Web Site: www.seaview.com

Shares Outstanding: 47 million

Public Float: 27.3 million

Insider Ownership: 42%
Market Capitalization: $1,880,000
Closing Price Friday 7/04/03:  4 cents

 

Stockprowler returns after a 3 month hiatus! Today's report is the first in a series that kicks off another run of what we hope will be extremely profitable stock picks for our readers. Let's begin by picking up where we left off with our last report on March 16... we reported that it was our opinion that shares of Mirant Corporation (NYSE:MIR) were drastically oversold and ready to make a dramatic move over the next few months. Rather than issuing a strong buy on the common shares we instead urged our readers to look at the Jan 04 2.50 call options on Mirant Corp. (option symbol LPOAZ) that at the date of our report were going at $.40 ask, and $.30 bid. It was our opinion that they were hugely undervalued and offered a speculative investor an opportunity to leverage his investment. Well, those of you that that bought the Mirant calls were rewarded big time. The call options hit a high of $2.00 a month after our report for a potential 400% return... the options were trading on Friday at $1.25. Judging from our email, more than a few readers profited from this strategy.

Beginning with this report, Stockprowler is adopting a new format. We will be issuing just one blockbuster report on the first Sunday of each month. In addition, each week we will update our Stockprowler Watch Box with stocks that we are following that we feel have the potential to become big momentum plays.

Ok...Our pick for the month of July is SeaView Video Technology Inc.(OTC BB: SEVU). The company designs, manufactures and markets products using patented technology developed to transmit voice, video, audio and data over power lines, in AC and DC power environments, on any and all power grids. On May 30, Seaview announced it had signed a 5 year multi-million dollar contract with Audiovox® Specialized Applications, LLC. a joint venture partner with Audiovox Corporation of New York (Nasdaq: VOXX). ASA develops, manufactures, and distributes electronic products, specializing in Family Entertainment Systems (FES) and Video Observation Systems (OBS) for mobile applications.

The deal with Audiovox marks a turning point for SeaView. According to George Bernardich III, Seaview's Chairman and CEO, "The company is quietly changing from an underwater camera business to a worldwide leader in manufacturing and distribution of PowerLine products to consumer, commercial and industrial markets."  Audiovox® Specialized Applications, LLC. (ASA) will distribute SeaView's PowerLine Vision Systems (PLVS) technology to the Recreational Vehicle marketplace in North America.

The Recreation Vehicle Industry Association states that RV shipments increased 21 percent from 2001 to 2002 making RVs a $10.9 Billion dollar industry. In 2002, approximately 310,000 RV's were produced. The stats show that nearly 1 out of every 10 American households now owns an RV. SeaView and Audiovox believe their combined efforts should allow them to build a 40 to 50 percent market share for the PLVS products. As part of its distribution  agreement with SeaView, ASA is required to attain annual guaranteed minimum net unit sales and purchases to retain distribution rights over the five-year term of the agreement. SeaView has received initial orders from ASA, which are expected to begin shipping shortly.

Brent Barrow, ASA President & COO, states, "By integrating SeaView's PowerLine Vision Systems technology and ASA's Voyager line of cameras and monitors, we will now be able to offer the only rear vision system for the entire line of Recreational Vehicles from the Class "A" Coaches to the full line of towables. This cutting edge innovation in video technology allows installation of a complete new system or a retrofit of existing systems to a 'cable-free' PowerLine Vision Systems solution. Our market research tells us that PLVS technology will be readily accepted in the RV market, as currently there are no convenient and reliable rear vision system solutions for 5th wheel or towable RV's."

"Transmitting video using PowerLine Vision Systems overcomes the two major obstacles to wide-scale adoption of vehicular closed circuit TV. First, using the existing DC chassis wiring harness as the video 'pipeline' eliminates the need for separate coaxial or multi-wire cables. All that is required in the rear of a coach, trailer, or 5th wheel is an active 12- volt wire and a common ground. Second, expensive and complex changes to the wiring harness are no longer necessary."

Michael Ambler, SeaView President & COO, states, "ASA is the largest distributor to sell our new PLVS product line, which launched last year into the transportation industry. ASA has been a leader in the mobile electronics market for over 20 years, and we are pleased to team our technology with their expertise in customer service, distributing and marketing. In addition, ASA's engineering, vehicle applications, and technical support teams will play an important role in integrating the PLV/ CCTV technology into RV OEM plant operations. We expect the demand for our PowerLine Vision Systems to grow significantly as a result of this business relationship."

SeaView reported $345,601 in sales for the first quarter of 2003 versus $126,616 for the first quarter of 2002 which represents a 173% increase sales and is the third consecutive quarter of sales growth for the company. In the past three quarters the company has generated sales of $768,667 versus $360,546 for the comparable three quarters which is a 113% increase. In addition, SeaView signed an exclusive master distributorship agreement with The Tyman Group, LLC, to sell and distribute Powerline Vision Systems exclusively to the waste hauling, materials handling, and special utility vehicles markets in North America.

As part of the exclusivity agreement with SeaView, the Tyman Group is required to attain annual guaranteed minimum net unit sales and purchases over the five-year term of the agreement with the initial contract year guaranteed minimum net unit sales and purchases set at approximately $1.7M. Harold Halman, Tyman President states: "We are pleased with the enthusiastic initial response in the marketplace to these revolutionary products. We expect the excitement to grow as the news spreads throughout the industry since we began delivering and installing our initial customer orders in March 2003. By enhancing our IVS solutions with PowerLine Vision System technology, we provide a distinct advantage over other hard-wired rearview systems which require labor intensive installations and expensive on-going maintenance."

Also, during the first quarter, SeaView's management traveled to China to meet with its supplier and finalize the manufacturing and credit agreements for both its Security and DC Transportation products. The company expects these agreements to be formalized and in place midway through the second quarter.

SeaView President & COO Michael Ambler stated, "We expect the demand for our PowerLine Vision Systems to grow significantly for several reasons. First, the product is easy to install and use by OEM's, distributors, and dealers, which can increase profits, and we believe the system is more reliable than competitive products because our system uses the existing vehicle wiring harness. Secondly, there is a growing need to reduce accidents and the resulting liabilities caused by 'the blind spot' on a truck or vehicle. Recently, the National Highway Traffic Safety Administration estimated that the potential of preventing back-up accidents is better than 90% with a back-up system." SeaView and the Tyman Group, LLC. are currently actively seeking and establishing additional channel partners for marketing and distribution of this advanced PLC technology into the transportation industry's trucking, commercial managed fleet, passenger/school bus, recreational vehicle, and automotive vertical markets.

Stockprowler views SEVU trading at just 4 cents as a fantastic speculative opportunity. The RV and commercial trucking markets for SeaView's DC PowerLine Vision Systems are enormous. Furthermore, the company's partner AudioVox (ASA) has expressed its belief that they and SeaView can achieve 40 to 50 percent market penetration with their revolutionary products. With only 27 million shares in the float, look for trading to be extremely volatile as investors become aware of the company's potential. It is the opinion of Stockprowler that SEVU has the potential to be a 10 bagger in the next 6 to 12 months... remember you saw it here first!

Stockprowler does not receive compensation from companies we profile or from third parties… we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are always relatively small so that the chance of having an effect on a stock’s price when we buy or sell is negligible. Please read our full disclaimer <http://www.stockprowler.com/disclaimer/>. Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to, because trading on insider information is illegal! All information contained in our reports is available in the public record… and any written or verbal communication with company CEOs/ IR people strictly adheres to this rule. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

Good Trading... Stockprowler