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Analyst Coverage
Ryan McGaver - Capstone Investments
Please feel free to call The Investor Relations Group at 212-825 3210 or email MCrawford@investorelationsgroup.com if you have any questions.
SPOTLIGHT REPORT: HOMELAND SECURITY SECTOR RESEARCH COMMISSIONED BY CRONUS CAPITAL MARKETS
January 2, 2006
BlastGard International's Homeland Security Products Overview
In my last report, I touched upon BlastGard's products. In this update, I am expanding my description of the company's main product, the blast-mitigating trashcan, so that investors can better understand the advantages this product brings to the Homeland Security Sector. BlastGard's blast mitigation technology when used in trash receptacles profoundly reduces the shock and thermal blast effects of explosives. It can manage a very large blast and is the only product available that mitigates all blast effects, the fragments, shock wave and fireball.
The Washington, DC Metro Transit system has recognized the value of the company's product. The Metro system has purchased and began installing the $4,000 trashcan in September. As Metro Chairman Dana Kaufmann said, "These trashcans on steroids thwart terrorists while meeting our riders' needs." (Quoted from AP press release, 12/8/2005, http://www.blastgardintl.com/pdfs/BLGA_AP_12805.pdf)
The 'Trash Can'
High Tech Trash cans…. Bet you never thought those words would go together in a sentence, but in effect that is what the trashcans lined with BlastWrap® are. The basic description of BlastWrap®, a custom-configurable light weight, durable and flexible film material that is created by using todays machine form, fill, and seal technology, may leave you wondering what exactly the product looks like. I have placed a picture of it, as shown in Aviation Week and Space Technology, November 7, 2005 (from a press release on the BlastGard International website, http://www.blastgardintl.com/pdfs/article_awst_award.pdf)
Although the pictures are small here, you may notice some familiarity with the substance inside the 'bubbles.' It contains little pebbles of expanded perlite. Perlite is a volcanic mineral (also used in potting soil) with the ability to expand, similar to a piece of popcorn, when entrained water is quickly heated. This expanded perlite absorbs the shock wave from an explosive device.
The second ingredient inside of the bubble is a salt that has very rapid flash-suppressing characteristics. This allows the trashcan to quench most of the heat of the blast very quickly.
The combination of shock and heat mitigation can be seen in a test explosion of a normal trashcan and a BlastWrap®- treated can. The normal trashcan exploded with a large fireball that lasted much longer than the treated trashcan. This should result in fewer injuries to the general public. (Press Release, BlastGard International website, http://www.blastgardintl.com/pdfs/article_awst_award.pdf)
Other Uses
Trashcans are not the only product that can be improved with BlastWrap®. Military vehicles are being tested with the material on the undercarriage. With the bottom covered in the material, the vehicle becomes less vulnerable to land mines and improvised explosive devices, such as those used by the opposition in Iraq.
The military is also utilizing the product to protect munitions during transport. Incorporating the blast mitigating material into the packaging helps minimize the impact of individual munitions detonations, and it prevents sympathetic detonation of nearby weapons that can lead to mass detonation catastrophes.
Of course, the military and public transportation systems are not the only beneficiaries of this product. BlastGard recently announced a new alliance with Nordisk Aviation Products to utilize its materials in Nordisk's cargo loading units used in commercial aircraft.
Financial Overview
http://finance.yahoo.com/q/ks?s=blga.ob
As can be seen from the Financial Overview, BLGA is a micro cap investment. Float and volume are low, as is normal with this type of investment.
Positioning in Homeland Security Industry
BLGA operates within the services sector. Its main competitor in trash receptacles is an Israeli security firm that makes a similar product. However, the competitor's product does not provide the same level of blast mitigation and this should prove to be a large advantage for BlastGard.
With the additional testing by the military as a type of 'armor' for their vehicles, and the private industry alliances announced recently, the market for BlastGard's products should grow significantly.
Concluding Remarks
BlastGard International, Inc has a competitive product that is well suited for the homeland security mission. The company also has current sales to finance ongoing product development. BLGA may be a suitable addition to the higher risk portion of a well-diversified portfolio.
Analyst's Statement: "I have prepared this report, and the content within it, including all opinions, are solely my own." The analyst is Gary Vassalotti. The analyst's biographical details are at http://www.investrend.com/articles/secondlevel.asp?level=238
BlastGard International, Inc ., 2451 McMullen Booth Road, Suite 207, Clearwater, FL 33759 , Michael J. Gordon,, 877-812-7000 Web site: http://www.blastgardintl.com/ The company's InvestorPower™ page is at http://www.investrend.com/company/list.asp?sPathParam=yes
Cronus Capital Markets, P.O. Box 1022, TD Centre Postal Staton, 77 King St. West, Toronto, Ontario M5K 1P2, Phone (888) 901-7090. e-mail: query@cronuscapitalmarkets.com Web site: http://www.cronuscapitalmarkets.com
Investrend Research and Investrend Research Syndicate, Div., Investrend Communications, Inc., 603 W. 13th Street, Suite 1A-277, Austin, Texas 78701 Phone (718) 896-5060, Fax (718) 896-5316, e-mail: contact@investrend.com. Web site: www.investrend.com and www.investrendresearch.com.
Information, opinions or ratings contained in this report are submitted solely for advisory and information purposes by the qualified professional analyst. Investrend Research provides analyst facilitation, report publication and distribution services only. The information used and statements of fact made have been obtained from sources considered reliable but neither guarantee nor representation is made as to the completeness or accuracy. No representation whatsoever is made by Investrend. Such information and the opinions expressed are subject to change without notice. This report or study is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed. Please read full disclosures at http://www.investrendresearch.com Neither Investrend nor the analysts apply "recommendations" to any reports nor the companies covered. Any usage of the word "recommendation," if any, is to be defined as a "rating" only. We subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com
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