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| Overviewing Our Business |
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| MAS Computer Recyclers has a long history in the new and used computer component, telephony and network solutions business. Since 1992, the Company has been based in Orem, UT. near the famous Brigham Young University, and in a nearby town prior to that since the early 1980’s. During the long history of MAS, the Company has served as the nucleus for many other computer components and related hardware Companies that it enjoys relationships with. For previously self serving estate and tax reasons, the original partners who owned the Company scattered income into many entities. The result to the Company was the divergence of profits and liquidity such that the opportunity for new management to take advantage of an established customer base of over 20,000 presented huge potential. This coupled with an attractive inventory base at that time and a small investor group allowed Perri Bird to acquire MAS toward the beginning of 2005. Now as one consolidated corporate entity, with the removal of the previous partnership conflicts, but also at the expense of valuable inventory resources, the Company is now lead and owned by Mr. Perri Bird who is in the process of performing an alternative public listing through an existing public entity on the over the counter US stock exchange. Because of the long history and prestigious management group, MAS continues to enjoy relationships with many well known companies including several listed on the Fortune 500 list. This also poises the Company for significant growth opportunity over the next few years that could result in profits in the tens of millions of dollars. Expansion of resources will allow the Company to grow very rapidly and enjoy the high profit margins associated with used equipment and components. In many cases, gross margins can exceed 100% on vendor to vendor business. In some cases it can be in the thousands of percent. This combined with the point of purchase location and responsible recycling practices provide many additional opportunities for vertical applications for the proven business model. Unfortunately, because of the previous proprietary nature of the business, it is difficult to reflect the actual combined sales that resulted from the MAS hub of business. Therefore, only the minimum amount of core product business generated is reflected in the previous sales figures for a significant period of time. In actuality, a unified front of historical sales would have demonstrated a significant increase in gross revenues if all off shoots of business were combined. This, in combination with lessoned inventory levels as a result of the leveraged buyout have resulted in a much higher sales capacity than is currently limited by inventory. The immediate goal of MAS is to retire certain associated acquisition costs for the purchase and buyout of the Company which hold no immediate threat to the ongoing business enterprise. By adding to this an expansion of inventory capabilities, the Company is poised to grow considerably. Ironically, MAS has had incredible employee loyalty which is reflected in many long term employment histories. In a high tech environment, the MAS model is such that low tech principles are used to enjoy consistent profit opportunities with minimal if any downside risk. The cost of goods sold is generally very low allowing considerable space for pricing flexibility. Because many third world countries support older hardware applications, the consistent need and demand for components particularly for their expansion needs is very large and likely to continue to grow at a geometric pace. This is also fueled by the increased demands on these existing installations that need to be adapted to support more users for older equipment that is no longer manufactured nor was it originally designed to be as scalable as it has had to become. The supply for used and recyclable equipment is vast as many Western Countries are continually upgrading and virtually discarding out dated equipment. The internal components can often exceed the value of a complete device. Just like Automobile junk yards, MAS makes many of its inventory purchases at or below scrap value. The point of purchase location also capitalizes on reconditioned and used computers and networking components have a minimal cost basis. Because BYU is within walking distance, student demands for such cheap solutions are consistent and high. Ongoing opportunities for additional business expansion for the Company are significant and will likely out pace the ability of the Company to fulfill all that is in demand. For the strategic investor looking to hedge against inflation adversities as well as participate in a huge growth sector business, MAS is a wise investment strategy to include. Clearly, as evidenced by previous annual sales that approached $10,000,000 with a large bottom line, the proven track record for the MAS formula exists positioning the Company very uniquely during uncertain times for new computer manufacturers. Providing that inventory stocks can be increased to $3-4 Million over time, MAS can easily grow to $20 million in its current location and justify a market valuation that approaches $100Million or more. |
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