NEWLY TRADED STOCK ALERT

SURFACE TECH, INC.

 PATENTED TECHNOLOGY TO RESURFACE

ALLOY WHEELS WHILE STILL ON THE CAR

TRADING UNDER THE STOCK SYMBOL SFCI

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* Time frame of stock price is between 2/12/03 to 4/1/03

 

THE OPPORTUNITY

 

Surface Tech has over 100 mobile licensed technicians across the U.S. that utilize its patented process to repair curb damaged alloy wheels without removing them from the car. This innovative new process “Method for Refurbishing an Automotive Wheel” was granted a patent in February, 2002 (U.S. Patent 6,347,444).

The Company has also developed a process to resurface damaged automotive headlight lenses, and is anticipating high growth in the newly added “Clear Film” paint and headlight protection system. This proven product is applied to vehicles to protect the front fenders, bumper, hood, and headlight lens covers from getting chipped, pitted or scratched by road debris.

Each of the 28 million cars sold each year is a potential candidate for SFCI's services, either now or at trade-in or turn-back time.  The vast majority of those cars will have scuffed wheels, pitted headlight lenses, or rock-chipped paint on the hoods, fenders and bumpers.

U.S. PATENT PROTECTION

Surface Tech obtained a U.S. patent that will protect the economic viability of their wheel repair technology and future market share.  The strength of the issued patent, along with the filed continuation patents provide solid protection from unlicensed competitors.   Other valuable and innovative repair processes such as Paintless Dent Removal have suffered a decline in profitability due to not having patent protection.  As the original innovator of on-site wheel repair and owner of the patent rights, SFCI will continue to see increasing royalties from the multi-billion dollar a year auto reconditioning industry.

 

REVENUE BASE

SFCI's patented technology is currently being used in over 4,000 auto dealerships, auto auctions, car rental companies, insurance companies and warranty programs. SFCI  licensed field technicians billed over $1,000,000 in 2001 and over $2,000,000 in 2002. With the technicians the company anticipates adding, total billing is projected to be from $7 to $10 million in 2003.

ADDITIONAL REVENUE SOURCES

A new product for SFCI will be an innovative new warranty program.  SFCI  will receive an immediate fee for each new warranty sold at the time of vehicle purchase. The coverage will include wheel repair, headlight lens resurfacing, and “Clear Film” paint protection system.

The finance department of auto dealerships have historically been the source of a significant percentage of the dealer’s profit through the sale of add-on products, as well as the financing of the vehicle.  The dealerships are currently experiencing a dramatic drop in that profit due to low interest financing and a lack of product that consumers see a value in.  The new appearance warranty provides them with a very profitable product that a high percentage of their customers recognize as a means to protect the appearance and value of their investment.             

 THE NEED FOR EXPANSION CAPITAL

To penetrate the world-wide marketplace, which consists of hundreds of  thousands of car dealerships, auto body shops, rental car agencies, auto auctions and the general public the company requires capital.  These funds will secure additional techs, trucks, equipment and legal protection for its network..

 

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