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The Ubika Research Tech Stock Watchlist
Eurocontrol Technics Inc (TSXV:EUO)
Company Name: Eurocontrol Technics Inc
HQ Location: Toronto, Ontario, Canada
Company Website: http://www.eurocontrol.ca
Shares Outstanding 65.09 Million
Stock Price (Dec 08, 2010) $ 0.12
Market Cap $7.81 Million
52 Week Range $0.11 - $0.32
Average Daily Volume 75699
Archive
The Ubika Research Tech Stock Watchlist is very useful to find interesting junior tech stocks. Quite often smallcap tech stocks and penny tech stocks offer very compelling growth and are well-suited for smallcap investment. Tech is good space to find hot Smallcap stocks and penny stock picks, and this segment provides information on such companies.

Share Highlight / 1-Year Stock Chart

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Eurocontrol Technics Inc - Chart

Business Overview

Eurocontrol Technics Inc. through its wholly owned subsidiary Global Fluids International S.A. ("GFI") is one of the world's pioneers in developing and implementing innovative molecular marking systems for the oil industry. Through its proprietary Petromark™ integral system, GFI has developed a 4-part solution consisting of a molecular marker, injection, monitoring and control components. Recently the company achieved forward integration by acquiring Xenemetrix Ltd that makes the testing detectors which are needed for petroleum marker detection. Xenemetrix is a leader that develops, manufactures and sells x-ray fluorescent (XRF) systems for material analysis for use in forensics, minerals, mining, in-situ fraud prevention and petrochemicals. Xenemetrix was awarded Frost & Sullivan’s "GLOBAL PRODUCT LINE STRATEGY OF THE YEAR AWARD IN THE EDXRF ANALYZERS MARKET" for the year 2010. + More info

What is interesting?

  • Eurocontrol has developed a fuel marking, authentication and detection product for the petroleum industry.  Its proprietary petroleum market system called Petromark TM consists of molecular marker, injection, detection and monitoring components. 
  • This proprietary technology was developed with National Research Center of Soreq – the largest Israeli R&D state center.
  • Its key competitive differentiation is that Eurocontrol`s product is a molecular marker with no visual detection possible (unlike other markers which are injecting dyes and hence will color the fluid,) and offers a detector for onsite reading and detection.  The product is stable in extreme conditions. 
  • The company estimates that annual global losses from the illicit trade of fuels are $100+ billion per year.  Oil adulteration and illegal sales of oil in developing world is a real-life problem and in violent places like Africa is a major source of financing for terrorist and illegal activities.  Hence oil companies and governments need solutions that can help detect adulterated or counterfeit products like crude oil, kerosene and gasoline before they hit the market to prevent potential flow of funds through this illegal activity. 
  • Eurocontrol offers a turnkey solution for oil companies with their petroleum marker solution. Basically the marker can be mixed with petroleum products upstream and using mobile detectors, oil companies or government inspectors can verify if the downstream product has been contaminated before the product is sold in the marketplace. 
  • Eurocontrol`s marker cannot be erased, altered or imitated. 
  • PetromarkerTM      complies  with environmental requirements and offers different code combinations allowing for source identification, origin and company identification
  • Eurocontrol is the only provider that can offer a detector, which can test the downstream product on site, quickly verify if the product is authenticated and free from contamination.  This can be achieved without sending the product to an external laboratory, which can be expensive and can also lead to legal difficulties in prosecuting counterfeit cases.
  • The detector is a portable unit that can be mounted on any standard truck without retrofitting. The results is obtained in 5 minutes making for much faster testing and detection cycles leading to a wider enforcement of quality standards.  Mobile detector is ISO 17025 certified.
  • The detector provides for both quantitative and qualitative reading of the concentration level of marker in the fuel.  Bascially, the marker can determine the degree of dilution also
  • Recently the company achieved forward integration by acquiring Xenemetrix Ltd that makes the detectors which are needed for petroleum marker detection.  Xenemetrix is a leader that develops, manufactures and sells x-ray fluorescent (XRF) detector for material analysis for use in forensics, minerals, mining, in-situ fraud prevention and petrochemicals
  • Xenemetrix is launching a new XRF detector that is more accurate and eliminates the need for liquid nitrogen.  This will enable the launch of a new class of mobile detectors (as no liquid nitrogen is needed) which will have a whole range of homeland security applications like detecting radioactive materials and other hazardous materials.  This product could be a significant market for the company.  Xenemetrix was awarded Frost & Sullivan’s “GLOBAL PRODUCT LINE STRATEGY OF THE YEAR AWARD IN THE EDXRF ANALYZERS MARKET” for the year 2010. Xenemetrix has an installed base of approximately 800 systems worldwide of which 250 are installed in the USA
  • Company is gaining momentum in market place. The company has signed a two year contract with Tanzanian Energy and Water Utilities Regulatory Authority ("EWURA") that is worth $7M over two years.  Company has also signed a contract with a petroleum marketing company in Brazil.
  • Company will have an attractive recurring revenue model as once its product is bought by an oil company they have to add this marker product each time their petroleum product is shipped out.  Hence the company can generate a steady and potentially a rising stream of revenues from a customer if the volume of petroleum products produced increases. 
  • As the world consumes more oil and developing economies continue to grow rapidly this company has good upside leverage just on its petroleum marker product alone.
  • Strong management and board to execute an international growth strategy

Risks

Still an early stage company. Hence the risk of new competition and intellectual property protection are key risks for the company.

Eurocontrol Technics Inc News

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Disclaimer

Ubika Corporation, its affiliates or its divisions including smallcappower.com are not registered with any financial or securities regulatory authority, and do not provide nor claims to provide investment advice or recommendations to readers of this report. The information in this report is designed to present the opinion of Ubika’s analysts and what they believe to be the objective prospects of the highlighted company.

Eurocontrol Technics Inc. may enter into a commercial relationship with Ubika Corporation, Investor Cubed or our affiliates for research coverage and capital market services and may pay fees and or shares or stock options or warrants for being mentioned at smallcappower.com. Hence the highlighted company information is an advertisement only and does not and will not constitute an offer to buy or sell securities in the highlighted company.

Was any fee (either in Cash or in Stocks/Options) paid by the company to smallcappower.com or its principal’s Ubika Corporation and/OR Investor Cubed Inc for providing services No
   
Common Stock/Options Ownership in Eurocontrol Technics Inc.  
Analyst(s) No
Analyst’s family members No
Analyst’s firm, their affiliates and/or subsidiaries No
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