SmarTire Systems Inc.
SmarTire Systems Inc. (OTC BB: SMTR.OB)
Share price as of Friday’s close: $0.037 Share price now: $0.051 Change: 37.84% Volume: 14,030,941 Average Volume: 2,418,363 52-week high: $0.175 52-week low: $0.02
SmarTire Systems Inc develops and markets advanced tire pressure monitoring technology systems (TPMS) for the automotive and transportation industries all over the world. SmarTire offers a family of products for motorcycles, passenger and recreational vehicles as well as solutions for commercial and industrial vehicles. The company has been researching and developing the tire monitoring technology since 1987 and has offices in North America and in Europe. SmarTire’s tire pressure monitoring technology systems are designed for improved vehicle safety, performance, reliability, and fuel efficiency.
Today, April 11, 2005, SmarTire Systems appears to be doing very well. The company’s share price has increased over 37% and already this morning, volume has jumped to over 14 million compared to the average volume of over 2 million. This increase is a result of an optimistic announcement made today by SmarTire. The company stated that the National highway Traffic Safety Administration (NHTSA) has issued its final rule requiring all new passenger cars and light vehicles being manufactured for sale in the USA to be equipped with tire pressure monitoring systems by September 2007. This is great news for SmarTire because the stricter requirements of NHTSA’s final rule can currently only be fulfilled by direct measurement systems such as the kind developed by SmarTire.
Robert Rudman, President and CEO of SmarTire commented, "We are very pleased that the uncertainty surrounding TPMS legislation has been resolved and the rule is finally in place. SmarTire has invested considerable technical and financial resources in the development of direct measurement systems and the public deserves this higher standard of performance and reliability. This legislation has also driven interest in other vehicle markets such as trucks, buses, recreational vehicles and motorcycles and we anticipate this legislation will expand to cover these vehicles in the future. SmarTire's advanced direct measurement TPMS products have been chosen by some of the world's most prestigious manufacturers including Aston Martin in the automotive sector, New Flyer and MCI in the bus sector, and Monaco, Country Coach and Western RV in the recreational vehicle sector."
Last Wednesday, April 6, 2005 SmarTire also came out with some exciting news. The company announced that it has begun shipments of its enhanced SmarTire for Motorcycles product. This new product will include a redesigned sensor that allows the system to fit a larger number of motorcycle types and rim designs. This technology will provide real-time tire information to the rider while the bike is in motion, such as each tire’s pressure, temperature, and pressure deviation. A bright warning light will automatically alert the rider if a loss of air pressure or unusually high tire temperature is detected.
Nigel Hammond, General Manager of SmarTire Europe Ltd., commented, "The new sensor design greatly expands our market potential in terms of the number and type of motorcycles and rims. We have had very positive reviews of the product since we launched it last year. We have also received many testimonials and reports from the field of the system saving riders from both the inconvenience and danger of a tire problem while riding. With the changes to the sensors and the new documentation for the French and German markets, we are making this important technology available to an even wider range of bikes and riders."
SmarTire also announced on April 5, 2005 that Western Recreational Vehicles Inc. is offering SmarTire’s active tire pressure monitoring system as optional equipment on their prestigious Alpine Coach Limited Series line of recreational vehicles.
Robert Rudman stated "Western RV combines extensive experience in the recreational vehicle industry with a real commitment to quality, comfort and reliability. We are very pleased to have been chosen by Western RV as their tire monitoring system of choice for their luxury line of Class "A" motorhomes. This agreement is another indication of how SmarTire is implementing its strategy to supply innovative technology to original equipment manufacturers in important target markets."
These exciting announcements made by SmarTire are very encouraging news for the company who had reported on March 17, a second quarter 2005 net loss of $4.10 million or loss per share of $0.02 compared to a net loss of $1.90 million or loss per share of $0.02 for the same quarter last year. SmarTire’s revenues for the second quarter totaled $390,909 which is a decrease of $39,282, over the same quarter in fiscal 2004.
Robert Rudman stated, "Although these financial results were disappointing due to the decrease in sales to the aftermarket passenger car segment, this was in fact an extremely encouraging quarter for us. Our strategy is rapidly shifting to accommodate the realities of the marketplace. There is rapidly growing business in OEM and aftermarket sales in the commercial vehicle, motorcycle, bus and recreational vehicle segments. SmarTire is now placing its major emphasis in these target markets while still actively pursuing business in the passenger car market." Robert Rudman continued, "SmarTire's management team is confident that these recently announced developments together with current sales and marketing activities will produce very positive results. The company's patented technology is widely acknowledged as the best in the industry and excellent progress is now being achieved in the non-passenger car markets."
Written by Capri Hanninen
Capri Hanninen and the Bellwether Report do not have a vested interest in the companies mentioned above
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