As the spread of COVID-19 intensifies, the demand for PPE is likely to remain sky-high for 2020-2021.
Exploding growth for HWKE-.70 (PPE) should not be overlooked and should be purchased at current levels.
Personal Protective Equipment (PPE) includes head protection, eye & face protection, Hearing protection, protective clothing, respiratory protection, fall protection ,footwear protection and hand protection.
As of July 4th 2020, total worldwide Covid-19 cases have reached 11.4 million and total deaths are over 540K. In the USA total cases are around 3 million and total deaths equal 132k and climbing.
In particular, N95 masks are driving much of the projected market growth as such masks are more effective than other face coverings in preventing the spread of the coronavirus. Goggles, gowns and coveralls are all factors in the projected growth as well.
Hawkeye Systems, Inc. ( HWKE~.70)
HWKE is a technology holding company with focus on pandemic management products and services. The company sources and distributes PPE and other Pandemic Management supplies to enterprise level customers and government agencies.
shares outstanding as July 1, 2020~ 14 million
Warrants outstanding 15 million average exercise price $1.16
Note: 8.6 million warrants issued during 2018 due to expire June 2019, but extended to June 30th 2020. At this point in time we do not know how many were exercised or had expired.
Stock options granted 4.7 million and of that amount 2.1 million have been vested.
On April 23. 2020 HWKE issued 1 million shares to an accredited investor for $250K. As part of the investment, the investor was also issued 2 million warrants with an exercise price of $1.00 and 2 million warrants with an exercise price for 1 year at $2.00
THE MEAT: See page 26/35 recent 10Q for 3rd Q ending March 30, 2020.
During the first 9 months of fiscal 2020 HWKE had ZERO revenue and (.07). The company because of recent transactions in PPE products had a revenue explosion during the 4th Q ending June 30th 2020. As mentioned on page 26 of the Q, HWKE fulfilled its first $1.25 million purchased to support its critical need for 3-ply respirator masks from the city of Memphis. During April and May of 2020 HWKE also completed additional sales of PPE products to numerous purchasers with gross revenues to the company of $12,000,000 during that period and net income of $690,000.00.
According to the Q HKWE has continued it focus on sourcing and delivering other PPE products, including masks, gowns, sanitizer and ventilators. The company has acknowledged that numerous transactions are in progess and anticipate SIGNIFICANT SALES OF PPE PRODUCTS DURING THE 4TH Q OF 2020!
Please review the June 23, 2020 press release:
HWKE announces partnership with DemeTech for the exclusive rights to American made N95 Protective Masks. The agreement includes up to 3 million masks/month with an option to expand production for up to 5 years.
N95 masks are the most common of the 7 types of particulate filtering face piece respirators. The product filters at least 95% of airborne particulate matter. NIOSH approval, designated by the National Institute for Occupational Safety and Health, is anticipated to be earned by DemeTech within 60 days.
HWKE has also developed a bio-surveillance technology that measures thermal data that could be very useful for first responders in the field surrounded by people of unknown COVID-19 status. The ability to pick out elevated temperatures should help the triage process & could be helpful at checkpoints and train stations as well.
HWKE is working in collaboration with other tech and medical device companies to bring a "smart mask" to market as soon as possible. ( visit their website for more information on this product development and or review their March 11, 2020 press release)
The company is also developing a Body-cam platform that has the ability to collect and monitor not only medical data, but also using multiple video feeds~ The military, police and medical options using this cutting-edge technology is limitless.
Please spend some time and review the last few months of press and engage their website.
During the past few months, the rage in the market place has been COVID-19 related issues and many have sky-rocketed (some have flamed out). We believe that HWKE has not been fully appreciated because only recently has their business plan, product development and explosion in revenue been fully made visible to the "street"!
OVERVIEW: WE have something that potentially could 5-10X's your investment in 3-12 months. Of course there are unknown risks and all firing cylinders could sputter, but we don't think so! As mentioned there was zero revenue for the first 9 months of fiscal 2020 and then because HWKE hit the bullseye revenue spiked to $12 million during the first 2 months of the 4th Q of fiscal 2020. Management states, "accelerated revenue during the balance of the fourth Q (month of June) above and beyond mentioned for April-May 2020.
Since HWKE already has stated $12 million and net of $700k for 2/3 of the 4th Q let us assume that the company does $18 million for the 4th Q and earns $1 million and base it on the 14 million shares outstanding.~ that results in .07 for the Q. If the company continues to deliver this kind of revenue during the next 4 Q's we could see a company that reaches revenue of $60-$100 million for fiscal 2021 and income/sh of .40-$1.00/sh. Is this a fantasy or a reality? Much depends upon the Pandemic that the whole world is engulfed in. We believe that the misery that we are experiencing has a long way to go. Recall, regular flu season happens during the late Fall and compound it with COVID-19 THE MISERY PARTY IS GOING TO BE AROUND FOR A LONG TIME!
We believe if HWKE can deliver a scenario that we have formulated then of course additional shares will become outstanding and within 12 months we could double the amount of shares because of all the options and warrants available that will enable money to be raised for working capital for expansion and product development.
We believe that the current share price of .70 does not fully take into near term consideration of current demand for their PPE products, cutting edge technology, quality management, potential of additional acquisitions and partnerships and joint ventures.
We rate HWKE with a strong speculative buy rating at current levels for the potential of rapid price appreciation.
WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION .We currently own shares in all stocks mentioned..
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