| Frequently Asked Questions We're happy to answer your questions about J.V.-Delaney & Associates. Do you have a question? Are you interested in investing in a pre-IPO private placement? Please see our guidelines for requesting IPO Information. Mr. Delaney, what are the three most important ingredients you look for in an IPO prospect? In order of priority they are: (1) Management experience. Management must focus on and achieve profitable sales growth. (2) Market. The market needs to be rapidly expanding. (3) Uniqueness and Market Domination. The product or service should be unique enough so that the company can dominate it's niche. How does JVD&A set the initial valuation? Our first commitment is to investors. The offering price is perhaps more fair to investors than to the company in the short term. However, our strategy helps the company "break through the clutter" of competitive offerings, and based on performance it lowers the future cost of capital. Do you provide pre-IPO private placements? Yes, pre-public private placements are an essential part of our "incubator" program, which helps groom and prepare companies for IPO's. What is Public Venture Capital? America's economic growth engine is fueled by smaller companies, not the Fortune 500. And successful investors visualize emerging company growth potential ...long before the maddening crowd. J.V.Delaney & Associates' goal is to identify for investors emerging companies that can achieve geometric growth, and have the management maturity to keep their "eye focused on the ball". This means understanding and evaluating the caliber of management, and evaluating management's ability to effectively use public IPO monies. Joseph V. Delaney looks for unique opportunities to help investors invest at the beginning of a company's explosive growth phase, growth that is fueled by new products and/or new markets. We are constantly on the lookout for "home run" companies, where a public IPO--instead of a venture capital investment--can supercharge a growth in sales and earnings. What is a Special Situation? A "special situation" typically refers to a company whose prospects may be positively affected by out-of-the ordinary trends, products and/or events. Here's some examples: Undervaluation. -- The market is not recognizing the total value of the company on a breakup basis, nor as an LBO candidate. Overvaluation. -- Indentifying companies with unrecognized problems, sell and sell short strategies. Are stocks in your portfolio a candidate for this list?...see Special Situation Research. Macro trends can create special situations. -- Publicity from the Nagamo Olympics may help snowboard manufacturers increase sales -- Electric rate deregulation is probably creating a number of niche opportunities for niche companies, which may qualify as "special situations". Development, manufacturing and sales of new products can create special situations. -- A company developed a new, better windshield wiper and has trial contracts with several foreign car manufacturers. -- A company developed a new airplane for private pilots in Alaska. -- A company developed a stronger, cheaper battery to power automobiles. Financial implications can create special situations. -- A company may be selling for the value of its cash in the bank. -- A company may have "hidden" assets, such as a film library that can be repositioned, colorized or otherwise re-packaged/released to develop a positive cash flow. Management changes can create special situations. -- The board of directors may have recruited a entire new management team. |
| DISCLAIMER: J.V. Delaney & Associates (JVD&A) and Joseph V. Delaney offer service and investments only where licensed and Blue Skied. The investments offered comply with all applicable laws where offered. In addition, J.V. Delaney & Associates, Joseph.V. Delaney, and personnel or affiliates may have positions in the investments recommended. | |||
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