STARCHAIN ,
being developed exclusively by Enterprise Group (TSX: $E.TO ) is the only
product that will track, diagnose, and effect meaningful costs savings in the
#resource industry
May 31, 2018 (Investorideas.com Newswire) Commentary on
Enterprise Group (TSX:E)- A
10 inch by 10 inch by 4-inch electronic module dubbed STARCHAIN is to GPS what
a CGI movie is to tintype.
STARCHAIN is being developed exclusively by Enterprise Group (TSX:E) and
falls squarely into the IoT service genre. While there are similar products in
other sectors, STARCHAIN is the only product that will track, diagnose, and
effect meaningful costs savings in the resource industry for Enterprise and its
lease/rental customers. As well it will provide much useful data back to
STARCHAIN allowing it the ability to scale up continuously.
Particularly for Enterprise, which rents or leases 100's of
pieces of expensive industrial equipment to far-flung areas and winters
that are almost otherworldly, weatherproof the units. STARCHAIN modules replace
simple GPS units in two ways: First, it negates the monthly cost of each GPS
unit saving thousands of dollars. Second, data access, unlike a straight GPS
unit, provides unlimited data critical to its R&D.
Eventually STARCHAIN will evolve into a neural network
to impact the most cost-effective client equipment decisions.
“While some might be satisfied with STARCHAIN in its
current form, we see it as a base platform for future development utilizing
collected data,” stated Desmond O’Kell SVP of Enterprise. “If a piece of
equipment fails or experiences a mechanical deficiency on a remote project
site, STARCHAIN alerts Enterprise and the fleet manager immediately so that a
repair can be effected, or a replacement can be deployed, which in turn raises
revenues, efficiency and asset life.”
The STARCHAIN ‘plug and play’ modules also include an
accelerometer which can measure movement from the smallest vibration to a
catastrophic failure. A real-world example in a moment. Equipment is built with
an obsolence factor. Therefore, when a company rents heavy equipment to a
myriad of users and weather conditions, it is not just smart business but
critical to ensuring the maximum asset life for revenue generation. Followed of
course by the ultimate sale at a premium price.
Asset Control = More Revenue, Longer Life
Enterprise has more than 200 industrial light towers
that it rents to customers. Currently, once it leaves the yard, the Company has
only a 3rd party GPS tracker on it. The onus is on the client to report any
issues. In the past maybe 1, 2 or 3 lights would fail before they would
indicate. With STARCHAIN, Enterprise will know when the first bulb blows and
can send a repair. It can also check the other bulbs and help ensure they
aren’t at their lives end. The customer is happy, revenue increases due to the
repair and the light tower (and lamps) are kept in good long-term re-rentable
condition.
As well, the module can STARCHAIN schedule on/off
times, brightness, number of bulbs on to ensure cost-effectiveness, and again,
produce less stress on the asset. Extrapolate that technology onto trucks,
dozers, drilling equipment, and the benefits are many and profound; primarily
asset life, increasing revenue and margin increases.
Putting a value on STARCHAIN is difficult. While it is
included in Enterprise’s total asset value of just over $1.00 a share (shares
trading at $0.57), it is a minor balance sheet contributor. STARCHAIN will be a
growth entity on its own as it evolves as well as giving Enterprise a
continuous and humongous competitive advantage.
Enterprise's technology development group is currently
performing infield testing with success. Management expects to offer its
customers specialized equipment capable of several remote controllable features
in Q3-Q4 of 2018.
Oh yes, There's Lots More.
From CNN:
The downward pressure on oil continued on Monday (May
28/18) as traders considered data showing a jump in the number of US oil rigs,
indicating potential growth in US production. US crude production has increased
by about 25% since mid-2016 as producers look to capitalize on rising prices.
Oilfield services firm Baker
Hughes (BHGE: NYSE) released data on Friday showing the rig count in
North America hit its highest level of the year last week. The current global
rig count now stands above the average set in 2017.
In 2014-15, the oil price collapsed, and Enterprise
got nailed hard but pretty much as collateral damage. Through savvy and bold
decision taking, the Company remained cashflow positive throughout the decline
and returned to profitably last year.
While many companies were simply worried about
survival following the downturn, Enterprise paid down $54 million of debt,
streamlined operations and came out of the debacle stronger and debt-free.
Bottom Line
As oil climbs (and yes, it will
remain volatile) investors can participate in a company that is so much more
than when it traded at $3.50 pre-decline. The Enterprise share price has
doubled YTD. With the STARCHAIN tech development Enterprise could well morph
into the industrial and perhaps national industrial rental firm of choice. The
proprietary technology is already moving toward becoming a leader in the fields
of logistics, deployment efficiency and even AI in the resource and
infrastructure realm.
Also, there are the further investor enticements such
as no debt, a significant acquisition chest, lean corporate structure and
aggressive and effective management.
Also, it is TSX listed.
So, you are waiting for for...?
For questions or additional information, please
contact:
Leonard Jaroszuk: President & CEO or
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400
Desmond O'Kell: Senior Vice - President
contact@enterprisegrp.ca
780-418-4400
Article source – Baystreet.ca
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