BArtagnan

I have been following Element 21 for three years and I'm convinced that the stock is well positioned to jump in value this winter. Element 21 has been a development stage company for the past three years but has transitioned into a manufacturer of actual products during the past three quarters and, despite their annual net loss for fiscal 2007 of $4,002,650 ($0.04 per share) on $4,300,000 in sales, there are a LOT of positive signs for near-term profitability. From its inception, the company has relied on proceeds from private offerings of common stock and advances from executives and consultants to fund the operations. Although there are many signs that the company’s sales will increase dramatically in the near future, the company still needs to obtain capital from outside investors to maintain operations and the company has an accumulated deficit of $21 million (although much of that was from development stage losses).

The company has had numerous major successes in both golf and fishing industries during the past year. Last November, Element 21 launched a golf ball into earth’s orbit from the space station – making it the longest drive in golf history. They were also successful in getting their golf equipment approved for PGA tournament play and many unendorsed professional golfers are currently using their shafts (including Vijay Singh, Mike Weis and Boo Weekly). Independent robotic tests have proven that E21 shafts registered longer distances with less dispersion (almost 5 times more accurate) than ALL of their competition and their “shock block” vibration dampening technology reduces vibration – especially important for aging golfers (a VERY rapidly expanding segment of the golfing industry) with elbow weakness. Now the company has announced that PGA tour veteran Steve Pate has signed an endorsement contract to use Element 21 Eagle One scandium shafts. Element 21 also entered the fishing industry during the past year and signed professional angler Boyd Duckett (the 2007 U.S. Bass Champion) as their fishing spokesperson. Duckett has won three major competitions since switching to Element 21s Carrot LTX rods earlier this year. The company has also recently announced advertising campaigns to generate Christmas sales this year. Their products are currently being distributed through retailers, PGA shops, golf shows and catalog sales - AND the company just announced that Boo Weekly finished second in the World Cup Tournament in China.

The stock is currently at $.18 and has experienced resistance at $.23 - but the winter months are when golf pros make changes to their club selection AND the company made a recent successful entry into the $48 billion fishing industry AND they have recently developed initial advertising campaigns for their products. I would enjoy hearing comments from other members regarding Element 21 financials and stock prospects. I would appeciate feedback from more seasoned investors.