QUOTE AND NEWS
Financial Times  May 22  Comment 
Trading houses are buying plants signalling a return to the utilities sector, 10 years after the collapse of the US electricity trading industry
Globe Newswire  Oct 20  Comment 
BELLEVUE, Wash., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Sector 10, Inc. (OTCBB:SECI) (Frankfurt:4SR) announced that the unveiling of the Sector 10 MRU-FA product as part of the 20th anniversary commemoration ceremony of the Loma Prieta earthquake was a
Globe Newswire  Oct 15  Comment 
BELLEVUE, Wash., Oct. 15, 2009 (GLOBE NEWSWIRE) -- Sector 10, Inc. (OTCBB:SECI) (Frankfurt:4SR) announced today that it will unveil its new product, the Mobile Response Unit (MRU) - Fire Apparatus or (MRU-FA) in San Francisco on October 17, 2009 as




 
TOP CONTRIBUTORS

Sector 10, Inc. (OTCBB: SECT) distributes emergency response products worldwide including the Sector10 Stationary Response Unit ("SRU") and Mobile Response Unit ("MRU"). The company's products offer various emergency response features including smoke, chemical, and biological masks; battery backup; eye wash system; evacuation chair; iodide tablets; strobe light; integrated computer system; siren; visual touch screen panel; first aid supply packs; Wi-Max wireless technology; personnel tracking and surveillance cameras. Both the SRU and MRU are placed in high traffic areas, such as convention centers, airports, mass transit stations, entertainment venues, sports arenas and stadiums, retail locations, and malls.[1] Sector 10 is a defense company that distributes products that intend to save lives in case of emergencies.


Business Overview

The Stationary Response Unit ("SRU") is a stationary response center containing a variety of equipment needed for disasters and crisis situations. Units are most often placed in (1) high traffic areas and (2) high rise buildings near stairways, elevators, and transportation terminals[2]. In case of emergency, each SRU provides first responders and building occupants with first aid supplies, life saving equipment and emergency communications that features:[3]

  • Smoke and Biological Masks
  • Battery Backups
  • Eye Wash Systems
  • Evacuation Chairs
  • Iodine Tablets
  • Strobe Lights
  • First Aid & Supply Packs
  • Integrated Computer Systems with Wi-Max Internet
  • Surveillance Cameras
  • Sirens

Sector 10 Products

Sector 10 offers SRU units to suit clients of different sizes, from SRU-Small (designed to save 10 lives) to SRU-Hub (designed to save 200+ lives in high density areas). The company also offers an SRU-Portal tracking zone with built-in camera and an SRU-Gate tracking zone[4] This differentiated marketing segmentation strategy enables Sector 10 to serve a wide range of customers by suiting each one's individual needs. The most common locations for SRU's are high rise buildings, government complex's, airports, sports stadiums and arenas, schools and universities, apartments and retirement homes, cruise and ocean liners, shopping centers and theme parks.[5]

Stationary Response Unit

The Stationary Response Unit ("SRU") is a stationary response center containing a variety of equipment needed for disasters and crisis situations. Units are most often placed in (1) high traffic areas and (2) high rise buildings near stairways, elevators, and transportation terminals[6]. In case of emergency, each SRU provides first responders and building occupants with first aid supplies, life saving equipment and emergency communications that features:[7]

Stationary Response Media Unit (SRU-Media)

Sector 10 is integrating a new media platform with its SRU product line, called SRU-Media. These units provide all the pre-deployed resources found in Sector 10's SRU, while offering the ability display various types of advertising, search results, corporate branding, AMBER Alerts, public service announcements, venue directory services, and real-time evacuation instructions on a 42 screen with 1080p resolution.[8].

SRU-Media are placed in high traffic public venues such as airports, convention centers, mass transit stations, entertainment venues, sports arenas and stadiums, and retail locations - wherever the public is found in masses.

Each day tens of thousands of people will be exposed to ads displayed on SRU-Media, making it one of the largest proprietary digital networks in the world[9] These are pre-deployed life saving devices that generate revenue during times of normal operations. The advertising dollars created can more than offset the expense of these multi-purpose units.

Mobile Response Unit (MRU)

Sector 10's Mobile Response Unit fully de-ployed in an emergency
Sector 10's Mobile Response Unit fully de-ployed in an emergency
The MRU mobile Response unit is a self-contained response center armed with all the essential equipment needed for disasters and crisis situations.[10] The mobile unit can be delivered to a crisis site to administer first-aid and other medical needs and is deliverable by air-drop or truck hitch mounted lift system. All the doors convert to a stretcher, table or bench and each MRU contains modular shelves, drawers, bins, and cabinets. It's OSHA compliant and contains a web based controllable camera.[11] The MRU has a variety of uses including:
  • Emergency response;
  • Disaster aid;
  • Remote medical and health center;
  • Hazardous area clean up and response;
  • Remote locations;
  • 3rd World Countries;
  • Rural work sites and construction zones; and
  • Mining facilities.

PLX-3D System

On 3/16/2009, Sector 10 announced the availability of a PLX-3D Software Demonstration hosted by CEO Pericles DeAvila and CFO Larry Madison Display.[12] The PLX-3D is a technology-enabled panopticon station that allows observers to instantly see the organization of a building and how many people are in the building. It also tells observers whether people are sitting or moving and can also identify individuals by picture and medical information.[13] The product will operate for hours without power, allowing first responders access to information that they would not otherwise have, in a 3D perspective. As of 3/16/09 the PLX-3D software demonstration was made publicly available at [25]</ref>

Market Sectors

High Rise Residential & Commercial Properties

Government agencies including OSHA, EPA, etc. issue compliance requirements for construction sites and industrial sites that range from safety to emergency preparedness.[14] Personal hygiene on a construction site is a typical problem, because running water is generally not available. Due to the large amounts of chemicals and large machinery at industrial sites, injuries and deaths are a considerable risk and therefore such construction sites maintain some of the highest commercial liability rates by insurers including AIG and PRU. [15] Sector 10's mid-sized MRU units conform to government agencies' regulations and are customized to respond to each risk event forecasted by the customer. Due to the size of the MRU, and the emergency strobe light located on top of the unit, it is easily visible to victims and professional support teams. Sector 10 provides the following separate models for many common safety and emergency response needs:

  • Industrial, Construction and Agricultural Safety and Hygiene
  • Spill-Decon Equipment
  • Emergency Response Equipment
  • Respiratory Response
  • Confined Space Recovery
  • Disaster Rescue Response
  • Clean Room Response

Sporting and Entertainment Venues

Large public gatherings, such as sports events that celebrate American popular culture, are considered to be potential terrorist targets[16] In March 2005, the Department of Homeland Security identified a dozen possible strikes it viewed most devastating, including a truck bombing of a sports arena [17]. Since 9/11, the American sports industry has increased security at major sporting venues and high profile events such as the Super Bowl, World Series, and Olympics. University sport programs must also take necessary steps to secure their stadiums and campuses against potential threats. College sport stadiums provide a perfect target for mass casualties and catastrophic economic impact.

The SRU-Media was designed to fill this need and includes customizable items to suit any particular situation. The SRU-Media is OSHA and FAA compliant for safe evacuation and is designed for easy deployment in cases of catastrophic events.[18]

College Campuses

Schools from K-12 to university have been the unfortunate sites for man-made and natural disasters such as the shootings at Columbine High School and the Northridge earthquake that leveled buildings in the surrounding areas of southern California[19]. Each area of the country has a unique emergency threat based on its own climate and geographical location. When teachers and students exit school buildings after an emergency, it poses an immediate threat of student containment. There are also immediate needs for food, water, first aid, etc. Because Sector 10's pallet sized unit is stored outside the building on a concrete slab, it can be opened immediately by authorized personnel to inflate a student containment tent and distribute food, water and first aid supplies stored in the MRU. Individual mid-sized units can be distributed inside the school and can easily be moved outside, as needed.[20] Sector 10's mobile units include large shelters, water purification systems, water bottles, flash lights, bullhorns, first aid supplies and cell phones connected to an Emergency Band Satellite System.[21]

Hospitals

Sector 10's Hospital Emergency Response Unit contains critical items such as a heated water supply system
Sector 10's Hospital Emergency Response Unit contains critical items such as a heated water supply system
Hospital ER units and ambulances are susceptible to "contamination" from chemicals, viruses, parasites, and other foreign items that challenge the sterilized environment of their operations. When these units are contaminated they must be taken out of service immediately for re-sterilization. This causes two major problems for the emergency service providers. First, there is a tremendous expense to re-sterilizing the units. Second, taking these units out of service takes scarce emergency response resources away from a carefully balanced plan forecasted by emergency managers.[22] Sector 10 mid-size units provide a mobile Decon Shower Unit with the necessary equipment to decontaminate people and equipment before putting them into an ambulance or admitting to a hospital ER unit. It also provides the following customizable items:
  • Single person or multi-staged group tent with shower
  • Disposable shower liners
  • Heated water supply system
  • Contaminant capture system
  • Port-a-potty
  • Contaminate cleaning solution
  • Supplies for emergency personnel, including gloves, coveralls, boots, etc.
  • Pressurized sprayer

Key Trends and Factors

Advertising On Digital Billboards

The state of digital: Only a few hundred of the half-million billboards in the United States feature digital displays.
The state of digital: Only a few hundred of the half-million billboards in the United States feature digital displays.[23]

Nationwide, there are an estimated 450,000 billboard faces and a tiny fraction of the overall total is digital.[24] More and more billboards are becoming digital as they are proving to be a boon for advertisers, particularly local advertisers. The vast majority of all advertisers on billboards (77.1%) are locally owned businesses, marketing to their friends and neighbors within a community.[25] Because they can be updated instantaneously via computer, digital billboards give advertisers an unparalleled ability in media to reach a mass audience quickly and cost effectively.

In a recent study conducted by respected research firm [26], more than half of the respondents said they found digital billboards attractive.[26] Likewise, 64 percent of all people polled said that digital billboards are “a cool way” to advertise. When young adults 18 to 34 years old were asked the same question, favorable reaction rose to 77 percent among the respondents. Nearly 70 percent of the young adults also believed that digital billboards provide useful information.[27]

While digital billboards are increasing in popularity, their safety on the road remains a concern.[28] To keep pace with technology, the federal government has said that roadside billboards (off-premise signs) could use “changeable-message” technologies as long as these signs don’t scroll or flash. On September 25, 2007, the Federal Highway Administration (FHWA) issued clear guidance, affirming that states could continue to authorize digital billboards with tight regulations on size, lighting, and spacing.[29]

Streaming video displays on billboards are currently banned in all 50 states[30] and this inflates both the demand and pricing mechanisms of all video advertisements in the United States.[31] Only a tiny fraction of billboards allow for streaming video and since Sector 10's SRU-Media serves dual purposes, the company maintains a competitive advantage against media conglomerates including Clear Channel Outdoor Holdings (CCO) and Lamar Advertising Company (LAMR). The company's SRU-Media is purposefully engineered to save lives in an emergency while simultaneously displaying various types of advertising, search results, corporate branding, AMBER Alerts, public service announcements, venue directory services, and real-time evacuation instructions.

Homeland Security and Defense Spending

The U.S. Department of Homeland Security is spending hundreds of billions of dollars to prevent future terrorist attacks on U.S. soil.
The U.S. Department of Homeland Security is spending hundreds of billions of dollars to prevent future terrorist attacks on U.S. soil.
The September 11, 2001, terrorist attacks and the 2004 and 2005 hurricane seasons highlighted the need to focus on improving emergency management, incident response capabilities, and coordination processes across the country.[32] As a result, the Department of Homeland Security enacted the Homeland Security Presidential Directive 5 (HSPD-5). The directive serves to enhance the ability of the United States to manage domestic incidents by establishing a single, comprehensive national incident management system. This management system is designed to cover the prevention, preparation, response, and recovery from terrorist attacks, major disasters, and other emergencies. The implementation of such a system would allow all levels of government throughout the nation to work efficiently and effectively together. The directive gives further detail on which government officials oversee and have authority for various parts of the national incident management system, as well making several amendments to various other HSPDs.[33]

HSPD-5 led to the establishment of the National Incident Management System (NIMS). NIMS provides a systematic, proactive approach to guide departments and agencies at all levels of government, nongovernmental organizations, and the private sector to work seamlessly to prevent, protect against, respond to, recover from, and mitigate the effects of incidents, regardless of cause, size, location, or complexity, in order to reduce the loss of life and property and harm to the environment.[34] NIMS works hand in hand with the National Response Framework (NRF). NIMS provides the template for the management of incidents, while the NRF provides the structure and mechanisms for national-level policy for incident management.[35]

The primary objective of NIMS is to facilitate rapid, short-term deployment of emergency support prior to, during, and after an incident.[36] NIMS recognizes that recovery resources are typically acquired through contracts with NGOs and/or the private sector, which both play a vital role in emergency management and incident response. According to a December 2008 report on the Homeland Security's National Incident Management System, "the private sector may be a source for best practices in emergency management and incident response."[37] Since 2001 the U.S. federal government has provided over $27 billion to State, local, and tribal governments to enhance first responder preparedness.[38]

The U.S. Federal Budget for FY2010 projects over $40 billion dollars of funding for the Department of Homeland Security. A priority for future Homeland Security spending is to improve coordination between all levels of government, support emergency first responders, and create more effective emergency plans.[39] This creates an opportunity for Sector 10 since the company meets all OSHA, EPA, and NFPA requirements.

Global Fear and Uncertainty Rising

In Q4 2008 the .VIX index reached an all-time high, representing a global uncertainty in the financial markets.
In Q4 2008 the .VIX index reached an all-time high, representing a global uncertainty in the financial markets.

Sector 10, Inc. thrives in an environment dictated by fear and uncertainty, which has hit record levels during the past year, as measured by the Volatility Index (VIX). Often referred to as the fear index, it represents one measure of the market's expectation of volatility over the next 30 day period. As fear and the VIX continue to hit new record highs, federal defense spending is expected to remain at record levels.[40] U.S. military spending is equal to the military spending of the next 15 countries combined[41] and with fear indices such as the VIX near all-time highs this defense spending will be sustained. Fueling this unprecedented fear factor are:

  • Financial turmoil that began in America;
  • Iran's Nuclear Program;
  • North Korea's Nuclear Program;
  • Diversion of The Brahmaputra River[42]; and
  • Mainstream medias uncanny ability to spread news instantaneously around the globe.




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  15. Insurance Information Institute, Commercial Insurance
  16. [www.mmwr.com/_uploads/UploadDocs/publications/American%20Sports%20As%20A%20Target%20Of%20Terrorism.pdf American sports as a target of terrorism: The duty of care after September 11th. Hurst, Zoubek, & Pratsinakis
  17. [Lipton, E. (2005, March 16). U.S. Report Lists Possibilities for Terrorist Attacks and Likely Toll. New York Times, Section A, Page 1, Column 2.]
  18. [10]
  19. Earthquake Data Center
  20. Sector 10 Website, Public Schools and Safety
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  22. Sector 10 Website, Hospitals
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  24. About Digital Billboard Technology
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  26. Arbitron Digital Billboard Study
  27. [www.arbitron.com/downloads/arbitron_digital_billboard_study.pdf]
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  30. [www.arbitron.com/downloads/arbitron_digital_billboard_study.pdf]
  31. [www.arbitron.com/downloads/arbitron_digital_billboard_study.pdf]
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  33. Department of Homeland Security
  34. FEMA.gov, About NIMS
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