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Flaherty Financial News Newsletter #25
With three huge growth opportunities and an experienced technology team tiny ComCam (CMCJ.OB) is on the brink of a breakout, and you are first to get the story. Also in this issue: Expose Part 12: Jason Galanis, The Invisible Man Returns; Mission Accomplished!               February 2, 2011
Bob Flaherty Rides Again! 

Bob Flaherty Rides Again! At the annual meeting of the New York Financial Writers' Association Bob Flaherty proposed a resolution, which was unanimously passed, to ask the board to name one of the NYFWA scholarships after Clare Reckert, the first female financial writer for The New York Times and in America.(See Flaherty Financial News Newsletter #23, Dec.12, 2010.) Reckert, who died in 2010 at the age 100, was also one of the first two women to join the NYWFA in l971 when women were finally    allowed to join.

 Back in l978-l979 when I was NYFWA President I co-founded a tiny program which started giving $250 scholarships to journalism students interested in financial writing.  Today the NYFWA gives ten $3,000 scholarships annually and its past recipients are working in media all over the country.At the meeting I met a past scholarship winner -now a working journalist. He had stars in his eyes. What a thrill!


 "If You Could Love Only One..." For 17 of the last 20 efforts, our annual Favorites of the Famous panel of money managers and financial journalists have beaten the S&P 500, a long-term performance record unequalled on the planet. Until March 22, 2011 when last year's results are tallied, we won't know if our pros topped the S&P again. But we do know our upcoming issue announcing the results will more importantly showcase another new diversified global portfolio with our treasure chest of  new ideas. 


ComCam on the Brink of a Breakout: Meanwhile, what can we do for you this issue?Finding a quality emerging growth opportunity early is one of the best things this financial journalist can do for his readers. So I am thrilled to write the very first article, which we fully disclose as company sponsored in our Disclaimer section,on the transformation taking place at bargain-priced West Chester, PA -based ComCam International Inc.CMCJ.OB. Destiny's tot has three explosive growth opportunities each with a top drawer partner.After completing in this issue  a grueling 12 part expose series, it's a refreshing privilege and fun to write about a quality management team with superior technology on the brink of a breakout.That this story has not yet been told to retail investors is frosting on my cake.

You are first to get the story. Another scoop for Bob! 

ComCam (CMCJ.OB) on the Brink of a Breakout. 
ComCam Logo 

ComCam International Inc. (CMCJ.OB)

Why was tiny ComCam chosen to be a key partner and value added reseller by the largest global thermal camera company DRS Technologies? Because ComCam's patented MicroServer and C3 Software suite  technology can add a powerful set of remote capabilities. Three giant opportunities already in place in Homeland Security (enhancing our U.S./Mexico border surveillance), franchising (warehouse and store asset tracing) and healthcare (hand antiseptic sanitizing for doctors and nurses). An entrepreneurial chairman with his fireball president form a team which knows how to profitably grow technology ideas. An unknown hardly followed sleeper bargain with huge potential and an Advisory Board of Institutional quality.


Price:                             $0.45         Balance Sheet September 30, 2010
Market Capitalization:        $5.6 million        Total Assets:            $2 million
52-Week Range:               $1.21 - 0.20      Long-Term Debt:       $1.5 million

Shares Outstanding:         12.4 million        Shareholders' Equity:  negative
Float:                             2.9 million

Book Value per Share:       -$0.03


By Robert J. Flaherty and Arnaldo Arroyo



ComCam International Inc. (CMCJ.OB) is focused on helping to keep America safe with its advanced network video command-and-control products. This small company is leading the way in providing distributed computing remote network video devices and services to U.S. government agencies, correctional facilities, Fortune 500 companies, research centers, original equipment manufacturers, systems integrators and dealers worldwide. ComCam expects to generate 70% of its revenue from providing services and 30% from product sales.


 After recently obtaining a $1.2 million Letter of Credit to strengthen its balance sheet, ComCam now has the ability to support required bonding for over $10 million in new bids for Federal Prison projects monitoring prisoners in correctional facilities. Related contract awards should dramatically increase its revenue base and cash flow in 2011 transforming this R & D incubator into an operating company with a nice base foundation of revenues and future earnings. This success frees up management to focus on other higher growth product sales in advanced video fusion and control system technologies. Here is the exciting side of ComCam for which $2 million to $5 million in growth capital is needed to exploit these big opportunities.


This disruptive security technology company is addressing major vertical markets: Homeland Security (airport perimeter, border security, underwater harbor monitoring) Military (battlefield collaboration) Retail (retail store and warehouse asset tracing) and Commercial (container ships, tankers.)


A micro-cap bargain positioned for major contracts in three markets


Spurred by increasing security threats and global terrorism, the Homeland Security market must expand significantly to meet the challenges of the next decade. Among the number of critical locations that have been spotlighted for surveillance by Homeland Security are airports, seaports, train stations, military compounds, airbases, major public venues and especially the porous U.S/Mexican border.

By 2018, Homeland Security expenditures are expected to climb to $748 billion a year from a current $418 billion. This forecast represents the whole of Homeland Security, Homeland defense and counter terror intelligence. Currently the tiny company has the following validated security applications: Texas/Mexico border security; unmanned ground sensors in Afghanistan, Florida underwater monitoring used to ensure docks were safe before a Jacksonville Super Bowl, perimeter security at both New York City airports and a major ICE (Immigration & Customs Enforcement) Detention Facility in NYC.

Security also represents the biggest opportunity for ComCam, whose video surveillance technology specifically addresses the IT budget component of this forecast, which is approximately 22% of Homeland Security's annual expenditures. What's more, the company's camera surveillance technology also has a near term future in asset tracking in warehouses and stores in   franchising and by varying the amount of antiseptic sanitizing the hands of healthcare professionals to reduce hospital acquired infections.

Before taking a closer look at these three big opportunities, it is important for investors to understand that 13-year-old ComCam is only three years into making the transition from the development-stage to the commercial products operation. As such, management is seeking to raise $2 million to $5 million to increase production capabilities so products can be shipped when needed, upgrade technology and to further support the growth opportunities that are now under way.

Having recently received a $1.2 million Letter of Credit which helped to strengthen  the company's balance sheet, ComCam subsidiary Pinnacle Integrated Systems (doing business as P2 ABC Controls), a provider of security systems integration services for correctional facilities in the U.S., is once again able to bond bids for federal prison projects. As a result, the company expects to be awarded $5 million to $10 million in new prison contracts this year alone. It currently has a backlog of $3.5 million for works in progress and some recent new contracts.

In the third quarter ending September 30, 2010, ComCam's revenues jumped to $1 million up from $550,000, EBITDA jumped to $326,000 and cash to $728,000 up from $321,000, gross margins 34% up from 11%. Significantly, this was the first quarter of positive EBITDA in the company's history. It signifies a turning point.

When Don Gilbreath, chairman and founder of ComCam, tapped Pete Ianace for the position of president early in 2008, Ianace responded by saying that he first had to perform due diligence before he could decide whether to accept the position. It was the first company in 16 years that Ianace had not co-founded or founded. He spent six months performing due diligence before finally accepting the position of president in October.

"All of my due diligence showed we had unbelievable technology that is patented," says Ianace. "I discovered ComCam had 30 of the best references I've ever seen in a small company from three letter agencies like the CIA, DOD, FBI and ICE (Immigration & Customs Enforcement.)   If you're going to be in Homeland Security those are the kind of references you want to have."  Ianace believes this company's revenues could go from under $5 million in 2010 to exceed $200 million with $60 million in EBITDA over the next five years.

ComCam's proprietary patented digital wireless camera/management systems address complex command-and-control applications, from rapid deployment military use to borders, ports, airports and detention facilities.  Most importantly, ComCam's software algorithms can transform a video camera into a real-time biometric command and control monitoring system for access control, security identification or systems management. This is true even when the cameras have been in place 10 or more years, which ComCam can upgrade in place-a major marketing advantage.

Undoubtedly, ports and border security remain a top priority for Homeland Security and other U.S. law enforcement agencies. Right now, there are 100 U.S. ports that need access security and ComCam systems are installed in only two, Philadelphia and Delaware. That is an opportunity. ComCam's enhancement of detection and quick response are keys to successful surveillance.

The company has installed a security identification system in the Port of Philadelphia, which replaces an earlier ineffective version that the Port had spent $4.5 million with a major systems integrator to install.The system can monitor a port worker's iris or face and read their  identification TWIC card with a laser in under two  seconds, having checked both the local database and the national hot list in that time.  This capability saves time and increases worker productivity. Someday the technology could be adapted for airport passenger security, and is cost effective in commercial applications that require restricted access control. Right now, ComCam has more urgent tasks. 

More broadly, ComCam's software algorisms can convert and transform passive security cameras where the video feed typically goes into storage to be reviewed  after a crime occurs into real time biometric cameras that will monitor events instantly and transmit them into a laptop computer or cell phone where guards can monitor and control  what is going on and react. 

Right now, the company's video surveillance technology is also being utilized by the Department of Defense, FBI, Immigration & Customs Enforcement and many other law enforcement and intelligence agencies in addition to businesses across a wide range of industries. On its own or working with its strategic partners like DRS Technologies, Motorola  and Siemens, the company's products have been deployed in such diverse locations as JFK airport serving New York City, isolated sections of the Texas-Mexico border and remote mountain passes in Afghanistan.

Big Opportunity One: Last September, tiny ComCam signed a reseller agreement with DRS Technologies, a multi- billion dollar division of $30 billion conglomerate Finmeccanica. DRS is the world's leading provider of advanced thermal video camera technology for military, defense and commercial security. This partnership is critical to understanding the growth potential of ComCam.

A $6.5 billion Boeing Co. contract called SBInet was finally canceled on January 14, 2011. Here are some highlights from that press release. President Barack Obama's administration canceled the troubled "virtual fence" project meant to better guard stretches of the vast U.S. border with Mexico and will replace it with other security measures. Begun in 2006 SBInet was designed to pull together video cameras, radar, sensors and others technologies to catch illegal immigrants and smugglers trying to cross the porous border.

Homeland Security Secretary Janet Napolitano said commercially available surveillance systems, unmanned aerial drones, thermal imaging and other equipment would be used instead. "The new strategy is tailored to the unique needs of each border region, providing faster deployment of technology, better coverage and a more effective balance between cost and capability," she said.

Earlier she said that funds would be used instead to buy existing technologies such as thermal imaging devices and ultra-light plane detection systems.  It should be noted that the ComCam/DRS platform addresses both of these applications. ComCam has developed a very sophisticated set of algorithms that can lock onto a target that can only be seen with a thermal imaging camera and automatically track the Ultra-Lite plane which can fly below radar detection.     



Meanwhile, ComCam, employing DRS thermal cameras and the company's proprietary security technology, has had a security system located at the Mexican border for 40 months which assisted in the capture of over 100 Mexican drug smugglers. Homeland Security recently installed a second ComCam/DRS system and was satisfied with the security capability. Consequently, the company has been advised by Homeland Security that they plan to contract for an unspecified number of additional ComCam/DRS security systems for the U.S./Mexican border.

"We believe we will get their major command posts (the number is not public)," says Ianace. "It makes sense that if we are awarded their major command posts, we will likely be awarded some of their sub posts. The original now canceled Boeing contract called for more than 1,000 thermal cameras to be placed on the border. Right now, if the government wants to buy DRS thermal cameras for this purpose they have to buy through ComCam. We are talking to the government on a regular basis. When we get those first contracts for the border that should position us for a number of other Homeland Security applications. That's because the border is the most prestigious application anybody could win in today's environment for Homeland Security."

If the border opportunity pans out, ComCam will be able to generate $150,000 in revenue for every system that is shipped for the master control towers along the U.S./Mexico border, and about $50,000 for each system that is installed in each of the more than 1,000 surveillance posts.  Over the next 12 months ComCam could get anywhere from $2 million to as high as $100 million in control component orders for DRS Jalapeno Camera Systems.  It is too early to make any firm estimates.

Big Opportunity Two: If it can raise the capital to build and ship systems, the company also will be able to take advantage of another great opportunity in the franchising industry. ComCam recently formed a joint venture with The School of Franchising in Kansas City, KS, to apply its enterprise sensor management system to 3,000 franchised restaurants in 2011 and 25,000 in 2012. The system allows the franchise owners to visually monitor warehouse and store asset tracing activities critical to the franchise from a lapstop or handheld  wireless.

ComCam will receive a fee of approximately $120 per month from each location, with contracts running between 5 to 10 years.

"By the end of 2012 the revenue from those 28,000 units will be $3.5 million a month in recurring revenue at a 90% or so margin," says Chairman Don Gilbreath. "The only obstacle is raising capital to build the systems to ship. At some point, we will lose that sale if we don't deliver. At this point, they are patiently waiting for us. That is a done deal where our partner does the sales, marketing and customer support, while we are responsible to build units and ship. The applications are complete and the franchise customers want them." 

By the end of 2012 if everything goes perfectly which is rarely does, ComCam could have 28,000 of its units installed generating $3.5 million a month in reoccurring revenue at a 90% or so margin. That would be revenues of $42 million a year!

Big Opportunity Three:  ComCam is also poised to make money in the healthcare sector. The company has been selected by a Swiss company to design and license the embedded computing platform for its units for sanitizing and spraying varying amounts of antiseptic on the hands of doctors and nurses to prevent hospital acquired infections. The Swiss company won a contract to ship 3,000 units to Germany. Each unit has five cameras which are controlled by ComCam's embedded computing platform technology. The camera outside the unit does facial recognition, the four cameras inside analyze the hands and match them to the face. The system determines the correct amount of spray that is dispensed and stores all of the data in the medical records   data base secure remote access.

"We get $1,000 royalty for every one of these units shipped," says Gilbreath. "However, we will not see that revenue until September 2011 at the earliest  because they are still finishing the prototype of the actual device."

The Swiss company believes that 40,000 units could be sold in Europe in the first three years of product availability.

Surveillance technology which provides real-time, remote command and control capabilities from anywhere in the world


The rapid growth of video monitoring surveillance has fostered a technology revolution from analog to digital format and the use of IP networks to enable the distribution of video over the Internet. In addition, the rapid adoption of wireless capabilities on laptop computers, cell phones, PDA's and other devices has expanded the mobile computing environment. A new technology, the IP surveillance solution, creates digitized video streams that, when transferred via a computer network either over a wire line or wirelessly, enables remote monitoring and control from almost anywhere in the world.

IP surveillance enables users to develop an open digital surveillance system by providing solutions for converting analog images into an easily distributable digital format. The high-resolution digital images can be viewed, stored, or transferred anywhere on a computer network. IP surveillance has enormous performance advantages over analog video monitoring systems as well as substantial cost savings, which include faster installation, lower maintenance costs, lower digital technology prices, capacity for integration and wireless remote accessibility.

The networking video system utilized by the company is a hardware and software solution that integrates existing analog as well as next-generation IP surveillance and security applications. This technology has come about as a result of its multi-disciplinary research and development effort combining video systems design with related software products.

 A traditional commercial digital video system incorporates three components: the camera or video-capture device, the player or video-display device and the server, storage medium or data-management device. The company assembles all three components and offers them as one integrated system, the ComCam 10 series.

The ComCam 10 series uses technologies for video capture, compression, analysis and transmission capabilities. The technology works in all wired and wireless networks, including the Internet. ComCam 10 operates to licensed standards (e.g., cellular phones) and unlicensed standards (e.g., the IEEE 802.11b Wireless standard, satellite, radio and Bluetooth). The product's compatibility represents a competitive advantage since it can be deployed in over 30 countries around the world. 

Compression is the key factor for effective IP surveillance. The ComCam 10 system operates in digital format with a very sophisticated video compression technology that achieves a 30% to 50% improvement over the leading conventional compression solutions (MPEG 4 or H.264). Consequently, the systems enables easy data trans-coding to any data format which facilitates fast transmission to a variety of devices, such as cell phones, PDA's and smart-phones.

What's more, the company's technology operates with minimal power consumption, enabling the use of solar panels as a power source for full functionality in remote locations such as weather stations and border crossings.

Each of these capabilities has their advantages, but when combining these capabilities it truly allows remote command capabilities not normally possible even when the environment is harsh, bandwidth is extremely limited and there is no power source.   

ComCam also provides five recently upgraded software products that work in concert with its custom hardware platform, the most important of which are the "Camera Control Centers," the C3 and the Pocket C3. The C3 brings control room video and storage to laptops in a choice of seven languages. Pocket C3 extends its proven network security applications and surveillance software to the PDA and smart-phone market sectors.     




ComCam International was incorporated as Embedded Technology Group, Inc. on September 18, 1998, in the State of Delaware. It was changed to ComCam International, Inc. on February 19, 1999. On June 3, 2002, the company was acquired by ComCam, Inc. It operated as a wholly-owned subsidiary of ComCam, Inc., until December 28, 2007, when 100% of its shares were distributed as a dividend to ComCam, Inc.'s shareholders. The board of directors of ComCam, Inc. decided to spin-off the company in order to separately focus the attention of the financial community on its business, with the intention of improving its chances of accessing financing. 

About three years ago ComCam began a crucial transition from a development stage company to commercializing products.  To acquire a company to give revenue and repeatable cash flow, in December 2009 the company acquired all of the outstanding shares of Pinnacle Integrated Systems from Robert Betty and Feng Brown pursuant to the terms and conditions of a share purchase agreement. The company acquired Pinnacle in exchange for 300,000 shares of the company's common stock that were issued to Brown as well as a promissory note in the amount of $1 million to be paid to Betty and Brown by June 15, 2010 in five equal payments of $200,000 that is secured by the shares of Pinnacle and its business assets. Betty is a director and shareholder of the company.

Revenues were under $5 million in 2010 but $11 million in potential contacts were lost because the parent company did not have the balance sheet to bond contracts needed for making new bids. The newly acquired $1.2 million Letter of Credit ensures ComCam will not have to pass up bidding on large awards going forward. As a subcontractor in Federal Prisons ComCam's unit has over 15 systems installed. Besides more capital for bonding to make new bids,  from $2 million to $5 million in new capital is needed to enhance its current technology and create  new product generations and build infrastructure to support growth. 

The next crucial stage will be tackling the three big growth opportunities outlined in this report. The technology actually could be used from much larger applications like airport passenger security and numerous broad commercial applications   long run, but the company has a full plate now and must execute its present   opportunities well. Management believes that the team can take ComCam to over $200 million in revenues and $60 million in EBITDA over the next five years.



A management team with over 100 years of experience in advanced computer and network technology


Don Gilbreath, 53, is chairman, CEO and founder of ComCam International, which began operations in 1998. Don knows how to make products that are special and can sell in volume. He has 26 years experience in product development, engineering project management, and specialized technical sales. He has provided specialized R&D expertise to General Electric, Johnson Controls, TCI, Standard & Poor's and Commodore International. Gilbreath developed and launched or licensed over 30 products including solid state lighting systems, early digital thermostats, computer-based musical instruments, multimedia players and Internet access devices. He has broad experience in directing international engineering teams, vendor negotiations, licensing, patents, offshore manufacturing and launching of innovative products to world markets. 


Peter Ianace, 62, president of ComCam, is a recognized video technology innovator and seasoned corporate executive. He brings more than 35 years of experience building successful technology business units, sales channels and companies. His experience spans companies in aerospace, defense contracting, telecommunications and Web 2.0, both private and public, for whom he has negotiated large contracts with U.S., European and Asian clients. Previously over the 16 prior years, Ianace has successfully built several VOIP and IP video technology companies including the fiber-optic networking division of Intelect Communications. Earlier in his career, he served in a variety of senior management positions at IBM, AT&T  and Northern Telecom, including president of PacTel Meridian Systems, a joint venture between Nortel and Pactel. He is the author of several articles in trade publications on Internet telephony and the role of video in emergency response.     


An Italian/German- American, Ianace's father in the military married a German girl. The family moved to New York when Peter was five. He is a graduate of St. John's University.


Don Cavett , 47, is vice president of sales and business development. Cavett has 20 years of diversified Sales and Sales Management experience working for both Fortune 1000 companies and Start Ups. Cavett has extensive knowledge and expertise on Business Practices in the Asia Pacific region. From 2002 to 2009 he served as senior vice president, director of World-Wide sales for eeParts, Inc. He implemented a new sales strategy, leading to substantial growth and increasing revenues. Negotiated and closed many multimillion dollar international corporate contracts with multi-billion dollar companies which facilitated the opening and expansion of the company's China operations, Shanghai, Suzhou and Shenzhen. From 1999 to 2002 Cavett was president and director of IP Teleservices, an International VOIP telecommunications company. Prior to starting IP Teleservices he spent 15 successful years in the investment banking industry with prestigious firms, including Drexel Burnham Lambert and Bear Stearns.


Bob Betty, 54, was appointed a director of ComCam on Feb. l9, l999. He has over 22 years of experience in the electronics industry. From l990 to l994 he held various management positions for Maris Equipment Inc., rising to vice president of operations with responsibility for all P&L and a $63 million budget. He was the founder and is the current president of Pinnacle Integrated Systems, Inc., located in; West Chester, PA. On Dec. 30, 2009 Pinnacle was acquired and has become the revenue and cash flow core in the transition of this R & D incubator into the operating commercial stage. Betty has used his security systems expertise as project and/or operations manager for, among others, state prisons, a strategic oil reserve at Big Hill Texas and five air bases located in Saudi Arabia to support the F5 Aircraft. Betty is a member of several management associations and holds numerous technical certificates.  


Al Duncan, 55, is a financial advisor. Duncan has 26 years of financial and general management experience domestically and internationally. From 1991 through 1997 he held numerous long-term management consulting assignments including interim CFO assignments in two publicly traded electronic and software companies. From 1981 until 1991 Duncan held numerous positions with Commodore International, Ltd. including general manager U.S. operations, CFO European operations, general manager Canada, and general manager positions for Latin America, Eastern Europe, Italy, France and Belgium. Duncan was also CEO of Victor Technologies, Inc., a publicly traded computer firm in Scotts Valley, California. He holds an MBA from Harvard Graduate School of Business Administration and a BS in Civil Engineering from Duke University.


ComCan's Advisory Board is of Institutional Quality


Nolan Bushnell is chairman and founder of Tapcode, Inc., developer of digital media entertainment and hospitality software, which allow customers to order food, drinks, games and other digital media at their table through proprietary touch screen terminals. Over the past 40 years, Bushnell has founded more than 20 companies, but is best known as the founder of Atari Corporation and Chuck E. Cheese's Pizza Time Theater. He is justifiably revered as the "Father of the Video Game Industry." Over the years, Bushnell has received numerous awards of distinction, including being inducted into the "Video Game Hall of Fame," and was one of the first 50 inductees into the Consumer Electronics Association's "Hall of Fame," which gave public recognition to his significant contributions to 20th Century technology. He was named one of Newsweek's "50 Men That Changed America" and in March 2009 was honored with the British Academy of Film and Television Art's Fellowship Award, the highest accolade the Academy bestows, for his outstanding creative contribution to the video games industry. In June 2010, he was awarded the LARA Lifetime Achievement Award, presented to him by the German Games Award for his outstanding achievements in the International Games Industry. Bushnell received his BS in Electrical Engineering from the University of Utah, where he is a "Distinguished Fellow," and also attended Stanford University Graduate School.


Raymond Godfrey joined the advisory board in September 2010 to strengthen ComCam's initiatives in venture services for the U.S. Department of Homeland Security and tele-healthcare markets. In 1985, Godfrey co-founded Needham & Company, an investment banking and asset management firm focused on growth companies. He also led the successful restructuring of a $300 million NASDAQ company and in 1991 revived Laidlaw Equities. Godfrey joined Hampshire Securities in 1995 as principal and head of capital markets. After Hampshire was acquired in 1998 by Gruntal & Co., he served with Gruntal for two years as senior managing director of Equity Capital Markets before rejoining Needham & Company in 2000. In his early career, Godfrey worked as vice president of Business Development at Credit Suisse First Boston, Merrill Lynch and Time Inc. Later, he served as an assistant administrator of New York City under Mayor John V. Lindsay. He received his BA from Yale University and his MBA from Harvard.


Paul Higbee is an investment banker with over 20 years professional experience. He is a partner at G.C. Andersen Partners, LLC, a N.Y. private merchant bank. Prior to joining Andersen, Higbee worked primarily with middle-market companies at a number of investment banks including Deutsche Bank, PaineWebber and Drexel Burnham Lambert. He has an AB in Economics from Princeton University and an MBA from the Wharton School.


Charlie Mark is a graduate of the U.S. Naval Academy at Annapolis (1979). He serves as a Navy Reserve Captain, commanding officer and pilot. He has a SCI/Top Secret/ SSBI/Don-CAS security clearance and has held the commanding officer positions for SPAWAR HQ213, NR USS Enterprise CVN-69 Aircraft Carrier Group, and the CO for Battle Group Eight Staff and is qualified for TBMCS/AADCS, JFACC Planner, GCCS, Sr. C4I Watch Officer, JMCIS Watch Officer. From 1979 to 1985, he was a U.S. Navy instructor pilot. Currently, he serves as a general manager for Ball Aerospace. He has held numerous senior corporate positions, including CEO of BEAMHIT LLC (Columbia, MD,2000-2004), the premier marksmanship training company in the world; CEO, Surety 2000 (Cincinnati, OH, 2000), an internet-based company offering electronic delivered and execution of surety bonds; director for Logicon Operations, Northrop Grumman Company (Dayton, OH, 1997-2000), where he managed all activities associated with information technology resident at the Wright Patterson Air Force Base Laboratories for the Northrop Grumman/Logicon Information Systems group.


Fridolin Voegeli is a Swiss entrepreneur who is founder and president/director of research of Strela Development AG and nanoDEF AG, both medical-technology companies. Prior to these investments, Voegeli was special projects officer for ATAG Ernst & Young Asset Management, where he managed a fund for European business start-up ventures with a focus on medical technology. From 1983 to 1994, he served as a technology, investment and management consultant for Hayek Engineering and Vontobel EC Consulting as well as for the Swiss Federal Office for Foreign Economic Affairs. He holds a degree in Electrical Engineering from the Swiss Federal Institute of Technology ETH in Zurich. He pursued post-graduate studies in Biomedical Engineering at the University of Cape Town, South Africa, and was a post-graduate research assistant with the Institute of Applied Physics.



Without question, ComCam has three great opportunities to make a substantial amount of money and enhance the company's valuation, but it is not alone under the camera surveillance technology umbrella. It has to obtain  from $2 million to $5 million in growth capital to move quickly in order to take advantage of those opportunities. Competition within the domestic and international markets for video surveillance systems and security integration services is intense. In general, competitors include many companies from key sectors of the video networking and security market, including hardware, software, networking and specialized solutions.


 With only about 500 shareholders, the company has done little IR and the stock trades by appointment. Several days can pass with zero trading.  For over a decade  and in  four different companies President Peter Ianace has been followed by an   anonymous stalker and subjected to vicious online personal attacks which portray  every event in the most derogatory terms possible even using derisive cartoons. Significantly, Chairman Don Gilbreath, who spent five years tracking Peter's career, was aware of the stalker's barbs before making his offer to Peter to join ComCam. So was ComCam's board of directors. We spent an hour with Peter reviewing his career and then went over 20 letters of recommendation from senior executives who have worked with him. They praised not only his integrity but his ability to take technology ideas and turn them into revenue producing profitable products.

Flaherty Financial News believes ComCam's management team will overcome all its obstacles-, especially the crucial two of obtaining growth financing and successfully performing technology upgrades-to become one of our superior winners of all time.





ComCam International, Inc.

1140 McDermott Drive, Suite 200
West Chester, PA 19380

Don Cavett, Vice President  

Phone: (972) 849-3009

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  Expose Part 12; The Invisible Man Returns: Mission Accomplished! 

Expose Part 12; The Invisible Man Returns: Mission Accomplished! Since issuing Expose Part I way back on October 4, 2009 I have been hit with so many arrows I feel like St. Sebastian. Most are silly lies such as I was being paid by short sellers, but one really did hurt. An online attacker ridiculed me that this   old man of 75 (actually I am 77) was too old to do financial reporting.  Ouch! If I ever learn that guy's real handle I am going to report him to AARP.

On January 5, 2011 Forbes Investor Advocate Neil Weinberg became only the second journalist to write negatively on GEROVA Financial Group Ltd. (NYSE:GFC.) Neil's online blog opus borrowed heavily from what appeared in my previous 11 Exposes, but Neil didn't give me a single mention or a line of credit. (Thanks a lot, buddy!) 

Promptly, he received a death threat which he posted on his Forbes blog. "Wow, I would get into my car carefully if I were him, ha, ha, ha."

As a retired (l981) Forbes Senior Editor I'm not laughing because a Forbes editor in Russia was murdered. 

Neil uncovered how Jason Galanis in transactions in Switzerland had concealed his ownership and control of U.S. based - Fund.com (FNDM.PK) which has launched over  20% of all the actively managed ETFs in America. His active participation is not disclosed in any of the IPO prospectuses for his six $150 million in assets NYSE -listed ETFs including the very first one ever-DENT Tactical ETF (NYSE:DENT) plus WCM/BNY Mellon Focused Growth ADR ETF (NYSE: AADR), Mars Hill Global Relative Value ETF (NYSE:GRV), Cambria Global Tactical ETF (NYSE:GTAA),  Peritus High Yield ETF (NYSE-HYLD) and the newest AdvisorShares Active Bear ETF (NYSE:HDGE).

 His efforts to conceal his presence make his lack of transparency a big deal.  In 2007 Jason Galanis signed an SEC consent decree, neither admitting nor denying guilt, to settle charges of accounting fraud for changing a loss to a profit at Penthouse International and for financial reporting violations including electronic forgery of the CEO's signature to meet Sarbanes/Oxley Law sworn certification requirements. He is barred for five years ending May 2012 from being an officer or director of a public company.  

Here is Neil's summary from Forbes: "That means a guy who has been barred by the SEC from acting as an officer or director of a public company is actually the largest shareholder in a company (Fund.com) that's in the business of listing exchange traded funds on the NYSE and another (GEROVA) that, pending regulatory approval, will become a trans-Atlantic broker-dealer and investment bank." 

Neil's biggest contribution was just having the guts to do the story. Forbes is so powerful online with such a big distribution impact that every time investors visited Yahoo. Finance and typed in Gerova's GFC or Fund.com's FNDM.PK symbols    up popped the Forbes headline: "NYSE's GEROVA Financial Ties to Westmoore Ponzi Scammers." Westmoore's Ponzi-like funds were shut down last June by the SEC.


On January 10 in ZeroHedge gadfly Keith Dalrymple, who as a former sell side security analyst understands Asset Backed Loans, became the third writer to stick his neck out and nearly got his head chopped off. Keith is not a close friend, but I have enjoyed a few of his articles which have appeared in the institutionally -oriented Seeking Alpha. Keith also deserves credit for having the guts to write about this company.

 In his report Keith disclosed that he is always a player in stocks he writes about and that he  was short GEROVA, which he considered  "likely fraudulent" and a "NYSE-listed shell game." In 19 pages he explained why he believed this was so. It took me an hour (I read carefully) to finish Keith's opus and I personally learned a lot.He described numerous complex transactions and insider interactions which created what is today GEROVA.

Most importantly he made a strong case for the probable extreme overvaluation of GEROVA's Stillwater fund assets, which were still valued on GEROVA's books at an out of date $541.2 million,  recently about 11 million over  GEROVA's recent total stock market value. A Stillwater funds audit was originally promised for March 2010 but was never completed and is way overdue. How can any investor even guess what this company is worth without one?  Keith also made a case that GEROVA real estate holdings were also extremely  overvalued. 

  Spin masters defending GEROVA instantly savaged Keith issuing the release "GEROVA engages Kroll to investigate Short Seller!"  The attack backfired and Forbes reported shares went down hard. The release had called attention to what was in Keith's valuable report.  

On January 23, 2011 The Columbus Dispatch's  Mark Ferenchick reported five years  GEROVA's Stillwater properties topped Columbus , Ohio's "worst of the worst" list. Now  half of the urban slum rentals remain vacant and many need serious repairs.  Earlier in January GEROVA's Net Five Holdings LLC  purchased the controversal  $541.2 million of GEROVA's Stillwater property including the Columbus portfolio. Net Five is behind in delinquent water and sewer bills and utilities have been shut off in a number of properties. One of the most troublesome units is an uncompleted apartment -commercial project which has been labeled "an eyesore and a potential danger" in the local reporter's piece.
Meanwhile, former Red Hat ex-CEO Matthew Szulik filed a North Carolina suit for his Szulik clan charging fraud and breach of fiduciary duty by, along with others, TAG Virgin Islands Inc. President James Tagliaferri, a board member of the GEROVA's subsidiary GEROVA Advisors of which Jason Galanis currently serves as CEO. Szulik charges $60 million has been lost and , including alleged kickbacks to TAG members, most funds have been used for the benefit of several enterprises involving Galanis family members. In Mass. Jason Galanis is counter suing that Matthew Szulik understood exactly what was going on, even appearing at The Kentucky Derby with their related investment  the  winner- the so called "Chemical Horse" Big Brown. The counter suit further charges Szulik  wanted these transactions in a scheme  to generate tax losses to offset the enormous profits from sales of Red Hat Securities. "Nonsense," responds Szulik.
Also named in Galanis' suit is former prison inmate Scott Hintz whom Galanis alleges became an employee of GEROVA's Net Five Holdings LLC and was terminated for alleged solicitation of kickbacks from Net Five contractors. Hintz is alleged to have subsequently misappropriated emails and confidential non public documents belonging to Galanis, GEROVA , Net Five and its employees.  Joining  the legal fistycuffs , former inmate Hintz has filed his own tripple damage RICO suit against Galanis and many other players on his team. Most interesting  of all, Scott Hintz is accused of leaking Net Five's  inflammatory secret  emails to the press. Begororra, we have a mini Wiki-Leaks donnybrook going on just in time for St.Patrick's Day!  Marquise of Queensberry rules will be observed. No hitting below the belt; eye goughing or bitting will not be allowed.       

 On January 28, 2011 Jean Eaglesham of The Wall Street Journal published "Gray Areas in Jobs after an SEC Ban."  She noted that Jason Galanis was serving as CEO of a GEROVA subsidiary GEROVA Advisors  when clearly his SEC ban would have prevented him from serving as CEO of the parent.  Is this OK? The lawyers quoted in her piece didn't appear certain. But Jean made WSJ readers aware of Jason's hidden  presence and that was important in its own right.

As a three time past Forbes mutual fund editor, I felt I had a duty as a career journalist to protect readers and little investors. Now investors, regulators and big time media are aware of Jason's presence; he is no longer The Invisible Man. Mission Accomplished!  This concludes our Expose series. Now on to new adventures!-RJF

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Disclaimer: This Flaherty Financial News Newsletter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected. We caution readers not to place undue reliance on any forward-looking statements and to supplement this newsletter with specific company SEC filings and their own research. Please be aware that there is risk in every company stock that you buy. Coverage or other mention of a stock in this newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. We are not investment dealers or investor advisers registered with the SEC or State Security Authorities. We do not guarantee all the information in this newsletter is correct or will be updated. Remember some errors are inevitable. Reproduction without written permission is forbidden. No individual at Flaherty Financial News Inc. is a shareholder or is short any stock featured in this issue, and our policy forbids editorial from buying or selling a featured stock until this issue is out at least ten business days after its issue date of February 2, 2011. ComCam International, Inc. paid 65,000 144 shares to Flaherty Financial News Inc.  to be featured in this issue. In cases where a report or profile is subsidized, readers should consider such subsidized articles as paid advertorials and understand that sponsored material will not be as objective as non sponsored editorial. Flaherty Financial News Inc. or any individual at FFN did not receive a penny from anyone, especially short sellers, for its Expose Part 12: Jason Galanis, The Invisible Man Returns: Mission Accomplished!  Our mission in all 12  Expose Parts is to protect uninformed investors. As FFN editor I always reserve "Final Copy Responsibility" on what to include and what to leave out of every issue. We have tried to be objective, but may have failed. We are not security analysts or stockbrokers engaged in buying or selling, but financial journalists with all the many failings of that profession. You readers must decide the merits of each company or active ETF yourself and whether to invest. -Bob Flaherty, Editor

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