SNWT - San West Inc

[SteveKing]

About San West Inc.

San West designs, manufactures, sells and repairs off-road buggies, and additionally provides aftermarket performance products and accessories for off-road buggies. Products are sold via three divisions: at retail store locations, via the online store and through its growing dealer network. Buggy repair services are sold and fulfilled at the Santee, California retail location. For further information about San West Inc. visit www.CountyImports.com, www.CountyImportparts.com, www.BuggyWorld.net and www.SanWestInc.com.

[SteveKing]

Business Model

San Diego County. Buggy World sells more than 100 product lines and has five exclusive distributor agreements across Southern California. The Company’s products are sold through its stores, online site and through a growing dealer network. Buggy repair services are provided at two retail locations in San Diego County.

The Company uses the latest computer-aided technology for design and manufacturing, from CAD design and simulation, to laser tube cutting, CNC tube bending, milling and turning. Significant investment has been made in production equipment and San West’s products are rigorously tested by its own experienced research and de¬velopment team. All of its vehicles are custom tailored to customer requirements and handmade to order.

The Company has an online sales presence at its www.buggyworld.net Web site and through online stores like EBay and Amazon. It markets its own products and resells products manufactured by others through strategic partner-ships. San West intends to expand its bricks & mortar pres¬ence to four locations, which will enable the Company to ne¬gotiate exclusive sales rights on a regional basis for several key brands.

San West has established relationships with key manufactur¬ers and suppliers including Team Joyner USA, Redline, Fox Shocks, Empi Parts, CF Moto Scooters, BMS Scooters and SSR Scooters. The Company utilizes a “just-in-time” inventory system to reduce overall inventory expense and risk; it typi¬cally carries about six of each kit in stock at any given time. Additional parts can generally be obtained within 24-hours if the Company is out of stock and all kits and products are shipped within 72 hours of order.

Recent Developments

Silicon Valley based biotech company. The main advantage of obtaining a public listing through a reverse takeover is speed and lower cost than an initial public stock offering. Under the terms of the non-binding LOI, San West Inc. will acquire 85% of the outstanding common stock of Human BioSystems. If a definitive merger agreement is signed, the ongoing business will be San West and the current operations of Human BioSystems will be suspended.

Due to the recession and virtually frozen credit markets, San West has recognized the need to provide consum¬ers with access to non-traditional financing. The Company is establishing a joint venture with a Southern CA-based regional auto title loan provider through which it will be able to offer title loans to customers at its Buggy World stores. San West retains 30% of each repaid loan issued at one of its bricks & mortar locations. Its partner’s proven loan strategy has historically facilitated an annual bad loan rate of less than 1%. Buggy World already accepts vehicles for sale on consignment so adding title loans to its services is complementary. Customers will be able to drop off their vehicles and get cash quickly, and then pay off the loan when the vehicles sell.

Corporate Strategy

The Company plans to capitalize on growing demand in the U.S. market for less expensive Chinese-manufac¬tured off-road buggies and go-karts, establish dealership arrangements with leading brands, grow its online sales and leverage its equity to negotiate and acquire synergistic businesses.
In addition, San West intends to augment its current design capabilities to expand and capture new markets and to continue to design and manufacture custom body kits for the buggy aftermarket.

San West plans to accomplish these goals by:
• Establishing strategic relationships with automobile dealers and distributors;
• Pursuing selective acquisitions of similar or complementary businesses;
• Leveraging the full capabilities of its equipment and personnel to drive new product development;
• Insuring effective test bed support for new market technologies and designs; and
• Providing a high end, high performance off-road vehicle experience for the customer.

San West increases visibility for its products through expositions and demonstrations. The Company’s market¬ing strategy also includes displaying and demonstrating the buggies at regional and national buggy tradeshows, and advertising its vehicles through television, radio, print and outdoor advertising as well as on the Internet.

The Company intends to acquire additional dealerships and then reduce overall expenses, simplify operations and dealer management, and create economies of scale by automating back office functions. San West will also benefit from leveraged buying power and be able to provide a level of service and expertise that would other¬wise be unobtainable at each dealership individually

[SteveKing]

Industry Outlook

Motorcycle Industry
The $14.6 billion U.S. motorcycle industry experienced double-digit growth during most of the 1990s, driven mainly by Baby Boomers and their need to break free from midlife doldrums. Although sales have fallen off since this period of unprecedented growth, the motorcycle industry remains strong. According to the Motor¬cycle Industry Council, 1.11 million motorcycles were sold in the United States in 2007, down from 1.19 million in 2006. The Motorcycle Industry Council (MIC) preliminary estimate for all motorcycles and scooters sold nationwide in 2008 is 1,087,000, down just 3.3% compared to 2007. Sales still topped the 1-million mark for the sixth straight year.

Unlike the saturated European marketplace with some 30 million vehicles sold, the U.S. scooter market remains largely untapped, with only about 1 million scooters in use. According to the Motorcycle and Moped Industry Council, 3,761 scooters were sold in the U.S. during 2002. Annual sales then began growing at approximately 30% annually, peaking at 9,347 in 2006 and then cooling off a bit in 2007.
The Revolt is a versatile machine that is designed for multiple applications – from Sand dunes to trail riding to motocross tracks. San West took features from many different products and refined them into a product that is both fun and safe.

The Revolt’s industry proven engine combined with the CVT allow for great acceleration with a top speed between 60-70 MPH, but the Revolt is more about the fun factor than just top speed. With the font suspension having 17” True Travel and Rear suspension with 16.5” True Travel, it eats up the bumps. Weighing in at just under 700 lbs, the Revolt is easy to control and maneuver around the trail. All of this combined with the safety features (five point harness, wrist straps, etc.) make the Revolt a safe, reliable, fun way to explore the outdoors. WebBikeWorld provides a graph showing U.S. motorcycle sales figures from 1992 to 2008. These are gross num¬bers, including motorcycles (street bike, dual-sport and off-road) and scooters.

ATV market

Sales in the traditional ATV market have declined over the past three years. According to the Motorcycle Industry Council (MIC) and Powersports Business, in 2007 there were approximately 858,731 ATV’s sold worldwide. This represented an 11% decline from 2006. In 2008, worldwide ATV sales are estimated to have dropped nearly 20% to about 690,000 units according to MIC, Powersports Business and A.G.

Edwards estimates. In the $5 billion an¬nual ATV industry, Honda is the world leader followed by Polaris, Yamaha, Kawasaki, Suzuki, Arctic Cat and Bombardier1. Over the longer-term, industry analysts project ATV unit sales will grow at mid-single digit rates, The ATV segment remains the most under-penetrated of the of the three major power sports segments, despite serving a wider variety of purposes compared to snowmobiles and watercraft.

UTV market

Utility Terrain Vehicles (UTVs) are used in a variety of applications, including by ranchers checking fence lines and by campers and hunters transporting equipment to remote off-road locations. Another dimension is emerg¬ing in the UTV world - a high-performance segment. The sport side of the utility terrain vehicles market is cur¬rently selling between 50,000-60,000 units per year. Overall, the UTV market has grown more than 50% since 1999, according to Power Systems Research.

Off-road aficionados are increasingly adopting Chinese-manufactured models for a number of reasons, includ¬ing their lower relative cost relative to European and domestic models. Despite an increasing number of Chinese vehicles entering the U.S., there are few competent repair shops for Asian models. San West plans to capitalize on this opportunity by providing repair services and parts for Chinese-manufactured vehicles.

Outlook

San West plans to capitalize on growing demand in the U.S. market for China-made off-road buggies and go-karts, establish dealership arrangements with leading brands, continue to expand its online sales and leverage its brands and position to acquire synergistic businesses.

The 2008 acquisition of Buggy World provides San West with a $1.6 million annualized revenue stream, in¬creased visibility and an established presence in the Southern California market. In addition to its current buggy product line, the Company has entered the scooter and UTV markets. As gasoline prices and parking rates rise, an increasing number of urban commuters are adopting motor scooters as a primary mode of transportation.

The Company has two service outlets in California (Letz Go Racing Off-Road Center in Huntington Beach, and Buggy World in Santee) that provide customers with aftermarket parts, accessories and repair services for off-road buggies built in China for the U.S. market. San West intends to expand its brick and mortar presence to four stores, which will allow it to negotiate exclusive sales rights on a regional basis for several key brands. The Company is also planning to acquire additional dealerships, particularly in California.

San West recently became a publicly traded company through a reverse merger and is currently seeking an eq¬uity investment of approximately $1 million to be used for acquisitions and operating capital.

[SteveKing]

Comparative Analysis

For valuation purposes we compared San West with vehicles retailers in the U.S. that offers various vehicle products and services, including new and used vehicles and related financing; vehicle maintenance and repair services; replacement parts; and warranty, insurance and extended service contracts. The peer group companies are trading at forward P/E multiples of 14 times earnings and P/S multiples of 0.17 times revenues.

In 2008, Buggy World generated sales of $ 1.685 million and produced 30% profit margins. The Company anticipates growing both of these numbers substanially in 2009.

[SteveKing]

News today:

San West, Inc. (SNWT) Announces New Symbol and Name Change

Buggy World, Inc.SAN DIEGO, CA--(Marketwire - September 28, 2009) - San West, Inc. (formerly Human BioSystems, Inc.) (OTCBB: HBSY) (OTCBB: SNWT), a Company that designs, manufacturers, sells and repairs off-road buggies, announced final approval by FINRA of symbol change to "SNWT" as well as the corporation's name change to San West, Inc. effective immediately.

Frank Drechsler, CEO of San West, Inc., said of the name change, "Now that we have officially changed our corporate name, we can set in motion the marketing campaign we have prepared. The next 12 months holds a lot of exciting things for us as a company and we are pleased to now have the ability to bring these things to fruition."

In June, San West, Inc. announced it had completed a reverse merger with Human BioSystems, Inc. at which time the shareholders of the company had approved the aforementioned actions.

[snowgator]

Today's news is exciting and just what we need to hit a dollar..JMO

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SNWT 1.06 bid 1.08 ask awesome!!!!!

[snowgator]

San West Inc. is a retailer of premier off-road recreational vehicles in Southern California and the Western United States as well as a leading resource in the off-road recreational vehicle arena through aftermarket parts, accessories and its highly successful vehicle repair and maintenance center.

[snowgator]

UP +21.11 Whoohoo

[snowgator]

Good day for San West, Inc/Buggy World. 1.08 ask Have a good evening everyone.