Larry Oakley's Bold Ventures

Posted 6/30/2008

Avalon Technology Group, Inc. (Other OTC: AVLN)

Emerging Growth with Huge Potential

I interviewed CEO Pat Downs Friday 6/27/2008. I do not find one this good very often – it’s a situation you should seriously look at. In this initial look, I give you just a brief glance of what this company is all about. In future editorials, I’ll expand on this short coverage.

What Avalon Is

Avalon Technology Group is a leading innovator in biometric security products. It’s been in the biometric industry for seven years.

Avalon’s Approach to Biometrics

When one sees the word “Biometrics,” one usually thinks of fingerprint or iris identification. While iris identification is good for some applications, fingerprint identification is able to be used in a far greater number of applications. The problem is that fingerprint readers can be tricked by crooks – that was “BA” (“Before Avalon”).

Avalon created a way to make fingerprint identification much more foolproof. It is based on the fact that if you were to carefully slice off the skin of a finger, you would find that the finger print under the skin is the same as that on the surface. Avalon uses what is called “sub-dermal capacitance technology” that reads the fingerprint that is under the surface of the skin. One little example -- a crook might transfer another person’s fingerprint to a thin material & fasten it to a finger to fool a traditional reader. Avalon’s technology looks right through that thin material & sees the real fingerprint from under the skin.

Avalon’s Products

Here are three of Avalon’s products:

Biometric Encryption Mouse FIPS 140-2 -- This computer mouse uses Avalon’s fingerprint technology & software. You can input the fingerprint of up to 10 people who will be allowed to use a computer. If anyone else tries to use the computer, they will not be allowed to do anything at all. Another use is for parents – they can allow their child to use the computer, but can make it so that the child cannot bypass the filtering the parents have programmed – only either parent can do so. You can see a host of similar applications.

Actually, you can encrypt any particular files or folders, & then allow only certain persons to access those files or folders. You can allow some of the permitted users to access some files & other of the users to access other files – great tools for security.

The storage of authenticated fingerprints automatically detects all required fields, such as user name & password, & inserts the provided information. To login to Windows, it only needs a simple swipe! You will no longer have to memorize your account IDs & passwords.

If you activate the "Screen Saver Lock" feature, only an authorized person can unlock the Screen Saver or password, with no need to set a waiting time. Only a correct fingerprint authentication can resume the PC from screen saver.


The mouse is compliant with 256 AES Encryption (the military’s highest grade of encryption) & is VISTA compatible, as well as OS Microsoft Windows XP, & Windows 2000 Professional.

8GB USB Speedster flash drive -- I have been using flash drives that plug into USB2.0 receptacles since they first came out. I use a different one for each of my editorial venues, for example. Avalon’s unit features 256 AES Encryption, & is compatible with virtually all operating systems including the latest editions of Linux, Microsoft Windows, & Mac OS X. It is now being released to retailers worldwide.

It has more than twice the speed of leading competitor flash drives. It is 34MB/sec (read) & 20 MB/sec (write), & costs about $79 compared to Sandisk’s Cruzer Titanium that sells at about $99 & has a speed of 15 MB/sec (read) & 9 MB/sec (write). It has a stainless steel case, is water resistant, & has no cap to lose.
Min Liu, VP of product development says: "This is great news for our company & for those in the tech world. There aren't many flash drives that come with this quality of encryption at this speed. The 8 Gigabyte USB Speedster offers a considerable competitive advantage over our competition with its price & performance, & will be a must have for tech savvy consumers."
Biometric Time clock with Wiegand Access Control -- This is the most advanced time & attendance product on the market. It is capable of serving up to 1500 employees. It is the most technologically advanced biometric timeclock & the only WiFI model in the world. Its cutting edge technology greatly exceeds the specifications & lowers the cost of contracts such as the over $400 million spent by New York City on a competitor’s product. New York City cost for the same contract with AVLN’s superior WiFi technology would have cost the city $200 Million less to implement. This occurred before the introduction of AVLN's superior technology.

My Opinion

My opinion is that this situation will grow at a rapid rate. I appreciate the technology Avalon has developed, I like its products, & suggest that you watch its continued progress. It has finalized several multi-million dollar contracts that will be covered in news to be soon released. AVLN was trading at $0.01 the last time I checked at 3:02 p.m. on 6/27/2008 – a price that should allow you to take a position at a modest cost.

There are 73,803,569 shares outstanding, a float of about 19 million shares, & the company has zero debt. The company has announced it will do a 2-for-1 forward split with a record date of 7/25/2008. Check its site at www.avalontechsolutions.com, & call the company’s IR firm at 866-843-2775.

My comments in this column are strictly my personal opinion. At times, I will include forward-looking information as that term is defined in the Private Security Reform Act of 1995. Such information & the related company are subject to many risks & uncertainties. There can be no assurance that actual results, business conditions, business developments, losses & contingencies, local & foreign factors, & other matters will not differ materially from those suggested in any of my forward-looking statements. Such differences are the result of all sorts of factors (some examples: market conditions, competition, advances in technology, acquisitions, mergers, potential litigation, personnel changes, market changes, capital availability, etc., etc.).

Do not run out & buy a stock just because I am enthusiastic about the situation. Call the company before you buy -- satisfy yourself first. I always include a phone number for that purpose. My purpose in this column is to respond to your request for my personal opinion. You have the responsibility of making your own investment decisions. Do not give up that responsibility.

My editorial coverage has always been, is now, and always will be without charge. That includes what I write in Conservative Speculator, and what I write in "Larry Oakley's Opinion, " "Larry Oakley's Stock Pick," "Larry Oakley's Comment," & "Larry Oakley's Bold Ventures" columns. It also includes what I write in such venues as articles submitted to other publications, interviews on radio & television, and at the investment seminars and conferences at which I am a featured speaker. By doing all my editorial work free of charge, I have the advantage of writing about what companies I particularly like. There are occasions when I will write about a company that is a paying participant on WallStreetCorner -- that's because I like the company. I always make it clear to them that editorial coverage is free and is not a part of the fee they pay to have their Profile researched, prepared, & posted at WallStreetCorner.