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Compliance Systems Corp. (OTCBB: COPI)
 

Compliance Systems Corporation (OTCBB: COPI) is a growing provider of products and solutions designed to help its customers deal with the regulatory environment, as well as managing and training their employees. Through its Call Compliance Inc. and Execuserve subsidiaries the COPI markets TeleBlock and Hire-Intelligence to call centers and businesses worldwide.

Call Compliance Inc., is a developer of technology-based compliance solutions for the teleservices industry. Its prime focus is ensuring compliance with "Do-Not-Call" laws through its patented product, TeleBlock. The company sells to corporate companies and businesses across a wide-range of industries and sectors. By blocking numbers on the Do Not Call list at the Telco central office, COPI's patented TeleBlock Call Blocking System helps telemarketing operators ensure compliance in the highly regulated Do-Not-Call environment by automatically screening and blocking outbound calls against federal, state, and in-house Do-Not-Call lists. Since 1999, TeleBlock has a perfect record. No TeleBlock subscriber has been fined in 10 years.

Execuserve was founded in 1987 as a search/services firm dedicated to helping clients increase revenue and decrease attrition by making smart hiring decisions. From the start, Execuserve differentiated itself from other search firms by using a detailed process model, along with profiling and reporting tools to evaluate candidates and employees from a behavioral perspective. It is this depth of experience that provided the basis for Hire-Intelligence, a revolutionary online behavioral assessment tool.

 TeleBlock

Without getting too technical, COPI's TeleBlock works at the signaling level of a telephone call. Many years ago, in an effort to reduce traffic on their networks, the telephone companies started using an out of band signaling platform, known as SS7, to set up and manage the routing of telephone calls in a separate network rather than within the same network that the voice portion of a telephone call is made on. If you place a call, the SS7 platform gives you a busy signal if the line is in use. Teleblock operates on one of the largest independent SS7 network in the world, with direct access to carriers throughout North America and worldwide. TeleBlock is based on COPI’s patented technology which lets service providers access federal and state Do-Not-Call lists without requiring new connectivity by carrier customers. 

Do-Not-Call Regulations

Failure to fully comply with Do-Not-Call rules can reach $25,000 per infraction. The federal rules in the U. S. pose more serious challenges, with fines ranging up to $11,000 per call violation. If that is not enough, consumers have the authority to bring a civil action against the violating party and potentially recover civil penalties inclusive of court costs, attorney fees and monetary fines. In Canada, CRTC can levy penalties of up to $1,500 for an individual and $15,000 for a corporation, for each call violation. 

The difference between 100% and 99.9% compliant is very costly. A call center making 100,000 calls per month with a 99.9% compliance rate ends up making 100 calls to Do-Not-Call numbers. Based on federal penalty guidelines, this equates to upwards of $1.1 million in fines. Simply put, Call Centers can not afford to be without COPI's TeleBlock. There is no comparable product on the market and now it is available to customers of AT&T, which makes up a major portion of the Telecom industry revenues. To sweeten the pot for shareholders, Canadian telemarketers must get compliant with the new regulations, fast. As new customers are added, revenues should increase. As revenues increase, we believe the market capitalization of COPI will expand, resulting in a much higher stock price.

Growth Strategy

Just like the U.S., Canada had Do-Not-Call legislation go into effect on September 30, 2008. Much like the Do-Not-Call rules in the U.S., Canadians can now sign up to prevent telemarketers from contacting them. The primary distributor of COPI’s TeleBlock technology entered into a Managed Service Agreement with AT&T Services, Inc. on September 5, 2008 to make COPI's TeleBlock technology available to its telemarketing customers. Like COPI's arrangements with other carriers, AT&T’s customers will pay a fee for each inquiry to the Do-Not-Call database, regardless of whether the telephone number appears on a Do-Not-Call list. COPI pays VeriSign a portion each such fee for hosting and managing the platform. In our opinion, since AT&T serves millions of businesses, including all of the Fortune 1000, this opportunity could result in exponential revenue growth for COPI. 

COPI was granted patent protection in Greece for a modified version of the TeleBlock system in February 2006. This patent protection could apply throughout the European Union, which could enable COPI to market the TeleBlock technology in Europe, as the EU countries implement Do-Not-Call programs similar to those in the U.S and Canada.

Voice over IP allows TeleBlock usage anywhere in the world and in areas where COPI lacks distributors locally. VoIP telephone service gives domestic companies that have existing contracts with telephone carriers that do not license TeleBlock the ability to obtain the TeleBlock service. COPI is in talks with several industry leaders to offer this VOIP version of TeleBlock, first deployed through VeriSign in November 2002. Currently, more than 40 telephone carriers and resellers, including AT&T, Qwest, Verizon Business, XO, and Paetec, have licensed TeleBlock and offer it to their telemarketing customers. 

Currently, COPI's VoIP service is available at www.citadeltel.com. The Citadel TeleBlock service provides COPI with another avenue by which TeleBlock can be offered to the teleservices industry. Citadel is currently providing US dial tone with TeleBlock through out the USA and in countries such as India, Mexico, the Dominican Republic and Canada. COPI recently launched TeleBlock Office through Citadel, which delivers a powerful tool for teleservices employees who work remotely or agents who are representing a company's products and services. 

Also, COPI has retained an investment banking company to explore acquisition opportunities that will broaden the existing range of products and services offered to its existing customer base. COPI has had discussions with certain companies regarding potential transactions, but no material definitive agreements have been entered into or announced. 

Contact Center Trends

In an era where contact centers are often undermanned and under funded, managers need to get the job done with fewer resources despite ever increasing demands on their time.  For the year 2010, there are quite a few practical as well as actionable contact center trends and technologies that are helping managers save money and time.

Some of these “hot trends” include:

 -Contact Center Analytics-The value of speech analytics, desktop analytics and customer feedback to lower the time spent doing QA while increasing its effectiveness.

-Multi-Channel Contact Centers – Efficient deployment of voice, chat, email and self service channels can significantly lower overall contact rates and costs while increasing customer satisfaction and loyalty. As more mobile device driven consumers are demanding these additional channels, contact centers must be equipped to respond to ensure their company’s success.

-Proactive Customer Care Initiatives – Low cost, automated outbound IVR, email and SMS can be used to head off customer issues before they become a problem. Proactive customer service changes the cost dynamics while greatly improving service.

-Integrated Tools For Quality Management – There is a growing need for integrated, efficient and cost-effective quality management tools that support the needs of contact center managers and supervisors as they work to consistently provide an outstanding customer experience. Minor improvements in efficiency through tools can add up to less headaches and lower costs to support already overworked managers.

Summary

Opportunities in the stock market are not always so clear-cut, and certainly do not happen often. COPI has a tremendous opportunity to generate significant revenues through its relationship with larger companies, the Do-Not-Call legislation in Canada, and by delivering TeleBlock over its own VoIP platform. 

Since the carriers bill their customers for TeleBlock, COPI has no credit risk with respect to the end-users. Carriers pay a contractually determined amount on a per query basis.

The stock, which now trades for a penny a share, traded for $1.56 a few short years ago. Fortunately for investors, this agreement has been overshadowed by the poor economy, until now. We are bringing this company to the attention of our subscribers before the business climate starts to trend upward, giving them ample opportunity to make fortunes on their investment.

 

 

*Please see our disclaimer

 

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OTCBB Symbol: COPI

Shares Outstanding:       184 million

52 Week Trading Range:

52-Week Low: $0.001

52-Week High: $0.04

Corporate Offices:

111 Nesconset Highway, Suite 220

Hauppauge, New York 11788

Phone: (888) 674-6774

Email
info@callcompliance.com

Website:

www.callcompliance.com

 

 

 

 

 

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