Although Ms. Berouty's positive impact is already being exhibited by Execute's record sales levels, strengthening margins, prime-time OEM deals, improved distribution channel infrastructure, and product placement on major television outlets; her recent appearance at the annual Surf Expo in Orlando may be her biggest contribution to the company's growth made thus far.

Body Glove to Execute

After 20 years as sales director at industry leader Body Glove Wetsuits, this was not only Ms. Berouty's first time back at a trade show, but her first time back representing her own company. What better a time for her to rub elbows with her vast network of contacts than at the biggest water sports event of the year while Execute unveils its completely revamped 2008 product line?

The Surf Expo is the biggest show of the year for the water sports industry and is attended by the vast majority of leading players, both domestic and international; including all major retailers, manufacturers, distributors, marketers, and of course consumers. With management stating in today's release that the show was a smashing success and that their exhibition booth was swarmed the entire time while more meetings were conducted than ever before, I'd say that it's not out of line to expect one or more of the following events to occur in the not so distant future:

Another Kawasaki-esque OEM agreement.

Repeat orders from existing retail customers and initial orders from retail organizations not already carrying Execute Sports gear.

The formation of a distribution agreement, possibly with international focus, that helps to expand the company's geographic reach and revenue base.

Kick off of a new advertising/marketing program that builds recognition for the new and improved '08 product line.

Announcement of a strategic partnership or acquisition that further positions the company for stronger future growth.

Stock Primed For a Pop - Management Executing on All Outlined Initiatives

EXCS has been filling the presses with positive news since mid-April and announcements stemming from the recent Surf Expo have given investors new confidence. Couple that with upcoming news regarding the newly acquired Sugar Sand business, its affect on the continued success of Execute's water sports segment, and we should see some promising things from the company's books as well as from its stock price.

The stock made a valiant run back in January and with the company's product rising in popularity, not to mention free exposure, connections in the industry being made and strengthened by the day and a new captain at the helm, we can't help but think we are seeing history in the making for this sometimes struggling diamond in the rough. Here is my thought process. . .

For starters, investors involved in this deal seem to be head over heals in love with good news, and we're not just talking numbers here. Name dropping has proven to be just as effective, if not more, of a market mover than financial improvement. Sometimes the market just doesn't make sense.

For example, after trading in the two cent range - roughly where we're at today - since November of 2006, shares surged up 50% on January 17, 2006 on news that water sports sales were up over 150%. Two days later, on news of an agreement with Kawasaki, shares doubled again, hitting a high of $.09 that day and closing at $.08 on volume that exceeded 22 million.

After that, share price held relatively steady although it dipped a bit down into the $.06 range. And then . . . . . Total darkness!

After divesting the Academy brand, Execute went back to the drawing board from an operational perspective - a move that is paying off nicely now as business processes improve - but wreaked havoc on market price as shares went into free-fall mode for nearly two months while zero corporate announcements were released. After that, not even a $5M acquisition could get this thing moving upward from current support levels. Simply put, the lack of corporate communication, whether warranted or not, killed the rally.

Q3 Release Just Around the Corner


Thankfully for all, it looks like EXCS's dark ages have finally reached their renaissance. If things continue the way they are and Celeste continues to utilize her extensive industry contacts in ways as productive as the Surf Expo, we should see more positive news out of EXCS over the next few months. Ideally, an optimal mix of releases that both highlight further operational advancement such as the recently reported 40% improvement in online sales as well as the inroads being made with manufacturers, retailers, distributors, marketers, etc., that stand to significantly improve financial performance will encourage the market to put their faith EXCS.

Given the fact that the summer months are the strongest of the year for overall water sports sales as well as exceptional months historically for Execute, the Q, which should be out soon, ought to be a good one. In addition, I'd bet my dollar to your dime that Celeste and the crew came out of the aforementioned Surf Expo with at least one big name business associate. Long-term investors are smiling already.

What is also clear is that there are a lot of eyes on EXCS. The stock has found support at current levels time and again and should react positively to a string of stellar news as it has historically done. The market also has to price in the future value of the company sooner or later, which has been increased exponentially by the recent Sugar Sand purchase. Having the boat company under the Execute umbrella provides a much needed cash influx as well as a world of new opportunities for more positive press and complementary water sports product sales. However, Sugar Sand aside, the overall progress being made on behalf of Exectue's thriving water sports business and its future potential is reason enough in my opinion to warrant consideration for higher market value.

With lesser news, the stock returned some pretty hefty gains a few months back. The company's foundation and prospects for future growth was significantly weaker than it is today. As the company continues to trudge along improving its revenues and prospects, we expect great things from Execute's future.