Mark & all,
Excerpts from a Broker/Analyst News Update published by Windward
Communications on Jan. 7, 1997:
11/29/96 - then Stratford President, Mr. Arthur Smith and his spouse &
associate Board member, Ms. Lee Monaco, were removed from their respective
offices by a vote of a majority of Stratford's shareholders.
Roy McMillan was sole remaining Board member. (Per Tom @ ICC, McMillan
had previously been asked to join Board to lend it credibility. When he
came on board, he realized that Smith/Monaco were out of control, hence
the shareholder decision to remove them & retain McMillan.)
Brief bio of current Directors:
Mr. Roy A. McMillan - President & Chairman
Established & managed the Canadian Economic Assistance Program in English-
speaking Africa.
Then served 3 years on Board of Executive Directors of the World Bank.
Since 1989, McMillan has served as Advisor, Finance for the Canadian
International Development Agency; Advisor, project development & project
finance for Ontarion Hydro Int'l ($100M investment in Peru electricity)
in 1993-94; and established a company in Atlanta, now under negotiation for
sale, which holds patents for innovative designs for Nuclear Spent Fuel
Containment.
Mr. Douglas S. Friedenberg (45)
Has been President of Firebird Capital Management, a financial advisory
firm, since 1993. From 1991 to March, 1993, serves as President of Unicorn
Capital Management, an investment firm. From 1983 to 1991, he was an investment
manager at Morgan Stanley. Freidenberg also serves as Director of Datametrics
Corporation.
Mr. G. Collin Rayner (58)
Received law degree from Osgoode Hall in 1964.
He is corporate counsel for the Bank of Montreal and has a number of
business interests. He is the owner of Ternagami Wilderness Center, a
world renowned outdoor recreation facility.
On December 30, 1996, the company announced that an agreement had been
reached with Smith & Monaco whereby they relinquished all claim to further
involvement in Stratford, and all claims against the new directors & officers.
The new team has committed to expand the Board to 5 members as soon as possible.
NOW FOR THE FUN PART - $$$
From the same publication by Windward -
For starters - years 1 & 2:
<<With a first year production capacity of 9M pounds of additive, mgt.
believes that a realistic sales expectation for first year is 4M pounds. . .
Revenue expectations for the first year would then be $16M . . .
Management believes that the net margins may exceed 25% based on initial
analysis of production costs & requirements. Management further believes that if
market acceptance follows current indications, sales may double in the following
year. These statements are based on management's conservative revenue projections.>>
And by the fifth year (2001, I guess):
<< . . . NocaCrete managament believes it can capture 10% of this market,
or $250M per annum by the fifth year.>>
Now, just for kicks, get out your calculator and figure:
$250M @ 25% divided by 8.6M shares x PE of 20 = too good to even think about.
Of course, "the proof is in the pudding" & manufacturing faciltiy isn't
even open yet. Management sounds like they're taking the conservative
approach to things, so it may take awhile for this one to develop.
Until I hear something to the contrary of the above, think I'll just hide &
watch, let McMillan & Co. do their thing. I hope they do it well.
Hope this helps,
David |
