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   Gold/Mining/EnergyIMARK Corporation (IAK was Durkin Hayes DHP)


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To: Pierre J. LeBel who wrote ()2/16/1998 7:14:00 PM
From: david
   of 57
 
The $1,600,000 was invested in a joint venture that is to market the television series "Swamp Critters' of the Lost Lagoon" and products related to the series. The show is supposedly being aired on the Learning Channel but I have not verified this personally.

DHP has not yet issued any releases on the progress of the joint venture which is probably reflective of its lack of success (at least in terms of revenues) so far.

With respect to new management, the new CEO who had taken over about a year ago or so has resigned (in mid-late December). As the former CEO was one of the major proponents of the joint venture, it is not a good sign that he resigned (although it may be good that he resigned). The new CEO is a long time executive of DHP.

Despite the foregoing, there is still some hope for DHP. They still have a wide variety of product lines and a record of past revenue streams. The Balance Sheet is also quite clean with no debt to speak of and possibly some cash (prior to the joint venture and rights offering there was about 10 cents/share in cash). Hopefully we will see a release on 1997 year end earnings in the next few weeks that will give a better idea of how the company has been doing recently.

Finally, Algounquin Mercantile (AM on TSE) initiated a takeover bid for DHP about a year ago. They now own over 50% of the company but not the 2/3s they were seeking which would have allowed them to exercise greater control over the company. There is, therefore, the chance that AM will issue another TOB for the shares still outstanding (last TOB was at 50/cents a share). AM has a good track record of purchasing companies, then getting them on track, and then selling them for a healthy profit.

Although DHP has had a rough time over the past couple of years, there is substantial upside and limited downside for purchases under 30 cents. It would be a good idea, however, to wait for 1997 results before making any decisions just in case there are some surprises that the company hasn't been disclosing.

Good Luck,

Daniel

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To: david who wrote (1)2/17/1998 4:38:00 PM
From: Pierre J. LeBel
   of 57
 
Thank you David/Daniel.

The information you provided is much appreciated. You seem to be very familiar with the affairs of DHP. I have looked everywhere but cannot locate a web site for the company. Do you know if they have an internet site where more information would be available?

In the meantime, the stock chart seems to indicate that a bottom has been found over the last eight weeks or so and the stock ready to return to the .50 area.

Thanks again and have a very nice day.

Pierre

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To: Pierre J. LeBel who wrote (2)2/18/1998 6:21:00 PM
From: david
   of 57
 
PIERRE,

Unfortunately the company does not have a web site. You can view their press releases (which are few and far between) at www.isdnwire.com. You can also try calling the company (i don't have their number off hand but its listed on their press releases). Their 1997 results should be out before the end of next week if last year is any indication. Historically, the fourth quarter has been where they make their money.

Daniel

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To: david who wrote (3)2/20/1998 9:50:00 AM
From: Pierre J. LeBel
   of 57
 
Very heavy selling first thing this morning with many more offers coming in all the way down to .20!!!

Something is not good!

Any suggestion?

Pierre

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To: Pierre J. LeBel who wrote (4)2/20/1998 11:32:00 AM
From: david
   of 57
 
As you can see from the chart below (sorry for the slant), most of the selling is coming from one house. It is discouraging, however, to see trades like this happening right before earnings are to be announced. With a company like DHP it is likely that the seller knows something that we don't. As a stated in my first message, it may be wise to wait for the year end results to come out before making any decisions. At 20 cents though, it is quite tempting to get in there.

Time Price Change #Shares Buyer Seller
9:47 0.2 -0.08 20,000 084 Independent Trading 063 Levesque Beaubien
9:44 0.2 -0.08 12,000 084 Independent Trading 063 Levesque Beaubien
9:42 0.2 -0.08 12,000 009 Nesbitt 063 Levesque Beaubien
9:30 0.255 -0.025 17,000 011 Yorkton 084 Independent Trading

Good Luck and keep your eyes open,

Daniel

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To: david who wrote (5)2/20/1998 1:12:00 PM
From: Pierre J. LeBel
   of 57
 
Thank you David.

I sent a fax to Don Matheson earlier today asking if any corporate developments could account for the substantial drop yesterday and today. No response as yet. Will let you know if I hear from him.

In the meantime, you are right: .20 looks very tempting.

Have a very nice day.

Pierre

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To: david who wrote (5)2/26/1998 1:35:00 PM
From: Pierre J. LeBel
   of 57
 
I never received a reply from Mr Don Matheson to my fax last Friday. In the meantime, the stock is catching fire and trading at .32 on very heavy volume!!!

Do you know something I do not know?

Have a very nice day.

Pierre

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To: david who wrote (5)3/2/1998 7:27:00 AM
From: Pierre J. LeBel
   of 57
 
Algonguin Mercantile has sold about half its interest in Durkin Hayes in a private placement. No price or terms were made public. It will retain a 20% ownership.

What does it mean to minority shareholders?

Pierre

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To: Pierre J. LeBel who wrote (8)3/2/1998 1:51:00 PM
From: DANIEL
   of 57
 
PIERRE, SORRY I HAVEN'T BEEN IN TOUCH OVER THE PAST few days. The shares were purchased from algonquin at 67 cents per share. Alqonquin claims that the transaction was unsolicited. This is an encouraging piece of news for DHP shareholders as it has brought a new party to the table who is most likely interested in taking over, or at the very least exerting control, over DHP. The best way for the buyer to get a foothold in the company was obviously to buy share from a contol person. Algonquin has made two acquisitions since they took their position in DHP and their cost of DHP shares is probably about 55 to 60 cents per share (with some of those purchases being paid for with shares). There is no doubt that DHP has not performed the way Algonquin expected and this was an opportunity to take some of their money off the table at a profit(they probably recovered at least all the money they paid in cash for the DHP shares) and therefore have some cash to invest in their new business.

The bottom line is that there is a strong likelyhood that the purchaser of the shares will make a TOB in the next few months. Based on canadian securities laws, they would have to make an offer of at least 67 cents a share in cash. Before that may happen, though, DHP 1997 results will definately be out. Lets hope the results don't scare this new investor away.

Regards,

Daniel

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To: DANIEL who wrote (9)3/2/1998 3:22:00 PM
From: Pierre J. LeBel
   of 57
 
Thank you for the information.

Have a very nice day.

Pierre

PS - Would you know if the buyers are related to Qwerty Learning Systems (operating as Academy of Learning)?

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