| To: David Wideman who wrote (62) | 5/9/1997 3:25:00 PM | | From: Samuel Bolles | | | |
David
Once again, thanks for the update. You are the eyes and ears of Z-G-H.
I'm just curious, how large are your positions in ZMAX, GOAE, and HARD?
Any word on when ZMAX will be on NASDAQ? It was supposed to be by the end of the first quarter.
Thanks again and good luck,
Samuel |
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| To: David Wideman who wrote (62) | 5/9/1997 7:20:00 PM | | From: mark s | | | |
David,
Great analysis. I wasn't aware of the Windward publication articles. I'm assuming, based on the date, that the numbers quoted came from McMillan. That makes them more credible IMHO. I too ran the numbers. Pretty impressive at a P/E of 20 aren't they. Basically they are saying that starting this May they will have 16 million in sales 25% profit margin. Yearly revenues will double each year, with the fifth year producing 250 Million in Sales. If McMillian produce these results the stock will trade at a P/E much greater than 20. I'm not sure that any company/individual can accuratly look 5 years into the future, but they might be close on year 1 or 2 year estimate.
I talked to ICC on the recent correction. According to ICC there have been no fundemental changes within the last few weeks. ICC is very impressed with McMillian. They told me that they usually represent much larger companies, but made an exception, because of how impressed they were with him. I also requested an investors packet from them. This should provide answers to some of our questions.
There seems to be concern over the production of Novacrete, but I'm equally concerned about the distribution. Does anyone know if a distribution network is in place. Maybe the investor packet will tell.
I went back and read the history of this thread the other night. I noticed that Doug Friedenberg was one individual that was making inquiries similar to ours. (Great potential, but not quite sure about the product, sales, etc) I also noticed in a 13D Edgar filing showed that he had purchased 580,000 shares for approximately $174,000. Now he's on the board of directors. He must have got some good answers.
I'm sure that Doug can no longer participate in this discussion group, but it makes me feel better to know that someone has made such a major commitment to this company.
Doug if can you participate, please do. I'm sure your view of the company, and its prospects, would be greatly appreciated.
Mark S |
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| To: Samuel Bolles who wrote (63) | 5/10/1997 1:09:00 AM | | From: David Wideman | | | |
Hi Samuel,
Thanks for the kind words <<You are the eyes and ears of Z-G-H.>>
Maybe more fitting to say "Have you ever thought about investing in a
company that actually had any REVENUES?"
Answer: Been there, done that. This is much more fun. Honestly (& I
realize I'm crazy), but I feel more comfortable with G, H & Z than I
would with Coca-Cola or Microsoft, considering (IMHO) there strataspheric
P/E's relative to growth, and my perceived over-valuation of the market
in general (& a guy named Greenspan, etc.)
Of course, a company with NO revenue has no EPS, but what the heck.
My "portfolio" is by no means large, less than one year's salary.
That's the best reason I know not to take anything I say as "gospel",
but cyberspace has become a big hobby of mine. Fun, challanging &
rewarding to search & find info on these companies, their principals,
and industries. I enjoy talking with the folks at ICC - a lot more than
they enjoy talking with me, I'm sure.
I have 4 holdings (G, H, Z & an even bigger gamble, if you can believe
that - IMMM, a little company with "supposedly" a breakthrough
technology in locating the best place to drill a hole & find "black
gold").
Current holdings:
45% GOAE, 45% ZMAX, 5% HARD, 5% IMMM
Re: ZMAX NASDAQ listing. I'm not sure at all, but it is my "best guess"
ZMAX will be listed on NASDAQ sometime in June. "Rumor" has it that the
filing process is well underway.
Please note that my "best guess" does not mean "Put it in the bank".
I feel pretty good about it, but I've felt that way since February.
Good luck,
David |
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| To: mark s who wrote (64) | 5/10/1997 1:35:00 AM | | From: David Wideman | | | |
Mark,
Great "find" re Doug Friedenberg. I'll bet you're right when you say
<<He must have got some good answers.>>
Not too many folks would drop $174K if they got bad answers, would
they? <g>
I also agree with you that the 5-year, $250M projection is difficult/
impossible to project (& I don't see how any company can achieve and
maintain a 25% net margin for very long), but I feel pretty comfortable
with their 1-2 year outlook.
Even though I was told by Greg @ ICC to "throw all the old press releases
in the trash can", these acquaintances are evidently in place, at least to
some degree.
Also, and even more importantly, the actual test results are not
fraudulent. The product is real (IMHO).
This publication did mention that these projections are "conservative".
I don't know about that, but I do know that I'll be pleased if they
come anywhere near these #'s. Glad you picked up on the PE of 20; I was
trying to be conservative (is that possible when I'm saying in the same
breath that this stock could make me rich?), but for HARD to reach $250M
in 5 years, revenues would have to double every year (16, 32, 64, 128, 256)
I was too embarrassed to mention a PE of 80-100, but it's OK to dream,
ain't it?
BTW, I'm ignorant, but trying to learn. How did you pull up the 13D
Edgar info? The links I've found just tell me "No ZMAX info available."
Thanks & good luck,
David |
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| To: David Wideman who wrote (65) | 5/11/1997 9:24:00 PM | | From: MCorbley | | | |
Hello David
So far I've had only questions about HARD and haven't made an investment, but that will probably change soon. Coincidentally, however, I do have a small position in IMMM. A long shot, but possibly a very profitable one.
Regards,
Michael |
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| To: MCorbley who wrote (68) | 5/12/1997 6:49:00 PM | | From: David Wideman | | | |
Michael,
Good to hear from another IMMM'er. Just left that thread; seems like the
link you posted would end the HYPE/SCAM talk, but "Family Feud" appears
to continue undaunted.
I fully understand that I should have my head examined, but I picked up
some more IMMM. I'm thinking that I may break one more piggy bank
& buy some more HARD. With production coming on-line, HARD should be getting
some good PR soon. Share cancellation shouldn't hurt, either.
Good luck (and soon!),
David |
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| To: David Wideman who wrote (69) | 6/5/1997 11:56:00 AM | | From: David Wideman | | | |
Update:
I have recently had the pleasure of speaking with one of the key management
at HARD. Although maybe nothing earth-shattering, hopefully this will serve
as confirmation of what we've previously heard.
A summary of this conversation, plus conversations with Mark @ ICC, and
probably a couple of IHMO's along the way (Preface by the fact that I am
relaying this info as best possible - if I've "missed the boat" at any
time, I would appreciate correction from Mark or others who know):
Equipment is coming into plant.
Within a couple of weeks, NovaCrete will be in "full" production, i.e.
initial production as set forth in business plan.
6 employees currently. More will be added, particularly in area of marketing.
True, 6 employees isn't many. But we're talking about a virtual "start-up"
company with less than a $4M cap and reportedly a great product.
Internal #'s suggest that HARD can be profitable; one advantage = relatively
low cost of raw materials.
Although many competitors are currently in the marketplace, i.e. not so much a
"brand new product" - the first car, microwave, hula-hoop, etc. but rather
a "new and improved product" with which to offer a HUGE market, growth
goals as stated in the Windward article I posted awhile back are not thought
to be unachievable in terms of revenue. In terms of profit margins, the
marketplace will decide.
In terms of product, technical analyses as published at NoveCrete web site
are accurate to the best of management's knowledge.
Product is thought to be "as good" in virtually all cases, and "better"
in many cases. Price will be competitive, possibly incrementally less
expensive. In most scenarios, cost will not be final determinant of customer
choice, most decisions will be based on quality.
One of NovaCrete's primary strangths is that it is mineral-based vs.
polmer-based.
Although contracts listed are not valid, some/most/all of these contacts
are established. We're not starting from "ground zero", in terms of customer
relationships.
From my question, "How is financing of plant being arranged? Doesn't sound
like former management left much cash in the coffers."
Plant has been internally financed on a "pay as you go" plan through shares
and debt that can be converted to equity. More on this later.
Revised finincials have been received. Ready for publication soon, best
guess within 30-45 days. All numbers are in place, hold-up is due to
making sure all "i's" dotted & "t's" crossed for 10-K & 10-Q.
FY = June-May. A loss, though relatively small in nature, will be
reported for FY ended 05/31/97.
Currently, HARD has no money, no debt. Slightly positive shareholder's
equity, as some nominal amounts of inventory exist.
May need $.5M-$1M down the road, to develop marketing team, etc.
Money, if not provided by operations, will probably be raised through
some form of convertible debt. If things go well, maybe debt not needed.
Share cancellation - still in the works. Taken longer than anticipated,
but goal is to complete this cancellation once and for all, with no
ongoing litigation.
Next probable shareholder's meeting, Labor Day +/- a month.
Plant located approximately 10 minutes from Toronto airport, if anyone
interested in visitation. I believe that, with advance notice, we would
be welcomed.
Re: Plant/financing alluded to earlier:
When I heard that plant was being financed on a "pay as you go" basis,
I facetiously asked, "Well, I'm sure this isn't a $1B plant."
Laughing reply, "No, as a matter of fact, you can safely say that this
is even less than a $1M plant."
For a hint, I'll post the following link from EDGAR. I hope it'll re-post
here, since you've gotta register for EDGAR. I'll summarize, just in case:
edgar-online.com
This is link to Form SC 13D/A, filed May 14, 1997.
Indicates that Douglas Friedenberg currently owns 1,317,000 shares, quite
a substantial addition to his original investment. Interesting to
note that Doug's average price was $.35/share. HARD opened this a.m. at an
ASK of $.38.
From the discussion, my general feel (that makes this another IMHO) is
that management is intent on looking at, and seeking out, other opportunities.
I don't think that we'll see a lot of hype, just be able to watch as the
story unfolds.
In reading the bios of the 4 Directors, one senses that this isn't your
typical band of concrete jocks.
At this low price of late, I've averaged down on HARD. Seems like most
investors who are smarter/wealthier than I advise against this, but this
case looks like it may be worth a shot.
Although I've added to my position in HARD, I'm still a couple of shares
short of Doug. <g>
Well, that's everything I know (and think) about HARD. Headed out of town
for a few days. Hope this helps, and that all have a great weekend.
David |
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| To: David Wideman who wrote (70) | 6/23/1997 2:07:00 PM | | From: Samuel Bolles | | | |
HARD -- Releases earnings and financial reports
NEW YORK--(BUSINESS WIRE)--June 23, 1997--Stratford Acquisition (OTC:HARD) announced Monday that the company's manufacturing facility in Mississauga, Ontario began production of the NovaCrete proprietary concrete additive on June 3, nearly a month ahead of schedule.
Stratford Acquisition will increase production levels significantly in July when the first phase of an automated production system is installed. The company has retained Advanced Integrated Resources of Burlington, Ontario, to locate, procure, and integrate all production equipment into the facility, which was leased at the beginning of May.
Stratford Acquisition also released an audited restatement of its May 31, 1996 fiscal year earnings and the unaudited subsequent quarterly financial reports, as shown below.
Year Ended Nine Months Ended
May 31, 1996 Feb. 28, 1997
Audited Statement Unaudited
Revenues $ 140,741 -0-
Total operating expenses $ 518,954 $545,685
Net loss per weighted-average
share of common stock outstanding ($ 0.07) ($ 0.06)
Weighted-average number of shares
of common stock outstanding 5,552,407 9,068,566
(approximate)
The Form 10-K/A for the period ending May 31, 1996, and the Forms 10-Q for the three month periods ending Aug. 31, 1996, Nov. 30, 1996, and Feb. 28, 1996, have all been filed with the SEC. May 31, 1997 fiscal year reporting will be announced as soon as figures are available.
The company further announced that Colin Rayner has left its board of directors effective June 3.
A.R. MacMillan, president of Stratford Acquisition, stated, `Completion of our restatement of previous management's financial reporting, plus other corrective measures we have taken, mark the end of the rehabilitation phase of Stratford's development.
``At this time, we are fully focused on product definition, production, and effective marketing. The coming year should prove a
refreshing experience for shareholders.''
Stratford Acquisition researches, develops and manufactures an additive that enhances the performance of mortars used in new construction and in the repair of deteriorating concrete structures.
The additive is blended, in various proportions, with cement and sand to create a wide range of special application mortars. The additive also increases the strength and durability of concrete used in residential, commercial, and industrial applications. |
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| To: Samuel Bolles who wrote (71) | 6/25/1997 6:19:00 PM | | From: David Wideman | | | |
Samuel,
Looks like our "new" story is beginning to unfold.
Some OPINIONS only, so take this as FWIW:
From SFDA 10-K last September, 4.0M "restricted" shares were issued to
founders, insiders and promoters in April, 1995. From reading this
document, looks like everybody including the cleaning lady was good
for at least 50K shares.
Recent press release called for some 1.8M shares to be cancelled. From
what I understand, final tally may be even greater.
That still leaves lots of loose shares which have outlived their
2-year restriction on selling.
That may be the reason for the stock activity of the last few days,
which I'll summarize because I have nothing better to do right now <g>:
5 trading days ended June 16: Volume = 18K (<4K/day)
Closing price June 16: $.34
5 trading from June 17-23: Volume = 1018K (203K/day)
Closing price June 23: $.26
A possible scenario: Much of this 1+ million shares may have been "dumping"
prior to culmination of share cancellation. Sounds as though this
cancellation is close to complete.
Trading activity these last 2 days has seen no major dumping, as 2-day
volume has averaged 98K shares (79K & 118K) with an increase in price.
Still seems quite possible that many shares may remain in weak hands,
so I don't think we can exclude the possibilty of more dumping.
Over the long haul (which is my objective here), who cares?
IMHO, we've got a good one.
The fact that Messrs. McMillan, Friedenberg & Dowe are running a little
AHEAD OF SCHEDULE only helps me to sleep better.
Seeing as how I'm planning on the long haul for this one, I probably
won't be posting much, only if I come upon some new "revelation" (which
ain't likely to be very often).
If you'll send me your e-mail (mine is DW85@aol.com)we'll keep in touch.
Good luck,
David
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