RE: I'd rather hear from Flexy tooGordie—From my point of view, the most significant feature of the revenue picture is the royalty potential: Unlike an oil well in which the royalties are a relatively rapidly dissipating asset, IBR’s go on forever, it appears, and they are protected against inflation.
In today’s market because of the nature and stability of plant units once in place, the market would probably capitalize then at a minimum of 30 times earnings.
As far as the growth pattern re-sales of plants, they are in the initial stages—The penetration is minuscule and the acceleration pace painstakingly slow for me. However at some point here something will break—I don’t know what: A joint venture deal with waste management, perhaps, or a connection with Iowa beef to pull them out of the lawsuits for polluting pending or something else. Then the stock takes off and the pendulum turns. —The stock instead of selling at no discount to future expectations begins to discount years out like the Internet stocks did, that is the time to think about getting out—Not until that happens which I believe is inevitable.
As far as managers, the new man-Frank Dixon- is the manager. They feel that he has done an excellent job to date. Jerry Van Dyk is a world-class engineer. He has been described to me as one of the best engineers in Canada. He could not be improved on or replaced in my opinion. Ben Van Dyk has proven to be an excellent salesman of the plants. He is just very good at it.
Cranklin—I answer the question about sponsorship in this fashion: I see Canacord and IBR as the odd couple. If I had developed a particular software that was designed to focus on a particular industry or a specific small segment of the industrial or business community and if I needed 300 to 500 thousand to put my package together, I would be knocking at Canacord’s door because that is the place to go. But IBR is in a capital intensive game_-These plants go at eight to eighteen million C.F. They need investment banking connections that deal at a different level. This company is already functioning on a global basis.
Hebejeebe—I do not know how to fix sponsorship at this time. It will probably fix itself. In a sense, the real sponsorship of this company is the overseas Chinese—I certainly feel this company requires a NASDAQ listing, the sooner the better. With a NASDAQ listing, I believe the sponsorship this company deserves can probably be attracted, if not right now, very soon.
The only thing I do know is that quality sponsorship will not be attracted until they have moved up in class (exchange-wise). Again I want to emphasize, I believe this will happen because of the underlying strength of the product, which I consider mind-boggling.