Worth Reading
Original Jay Taylor Write-up
Subject 14308
Jay Taylor's weekly review after Itronics sharedholder meeting
The following is a portion of J. Taylor's Gold & Gold Stocks for the week ending November 22, 1997. This weekly telephone message is available in its entirety to all paid subscribers.
THIS IS AN EXCERPT
.... Itronics which I believe has a shot at becoming one of the largest silver producers in north America......
It was my privilege to speak at the Itronics annual general meeting this past week. All of the requisites appear to be coming together to make this company a major success. The risks that I see remaining for Itornics is one of funding and marketing. The company just completed a $500,000 offering at $0.10., but it is going to need to raise more money in the near future. What I am hopeful of is that management will begin to pay more attention to public relations efforts. Although Itronics has limited resources, a failure to tell its story to a larger universe of investors, may very well be a pound wise-pound foolish policy. A $1 or $2 stock price would significantly
limit dilution from what would be suffered if funding were done at the current level of around $0.30 to $0.40.
The Itronics technology is now proven and there is no other company on the market that can match the company's ability to recycle photo waste in an environmentally friendly manner. More
importantly, for the prospects of the company's success no other company has a process that enjoys the economics of the Itronics process. John Whitney understood early on that the only way
you could recycle photo-waste economically would be if you could create a valuable end product. With all the tests so far showing the Itronics fertilizer products are actually superior to many other
fertilizer products on the markets, the main challenge remaining for the company is one of marketing its products. Understanding his limitations, John Whitney turned to Western Farm, a subsidiary of Agrium. Western Farm is now committed to aggressively marketing the Itronics line of liquid fertilizer products and some very ingenious marketing concepts are being tested. If the superiority of the Itronics fertilizer line is translated into large scale demand for its products, Itronics should be on its way toward capturing 30% or more of the photo-waste market which, as noted above would make this company one of the larger silver producers in North America. It would also make Itronics a very large force in the fertilizer industry. In view and the view of many people who know the silver markets better than I do, silver is due for a run up to much higher prices and that could also give this company a major shot in the arm.
I need to correct something I said under the "moonshot" caption of our October 13th, 1997 issue. I said that Itronics holds a patented technology. The word proprietary should have been used rather
than patented. In talking to John Whitney about this last week, I learned that John gave up the idea of patents because it would have cost him around $1 million per year and even then it would have
been difficult to defend. To protect the company's intellectual property, Dr. Whitney is doing all he can to ensure existing personnel stay with Itronics. The progress of this company has been significant since I wrote about it early this year. It is not
yet a slam dunk success, but provided management is able to fund itself efficiently and if Western Farm is able to succeed in marketing the Itronics line of fertilizers, we should be well on our way toward our destination moon shot! (702) 689-7666.
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