CLEMENT hope this answers some of your queries....
(I discussed your points with other IHI investors to help answer.) Hope this helps dispel some of your doubts....if it doesn't then stay and watch the company succeed as I AM CONFIDENT IT WILL, AND THAT IS PURELY A PERSONAL OPINION.
1] << Granted, I realise that the reporter in question doesn't have a very good track record for recording facts in my book, but clearly something is amiss-- and there is likely some kernal of truth in the matter. >>
We know of no such investigation. They may be referring to a false and dismissed suit from 2 former directors that claimed IHI had done wrong doing and that they reported it to the BC commission. When challenged they admitted they had lied and no such wrongdoing or report to the BC was done.
[2] there are significant competitors in the new field of
alternative construction materials -- ranging from American Home Products to Royal Group Technologies -- both with significantly more capital to fight for market share >>
As far as we know, IHI has no real competition. Once in production, it will take years for them to meet demand.
[3] there continue to be significant delays in getting their construction facilities up and running >>
True, management are slow and have made mistakes. Getting substantial funding is difficult and slow process.
4] they do not have a big name auditor >>
That is a silly point. Why should they? What a waste of money IMHO.
<<[5] they appear to continue to need financing to fund their development costs and continued operations -- read dilution >>
Yes true and more to follow, but once in production it wont matter at all. And compared to many companies, its market cap is seriously undervalued.
<< [6] there are far too many related party transactions (major red flag); for instance, a member of management, I would guess being either the CEO or some other person in senior management, was paid $54K -- translating to
$216,000 for "project management fees" plus any salary that they are getting on an annualized basis; note that this is ridiculous considering that their salaries should already include their project management and the fact that
they are consistently late on their projects >>
Well yes and no. After all Roger does work 24 hours a day, so should be entitled to three salaries. The company management is mostly technical but a CFO and plant managers should be hired shortly.
So hey if it were a perfect company, its stock would be $100 and more!! I think you should wait until the stock is $5 to $10 when there is less and less reward with this type of critique. Further I suggest you discuss your points on the RB board where other seasoned investors might shed more light - this SI board in NON-ACTIVE!
Raja |
