Tirex Corporation (TXMC) Message Board

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Non-Tech : Tirex Corporation (TXMC)

TXMC 0.00001000

-90.0%

Mar 7 3:00 PM EST

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To: Ronald P. Margraf Sr. who wrote (302)	2/29/2000 11:48:00 PM
From: Ginco	Read Replies (1) of 1878

Thought I'd pass this along. Tirex is currently improving the tire output on the TCS-1 system going from less than 3 tires a minute (published information) to more than 4 tires per minute. They are working feverishly to increase the throughput because there has been repeated interest by both Mitsubishi of Japan and Continental General Tire of the U.S. in Tirex's technology. There has been talk of an outright acquisition. Continental already owns shares within Tirex. Mitsubishi, on the other hand,has recently evaluated Tirex's patented rubber fracturing technology. They believe this can be a winner within some of their niche markets. Conversations are ongoing. By demonstrating that the TCS-1 is capable of processing more than three tires a minute the company's value increases significantly for takeover purposes. Why is a takeover imminent. Once production will exceed several systems it will be very difficult for Tirex to meet demand. If this technology were in the hands of Mitsubishi or Continental Tire they would be able to produce and sell hundreds of machines annually. At a selling price of 2,000,000$ US per TCS-1 unit the acquirer stands to generate in excess of 200,000,000$ of revenue annually. A conservative estimate of worldwide production requirements would be between 900 and 1500 machines. Gross profits on these machines will be about 50%. The company could easily justify an asking price of 2.00$ per share or 320,000,000$. Tirex should be making an announcement in the coming weeks that will give one of two scenarios. They may announce that their machine has met objectives and they will begin production. This would be likely in the event tire throughput is greater than 3 but less than 4 tires per minute. That should mean they will try to increase short term earnings by capitalizing on their 40 M$ + order backlog. Tirex has the financial support to fulfill these orders. The stock should rise to .68$ on this strength alone. Increases in stock value will come from proven technology, market penetration and an increased order backlog. If they cannot achieve the throughput of 4 tires or more per minute within the next two weeks but feel they are close they probably will hold back on a clear announcement until this criteria has been met. They know if they can achieve this milestone they should be receiving a firm offer from one of the two suitors. A buyout would likely take place at a starting price of 1.50$ per share. With two large companies interested in acquiring this technology it should make for some exciting offers.

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