Earnings are coming early next week.
UPDATED BACKGROUND INFORMATION:
IMPERIAL PLASTECH, INC.
SYMBOL: IPQ .TO
CURRENT PRICE: $2.99 ($2 U.S.)
52 WEEK HIGH: $4.38
CURRENT FLOAT: 10.0 MILLION SHARES
SHARES OUTSTANDING: 29.5 MILLION SHARES
WEBSITE: implas.com
Imperial PlasTech Inc. is a rapidly expanding specialty plastics manufacturer supplying high tensile conduit used in the installation of fibre-optic
cable networks and plastic pipe for the residential and industrial construction industries. Operating out of three modern facilities in
Peterborough, Ontario and one in Edmonton, Alberta, the Company's strategy is to continue to grow both internally and through the acquisition
of additional plastics manufacturing businesses. IPQ serves 4 major markets, Fibre Optic conduit (Customers include 360Networks, Level
3, Qwest Communications and Williams Communications) Residential Construction, Industrial Products, and the Oil and Gas Sector.
DUE DILIGENCE INFORMATION:
-For the first half fiscal 2000, sales increased 400 % ($27.8 million from $6.9 million in fiscal 1999), and profit 900 % ($.10 per share compared
with $.01 per share for the same period last year). This is a continuation of very rapid growth over the last 4 years:
1997 1998 1999 FIRST HALF 2000
Sales 8,173,903 12,331,787 26,839,267 27,800,000
Net Profit (149,093) 511,811 1,454,520 2,700,000
-According to last year's annual report, 72% of annual sales and 85% of annual profit usually came in the last two quarters because of
seasonality of the business. If this still holds true, this year sales should be $60M - $70M and profit around $.30 per share.
-The growth is largely due to the surging demand for fibre optic conduit and pipe and conduit for the oil and gas market. IPQ just received $6.8
MM in new orders for the U.S. and the president said this is "just the beginning". They have a large order backlog and have just expanded to
meet the burgeoning demand.
-TECHNOLOGY COMPANIES WITH EXPONENTIAL GROWTH LIKE IPQ TYPICALLY TRADE AT 50 TIMES EARNINGS. ASSUMING A
CONSERVATIVE 30 MULTIPLE ON "FORWARD" EARNINGS OF $.30 PER SHARE, IPQ SHOULD CONSERVATIVELY BE A $9
STOCK.
IPQ CUSTOMERS:
4 OF IPQ'S customers for Fibre Optic conduit on NASDAQ/NYSE have a total market cap of $136 BILLION:
Level 3 Communications, Inc. (LVLT:NASDAQ)
Market cap $28 Billion
biz.yahoo.com
Qwest Communications Int. (NYSE:Q)
Market Capitalization $80.8B
biz.yahoo.com
360NETWORKS, INC (NasdaqNM:TSIX)
Market Capitalization $14.2B
biz.yahoo.com
Williams Communications (NYSE:WCG)
Market Capitalization $12.2B
biz.yahoo.com
RECENT NEWS/ARTICLES:
SEPTEMBER CANADIAN BUSINESS MAGAZINE ARTICLE:
If all this talk about lasers and switches makes you yearn for the simpler, old economy producers of steel and lumber, this one's for you. You see,
that precious fibre optic cable network needs to be protected from the elements somehow. That's where Imperial PlasTech Inc. comes in. It's the
low-tech company that supplies the plastic pipes to cover high-tech fibres owned by the likes of 360networks and Williams Communications.
Hey, it's not very glamorous work, but someone's got to do it. And that could be why Imperial PlasTech shares have been so popular lately. The
stock price jumped from just above 50¢ in March to $3.45- and it still trades at just 23 times earnings. You won't find bargain-basement
multiples like that in Silcon Valley. Of course, Imperial PlasTech's success could have something to do with the Toronto-based company's
financial performance-earnings tripled in the span of a year, from $500,000 in 1998 to $1.5 million in 1999. And if you need another reason to
take a look, consider this: Imperial PlasTech is a good hedge. If things ever get ugly in the optics business, it can always fall back on making
pipes for hockey rinks and sewage systems.
JULY 25 GLOBE AND MAIL: "A BUNCH OF THINGS IN THE WORKS"
The Toronto-based company's stock price soared to a 52-week high yesterday on volume of more than two million shares, making it the fourth
heaviest traded equity on the Toronto Stock Exchange. Imperial Plastech makes plastic pipe and conduits for three sectors, including the
red-hot fibre-optic cable market. The company is a major supplier of plastic conduit for 360Networks Inc. in Canada and Williams
Communications Group Inc. in the United States. "As they build their networks, we're essentially growing with them," said Victor D'Souza,
Imperial PlasTech president and chief executive officer. He added that many different sectors, including hydro, railway, and oil and gas
companies, are laying fibre-optic lines now, and that requires "a lot of plastic." The president said the company has "a bunch of things in the
works," but nothing he could talk about yet.
JULY 20, 2000: SECOND QUARTER EARNINGS GROW 600%
Imperial PlasTech has disclosed the results for the three and six months ended May 31, 2000. Sales for the quarter rose to $16.1 million from
$4.9 million the prior year, producing net income of $1.8-million or seven cents per common share compared with $278,000 or two cents last
year. For the six-month period, sales increased to $27.8 million from $6.9 million in fiscal 1999, resulting in net earnings of $2.7 million or 10
cents per common share compared with $282,000 or one cent per common share for the same six-month period last year. The increase in
sales during the period is primarily due to strong North American demand for the company's fibre optic conduit and residential plumbing
products and the contribution of the new facility in Edmonton acquired in August, 1999, supplying the Western Canadian markets.
JUNE 20, 2000: FIBRE OPTIC ORDERS
Imperial PlasTech Inc. (TSE: Symbol IPQ) announced today that it has received new orders from fibre optic network companies in the United
States valued at US $6.8 million for delivery in the current fiscal 2000 year. "These new orders clearly demonstrate that our stated strategy to
grow in the US market is working, building on our already strong presence in Canada," stated Victor D'Souza, President and CEO. "We are
confident that this new business is just the beginning, and that we will continue to expand our share of the important US market."
JUNE 12, 2000: TSE LISTING
Imperial PlasTech Inc. (CDN: Symbol IPLC) announced today that it has received final approval to list its common shares on the Toronto Stock
Exchange ("TSE"). Trading in the Company's shares on the TSE will commence on Tuesday, June 13, 2000 under the symbol IPQ. "Our move
to the TSE, one of the world's premier stock exchanges, is a major development in the life of Imperial PlasTech as a public company," stated
Victor D'Souza, President and CEO. "Not only does this listing reflect our Company's strong performance and financial position, it also gives us
access to a wider base of potential investment capital with which to execute our aggressive growth strategies. Our future appears very bright,
and we are confident in our ability to provide strong returns for our shareholders in the quarters and years ahead."
RELATED NEWS:
JULY 18, 2000: 360 NETWORKS ANNOUNCES $800 MILLION DEEP SEA NETWORK:
In its biggest push yet into the Asian market, 360networks Inc. (Toronto:TSX.TO - news) (NasdaqNM:TSIX - news) said on Tuesday it will invest
$800 million to help build an Asian-Pacific deep sea cable network with Singapore Telecommunications Ltd. (TELE.SI) subsidiary C2C. (It is
not clear if this contract will result in additional business for IPQ although they are a major supplier to 360Networks).
PQ RESEARCH AND RECOMMENDATIONS:
IPQ RESEARCH REPORT
opportunistletter.com
JUNE E-MAIL REPORT FROM WWW.KEYSTOCKS.COM:
Imperial PlasTech Inc. (IPQ:TSE) announces US$6.8 Million in new orders
from US fibre optic network companies, attains listing on the TSE, and
posts excellent continued growth in both revenues and net income over its
first quarter.
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Imperial PlasTech Inc.
Symbol: IPQ:TSE
Current Price: $1.39
52 wk range: $1.60/$0.50
investor site: implas.com
mailto:victor@implas.com
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One of three undervalued companies featured in the April 2000 edition of
the fully independent, The Future Stock Review keystocks.com
Quick Profile:
Established in 1989, Imperial PlasTech Inc. is a rapidly expanding
specialty plastics manufacturer supplying high tensile conduit used in the
installation of fibre-optic cable networks and plastic pipe for the
residential and industrial construction industries. Operating out of three
modern facilities in Peterborough, Ontario and one in Edmonton, Alberta,
the Company's strategy is to continue to grow both internally and through
the acquisition of additional plastics manufacturing businesses. For the
year ended November 30, 1999 sales rose 118% to $26.8 million producing a
184% increase in net income to $1.5 million or $0.06 per common share.
Results for the first quarter ended February 29, 2000. Sales for the
quarter grew to $11.7 million from $2.1 million last year, producing a
significant increase in net earnings to $907,000 or $0.03 per common share
compared to $3,742 or $0.00 per common share in the first quarter last year
Recent News:
June 20, 2000 - Imperial PlasTech Inc. (TSE: Symbol IPQ) announced today
that it has received new orders from fibre optic network companies in the
United States valued at US $6.8 million for delivery in the current fiscal
2000 year. "These new orders clearly demonstrate that our stated strategy
to grow in the US market is working, building on our already strong
presence in Canada," stated Victor D'Souza, President and CEO. "We are
confident that this new business is just the beginning, and that we will
continue to expand our share of the important US market."
June 12, 2000 "Imperial lists its shares on the TSE"
Imperial PlasTech Inc. (CDN: Symbol IPLC) announced today that it has
received final approval to list its common shares on the Toronto Stock
Exchange ("TSE"). Trading in the Company's shares on the TSE will commence
on Tuesday, June 13, 2000 under the symbol IPQ.
"Our move to the TSE, one of the world's premier stock exchanges, is a
major development in the life of Imperial PlasTech as a public company,"
stated Victor D'Souza, President and CEO. "Not only does this listing
reflect our Company's strong performance and financial position, it also
gives us access to a wider base of potential investment capital with which
to execute our aggressive growth strategies. Our future appears very
bright, and we are confident in our ability to provide strong returns for
our shareholders in the quarters and years ahead."
April 14, 2000 "Five Fold increase in revenues and record profit "Imperial
PlasTech Inc. (CDN: Symbol IPLC) today announced results for the first
quarter ended February 29, 2000. Sales for the quarter grew to $11.7
million from $2.1 million last year, producing a significant increase in
net earnings to $907,000 or $0.03 per common share compared to $3,742 or
$0.00 per common share in the first quarter last year.
1st Quarter: 2000; 1999
Revenues: $11,000,000; $2,100,000
Net Income: $907,000; $3,742
EPS: $0.03; $0.00
Comments of Mr. Ryan Irvine, Senior Analyst, from the well respected, The
FutureStock Review keystocks.com
"Indeed, since our original feature IPQ has continued to leverage its newly
completed capacity to take advantage of the burgeoning market for quality
fibre optic conduit. The company's recently announced contracts serve to
confirm the strategic value behind management's conscious efforts to
penetrate the lucrative US market. With its US office as a beachhead,
Imperial PlasTech is well positioned to take advantage of this huge market.
Currently, the weak Canadian Dollar is providing the company with a
competitive price advantage over many of it's US rivals. Indeed, Imperial
PlasTech's recent TSE listing should continue to add credibility within the
financial arena to this solid company, which should bode well for future
growth. When we factor in the company's recent record growth, on a
fundamental basis, Imperial PlasTech continues to offer solid value."
To contact Imperial PlasTech:
Contact Victor D'Souza, President
Phone: Tel.: (416) 932-8674
Email: victor@implas.com
Website: implas.com |
