Article in the Daily News, (Los Angeles] Feb. 6 1998:
<BAT reaches volume record
Engine report fuels wild ride
by Ben Sullivan
Daily News Staff Writer
Burbank---BAT International gave investors a run for their money
Thursday as the company's share price soared and swooped on
massive volume before closing close to its original price.
BAT ended the day a $1.75, down $.31 with a record 24.3
million shares trading hands. That was more volume than that of
Amgen Inc., Microsoft Corp. and AT&T combined.
BAT peaked Thursday at $3.25, fell to $.95 within 85 minutes
and then shot back to the $2 range.
The tiny automotive-technology firm has seen its value
increase nearly 2200 percent since Jan. 1, when it was
trading at $.08 a share, on company reports that it has developed
an automobile engine that can get more than 100 mile per
gallon.
The company is scheduled to publicly test the technology
Tuesday at a racetrack in Fontana. A previous test proved
inconclusive when the test car developed an oil leak that the
company said was unrelated to the technology being demonstrated.
Auto industry representative say that they are dubious of BAT's
claims.
"We're skeptical," Chrysler Corp. spokesman Scott Fosgard
told Bloomberg News on Thursday. "It just doesn't add up. From
our initial analysis, we don't see results that would support their
claims."
The Burbank- based company, which is five years old, has never
filed a financial report with the Securities and Exchange Commission.
President Joseph LaStella, 58, said its most recent financial statement,
which wasn't immediately available for review, was issued last
year, covering 1996, and reflects a net worth of about $5 million.
LaStella said 1997 revenue was "a few hundred thousand dollars"
but predicted that it's new technology will boost that.
"I think the technology is worth billions," said LaStella in an
interview with Bloomberg News.>
My friend, who is better at getting info from people than I am, called
up the Fontana track today, and asked if any representatives of
the big 3 automakers were out there for the private test. He talked
to Kurt and that individual said that the manufacturer's reps would
be there Tuesday. He said that the people from BAT were all very
happy with the results of their test as they loaded the vehicle back onto the truck. He also learned at the test vehicle only has a three
gallon tank. At 100 mpg, that should be plenty of capacity. We
shall see what transpires Tuesday.
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