Otatco, Inc. (OTI: Alberta) Message Board

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Gold/Mining/Energy : Otatco, Inc. (OTI: Alberta)

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To: Jason Krueger who wrote (43)	4/7/1998 4:14:00 PM
From: Richard Saunders	Read Replies (2) of 54

Jason/ I finally made contact with co. and obtained some perspective. Announced acquisition in the process of closing and it's hoped that it will occur before the end of the month. There are 5 separate agreements by the sound of things........... it also sounded as if it'll be a qtr. or 2 yet before profitability is obtained. The revenue numbers for '97 sound as though they'll be within the $7 - $8mil range (I'm hunching closer to $7mil) and, assuming acquisition closes, will grow in fiscal '98 by approx. 100%. The current softness in pricing sounds as though it may be somewhat related to recent bitterness/departures at the mgmt. level - it would appear differing opinions resulted in the technology/research-development side of the company being downsized and the oilfield service emphasis gaining prominance. (Debate was "is this company a technology co. that does oilfield services or is this company an oilfield servicing situation that uses technolgy".....) The president/ chief operating officer has departed (came from software development background) and some of the staff from that side are also no longer working. Story spun is that there's up to 2mil shares in primarily Dominion Securities accounts that are looking for new homes............... until that stock finds new owners the current pricing will remain soft. Personally will be interested to see annual and first qtr. numbers however I suspect it'll likely be the 2, 3 & 4th qtr. which will give a decent idea whether today's stock pricing is warranted. Bottomline - still holding a position and tempted to nibble somemore............ high risk, no guarantees.

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