Markatech - MKD (VSE) Message Board

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Gold/Mining/Energy : Markatech - MKD (VSE)

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To: Ted Kosokowsky who wrote (206)	4/13/1998 12:05:00 AM
From: BlueIce	Read Replies (1) of 416

Part 2 of 2: Financing MKD expects to have all the money from the financing in about six weeks. This brings us to mid-May or so. They're still aiming to have the CD plant ready for production sometime in June. I'd very much like to see that happen, but I'll give them until July before whining. The delay of getting their plan approved by the VSE may have pushed their schedule back. When the CD plant opens, it'll open very loudly - literally. They plan to celebrate the opening with a party featuring live musicians from the Spinner label. See the message on Stock and Company Promotions for more details. Earnings Potential Ted has an excellent earnings model of what we can expect from the CD plant. I like to see the numbers laid out so we can justify the forecasts. Ted's model covers scenarios from the plant being at 25% capacity to 100% capacity. Even at 25% capacity, the CD plant looks very profitable. The hard costs per CD is $0.18. The other overhead costs such as labour is about $0.20 per CD. Hopefully we can break down these magic numbers so we know what goes into the $0.18 and $0.20. I don't have details of the selling price per CD, but Ted reports $1.15 to $1.30 or so. MKD plans to have two technicians per shift. Stock and Company Promotions There are a lot of plans for stock and company promotion. They're starting some promotions now, but the big items come after the stock has consolidated. That's when stockbrokers will move in and start promoting the company. MKD also plans to use Cyclone Financial (www.wingold.com) and Venture Capitalists to help with stock promotion. I haven't looked into either company yet. I assume Cyclone does Internet promotion and Venture Capitalists is an investment newsletter. I'm interested in finding out how many subscribers the two companies have. When the plant has its grand opening, MKD and Spinner expect a lot of media attention such as newspapers. It's not just MKD looking for grand opening coverage, but also Spinner and their affiliate, Compact Disc, Inc. Opening a CD plant in Western Canada is major news and they expect the music industry in that area will know about it. Vancouver and nearby Seattle is home to a large number of music artists ranging from bar bands to international stars. There are numerous recording studios. Vancouver is also a hotbed for software companies and we know about Seattle, where Microsoft and numerous smaller companies are located. There is all sorts of needs for economical CD reproduction. It's up to MKD's marketing department to make themselves known in that area.

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