NAPIER MEETING OVER..HERE IS MY POST
******WARNING******THIS POST IS LONG...BUT DIDNT WANT TO MISS ANYTHING!!!******
:o)
Please ignore all spelling mistakes..thankyou as i try to relay this meeting in a written format.
The meeting was held in a small conference room at the Waterfront hotel and commenced at approximately 2:00pm. The room had approximately room for 40 seats...maybe about 25 -35 attended...looked liked some solid individuals were in attendance with some nice suits, a few gold watches, some good questions, some with solid years of age behind them..and of course some wrinkles.
Good Food! Had a wide assortment of sandwiches, desserts, cool crisp beverages...and a selection of Alcohol to wash down the treats and make you enjoy Brad Aelicks presentation.
Brad brought with him a guy named Craig Thomas, a lovely lady named Julie Hunter (I think thats her name), the IR guy Jason Cubitt and some ICI guy named MIKE O'DONAHUE, i think he was marketing manager for ICI canada...not sure but he had a british accent..seemed rather intelligent, dressed casual..seemed like a genuine guy.
They were all dressed relatively professional...but Brad looked a little too un-professional...a nice suit would of added alot to his presentation...plus he could of refrained from using words such as shit, shitty or bullshit...nice to think he could relax with us but he is the chairman of Napier and i was looking for a much more professional manner..but he did offer great food and drinks.
In the front left of the room was a table with a nice sheet placed over top with a couple cans, a one liter container of something, a few metal articles with some paint on it, a piece of plexiglass with BBQ paint sprayed on it along with non-erasable ink written on it and crayon on it..nice table..
In the front right they had a video playing that had a home-made movie of someone with nice camera movements filming a c-150 plane (brad said the largest plane in the world of its kind..i'm not a plane guy) being stripped of paint. The movie had February 25, 1998 on the bottom left..sometime in the morning ..i think 7:25am...this movie kept playing over and over while we watched the presentation. Brad said that this video was shot in Florida on a mexican plane with paint being stripped off...he said that this exact video will be used (hopefully edited a bunch) to use for the future television add campaigns throughout the world or north america! The plane sure PEELED WELL!!! (2 points for that)
He started a long drawn out discussion on what napier was, and how two years ago they started to work on these products to get them to market and build a big lovely company with new innovative products to strip planes etc yadda yadda yadda...he then went on to say that almost 8 months ago the company was dead..but all of sudden products started to work...yadda yadda yadda
He went to discuss the methyline chloride (MC) if thats how you spell it and all its bad traits etc etc...he also mentioned that according to someone (??) or some agency (?) 241 deaths per year are attibuted to the use of MC in some form or another....so we all know it is bad stuff...and gino can post all the verbage on that...because there is a lot of terrible health problems associated with MC.
He then went on to discuss the north american market for aircraft refurbishment...he said the #1 and #2 leaders in the world are called Gage and Torko (i think i spelled them wrong but whatever)....these 2 companies have stated that the north american market is about US$20 million/year...Napier thinks this market is alot larger noting that they now have approx. 31 accounts with the smaller refurbishers and havent even touched Gage/Torko yet...Brad said that he napier thinks that these 2 big companies havent or do not want to bother with the smaller guys...yadda yadda...Brad estimated that the north american market is approximately US$45-50 million/year...ANYWAYS IT IS HUGE...
He went on to discuss their first product SV35E which was test marketed by McDonald Douglas and Boeing and was 100% as fast as any other product out there..so it was good as any other in time...but it is 100% environmentally friendly, etc etc
He said that "...he has even used it to remove paint off his kids face when they have played with paint and got it on their faces..."...way to go brad...nice gesture of approval
when he started his presentation at 2:00 pm he applyed some stuff to a paint surface and we are now at 2:15 and he passed it around and WOW it was off...ok we knew it would ocme off..but nice demo
Brad then decide to discuss the news release a bit
i wrote the words down he used...so i dont get thought as a promoter...brads words were approximately
..."The potential of napiers products on a global market perspective is ASTRONOMICAL."
...i guess this means brad likes the future...made me excited for a second...could of been the rum/coke though..:-)
He also said that "...this is the first truely innovative product in this paint removing industry in over 100yrs..."
"...and it should get sweeping acceptance in the industry..."
he then went on to discuss a company W.M. Barr who leads the retail industry and which he talked to the head honcho and was informed that the U.S.A. industry has a $US65 million/year and all of them stayed in the usa because their products were not INNOVATIVE unlike napiers which brad sasid has a global opportunity
he said that with Napiers products offer the individuals doing home renovations the opportunity to complete home renovations to their furniture/house/stuff do to the fact that you apply the product, go watch a sitcom and come and wash it off..unlike the old thoery that alot of scrapping, sandblasting etc was needed to refinish home furnishings...actual made me want to go home and refinish my old coffee table...but then again..i can be lazy
He now started to say how Napier has 4 SIGNIFICANT products and that in the aircraft refurbishment industry they have 61 customer accounts through 1 sales agent..he also said that there are only 350 accounts out there to get...so not bad...i give brad 1 point for that and the sales guy 50 points..
The SV35OA is the spray can stuff and is on the alkaline side of the PH scale at between 8-9..not bad for a remover eh!
he applyed it on a ruler size piece of street sign with paint on it..it removed the paint to the point of rubbing off in about a minute..that was impressive...YEAH
he said they have various size of product available such as 340gm, 1 liter, 5 liter, 20 liter and 205 liter containers for the industrial kind...they also have this spray can application where the prurchaser could buy bulk and then fill up containers...attach to sprater and spray, then refill later,...nice little device..seen it before...but nice for Napier...
A gentleman asked what the can will sell for and Brad said that it will be at a competative price...then the guy said i dont have a clue what that is...so brad stepped back and said that it will retail in the stores for $9.10 (US$5-6) and it costs only $1.40 to Napier to make it...basically he said that the mark up from there facility to store is 266%...and in that the middle man has a 60% markup..anyways a nice margin...yadda yadda yadda
He mentioned that their product is $0.25 / gallon more expensive than MC but is 60% more efficient than anything on the market
and to treat 1 barrel of MC costs $800
and to treat 1 barrel of SV costs $200
that is a $600 saving per barrel or nearly the cost of the barrel
so it is quite beneficial to use the SV product
each barrel costs US$962 or Cdn$1350 roughly..the plant has a capacity of 500 barrels per month and each extra production facility (high speed disperser???) costs only $15000..so really cheap to get others going to increase capacity
Brad said that in the first quarter of this year (August-October 1998) he expects that Napier will be marketed and also globally launched in the australasia sector...right now they ship products to three areas for distribution or storage which are located in dallas/S.Carolina/California and that it is cheaper to ship to australia than to ship to dallas so in regards to having production facilities all over the world would not likely happen...
the plexiplus thing worked great on the plexiglass with the bbq paint/non-removable pen ink/crayons ..came off in less tha 2-3minutes...he said that they currently sell to cities to remove some graffitti and to GM place (hockey rink in vancouver) to remove hockey puck stains on the glass..he said this isnt a company maker product but it is amazing stuff (clear spray stuff) and will have a good market presence and with ici/KG packaging helping it will be a great product...
A question was asked by a guy across the room about AQUASOL...brad kind of got hesitant like he was hoping to have this meeting without any discussion of it because he already closed his presentation by now and mentioned nothing of it...strange but whatever..so a good question...brad hesitated and his words were something like...."..Aquasol is kinda on hold right now" and went on to say that there was a technical problem one guy has with the deal and has filed a green-something-or-other suit..anyways it is on hold becasue this guy thinks that it should be worth much more than it is...whatever..it will happen soon and brad was confident that that relationship should work out in the short time
one guy asked how much brad and his CFO make and brad stood back and said that his takehome is $3200/month and his cfo makes about $80,000 /year
he went to say how the previous peoples were sucking th company for $325,00 per year 2 years ago and had a debt of $900,000..whatever
he mentioned something about chris harris, the international marketing manager for ICI sees promise and is excited or something
one good question was about projections in regards to sales and stuff
brad took this question and went on about he keeps getting this question but cannot answer it until the global marketing strategy is out and then he will have numbers.....never really answered the question..would make a good politician in how he went on a roundabout way to answer the quaestion
he agreed that their is something like 26-27 million oustanding and 33 million fully diluted....
he said there is a lot of small paper out there at 10-12 cents and agrees he owns most of if...he said that he and his insiders control approximately 13-14 million shares and one guy in the audience said so about 50% and brad said close but definatley not 50%...somewhere below that
they are still working on the automotive industry but are currenlty going through small problem with the clearcoat on the vehicles...but phone Jason for that...i lost him in that...i think i was focosed on the share thing/aquasol thing still...anyways....
someone asked about when market will see something for sales/stuff again..already asked but good question....he said that (in a round about way again) that it will have to get the global plan before he will say numbers but did say that he feels napier will probably get 15% of the market within 1 year and within two years will be the industry leader.....
he said that at june 30,1998 they had $1.85 million in treasury and July was a good black month for production and he feels revenue for July was probably 125,000 but dont quote me on that...but he said things are starting to role...we will see really quickly now...sounded promotional but nicely said
he said the company's overall gross margin for all products is about 50%...that is pretty good
one guy asked about financings in the near future and brad said that he sees no forseeable financings in the near future...but he did say that a few people have come to the table thinking they had something to offer Napier in compatability and i took it like we never know what might happen...he said that if the right MERGER or ACQUISITION comes to the table then yes Napier will look for financing to get the job done be it acquisition or merger or whatever..promotional again...but nice to hear......
one guy asked the ICI guy to speak and the ICI guy spoke...he didnt say much but basically he said that he is excited, the product is definately is innovative..his words used something like going from the mainframes to the pc market...same innovative manner and market potential..i took it like we are going into a new era (mainframe to laptop or palmtop)...sounds exciting...have to have a rum/coke at Joe Fortes tonight....not trying to promote them..but good oysters there...mmmm
anyways
i took the ICI guy thing well and decided that it looked positive
Brad mentioned something about the 2 million units at 2.25 which was attempted to be placed by a institution which promised good european exposure and due to some certain items this house wanted with the placement Brad cut the deal off and only about $1,000,000 was completed...and the rest were cancelled...way to go brad...get rid of the dilution...yup yup
Sergio is on a three year contract with only 1.5 years left...he also has a massive option aggreement to keep him happy and he doesnt runaway and leave us...he also has an agreement with Napier , like a royalty but only pays him when he is a employee of Napier...if he stays he continues to get a nice royalty from the sales on a percentage basis and if he leaves the royalty is gone....so i think he would logically stay..unless he gets too rich..poor guy!! tsk tsk
SUMMARY
News coming out i suspect in the next 30-45 days discussing market potential, market distribution strategies and sales projections..along with other possible contracts..etc etc
Brad did mention when the questioned was raised about market reaction in regards to news release that the market is terrible as it is, the prospect of this news has been anticipated since april/may...yup yup
We will not really anticipate what this company can really do until these projections come out..
From the presentation and words form the ICI guy..I feel (but who am i) that
the products are incredible;
the strategy is laid out to perform in the very short term;
the global opportunity is fantastic;
the pricing competitiveness is also good;
the partners are global, well respected and powerful!;
the test trials have proven themselves;
the purchase orders are going to come in soon and have already started;
they have a cool spray can jobby;
THEY HAVE SERGIO!!!..this guy is the man!!!
I think that until the next news, which i feel will be very substantial, comes out..this stock will be played by shorters and us long term buyers..
Could represent an accumulate period for us buyers and a up and down shorting opportunity for you xray and his followers...
But when that next news comes out.......SLAM...for get the thermonucleur stuff....JUST SLAM US...hit us hard...and Brad if you are reading this...dont leak it, dont tell us, dont hint to us, dont say a damn thing...surprise the market...and Jason if you are reading this...dont tell us 1 week, 2 weeks, 3 weeks...use this sentence.......
"Currently Napier is under negotiations with ICI and KG Packaging to develop a Global Marketing/Pricing/Penetration Strategy to ensure that the Innovative Products that Napier International Technologies Inc. has patented will be fully established as a market leader in the Paint Stripping Industry.
We look forward to Napiers product development and to future sales revenue, corporate profits, generation earnings and the maximization of shareholder wealth over both the short and long term.
News of the aforementioned global marketing will be available as soon as available and not before. We look forward to the growth of Napier into an international corporate entity and require your patience and understanding to help the management of Napier to develop the company into an environmental conscious, efficient, profitable, global and competitive leader in the paint stripping industry.
Any target projections?....Anyone???
I dont have a clue,,,and if anyone here does,,,i wont belive you....we will not know until they SLAM US WITH THE NEXT NEWS...no run up in share price..no lead in..no insider tips,...no offer of assistance...unless you give all the options to me (ha ha)
Best of luck Brad/Jason/ICI...do it right ...you have one chance
everyone here...i feel sorry that you have read this far...sorry for the long post...
if i have missed anything..i apologize..if i said something wrong...I hope Jason gets his butt in here and tells me..i will be the first to fix my words...if anybody has information for me...either Private Message me or out in the open..any source will be to the grave...so send me a PM...
Regards
Alastair
Lets make this work...this thing is Teamwork....not individual crap...i call it we not i |
