Posted at Stockhouse from "GRQ MAN"
(Conclusions of On-Site Due Diligence Visit):
On April 19th, my attorney and I spent 8 hours doing on-site due diligence at both NIR's downtown Vancouver office and the new plant
in Langley. Both of us are professionally trained in securities and investments due diligence and research. Here's our conclusions.
Hopefully, this can clear up much of the confusion and sometimes the grumbling heard on this thread. It's important that we all
understand just what is going on so we can make informed decisions about this stock as we go. Whether you are a short term trader or a
longer term investor, good information helps make good decisions.
We spent about 3+ hours with Brad Aelicks, Kevin Crawford (re: CES), Jason Cubitt and Greg Thomas. We then visited the plant and
Sergio Vitomir for a couple hours.
Let's start with Sergio and work backward through the day. Sergio is the "real deal", the "real McCoy", the genuine article. He talks to
paint coatings like Dr. Dolittle talks to animals. He is quickly inventing solution for industry problems never before solved. From the US
Defense Department's hardest problems to your simple household chores, he's already developed a number of MAJOR product solutions
and breakthroughs. I seriously doubt that Brad can get his arms around all Sergio is doing R&D and product development wise, i.e. the
new leather product is worth writting a complete report about. The market for this product is truly large. I can't begin to write something
here that will enable you to put your arms around the products potentials. But you have heard bits and pieces of things posted on this
thread. Simply take them as facts. I assure you, not only is it all real, but there is much more there than you or I currently know.
As for the plant's production capacity, Sergio's response is that he has already trained a handfull of people located in production facilities
across Canada and the US. UNLIMITED production is possible as sales demand. I believe him. Upon meeting him, one quickly comes
to the conclusion that he doesn't lie.
Back to the home office and Brad. He has been portrayed on these threads as everything from a crooked promoter to a visionary. I
suggest if you strike the word "crooked", the rest may be on the money. The Toronto Exchange watches "hot stocks" too closely for him
to be crooked. And with the filing of the 20F for lisitng on the US NASDAQ Bulletin Board, Brad will receive an even higher level of
supervision. By the way, the listing requirements for the Bulletin Board are not the same as for the National Quote System. NIR should
have no problem getting onto the Bulletin Board, so my attoney says.
Unfortunately, Brad needs more talented management people to keep up with SV. We talked about this problem, which he fully
recognizes. He has already tried to recruit his replacement as CEO/COO. He needs an industry expert as a CEO/COO who can build a
production and marketing company. He's aggressively looking. He thought he had the right man, but couldn't convince him to move to
BC from the US. He says he intends to continue to look for talented people.
I suggested looking for a joint venture with another company...one that has what we don't but doesn't have SV...hopefully a company
already in the coatings business. He's also considered and looked for such a relationship. Of course, with ICI & K-G on board, maybe
NIR is about there.
I canNOT confirm the K-G story offered by Al about product in stores soon. From SV, I got that impression, but no confirmation from
Brad.
I suggest that Brad would have confirmed it if product was to flow as soon as May.
Aguasol is still on hold pending an early May court date that will hopefully free up Aquasol to enter into a deal. There's nothing firm at
the moment, but Brad would still like to consider it if the price is right.
With Brad, we covered nearly three dozen issues. Obviously, I can't cover them all on this posting. So let me jump to my personal
conclusions.
I believe Brad when he says that NIR is being contacted by companies with problems from all over the world. NIR has or can develop
solutions for more major stripping and cleaning problems than you wish me to list here; many of which you and I haven't thought of
yet...nor has Brad and Sergio.
The 3rd qtr. just ending in April will come within a nat's eye lash of a breakeven. 4th qtr. sales may be up 2-3 fold. The warm
spring/summer will help since the produce is water based and can be used easily outside...marine, aircraft, bridges, building, railcars, oil
storage tanks, etc.
ICI's plans to roll out the US market are completed; I look for that to start in late May. Maybe K-G will launch retail products in May.
The auto industry is in the final testing of products, i.e. the leather stripper. Etc., etc., etc.
We will see a flow of good news contracts, increased sales to existing cumtomers, rapid additions of new customers, new products, new
applications, and government and municipal approvals. AND THE COMPANY WILL BE PROFITABLE; I suspect in the 4th fiscal qtr.
which is May-July.
If it is product fundamentals for investment purposes that you want to debate, well the debate is over for me. Brad has got them. If it's
expanded management talent, Brad says he is aggressively looking. If it's sales and marketing, Brad has several very large, world class
and successful companies on board selling for NIR right now, even if ICI moves slower than we'd like. If you're a technician and looking
for a short term move, I can't help you...don't know much about charting.
As for CES, the product has fascinating potential, but there would be so much more to learn before guessing about it's future. However,
both Brad and Sergio are excited about the technology; enough so to buy 41% of the company. Maybe we should trust their instincts.
I predicted on a previous post that NIR will be a $5.00 stock by year end. My visit simply reinforced that prediction.
Good luck to all who have been so patient. |
