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Gold/Mining/Energy : Thermal Control Technologies Corp TCT (was Redux Energy) -- Ignore unavailable to you. Want to Upgrade?

To: John Gorham who wrote (967)	9/8/1999 10:29:00 AM
From: Saverio	Respond to of 1208

Comments (Sept. 7) from Buy Low Sell High's Grant Robertson in answer to a subscriber's question: "We have confirmed some internal problems at TCT related to disagreements between management in Prescott and management in Canada. It has long been believed by analysts, including myself, that there was little need for the overhead of a Canadian office. I have heard recent discussions regarding the closing of the Calgary office which really does not add value. Rumours abound in respect of the financial results, although no clear concensus exists. A loss related to the company's remaining oil & gas holdings or related to the plant expansion certainly are not out of the realm of possibility, especialy given that the company changed auditors after the year-end. A loss from operations appears much less likely, but possible (if has been 9 months since the last reported quarter). Failure to file the financial statements by the extended deadline would not result in an immediate delisting, but rather a trading suspension or temporary cease trade order until the financials were filed. Based on the information currently available, bankruptcy certainly does not appear likely unless operating profits have deteriorated dramatically since the last reporting period. As I have indicated many times, I remain concerned about TCT's working capital problem and the reality that it will have to deal with considerable expiring debentures a couple of years from now. I understand that Cameron Schuler has been working on some financing initiatives but rumours suggest that potential financiers are reluctant to move ahead with the current management group in place. Perhaps what is needed is a major management shake-up, followed by a financing to fix the working capital problem and a extensive cost-reduction program to reduce overhead (close Canadian office for example - maintain a smaller sales office in Canada). TCT has a great number of loyal shareholders who have been with the company since the technology was first acquired by Redux Energy several years ago. While they are very dissapointed with the results of the company's expansion initiative, they are unlikely to let TCT fall apart without a fight. The numbers will tell the story and will set the course for the future. I will have an update one the results are out or if I hear anything in the interim. Grant"