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Microcap & Penny Stocks : ITEC classic turnaround with Internet twist -- Ignore unavailable to you. Want to Upgrade?

To: Gregg Sterner who wrote (388)	2/16/2000 4:51:00 AM
From: Gaurav Khanna	Read Replies (3) \| Respond to of 431

My 2 cents: Although I have held onto ITEC (formerly PCPI) for 5 years (it was the first stock I ever bought), I have never posted anything on this thread. But I am posting now because I have been following the company closely for many years, and have noticed a lot of things that are different now. Let me see if I can summarize a brief history of the company (and everyone out there -- please correct me if I'm wrong). What is now ITEC started out as a company that would license and sell printer controllers to OEMs and get royalties. A few years ago, they had some very promising contracts with big-time printer companies (I think Cannon was one of them). On paper this was a great business model -- do the design and reap the royalties. In any case, when the Asian financial crises hit, a lot of their contracts got cancelled and/or the OEMs never shipped the product that ITEC had designed / sold the controller for. This is when the company went into a tailspin, and the stock dropped. Like many others, I got totally screwed by a 5-for-1 reverse stock split, which eventually saw my holdings go down to a tenth of their value. It was then that they realized that they couldn't rely on OEMs, and decided to leverage their expertise and build and ship their own printers. The problem was that they had little money and finacing to undertake such a huge operation. Skip to today. ITEC is in no way out of the woods, but here is what they do have: 1) A killer product. Even before the company went nosedown, everyone agreed that they make best-of-breed products. Their products have won awards at trade shows and were very well respected. Basically, anyone in the graphic design business would have heard about their products or seen them in action. 2) Financing -- at least for the short term. 3) A lot of contracts for some hefty revenue (see their press releases from late 1999) and a strong international presence. The point I am trying to make is that if ITEC were to die, it should have died in late 1988 to early 1999. Things were really grim. It really does appear to me that they are getting their house in order and will be able to ship product and realize a great deal of revenue. And one other thing that I always respected about the company. At no time were they ever engaged in hyping their product or their stock, even when it was at its historic lows of about $0.10. They are not a "hey_please_look_at_me.com". Compare that with other companies that issue a press release every time their CEO goes to the restroom, and you'll appreciate the maturity of their management. I can't comment on their recent stock runup and heavy trading volume because I think the stock market is irrational as a rule rather than as an exception. But for more than a year, I have felt that ITECs worst days are behind it, and, regardless of its stock price, it is a very solid company with an enormous growth opportunity. best wishes and good luck gaurav