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Technology Stocks : International HiTech Industries Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Raja who wrote (5)	6/20/2000 1:23:00 PM
From: Raja	Read Replies (1) \| Respond to of 11

I spent about 5 hours with IHI on 14th June. Here I just want to relate to fellow investors some of what I noted or learnt.... I'm going to write just from the top of my head, in no particular order,,, points as I remember them. Visited their office (in an old character heritage building) very nice, but don't know whether it's owned or rented. Met with Mr. Bruce Davis the new IR officer since a month (though he has known about the company and Roger for last few years). However, I spent most of my time discussing, touring the Delta factory site, show home etc.. with Mr. Carl-David Andersson who works on a consultancy basis and is responsible for marketing since last 5 years or so ----- and as he has more in depth and background knowledge he was asked to show me around. Mr. Andersson formerly in Sweden, has been in the prefab homes and allied industry business for at least 30 years (and in Canada since 1978). THE REASON THEY HAD A LOT OF TIME FOR ME I GUESS IS BECAUSE THERE IS NOT MUCH TO DO FOR THEM UNTIL THE ROBOTICS ARRIVE AND THEY CAN START PRODUCTION. (estimated arrival time for robotics end September.) Orders, demand, price, quality are not the problem issue so I was told, they've got plenty of orders for buildings, hotels, etc.. the only problem issue is the 'delivery'! They won't be ready to deliver the 'goods' until after robotics arrive. So in this respect, at the present time they don't think it is wise to promote IHI to fund managers, etc.., or to try and book more orders, or to take on any more j.v. partners. I was told they are not taking on any more j.v. partners as obviously they have got to first satisfy the 23 current interim licence agreements that call for the establishment of up to 30 HI-TECH factories, who have been patiently waiting. Further cash payments are to be made to IHI by a number of the partners upon the completion of the Delta factory site..... I guess this means cash inflow around end of the year by which time production should be underway!? IHI's target is to produce material for the construction of jv partner factories at a rate of 2 factories every couple of months........ in addition of course they will be producing at the same time for other orders for buildings..... at least that's my understanding anyway! They have some good marketing ideas in which they might later begin to offer a 'complete one-stop-shop' type of package for would-be buyers of houses, etc.. The service may include complete installations of kitchens, bathrooms, flooring, electricals, etc.. IHI will get a commission from the manufacturers who supply and fit these products... and all this extra income could significantly add to the bottom line. ----- That's the idea anyway.., we shall see? Apparently they say they have NO COMPETITORS, at least no one they know of is making such technological prefabricated panels., easily designed and assembled. They will be updating their website on a more 'regular' basis from end June or July onwards, so we can see (weekly or bi-weekly) the day to day developments, so to speak. At the factory exterior they are preparing to install the 'batching plant' [80ft high, 180ft wide) by end of this month....... hopefully the rain will not delay this! Interior wise... painters and decorators are completing the ceramic and granite/marble floorings to the offices and other internal rooms. Huge generator and all kinds of other electrical stuff and equipment is ready working in place. I DO NOT THINK ROGER RACHED WOULD HAVE GONE TO THIS LENGTH (in time and money) IF HE WERE NOT VERY CONFIDENT OF HIS CHANCES OF SUCCESS TO PULL THIS THROUGH. Obviously there are some people who seem to have a lot of faith in IHI as can be seen from the successful private placement of CDN$5M raised in 1999 and another couple of million dollars raised so far this year. I was told the Rached family have themselves invested their private money (around CDN$20M) so far. I agree, the element of high risk is surely still there if investing in this company.....because historically they have failed to deliver on several occasions and investors lost faith. There is every possibility that anything can go wrong from now and September/October 2000. If the robotics do not arrive on schedule, production will be delayed and the share price will get another hammering in my opinion. If production gets on the way in time, and if the promised monies from jv partners soon start rolling in, and if institutions start taking notice and promoting this company to their clients....when everybody CAN ACTUALLY SEE THINGS HAPPENING then I'm sure the share price will respond accordingly. IMHO even if you just want to gamble, and have no faith in the company or its product, then you can surely get a good short-term return on your investment from the current price levels CDN 0.85 / US$0.55..))))). THE BEST WAY TO DECIDE ABOUT IHI IS GO AND SEE FOR YOURSELVES AND DRAW YOUR OWN CONCLUSIONS. I FELT MY INVESTMENT WAS SAFE... FOR THE TIME BEING. RAJA ******