To: C.K. Houston who wrote (201 ) 11/26/1997 10:26:00 AM From: C.K. Houston Respond to of 411
JOHN JENKINS (CEO) & HIS VISION ======================================================= Karl Drobnic, Publisher VENTURE RETURNS Newsletter, Nov 25 1997 The late Alan Watts was a popular speaker at business seminars. He liked to say that what nature does once, it does again...and again... Think of super-conductors. They were a holy grail of science for years. Then there was one. And then there were many. Jenkins has proven his ability to buy companies on a shoestring. Now he's distracted by this Y2K business. When he gets back to buying companies again, he's going to have lots of cash, and he's going to have lots inside knowledge, and he's going to have lots of very senior contacts among the industrial giants. He's got his eye squarely on using Y2K to grow TPRO into a giant. I've been investing in Jenkins from the beginning. He's going to buy lots more companies. He'll get back to doing what he does best by next year. I saw Jenkins present at a roadshow in April, 1996. I was impressed by clarity. He knew where the company was, where he wanted it to go, and how he was going to get there. I then met personally with him that summer, and was impressed by the clarity of his thinking and incisiveness of his comments. So I started investing even though the company was being forced into highly dilutive moves to make the acquisitions. Jenkins outlined, at my 1996 meeting with him, how he expected the next few quarters to unfurl. They were right on track. Then the Y2K database dropped into his lap, and I've been affirmed again and again in my conviction that Jenkins has the drive, the vision, and the boldness to make this happen - it was call "reafication" by the Romans. It means making ideas into reality. Recalling my meeting with Jenkins in 1996: We were discussing the acquisition strategy. I brought up Pacific Scientific and "Solium". "They were researching one thing, and something entirely unexpected popped up out of their research," I said. "TPRO is acquiring a lot of very smart people who everyday go to work and wrestle with cutting edge industrial problems. One day, one of your very smart engineers is going to solve a very big problem. You're a brainpower company immersed in practical applications - stuff people pay for." The rest, as they say, is about to become history. In 1996, we didn't know it would be the Y2K database, but it was a pretty decent bet that something would turn up from the synergies that Jenkins was creating. New acquisitions are likely to be accretive - they will enhance shareholder value from the beginning. Take a look at AgriBioTech (ABTX) for a somewhat parallel acquisition path. ABTX is a few months ahead of TPRO in its acquisitions. In a couple years, ABTX has grown from $29,000 in revenues to a current run rate of $280 million, and has started to turn a profit. It is also in a "mom and pop" sector and pretty much has captured a niche. ABTX also has a CEO who knows what's what in his specialty. TPRO has been blessed with a cash cow. Jenkins has shown a firm grasp of leverage. I expect a lot. ABTX's CEO also surrounded himself with senior mngmnt. that knows the rules. There are lots of parallels between the two companies. It is do-able. Original '96 TPRO Story: tomorrowcast.com Karl Drobnic VENTURE RETURNS tomorrowcast.com