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Microcap & Penny Stocks : MIS International (NASD/BB: MISM) -- Ignore unavailable to you. Want to Upgrade?

To: StockJock-e who wrote (41)	12/1/1997 3:05:00 AM
From: Thu Ra Tin	Read Replies (1) \| Respond to of 264

Here are the MISM report from GMT newsletter and the letter from Dan Masters (CEO of MISM) to shareholders: ____________________________________________________________________ MIS International MISM: OTCBB NASDAQ This stock was first picked at the 17 cent level on CyberWhispers and then posted it to our Subscribers in our Newsletter. We have just received some VERY exciting information which we have attached below. One important item to look for is the name of Wilfred Shaw, Director ( The Shaw family are...lets say...extremely well off, and one of the richest in the country of Singapore). Now if you were an Investor,ask yourself the question, why would one of the richest families in Singapore be associated with MISM??? Here is the CEO's letter to current shareholders. Dan answers a number of questions which current and potential Shareholders may have on their minds. ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ MIS International Inc. ÿÿÿÿÿÿÿ Shareholder Update: November 1997 Dan Masters President/CEO Dear Fellow Shareholders: 1997 has been a breakout year for MIS. My tenure as your CEO began a little more than one year ago. When I assumed my position difficult decisions and long term objectives were required if MIS was to survive. The last time I wrote to all of you was last spring when we mailed out our audited financial statements andÿ a company update. We will send you quarterly reports beginning in April. Press releasesÿ and this years audit will be mailed when ready. Lets look at the changes in 1997. Wheel to Wheel Our first location opened in Oakville, Ontario on February 1st. Since then we have amassed more than 1400 customers in our database. This exceeds our projections. We had budgeted 1200 customers after the first year. Our average ticket price is growing and the store is profitable. We expect sales ofÿ $40,000 for December. If we achieve those sales the monthly profit should be between $5,000 to $8,000 depending on business mix. This will give us 40% productivity in our tenth month which is excellent for a new store. We are very pleased that Bill Stafford joined our company in September. Bill's background in the automotive industry spans 28 years. He began as a mechanic and has grown to become one of the most distinguished automotive executives in Canada. Bill had his own consulting company where he trained automotive shop owners how to increase sales and profits. Prior to his own business he was the person in charge of the same function with Canadian Tire. It was in his role as consultant to MIS that I formed a deep respect for his abilities and when he accepted my offer to become VP Operations, Wheel to Wheel I was deeply touched. Bill could walk into any major automotive company and they would find a senior position for him. As most of you know we recently announced a major acquisition for Wheel to Wheel. On March 1st we become a national automotive chain overnight. Of course, this was always our plan. We began discussions with this company in the summer and just concluded the terms of the dealÿ recently. We will announce to the public the first business day in January the name and terms of the deal. The delay is at the sellers request. When you learn the details and name of the company you will understand the delay.ÿ This deal also involves a marketing partnership with one ofÿ the world's most dynamic retailers and other exciting news I cannot yet discuss. I almost bust at the seam every time I have to bite my tongue on this deal. 2- What I can tell you is that we are paying far less than what a 20 million dollar company is worth. We are also paying cash.ÿ The company is profitable. Albeit, under-performing at 25% productivity. This means their bays are full 25% of the time. This versus an industry average of 50% to 55% for a mature location (3 years old or more). We believe a first year productivity gain of 100% is realistic and expected. Both MIS and the other company will benefit from this deal. We will rent space and pay a small percentage of sales to them. They will have higher profits from our rent than they currently earn. By the way, our occupancy cost with this deal is 50% to 70% of what we would normally budget. Its an incredible deal. Onward to March. We will also be announcing new staff members shortly. We have hired automotive support specialists who join us in January. Weÿ will announce them to you after they have given notice with their current employers.ÿ Pretzel Twister We currently have 10 franchises and one company storeÿ in five Canadian provinces. I sold the company to MIS in May for 500,000 restricted shares, no cash. The profit last year was $138,000. I could of easily sold the company for upwards of one million dollars by now. My stock at the sale was worth around 12c a share. Our sales were up considerably at the end of the third quarter. MIS required the cash flow and boost my puttingÿ Pretzel Twister in gave us. I first began opening locations across Canada two years ago. I had purchased the master franchise rights for Canada. We learned a few things about the pretzel business. One was that setting up "US style" was a mistake that cost us a few of our first stores.ÿ Things have been extremely bright our second year. One store for example has a sales increase of 400% this year. That's right 400%. We are also buying the very company I purchased the Canadian rights from. This will add a further 25 franchised locations andÿ an expected profit of at least (assuming almost no growth) $300,000 US in 1998. It will give us worldwide expansion potential and the best Pretzel market in the world for our wholesaling. We also get a bona fide address in the United States that will eventually become our head office. I feel we will at least double to 50 US locations in the first year. Lookÿ for another potential Pretzel acquisition next year. We are looking! General Information Our business plan is aggressive. 1000 locations and 25 million per year in revenues within 5 years. In 1998 we should surpass the revenueÿ with our acquisitions even though we will not be near 1000 locations. What this means is that we are redoing our business plan. I hope to fill you in next update. As most of you know, my background is helping franchise companies succeed. From my first small company I franchised 13 years ago. To my consulting company MFC which at its peak charged $5,000 per day to consult to major franchise companies in expansion and growth. I live, eat, and breath franchising. I have no other ambition other than to be the CEO of one of the world's greatest franchise organizations.ÿ That is my reason for being here. It will take time, patience, and most of all hard work and some luck. Iÿ have retired my other franchise investments and am totally devoting my time and energy to MIS. -3- Your Directors are myself and Wilfred Shaw. It was Wilfred who convinced me to become the CEO last year after the original management left to pursue another OTC BB company. At that time this company had only liabilities, zero sales and worthless assets. We worked to complete the audit and move the company to Delaware from British Columbia. This was finished in June. Wilfred is like you, a shareholder. He is the representative of a venture capital company that "inherited" MIS to save it's one million dollar investment. Both of us have mainly restricted shares and are not going anywhere. We have also covered the expenses required to rebuild the company and grow Wheel to Wheel. Almost, $700,000. Many of the staff agreed to defer aÿ part ofÿ their salaryÿ for restricted stock and options. We did this so the company could use it's resources for income producing activities. I also tookÿ restricted stock for moneys I have lent MIS over the last year. I gladly did it. I have faith in our ability to grow this company and the stock should be worth much more to me down the road.ÿ I also feel that as an "investor CEO" my credibility with you the shareholder would increase.ÿ We have built this company to where we are currently at break even before any acquisitions close. Our long term plans include becoming a fully reporting company and moving off of the OTC BB when we qualify. ___________________________________________________________