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Microcap & Penny Stocks : ALANCO ENVIRONMENTAL: ALAN -- Ignore unavailable to you. Want to Upgrade?

To: Schafe who wrote (239)	12/9/1997 12:47:00 PM
From: Schafe	Read Replies (1) \| Respond to of 402

To All: Review of Conference Call: Disclaimer: My note taking is not perfect, nor is my memory. If anyone notes an inaccuracy, please post a correction. Do your own DD. Please pardon speling errors. Ed Maley spoke first: ADMI is profitable. This is the agricultural polution control business. They have a patent on a new filter. Fry Guy is growing nicely. November was the most successful month. WalMart and Salubre continue to grow. There are 38 new distributors in the independent channel. Mann's Theaters is growing weekly. They started with theaters in Denver and are now expanding to theaters in Southern California. They have a marketing plan in place with WalMart which runs thru 1998. WalMart continues to grow systematically. CDSI is starting to take off. They have two firm contracts which will ship after 1/1/98. There are additional products they are working on. The typical customer is a plant with 125 megawats or less. There are 450,000 coal fired boilers in China. They are the only US company which has installed such devices in China. Competition come from other countries including Japan. They expect China business to "explode". "CDSI is the future of ALAN as regards exponential growth." It is more difficult to get a plolution control system approved by US EPA. They are exploring potential in So. America. Chile has high sulphur Coal and in the process of industrial expansion. Eastern Europe is also a possibility. CDSI groth potential is "nothing short of phenomenal". Ken Morris talked next: He isn't being paid . He doesn't work for ALAN or Harbinger. He is not trying to hype the stock. Investors should use thier own judgement. His backgroud: 1979-1992 wiorked on Wall Street. Since then he has been a private consultant. He became involved in ALAN sever months ago at request of Harbinger. He reviewed thousands of pages of documents and conducted 25 interviews with ALAN employees. His observations: 1. ALAN has several viable business opportunities FRY-Guy and CDSI. 2.The company is transitioning away from deficits. They are managing thier costs and controling cash flow. 3. Senior officers appear to be competent. Additional managers have been added and have been given authority to act efficiently and decisively. It is difficult ot analyze an emerging company, howebver ALAN has several advantages over the typical emerging Company. 1. The Company is turning the corner on profitability. Fiscal year 1998 (which ends in June) is the transition year. The company may generate excess cash flow for FY 1998. In 1999 there should be consistent profitability. 2. CDSI gives a second source of growth with good margins and low maintenance costs. Increases in revenue will drop to the bottom line. This is better than typical emerging company which relies on only on business. 3. ALAN has a mature and profitable business in AEMI which provides some positive cash flow. A typical emerging company does not have this advantage. 4. It is unlikely that ALAN will need additional capital. Therefore, no dilution of the current shareholders ALAN has a compelling risk reward profile. Pretax margins are 30%. The revenue assumptions are the difficult thing. China alone has a huge potential for increase of the CDSI business. Any inrosds to other markets is just gravy. Harbinger supports and is delighted with the current managers. Prospects are infinitely improved over the past. Morris did not think it was proper to give revenue or earnings estimates. That should come from the management. Questions and answers: Questions were fielded by Maley, not Morris. 1. There is a calendar year plan for Salubre in addition to Walmart. They have demands on Salubre as far as number of distributers, number of machines placed and $ of food sold on a monthly basis. 2. There are new food products. Maley mentioned a breakfast burrito. 3. CDSI turnaroud (time from order to delivery) depends on size of order. Every job is site specific. A two gun job could be delivered in 45 days. The current 8 gun job will not be shipped until May. 4. There have never been problems getting paid grom China. 5. They are aware on the importance of getting the stock price over $1.00 by February 28th. (It seems there is a problem maintaining the NASDQ listing if they can't get the price up. This is the first I heard of this problem. Does anyone have more info on this issue?) 6. A reverse split is just a rumor. If the company becomnes profitable they would like to repurchase stock to help boost the share price. 7. There was some discussion with a collection problem with Pheonix Medical Management. (Does anyone know the size of this account?) 8. WE WILL BE PROFITABLE THIS QUARTER! (Hurray!!!) Maley would not be more specific. He would not give guidance for the future. There is not enough data to go on. I think I have hit the high points. They think the stock is way undervalued and mentioned a broker in Arizona who thinks the stock is worth at least $2.00 per share. We will see. Lets hope there is some positive reaction. At least Maley and Harbinger are trying. They have plans to contact funds who specialize in snmall cap stocks to get the story out.