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Gold/Mining/Energy : Unitec Int. Controls Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (69)	1/15/1998 3:20:00 AM
From: Link Lady	Respond to of 856

Thanks for all the good advice. You probably read the stocks I'm following. I have had fun with Softquad, learned alot as well. Just started investing last March so stil have alot more to learn. I do have safe stocks that pay divs, but I really like the sound of Unitec, not enough to borrow money, but enough to hold a position. Good Luck to all Wendy

To: Richard Saunders who wrote (69)	1/15/1998 2:12:00 PM
From: John B. Smyth	Read Replies (1) \| Respond to of 856

Thanks for helping me put it into perspective. While I have every confidence in the business, those that are making investments must always look at the "big picture". I attempt to provide a view of the potential, as well as the challenges that we need to overcome. The numbers that are coming through are very heady ($354 Million in RFQs in the past 6 weeks), but the reality is that we are having a hard time finding project financing for $6 Million in hard orders that we have in hand. Why? Because we are a small company still proving our capabilities to our customers and the banks. Even if we are successful in bringing the orders in, we still need to get the orders out to make Unitec a success. There lays a risk that people often forget. There are three legs to the corporate stool that need to be strong: 1. Good Product and Market; 2. Good Management; 3. Adequate Finance We certainly have a good product, but unless we continue to be creative, someone may surpass our technology. That's a risk. We are building a good management team, but we are small and can only grow the team as fast as finances allow. That's a risk. Financing has always been a problem. When we were doing $100K projects the banks were happy, but wouldn't support our move to $250K+ project sizes. After doing a few of those they were happy, but wouldn't move to $500K+ projects. Our first $1M project took me 5 months to arrange financing. Our second ($1.6M) project of that size took only 3 months so the banks were a little more at ease (however, they also took a $600K personal guarranty and put a $100K mortgage on my wife and my property). We now have moved up a notch again to a single $4.2 M project, but the banks are backward looking and say they feel real comfortable to $2 Million but want us to prove ourselves first at the $4M level before considering us. That's another risk. Can the Company finance the growing business? I have another $6.5M RFQ that will be going out in the next few weeks. Will marketing success kill us? That's a risk. While we are a good little business with a tremendous potential, there are so many risks that an investor must consider. The ones I have mentioned are but a few of the big ones. There are a lot of little ones too. After saying all that, I hope those reading this thread don't make an exodus from our stock. I just don't want to see over expectations and people making foolish investments that they cannot afford. I believe we are a good long term "speculative" investment. Weigh all the risks. Invest only that which one can afford to lose.