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Gold/Mining/Energy : Markatech - MKD (VSE) -- Ignore unavailable to you. Want to Upgrade?

To: SirVinny who wrote (154)	2/8/1998 5:33:00 PM
From: Ted Kosokowsky	Read Replies (1) \| Respond to of 416

Douglas Maclean is a conservative man, and is playing this deal close to his chest. He released the news on Friday afternoon when it attracts the least attention, and confirms the CD deal but doesn't provide any insight to what we can expect for profitability. I see two factors here. 1. Spinner Records, the partner and customer of the deal has not negotiated the number of shares Spinner will get as part of the deal. That is one of the things Cameron is doing. Participation will be somewhat determined by the share price. Low share price, Spinner gets more shares. Markatech, in good faith, will not pump the share price until the Spinner shares are determined and they get positioned. We will have minimum disclosure as a result. Once the number of shares are determined, Spinner will buy their additional shares and promote it to their associates. 2. This is a almost a done deal, they expect to start production in June, and there is more important matters than promoting share price. Insiders will wait for the financial statements to fairly valuate the company before they sell any shares, if they sell at all. So why am I doing this promotion? Because that is what we do on this forum, exchange information on undervalued situations, to level the playing field for the little guys against the insiders. Fair speculative valuation at this time would be more like $.30 not $.10 so I urge everyone to call Lawrence at 1-800-338-7844 and ask specific questions for your DD. He will not guess at a share price but if you ask him he will tell you: 1. Expected production per day on one shift. 2. Wholesale cost they will receive per CD. 3. Expected cost of production after raw materials, direct labor and overhead. 4. Potential for 3 shift operation and resulting production increase. 5. Forecast market demand and potential for added machines. 6. When they plan to start production. Lawrence is too skilled to let you pin him down and forecast a share price, but do the math yourself and apply industry standard price/earnings ratios to estimate the eventual share price. Do the work now, don't wait to be spoon fed. You may have time before any announcement makes a huge increase in share price, but June is coming soon, and the share price will likely move into the $.30 range by then, and you will have missed the early triple. Once again, my own (but calculated) opinion. Ted