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Technology Stocks : Thermo Tech Technologies (TTRIF) -- Ignore unavailable to you. Want to Upgrade?

To: Lawrence Burg who wrote (3572)	2/19/1998 4:04:00 PM
From: Casey	Read Replies (2) \| Respond to of 6467

A friend of mine who pointed me toward this stock emailed me the following extract from a report by Jay Taylor issued a few days ago. "Thermo Tech Technologies (NASDAQ - TTRIF -$2.06). This stock remains your editor's favorite moon shot. As we were going to press with this issue, management announced joint venture discussions with U.S. Filter Operating Services, Inc. a subsidiary of U.S. Filter Corporation, a company with in excess of $4 billion in annual revenues, that provides single-source solutions to municipal and industrial customers with a broad range of products and technologies. Mr. Dick Johnson, Project Vice President for U.S. Filter said they have 12 to 15 projects in the northeast right now which need Thermo Master Plants. He said he believes that this partnership arrangement in the company's northeast divisions will be a business model which will ultimately spread across North America. U.S. Filter currently operates approximately 300 plants across the United States. It is my understanding that U.S. Filter would construct and operate Thermo Master plants, and that the joint venture would be a 50/50 net profits arrangement. Greater detail will need to be gained to fully judge the value of this joint venture to Thermo Tech. However, U.S. Filter has resources and systems already in place that should allow it to operate a large number of Thermo Master Plants expected to result from this relationship. Thermo Tech announced that as much as 90% of the equipment used in Thermo Master Plants may already be owned by the company and as such will be available to the joint venture. This should reduce capital costs for the joint venture. With respect to the charges by Trooper Technologies that Thermo Tech is misleading investors with respect to their 1992 Eastern European License Agreement, it is my belief that Trooper, not Thermo Tech is misrepresenting those facts. It was not until late last year, when BDO Dunwoody, refused to provide a positive feasibility study for Trooper, that Trooper began to accuse Thermo Tech of wrongdoing. BDO was unable to verify sufficient supply to feed the proposed plant in part because Trooper reportedly refused to allow BDO to speak to potential suppliers. Another problem according to BDO was that Trooper had not gained required permits at that time and BDO was also concerned about Trooper's ability to fund the project. BDO was also concerned about the ongoing dispute between Trooper and Thermo Tech. I spent time on the telephone with the President of Trooper as well as the President of Thermo Tech Technologies. I also spoke to Thermo Tech's lawyer and I am now convinced that in fact Thermo Tech has a strong argument that supports its contention that it is not obligated to provide information beyond what it has already provided, which are termed in the agreement as "standard certified engineering specifications". This is the information that the company did in fact provide to Trooper as early as 1992. It is your editor's opinion that Trooper, who's management is comprised almost entirely of financial people rather than technical people, are totally dependent on Thermo Tech such that they are trying to force Thermo Tech to provide information to them beyond what is called for in their License Agreement. So far as alleged damages are concerned, it is difficult to see how Trooper can claim damages from a lack of information from Thermo Tech when Trooper has not yet identified a viable project. Meanwhile, Thermo Tech is in fact making progress toward constructing additional facilities in North America even if at times construction has not kept pace with the schedule laid out by management. If there is one thing I would fault Thermo Tech for it would be that they are always very optimistic about construction of plants and the timing of cash flows. I believe this management is extremely excited about the future of this company and it is difficult for them at times to temper their optimism to reflect hitches and glitches inevitably inherent in the real world. But overall, I remain as optimistic as ever with respect to this company's long term prospects and as such they remain my favorite moon shot." Can anyone tell me how this rift developed between Trooper and TT? It seems enormously counterproductive for both companies.