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


To: Sam Johnson who wrote (184)3/26/1998 11:29:00 PM
From: Ted Kosokowsky  Read Replies (1) | Respond to of 416
 
No news yet, but it is coming.

Here we are, end of the week, close to the end of the month, and down from our recent high close of .20 . I was getting excited! I called the company, wondering as I am sure all of you are, when they would release some news!. They told me the deal is inked and signed, it just needs to go to the exchange for approval. Apparently, they are busy and couldn't get an appointment. This isn't a routine announcement you know. Unfortunately, that probably means next Monday for the release.

Tomorrow could be interesting. A key point here is that the year end for most brokerage houses occurs at this month end, i.e. double witching hour. Hopefully we'll get the people who really want to sell out now, as well as the brokerage cleanup flotsam and jetsam that is spewed out from the yearend/month end. We should be clear sailing after next week. If anyone is interested in picking up more stock, I suggest they keep an eye on it!

I tracked down that earlier statement about freight savings with Ken at Spinner Records. Wow, is he positive. He almost had me running out to put up another bid because it is so cheap at these levels. It was a very good boost for my morale.

He confirmed for me that they get commercial rates on ground transportation at $4.50 per kg. There is 10 CDs per kg, so that is .45 per CD freight cost. This a huge savings for anyone doing business out of Vancouver. That is why, he told me, they already have customers who have committed to place orders once they come on-stream. Now that is a good real confidence boost.

This could be the story (remember JOT, NNS) of the summer, and this story is about to unfold.

Ted



To: Sam Johnson who wrote (184)3/27/1998 3:51:00 AM
From: BlueIce  Read Replies (1) | Respond to of 416
 
Hello Sam. I've seen your posts to this thread in the past and I'm glad to see you're back. I'm happy to hear MKD got a great deal on their CD equipment. Thanks for reporting the info. It sounds like they're doing a good job on the CD plant so far.

I think MKD's quiet promotion is by design. They'll be promoting the company, but it'll come after they've finalized their plans with the VSE. I don't know too much about this, but I'm guessing the VSE needs to know what's going with the listed companies so any sharp movements in price can be explainable.

If you ask IR, they do have a stock, product and company promotion plan that they say will give them a lot of exposure when they're ready, which they expect will be very soon. I don't know the details of the plan, but there should be at least two major components:

1. News releases. Once they have financing and the CD equipment is ordered, I expect they'll announce deals with companies that select MKD to manufacture their CDs. There are more companies interested right now than just Spinner Records. We'll get more info when MKD finalizes the deals. Keep in mind they can reproduce any kind of content such as video game CD-ROMs. They're not just limited to CDs.

2. Stock promotion. This can be stronger than issuing news releases. Lawrie has many connections with stock brokers who are interested in the company. I mentioned once before that I've called IR on a few occasions where he's had a stockbroker over there doing Due Dilligence, including once on a Saturday. Before becoming MKD's IR, Lawrie was a broker himself and he knows a lot of people in the business.

What I like about CD manufacturing is it's not new technology. They got caught on Autonet because it was so new and the product had to mature. For the CD plant, they buy the equipment, turn the machine on, get a basket to catch the CDs flying out the other end and that's all there is to it in a nutshell. That's what Cinram (T.CRW - look at their ten year chart) did out of a garage a decade ago. Since CDs were still new at the time, Cinram probably had to contend with some manufacturing issues that MKD wouldn't have to worry about anymore.

When MKD kicks off their promotion campaign, let's see what they do. If they don't make the grade in terms of news releases, certainly call them up and give them a good kick in the pants.