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

To: Link Lady who wrote (469)	6/23/1998 3:11:00 AM
From: Ontopequity	Respond to of 856

Thanks for the update on Glentel Wendy. Indeed their stock holdings alone are worth $4.8 Million. With a maket cap of aproximately $7 million, the value of their operations is now a mere 2.2 million on increasing revenue and an improving balance sheet. Looks like a safe bet to me. Why is their stock price going down? I don't know. I do know however, that the Skidmore family owns 60% which leaves a pretty thin float. The Skidmore's are cashed pretty well with a 1/2 Billion dollar glass empire. I have been informed that they are considering buying back the balance of their company to take it private unless they see the need to raise additional financing for a large aquisition. They recently bought the "Beeper People" paging company which paid for itself in one year. These people don't need to go begging to the public markets for money, and I was told that they really could care less what their stock trades at. They have no investor relations staff and to my knowlege, continue to purchase their own stock. I suspect they want the stock to slide further and will take it private, but this is only speculation. It was explained to me as an option they are considering unless they see the need to raise capital for something big. ( It costs money and paperwork hassle to remain public and I can't see them raising financing at these prices. Hence my assumption. What do you think will happen if they take it private? What will the shareholders be offered to tender their shares? Any suggestions anyone? Unitec, like most junior start ups, must rely on the market for financing as it has done in the past. It becomes imperative that controls are in place to ensure a healthy stock price and an Investor awareness program.Otherwise the share structure becomes too diluted with cheap penny stock financing and the company is caught with little capital and little resources.This happened on a deal that I bought at $ .21 last year. The President was a brilliant technological mind but came to admit his lack of financial expertise and market influence. A former board member of Unitec stepped in as chairman of the board, positioned his people in at a $ .25 financing, and the stock went emediately to $ .85 where it remains. The next financing was done at $ .70 which I participated in. This fellow is now president and CEO, allowing the former founding president to concentrate on the technology, which is what he does best .A strong team of 20 year veteran high tech management and financiers is in place. A deal with BC tel Mobility has been announced and the next financing will certainly not be done at a mere $ .70! It is better to position the right people with the right amount of expertise into your company because they will have the right incentive to make things happen. Distant, uninvolved board members, and salaried employees with a few overpriced stock options or escrowed shares, don't usually have the ability turn the world upside down. The top guns need to be well postioned, and given some real authority to do what needs to be done.It will be interesting to see how Unitec performs in the next couple of years.