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Gold/Mining/Energy : Image Processing Systems (IPV-TSE) -- Ignore unavailable to you. Want to Upgrade?

To: John Wright who wrote (399)	8/29/1998 1:05:00 AM
From: David Robinson	Read Replies (2) \| Respond to of 658

Well guys its not as though we weren't warned. I'm sure I saw a reference to "inventory adjustments" at Tisma in at least one of the quarterly earnings news releases, and then Peter Vanderlee (reply # 293) theorized 9 days before the year end earnings release that a major writedown might be coming. Wonder what he did with his shares? Still holding mine. Thankfully its only a small part of my portfolio (and getting smaller every day!) David

To: John Wright who wrote (399)	8/29/1998 3:38:00 PM
From: John Wright	Read Replies (1) \| Respond to of 658

Luc, an inventory adjustment as it relates to IPV's case means the company has been understating its cost of goods sold thereby overstating gross margins and hence profitability. Also, I'm still working through their year-end financials but here's a bit of an interesting tidbit: while Mr Graham was taking home $300k in compensation last year a "party related to him" (brother? sister, wife....???) also did $600k in Personnel Services for IPV in the last 2 years as well. The annual report also goes on to say these related party transactions were "effected at or below mkt rates" (how convenient! A few thoughts on this: 1) most company's using recruiting agencies use more than one, hopefully IPV has adopted the same srategy and is not concentrating the business into Mr. Graham's related company, 2) so-called "mkt. rates" in the head hunter or recruiting industry vary widely. What one firm may charge $10k for a placement, another may charge significantly less, This isn't a perfectly competetive industry. 3) if the company has spent $600k over 2 years recruiting how much would it have cost to set-up and internal HR dept. and let the companies technical managers do the screening? 4) a definite conflict of interest exists between IPV and Mr. Graham's related personnel agency i.e. the more IPV hires the more the related company profits. I'd hate to think that in the recently announced cost reduction program that any of the effected(or downsized) personnel happened to have been hired through Mr. Graham's related Personnel Agency. Final thoughts, this company is cash poor and should not be given another dime until Mr. Graham answers some hard questions or is made accountable for the company's disasterous performance. More to follow. Thoughts, opinions, anyone? John John P.S. Luc, try and stay objective in your criticism and stay away from personal attacks. Taking personal shots at Mr.Graham's weight.... and is a bit unprofessional. Lets keep it clean.