Reader Interaction - 25 Sep 2006

Missing the Milestones Covered – while focusing on the Day-to-Day Stock Price.




25 September 2006
EB Reader & PK Correspondence


PK,

Our stock is taking a beating. What are your thoughts?



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Hello EB Reader,

Well, I'll say what I believe--that this is a temporary matter, good only if you day traded (which I don't), but that is not what you are asking for or about -- so here is what I think...

This weekend, I forwarded a message to Integral's leadership through IR.

In short I detailed my thoughts on the cause/effect and a ready-made solution.

The extremely short version:

The “A” cause: the company's IR. They may not be able to disclose all that everyone desires, and it is human nature to give more than one should especially when interacting over the phone. This can lead some to walking away from the message of the day/month, etc. with false expectations or worse hearing something that was not said, or even implied.

The “B” cause: missed opportunities to get the right message to the investors or to explain the immediate and long reaching goals. In this I mean instances such as not highlighting the QuanStar conclusion or worse, not explaining to the shareholders that they brought the company to the boardrooms of a number of leader military industrial corps, an Integral walked away impressing them all -- or that this was not a break but the conclusion to this phase of their established business relationship, and that both companies are still friendly and if the need arises in the near or distant future QuanStar will readily make its services available to Integral to further both of their interests.

This could have been done for the confusing $1 licensing fees extracted from both Heatron and Jasper too -- a quick explanation to the smartness of this deal would have garnered the company investor buy-in to their long-range vision. Instead, they left people to wonder, and wonder--with the addition of negative prompting from some with an agenda out there on the some message boards. That, and the lack of visible forward progress and supporting words, may have helped in causing the effect of fear, and panic in those not yet able to see the true potential and encompassing capabilities surrounding the product IP, and this as an investment.

The solution I recommended was to better coordinate their messages to reach their target audience -- not in a press release, but better, by using their "mass email mailing list" to target, inform and include (or at least enlighten) shareholders in the company's decision making process. Treat their investors like the esteemed shareholders they are, and let them know that their investment and trust are appreciated, while at the same time, giving them just that bit more than which they would be able to read in a common press release.

The reality is, the fundamentals are the same as when we first corresponded. In fact, they are even better now that Jasper is publicly in the picture, and with their production capability, who knows, one day they might even be announced as the nation's first ElectriPlast material compounder. The supply-chain is coming into focus, and all pieces, with the exception of the additional patents, and following that, the announced clients, are in place. Both are very close.

Ok, maybe this was a bit longer than extremely short.

This is a temporary situation.

Answer me this: What has really changed between the company of now and the company of $3.75-$4.10?

More importantly, do you doubt we will see that range again -- or surpass it once either of the latter pieces of the above-mentioned picture comes into frame.

You asked my thoughts. If Bill Robinson gets word of my recommendations, he could see an immediate net effect -- that and more importantly, he will be on the path to rebuilding conviction and encouragement among the shareholders, with the end result of garnering inclusive buy-in on the vision, and winning the hearts and minds of investors, while speaking directly to the stakeholders who actually “get” just how disruptive this material could one-day become.

I should change my moniker to the Rambling-man cause I do have a hard time keeping a conversation short...

Cheers and best to you,

PK sends...