Reader Interaction - 10 Jan 2007

Hedging Bets?




10 January 2007
EB Reader & PK Correspondence


PK,

Hope Christmas treated you and yours well and that the New Year rolls on strong.

I've turned to you for commentary on this from Tobin Smith: "If and when ITKG proves its technology can transition from development to commercialization, be ready to see some real action in the shares."

He made this statement in his newsletter 'Bottom Line' opinion after stating the latest news regarding licenses and Espirit Solutions. He explained Espirit has a formidable customer base and specializes in high-performance protective systems within the aerospace and defense market.

I wanted to hear from you on Tobin's hedging position of "If" (and when) ITKG proves... I'm just looking here for your commentary using this as the discussion point. While the stock has short-term volatility, the 200-day trend-line shows a nice, smooth upward running line. With this and many other positive factors supporting ElectriPlast, I tend to get too relaxed given that I have 70k shares invested. Even though I understand we're still looking at 2-5 years for the licensing to sale of the company plan to play out. This is also plenty of time for something, anything to disrupt the plan and the value of the stock.

Thanks for your time and effort. Best to you.



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EB Reader,

In regards to Tobin Smith and his stake in Integral Technologies, other than as an investment, there are no strong strings attaching that connection. Integral is a company, and Tobin is a free agent, able and willing to tell those who follow his lead whatever he chooses. Integral has no voice on that process.

As for the Licensing to Sale note – I think, with the JARCO connection fully established, that time lag would be cut down to weeks. JARCO is a full service entity, with supply chain and quality control’s firmly in place. They are ISO certified, and are already established in the industry. I doubt that they will sacrifice that established reputation, and more importantly, their ISO certification, simply to get sucked into marketing scam. In short, Tobin and his ChangeWave crew may take advantage of the markets, and may hedge their commentary – but that is the limit of their stake in this investment.

On the opposite side of the scale, you have JARCO who is heavily vested into the development, production and marketing of ElectriPlast. In lining up with Integral Technologies, they place their ISO certification and reputation on the line.

I think if I were to choose sides, and more, if I were to wonder at who had certain inside knowledge on the eventual game plan and end results – through it all, I would side with JARCO. Their investment is greater, and not to be taken lightly.

Not to slam Tobin and his efforts, but it – in my opinion – is far easier to sell a stock and walk away, moving on to the next horizon. He is not doing that though, nor do I think he has any intention to consider it – not now, and not with over 100 companies with NDAs’ waiting for patents to solidify so that they too can take advantage of the ElectriPlast option…