Train Spotting 101!By Vince S.
ElectriPlast Blog Editor
Is Integral a Rule Breaker? Let me Count the Ways.
Recently, a well known Internet investment guru discussed his strategy for acquiring the highest possible return on his money. Critical to his return on investment theory are “six rules” he applies to equities to determine if they will mirror the “runaway train” effect of a Microsoft, Cisco, Google, Starbucks, Best Buy, Qualcomm, Whole Foods or other phenomenally successful companies. He calls these companies “Rule Breakers” because they defy conventional investment wisdom.
So what are these “six rules”? Will they work in Integral’s case? If so, and you are a shareholder, hang on to them. You have not only spotted a “runaway train,” you are among the few lucky passengers in first class!
Rule number one: A “rule breaker” company must be a “top dog” or a “first mover” in an emerging industry.
The innovative companies listed above invented new technologies or methodologies to become “first movers” in sectors in which they later became “top dogs,” the big kids on the block who drove their emerging industries. In some cases they created markets where none existed before giving them tremendous advantages and extraordinary success. Now let’s segue to Integral Technologies.
We invented ElectriPlast, the world’s only electrically conductive resin-based material that can be molded into any shape or dimension associated with plastics, rubbers and other polymers. While there are many “top dogs” in the materials sector (GE, Dow and DuPont are a few), we have the only electrically conductive resin-based material that works! In fact, some powerhouses who initially talked to Integral, doubted us, then tried to replicate our IP are now talking to us again. Nearly 50 companies have entered into the product research and development stage using ElectriPlast. With so many R&D efforts underway, it is a certainty that many ElectriPlast branded products will reach the marketplace in the near future. The conductive market is an emerging industry, thanks to Integral, and we will be the “first and only mover” for some time to come. The others have to come to us.
Rule number two: Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors.There is no resin-based material on the planet that can compete with ElectriPlast. End of story! With over 100 patents granted or in process, there is no question about our ability to maintain a “sustainable advantage.” In the first place, our patents are good for 18 years. (Just think of the edge the Wright Brothers would have had if the competition hadn’t been allowed to roll out an “airplane” until 1921!) Moreover, in terms of “sustainable advantage,” each patent might have up to 1,500 uses, according to Tom Aisenbrey. Stay tuned, folks!
Patent protection, technology licensing requirements and a host of legal services are provided by Preston Gates Ellis. Integral’s intellectual property protection, which covers omni-directions, can best be described as “the drawbridge, moat, ramparts, dungeons and towers” that provide 360 degree protection for our ElectriPlast IP.
Rule number three: Strong past price appreciation.Since incorporation on 12 February 1996, Integral has been registered as a developmental phase company. Absent a revenue stream, the price for this equity has been on a roller coaster that would make a Six Flags 'coaster' engineer proud. Indeed, many would love to see the price go north of the 31 March 2000 spike when it hit $8.25 a share. Based on the “rule breaker” theory, it will! Once a revenue stream develops, a time will come when that “stream” will become a torrential “river.” At that point, a backwards glance will clearly reveal the “strong past price appreciation” alluded to in rule number three.
Rule number four: Good management and smart backing.
Management has been strong, committed and strategically focused since the initial public offering. It recognized the lack of potential and moved away from a non-starter (CTHA) technology; successfully defended against frivolous legal action by a former partner; hired the individual who invented Plastenna and ElectriPlast; funded ongoing operations by providing personal loans to the company; and generated other funding mechanisms to enable the company to move forward. Finally, management initiated strategic marketing, management and intellectual property initiatives to guide the company to the successful introduction of our ElectriPlast IP to the consumer electronics sector.
Concurrently, Integral initiated strategic alliances with some of the best and brightest legal, investment and management strategists in the business, specifically, Wells Fargo, Preston Gates Ellis, Wellington Management, and QuanStar Group. By working through QuanStar, Integral can tap into their affiliate GlobalOptions and its Senior Advisory Board to leverage connections with Uncle Sam and Fortune 100 executives.
The GlobalOptions Senior Advisory Board consists of a former Chairman of the Joint Chiefs of Staff; a former Director of the Central Intelligence Agency; a retired US Ambassador; a former Speaker Designate for the US House of Representatives; a former Minister of Trade for Great Britain; a former Director of the FBI; a former Director of the FBI and CIA; and a former Secretary of Transportation. This is called influencing the marketplace through the use of massive intellectual firepower.
What else is there to say about good management and extraordinarily smart backing?
Rule number five: Strong consumer appeal.ElectriPlast products have potential for widespread consumer appeal because our IP will target consumer electronics (cell phones, PDAs, computers, GPS devices, etc.) as well as the automotive, aerospace, communications, electronics, military and medical device sectors. Those disruptive products will become so ubiquitous that the term “ElectriPlast” will enter the American lexicon much like the word “Google.”
Rule number six: You must find documented proof that it is overvalued according to the financial media.
Right! If you are an established company with a revenue stream, not a developmental stage company like Integral, this rule applies. Clearly, that famous Internet investment guru could not have applied this rule to the above companies until such time as their share price had become overvalued. Had he, he would have missed out on gargantuan profits.
Even so, there are legions of shareholders who look to the day when rule number six becomes a truism. According to some prognosticators, one hundred smackers for a share of Integral Technologies, considering the enduring potential of our patents, might be an under valuation of this stock.
You decide.Is Integral a potential "runaway train" or not? Does this equity have the capacity to attain breathtaking speed as it hurtles down the tracks, defying the skills of a legendary "Casey Jones" to arrest her forward progress as she batters through one share price barrier, $10, $20, $40, after another?
In the fullness of time, these questions will be answered. For the time being, however, it would appear that Integral Technologies has the facility to become a “rule breaker” and join the pantheon of “runaway trains.”
Yes, you, too, can be a runaway train spotter!
