ElectriPlast: Continues to Gain Market Acceptance...
Keyword
Here --
Exposure
By: EON/BusinessWire February 08, 2011 02:21 PM Eastern Time
EB Publisher's Note: Normally I don't comment on news items as they come out -- but this one begged to have someone take a jab at the rest of the story. And trust, this is a story shrouded with both mystery & more than a bit of positive innuendo. Who is this "one" that is the topic of discussion when we are talking about the "World's Leading Plastic Suppliers", moreover, what are they about and what are their intentions, future wise that is...??? Well, a simple online search offers a quick and dirty top-ten listing of the usual suspects presently in play, and the billions they reap through their influence on the global markets (linked here)... My suspicion is--ElectriPlast (and the shareholders following this products foray into the marketplace), until the association and agenda is made public, would be well served (for the time being) to be in cahoots with such a player. PK sends...
Integral Completes Initial Order for one of World's Leading Plastic Suppliers
Integral Technologies, Inc. (OTCBB:ITKG) ("Integral"), an emerging leader in hybrid conductive plastics, is pleased to announce the completion of a significant initial order by one of the world's leading chemical/plastics companies ("the company") for 1200 pounds of ElectriPlast pellets and several hundred plaques. The pellets and plaques will each contain multiple blends of ElectriPlast. Integral will be manufacturing the pellets and plaques with resin supplied by the company.
In turn, the company (which does not at this time want its name to be publicized for competitive reasons) will be designing multiple applications utilizing its resin and Integral's ElectriPlast technology. Initially the focus will be to replace existing shielding technologies, specifically for use in power electronics.
Currently, the company does not market or produce any conductive plastic, but recognizes the superior shield effectiveness of ElectriPlast compared to both metal and other conductive plastics and will be testing ElectriPlast for marketing as its only conductive plastic.
This represents Integral's first order of magnitude, and marks the beginning of a distribution channel for ElectriPlast in which another company will be both supplying their resin and designing new applications for ElectriPlast.
"Having a synergistic relationship with this Company, both as a supplier of resin, and in the development of applications for ElectriPlast, will have a powerful effect on future ElectriPlast commercialization efforts," notes William Robinson, CEO of Integral. "These blends of ElectriPlast will focus on electronics applications. Together with our recent advancements in the automotive and military sectors, this order confirms that ElectriPlast continues to gain market acceptance."
Integral Technologies
Integral Technologies, Inc. (www.electriplast.com) is the developer of an innovative electrically conductive resin-based material called "ElectriPlast," a highly conductive recipe that can be molded into virtually any shape or dimension associated with the range of plastics, rubbers and other polymers. Integral Technologies is an emerging leader in the development and application of next-generation conductive polymer materials. We currently have 52 issued US patents relating to the composition, manufacture and application of our ElectriPlast technology, and we continue to develop and protect new intellectual property. Our IP consists of ElectriPlast and multitudes of different applications pertinent to a wide variety of industries. No assurances can be given that all patent applications will be approved; however, to the extent that patents are not granted, we will continue to attempt to commercialize these technologies without the protection of patents. Various examples of industries where ElectriPlast can be used are antennas, shielding, lighting, circuitry, switch actuators, resistors, and medical devices, to name just a few. The company is currently introducing these new products and ElectriPlast technology on a global scale.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. These statements include, without limitation, predictions and guidance relating to the company's future financial performance and the research, development and commercialization of its technologies. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements, as the result of such factors, risks and uncertainties as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, and (3) other factors detailed in the company's public filings with the SEC, including, without limitation, those described in the Company's annual report on Form 10-K for the year ended June 30, 2010 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities
Contacts
Integral Technologies, Inc.
Scott McArthur, Shareholder Relations
1-888-666-8833, or
Doug Bathauer, Director of Corporate Comunications
812-455-5767
info@electriplast.com
http://www.electriplast.com/
Permalink: http://eon.businesswire.com/news/eon/20110208006171/en/electriplast/conductive-plastic/integral-technologies
posted by PK... | 2/12/2011 02:03:00 PM
48 Comments:
More smoke and mirrors.
"announce the completion of a significant initial order"....
I would have thought the completion of, would be the shipment of...
But just a few sentences later they claim...."Integral WILL BE manufacturing the pellets and plaques"???
And those quotes are from the corrected version.
As another poster pointed out in an earlier blog entry, the real kewords are missing...Purchased, sold or paid.
And as far as "exposure" goes....what happened to those 5 licensee`s from 4 years ago? One of which was Jasper Rubber itself.
My guess is that they are trying to sell the patents, collect as much cash as they can and fold up their tent. The sample shipment of such a wide array of products is for proof of concept - always an early step in the sale of a patent portfolio.
This is also consistent with their recent association with Intellectual Property Capital Group (IPCG) - an IP consultant group with strong capabilities and contacts for selling off patent portfolios. Integral certainly didn't contract them for what they so desparately need: commercial application development.
In any case, it has an air of desparation about it: "Here's everything we've got. We couldn't do anything with it. See what you can do".
Exactly. If they had made a sale, they'd be shouting from the mountain tops. Nothing confidential about that. And they would have everything to gain.
I guess the good news is that they are giving the stuff away in larger quantities. Progress?
PK, you are the most hopeful person I know. I hope things work out for you and your investment in ITKG. You've certainly invested a lot of time and energy (and probably quite a bit of money I assume) into this investment....
Good luck.
Na-sayers abound! No smoke, no mirrors- just patience and persistence. Those looking no frustration should look to companies like AAPL or IBM. Better yet, how about a savings account in a stable bank (if you can find one).
Right on! There's no smoke and mirrors the last 10Q. Just the facts:
- Integral's broke. They are printing stock to raise cash. Well over a million shares last quarter.
- They are paying off debts with stock valued at $0.25 - 0.35/share. (Why are we paying $0.70/share when ITKG thinks its only worth $0.25/share?)
- Those "shipments" were just mere give aways. No applications. No sales. No revenue. Just hope.
- "The Company estimates that,
without further funding, it
will deplete its cash resources in
approximately three months.
These factors raise substantial doubt about the Company’s ability to continue as a going concern"
What happens to our stock when ITKG cannot "continue as a going concern"?
hey, anonymous #6...why do you still own stock in this?
Oscar,
To make money trading. Only an idiot would actually believe in the product but if you can buy cheap shares and sell when the lemmings push it back up, you can make a few bucks.
Between you and me, Osc, I think this ruse will go on for a long, long time. The pricipals at ITKG are making money, the lawyers and consultants are making money, a few traders are making money and the loyal longs convince themselves there's something here and gladly finance the operation.
Everyone wins.
The stock price has a lot of support for all the selling that is going on.
I have lost much on penny stocks over the years but one thing it has provided is a better understanding of how they trade.
The support of the share price with all the sells going on, especially after so many missed deadlines and poor communication, makes me think there are people out there that know more than I do that are betting on the stock.
Time will tell...
Pretend for a moment that you are a Lemming....Wouldn`t you assume that all the other Lemmings racing past you know something that you don`t?
I am a lemming that survived a few falls. All I am saying is that I have been watching the trading of this stock closely for a long time.
There is support for the stock price that goes beyond lemming theory...
That's a fair and honest assessment.
Have you seen other penny stocks that showed similar support (for unknown reasons) that survived for a decade and ultimately came out as winners? I have not. But that certainly does not mean that they are not out there.
Thanks.
I`m sure they are out there and I`m also sure the best way to find them is to closely watch their share price. I like to look for ones that have a stable PPS under $1. The Yahoo stock screener will help you find all those buying opportunities that are being held up by "people" who know so much more than you do.
I do not have comparables for ITKG. I do know a bit about how penny stocks trade. For a company with nothing behind it I would expect to have seen this at 1/2 the price or less by now with pressure to go lower.
I am not buying more and have been known to hold too long but the trading patterns give me some confidence.
I have learned to take management statements with a grain of salt. I have, however, been able to speak with Doug at Jasper a few times. Clearly ITKG is not bringing in money for them yet... but they continue to have their own sales person and continue to spend their own money on the initiative.
I sleep at night. I know I could lose it all but from the digging I have done I am cautiously optimistic. Not buying more but will continue to hold..
Agreed. I sleep at nite too knowing that I can well afford to lose my investment when/if ITKG folds.
I guess we are reduced to chatting about nothing more more than trading dynamics since there is absolutely no verifiable evidence of any progress on the commercial front.
The only facts we have are in the SEC disclosures which show the company can only raise funds by diluting its stock. Essentially, ITKG is slowly devouring itself - "baby steps" backwards.
Interesting article....
http://autos.yahoo.com/auto-shows/geneva_auto_show_2011/1748/2011-geneva-auto-show/
Interesting article indeed for any car aficionado, but are you posting it only to show that electric is growing in all vehicle manufacturers, or did it actually mention anything related to conductive plastics? I just didn't notice anything is the reason i ask.
(I'm not trying to attack the post like several people do on this blog, I'm just trying to find any promising news like all the stockholders)
Yes. It was an interesting article. The electric vehicle is intriguing but it remains to be seen if the cost/mile will be lower than the trusty internal combustion engine powered cars.
Unfortunately, I saw no connection whatsoever with Electriplast or Integral.
PK, any thoughts on the stock price going down on the latest PR today? I don't give the market having a bad day in general much weighting in the cause. If you look at historical trends ITKG often has an up day when the market has a down day (often happens with micro caps). You add to the fact that the company had a favorable PR in a high oil price climate and something just doesn't add up. I know this stock is not widely followed, but this should have been a solid day to the upside in my book. What gives?
Its probably two things:
1. The PR doesn't work anymore. And, after all, the latest PR said nothing more than "just keep waiting". No tangible results - just more promises. They might be better off saying nothing.
2. People want to get paid. Remember those millions of warrants/options that were granted in lieu of cash payment for services? Those folks are exercising now in hopes of getting some compensation. Lets hope they don't think its the end and all make a run and try to sell at once!
could it be that this stock is so closely held (by long-term investors) with not enough institutional investors (with big money) that the pps just won't move? Think about it, long-term investors don't trade so the bid/ask is based on a hand full of traders. Just look at the volume in comparison to the number of shares outstanding - it's a small number (even on a high volume day for ITKG). Seems to me this company is held by a relatively few long-term investors.
Could be. Not selling mine, in fact, I buy when the dips come along.
There may be "dips", but the dips are imbedded in an 1 year downtrend. This thing is headed south (by "baby steps" as PK likes to put it).
And recently things haven't been so hot as it looks like the 25 cent warrant holders are trying to squeeze out some dollars. Any upward push in price will be quashed by their cashing in. They'll make sure that they get paid before the shareholders do.
PK, are you still around? Some of us still like to hear from you.
I cannot speak for PK, but perhaps there just isn't anything to say. There have been no tangible developments - just a re-wording of past promises. If there has been any news at all, it has been bad. Namely, the auto part developments are "late" and might appear in years to come.
Putting money in ITKG isn't investing - its like stuffing cash into a time capsule.
This could take years, many years.
I'm not an automotive guy, but how soon do you actually need to have a material in hand to utilize it in the upcoming model? Or translated: IF Electriplast is used in this unknown upcoming 2012 European vehicle, at what point do they have to have the material in hand to implement into the car?
That would give a better idea about what time we could expect a purchase or whether this is just another 'hope'.
My experience with supplying polymers for automotive parts is 3-5 years. The OEM wants everything finalized 9-12 months before production begins. That includes formulation, part design, prototyping, test data, quality assurance data, supply chain information and all cost information. Pulling all this together could take a world class polymer house and a motivated tier one supplier 18-36 months, if all goes perfectly. If a tier 2 supplier is in the chain, it will take longer. Automotive product development is one of the slowest and most arduous product development processes today. And on top of that they always want a second source of supply - for price competitiveness and assurance of supply.
Automotive OEMs are not going to risk part shortages causing line shutdowns or quality problems causing Toyota-esque recalls. A small outfit like ITKG with no track record will be under the microscope.
To the experienced automotive polymer poster.
Would you care to comment on Integrals IP licensing model and how it would interface with an automotive manufacturers supply chain requirements? In particular, the need for a second source and how that might affect cost? Also, how about quality/recall issues if another company retains ownership of the IP?
I have some supply chain experience but mostly on the back end. These issues have concerned me for quite a while.
Integral's licensing model is unclear to me. While they have patents on numerous applications from spark plugs to roofing shingles to antennas, they have no patent on the material or formulation itself (the "pellets"). (This is not surprising as their formulation does not appear to be particularly novel or nonobvious. It is merely the dispersion of metallic fibrils in a polymer matrix. Pretty old technology.)
All this means anyone can make the conductive resin formulation without permission from Integral. But they may need a license if they desire to use the formulation in a patented application like a spark plug. They may also need a license to Integral's unpatented trade secret formulations ("technology") for Electriplast if they want to manufacture the actual resin. This is sometimes called a technology license.
Again, their licensing plan is unclear. But their patent license framework for an application (e.g. a sparkplug) probably entails 1.) that the licensee purchase resin from them and 2.) pay a royalty. This could make the deal expensive and complicated.
If what you say is true, then ITKG is a prime acquisition target.
Could be...but what is there to acquire? There's no capital investment, facilities, customer lists. There seems to be a slew of application patents but the basic formulations are not protected and would be subject to reverse engineering (if they ever became valuable). The buyer could never stop anyone from making an Electriplast clone unless the clone was used in a petented application.
Valuation would be problematic too. Most buyers look at EBITDA multiples; but with EBITDA=0...? We could say IF they have 600,000lb/year capacity and IF they could sell that capacity out and IF they could make $1.50/lb earnings then 4x EBITDA would be $3.5M (1/10 their market cap).
Probably not a long line of buyers with all those "IFs" but even if someone would bite, that's not even $0.10/share. Ouch!
You ask what is there to sell? In this case, it's an intangible asset, a patent or patents. It's called a defensive purchase of an asset among other things. To a strategic buyer it could have significant value. Do a few things need to happen first, of course. However, down the road, an acquisition is certainly possible.
By the way, your thought process on the EBITDA multiple is well taken. However, licensing companies are typically valued differently. Investors place much more weight on the revenues or potential for revenues. On the bright side, and here's the good part, licensing companies have the ability to quickly increase revenues with minimal increases to their operating expenses and capital expenditures, resulting in more income dropping to the bottom line. This business model is factored into the stock valuation.
All we need now are revenues....
The comment on licensing companies being able to "quickly increase revenues" gave me a chuckle. The first question a prospective licensee asks is: if this is such a grand patent/technology, why aren't you practicing it? There is a fashionable notion these days that somehow one can generate lots of money licensing. That can be true but no one pays much for undemonstrated technology on the "hope" that it will work "soon". Especially from a no-name entity with no track record.
All we need is revenue - lots of it. (But that's been said before.)
Keep on thinking that way. It's your right to do so. You've clearly made up your mind on ITKG. Just remember, large companies didn't just generate their billions of revenues over night, and their technology didn't take hold in their relevant markets over night. We all know its been a long time - too long for some. Take a step back and think about what ITKG is trying to accomplish....
Before you fire back, give it some thought.
Thank you for the assurance that I may think "that way". I was hoping for your approval.
It appears that I am not the only one who has "clearly made up my mind". But the facts just do not support any conclusion other than: ITKG does not have a viable product offering. We can "hope" for something to happen "soon". And we can rationalize that "these things take a long time" but it seems that 8 years qualifies as a "long time". How long would be too long?
What is ITKG trying to accomplish? Now there is a VERY good question. (And thank you for recommending that I "think" about it.) Are they trying to sell product? Or trying to license patents? Or both? What's the business plan? Is there one?
Are they trying to develop materials for antennas? Wires? Batteries? Phone housings? Hearing aids? Shielding? Is there a product development plan?
The facts show that the only thing "ITKG is trying to accomplish" is to keep themselves supplied with ever-increasing salaries and fine automobiles.
These people are geniuses.
What ITKG is trying to accomplish...
They are trying to transform insulating plastics into materials that conduct electricity. How? By adding or blending in a conductive material: tiny metallic fibers. A simple concept and not too inventive. Its like making your tea sweeter by adding sugar. The more you add, the sweeter it gets. Same here - the more metal you add, the more the plastic conducts like a metal. Nothing magical. Hardly a "breakthrough" - but maybe it can be useful. Unfortunately, its easier conceptualized than done.
First, how do you make sure that these metallic fibers are randomly oriented so that conductivity in one direction is the same as in any other? How does one keep them from orienting in one diretion or another?
Second, how do you make sure that these fibers are evenly dispered throughout the final part? Otherwise, you end up with "dead zones" with little or no conductivity.
Third, connection technology. In most case, a conventional wire or connector will be required to interface the Electriplast part back into the overall system. You can't solder to it; will you have to devise entirely new connectors?
Fourth, plastics processing. Abrasive metallic fibers can play havoc with plastics processing equipment like extruders and injection mold machines. Over time they can scour the inner wear surfaces requiring expensive maintenance costs and downtime.
Thinking about what ITKG is trying to accomplish reveals that they have huge challenges - challenges that they may never be able to overcome economically. This explains their totallack of commercial success to date and spell their doom.
Are they trying to develop materials for antennas? Wires? Batteries? Phone housings? Hearing aids? Shielding? Is there a product development plan?
Yes.
The facts show that the only thing "ITKG is trying to accomplish" is to keep themselves supplied with ever-increasing salaries and fine automobiles.
Then why are you a shareholder? If you're not a shareholder) and those are clearly good reasons not to be)why bother following this company?
Yes, 8 years is a long time. Has the company made mistakes? Yes. Has there been a negative economic climate for the last four years? Yes. Do companies tend to invest in new technology during hard economic times? No.
Switching gears back to my previous post regarding patents/intangible assets and stock valuation. Let's talk about rates of return. In order to determine an expected rate of return for a company you need to understand the assets of the company. I'll cut to the chase and spare you the full financial lesson. Make no mistake about this, ITKG's assets are primarily intangible assets. If you were to look at average rates of return on the universe of assets, intangible assets earn the highest rates of return, in other words, they carry the highest risk. The challenges that the previous poster summarized are right on point and highlight a small fraction of the risk associated with the company's assets.
The fact is, an investment in this company is not for those with a weak stomach. I've been around for a long time, a painfully long time. However, I understand the investment I've made.
Is there something you know that I don't?
ITKG has led us to believe (or maybe we have convinced ourselves) that all we need is to find the right customer to use the product and then the orders will start flowing in. In fact, the problem may be that the product just doesn't work.
What these last few posters agree on is that there could be huge underlying technical hurdles that have not been overcome. This makes sense. All ITKG has supplied us has been a few data sheets and some pictures of mock-up "products". We have yet to see any evidence that the concept of Electriplast even usuable - let alone economical.
For example, why don't we have some testimony as to how the battery clamp pictured on the web was used in a vehicle for a few months? Or maybe an engine running with a sparkplug containing Electriplast? Or maybe a 100' all-Electriplast extension cord running an electric heater made with Electriplast? After all, these are all applications they have patented. Surely, they must have working prototypes. Where are they? Or were they just speculation?
The commercialization delays are starting to make more sense. Its not about finding customers for a working product. Its about finding a product that will work. This development may not be as far along as we were led to believe.
This is particularly troubling because there is no clear evidence that ITKG even has a lab anymore now that Aisenbrey (their inventor) is gone. They have lots of consultants on the payroll but do they have any facilities and personnel to work on these problems?
In response the following:
The commercialization delays are starting to make more sense. Its not about finding customers for a working product. Its about finding a product that will work. This development may not be as far along as we were led to believe.
While your suggestion could be the case, and I do think for a long time this was the case, I have a much different view point today. Back to the intangible asset discussion; another intangible asset that you do not see on ITKG's balance sheet are "trade secrets". Before anyone gets too fired up about this, look at the list of intangible assets that exist under FASB. There is no question that trade secrets are another intangible asset of ITKG.
Lets all face facts and remember that ITKG is breaking into commercial markets. They are not a large player with existing market share. In other words,potential customers have a lot of say in how things play out and get reported. That's the way it works. A company using EP is going to want to keep their competitive advantage for as long as possible and if ITKG wants to keep that customer they're probably going to "play ball". As things progress ITKG will have more of a say. All in good time my friends.....
Stock valuation....Not as complicated as some would have you think.
In the universe of assets....Intangible assets,without a customer = Zero. The rate of return is established BY the customer.
Same goes for these "so called" trade secrets. Zero valuation. Zero rate of return. Without having applied these (???) trade secrets to a product that has attracted a customer(s), they also do not have an established value.
Without tangible asset, intangible assets, or these (???) trade secrets, no valuation can be placed on this stock, except possibly a perceived value. And perceived valuation belongs to each investor individually.
The hope and dream factor....if that`s your investment style.
Or the read between the lines factor....if that`s your investment style.
And lastly, the I let someone else do my DD factor, often known as the he said, she said, factor....if that`s your investment style.
It is true that there is a multi-billion dollar market in intangible assets (mostly patent, trade secret and trademark licensing). But most companies are reluctant to put them "on the books" because they are impossible to value correctly and just load up the denominator in the return on net assets factor. After all, it it better to say I have $5M return on $50M or $5M return on $100M? In ITKG's case, $0 over any number is still $0.
The ITKG intangible asset conversation is largely a semantical recast of their ongoing mantra: "We have so much potential so you should give us your money and get on board".
There's nothing magical about intangible assets. Potential licensees will only pay for rights that they are convinced will generate income - profitably. So far, no one has been convinced. The bottomline - the technology and product has to work and there has to be a value proposition. There won't be many Eplast customers if it costs $100/lb - they'll just keep using metal.
Which brings us to one more possible reason nothing has happened: Electriplast is just too expensive to produce and/or process regardless of its properties.
So many statements made in the last two posts, where do I start. Sounds like these posters have first hand knowledge that EP doesn't work or isn't feasible. If that's the case, why not turn around, walk away, and never look back? I know that's what I would do. Or is there a little piece of you that thinks there is a chance the engineering of EP has accomplished something you never thought possible?
The comment about stock valuation and intangible assets - I think I will address this post at a later time. Until then, anyone care to guess what accounts for the largest export of the U.S.(or very close to it at any given time)?
PK, have you abandoned us? Left the building? Sold off and moved to greener pastures? With the share price at a 52 week low we need some hope here! Is there no "news" to help prop this thing up? I was hoping to exit at a little higher price than 55 cents before this thing collapses.
Great article in the Company Corner this morning!
After all these years, it sure is nice to finally see a picture of an actual product incorporating electriplast, made by a legitimate company. (I know, I know, it's still not a done deal and this doesn't automatically raise the stock price, so go ahead and scourge me on my naive hope. But it sure is better than reading all you anonymous posters bicker over the unknown.)
We bicker over the unknown because there is nothing known to bicker about.
I like the last post. Ditto.
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