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I use my strength of basic common sense and DD skills to lead me down the path to profits. 2013 return of 108%, yet I will always remain humble.
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  • Strongest Shareholder Base On The OTC Exchange Gets Unexpected Surprise With More Catalysts To Come

    *May 19th announcement of breakthrough battery invention catches shareholders by surprise.

    *BASF was found to be heavily marketing ElectriPlast and Integral hasn't said a word.

    *Lack of liquidity is such that Integral's ElectriPlast must meet expectations or internal financiers face the same risk as the common shareholder. Investors are embracing this protection.

    In deciding to closely follow Integral Technologies (OTCQB:ITKG) after the arrival of a new CEO some two years ago, I've determined that out of hundreds of microcaps I scrutinize, no other microcap comes close to Integral as far as a loyal shareholder base is concerned. It's truly remarkable and the very reason why the company is on the brink of emerging as the leader in conductive plastic lightweighting. While the old Integral management team floundered about aimlessly for 16 years without direction or revenue, they were at least effective in capturing an immensely strong retail shareholder base, allowing the company to raise capital at high valuations and thus preserving the share structure, paving the way for a seasoned management team to come in and begin to monetize the company's flagship product, ElectriPlast.

    Since Doug Bathauer took over as CEO, he bolstered investor confidence out of the gate by signing deals with three multi-billion dollar companies and the stock has more than doubled (see chart below) during his reign, even in the face of still having to raise important development capital. He has taken an uncanny, but very effective approach in maintaining and creating shareholder loyalty, as Bathauer has his team contact listeners and participants of each conference call to thank them for their loyalty and to answer any subsequent questions they may have. His strategy has paid off and on the most recent conference call, he assured listeners that new shares issued to warrant holders were not only restricted, but placed into the hands of long term shareholders that were in fact, all listening to the call. In other words, newly issued shares haven't hit the market and the action of the stock most certainly backs that up. This is quite an oddity in the realm of companies trading on the OTC, let alone senior exchanges, as financiers rarely care about a company's success or failure and usually use every available opportunity to cash in, unlike the current situation involving Integral, whereby insiders have participated heavily in private placements. Bathauer also continues to hold steadfast to his commitment of not allowing the fully diluted sharecount to expand before the company reaches profitability.

    ITKG 2 Year Chart

    Fast forward to Feb. 11, 2015, the date that Integral held its fiscal Q2 and 2015 outlook CC (transcript from hyperlink incorrectly states Q4) simultaneously. Although shareholders learned that the company finally posted revenue outside of licensing fees, it's what was said about the outlook that sent the stock to a new 52-week high. Bathauer revealed that Integral had been in very intense negotiations with one of its Tier 1 partners over the past 3 months, the ultimate deal to be announced 3 to 6 weeks later, ensuring that Integral would finally be freed of the development phase, having to test various applications, build out capacity to 10X, prove-up the supply chain, etc., and now moving on to global commercialization of ElectriPlast. Three to six weeks came and went, and while Bathauer stated in the recent Q3 CC on May 18th that he wished he wouldn't have given a timeline in February, he did assure investors it was basically just a matter of dotting the I's and crossing the T's. Nevertheless, even after the timeline was breached, the stock didn't take a meaningful hit, as loyalty once again reared its head. Frankly, it wasn't surprising to me, as I know there are many shareholders who have been in the stock for over 12 years in waiting for the launch of global commercialization and they're not about to sell now after many years of disappointment, especially when Integral is on the cusp of what was anticipated years ago ..... and more.

    With regard to which Tier 1 partner is going to ensure Integral's global launch of ElectriPlast, the March 23-27 NPE2015 International Plastics Showcase conference gave shareholders the best clue, as BASF was seen heavily marketing ElectriPlast to attendees. This is the first time ever that anyone has seen marketing materials for ElectriPlast being distributed by one of Integral's partners, a welcome inflection point for the company. I've spoken with BASF's Marketing Communication Manager and also traded several e-mails in attempting to obtain more information about their sales of ElectriPlast and was told that as things continue to evolve, they hope to give me more info, but as of now, they can't go in-depth.

    As if the expected announcement with much awaited details concerning global commercialization isn't a significant catalyst in itself going forward, Integral made an announcement on May 19th that took everyone by surprise, stating the company had invented a patent pending, corrosion resistant, leakage free, highly conductive plastic bipolar plate for the battery industry, a major breakthrough in the lead-acid category. The company said in the CC that a global partner is being sought and that further announcements will be forthcoming. The May 19th announcement was expected by no one and in listening to Integral's Chief Engineer on the call, you would have thought they just invented the light bulb. Where this particular announcement leads Integral to is anyone's guess, but in already witnessing the company's CEO having signed deals with several multi-billion dollar companies, I suspect we'll see another such deal.

    Are there risks ? As with any company, of course there are, but ITKG's management team has eliminated all waste of the past, nurtured powerful Tier 1 partner relationships and demonstrated that the company is prepared and ready for the limelight . Shareholders are loyal to the company and the company wants nothing more than to handsomely reward shareholders.

    I would urge onlookers to review some of my past articles, here, here, here and here. This will give you the opportunity to further evaluate the company's progress for yourself over the last 2 years and assess the future likelihood of profitability and growth. There is more than enough information provided to help you make an informed decision as to whether or not to invest.

    I can tell you that I find this company and its CEO to be trustworthy to date with regard to what's been promised in the last 2 1/2 years. I've never found a story quite like this, whereby a fraternal-like brotherhood of shareholders exists. If Integral's game plan was ever altered for the worse, there's a lack of liquidity that would affect internal financiers, management participants included, and thus if the common shareholder ever ended up on the losing end of their investment, they could rest assured that management and all insiders would be right there by their side and in the same boat. In other words, it's simply not possible for management in this case to run off with shareholder money due to the stake they've taken in their own company. For me, this provides the necessary comfort I require for investing in any company trading on the OTC and provides a degree of protection not even found in companies trading on the Nasdaq or NYSE. It also loudly speaks as to what management can see in the way of monetization.

    Going forward, there are two very significant catalysts amongst others that shareholders may not currently be aware of. The first one is imminent concerning one of Integral's Tier 1 partners and global commercialization. As I speculated above, I believe this news will involve BASF and in now knowing they're already marketing ElectriPlast under a multi-billion dollar umbrella, this tells me that BASF expects a significant return from this partnership with Integral, otherwise they wouldn't waste their time.

    Secondly, Integral is now seeking a global partner for its newly announced battery invention and if the coming announcement leads to a deal with yet another multi-billion dollar company, I suspect the impact to the stock will be just as significant as when the first deal with a multi-national billion dollar company was announced.

    While these two coming announcements may be loaded with fireworks, there may also be other significant news forthcoming.

    Tags: ITKG
    Jun 26 5:37 PM | Link | Comment!
  • Update: Integral Technologies Bumps Up Quarterly Call And Delivers The Ultimate Teaser‏

    On February 5th, Integral Technologies (OTCQB:ITKG) announced they were bumping up their quarterly call to discuss the outlook for 2015. This was somewhat odd, considering Q2 earnings wouldn't be posted until at least the 15th and obviously the company wouldn't yet be prepared to talk about earnings.

    In listening to the hour and a half call last Wednesday that consisted of 15 minutes of prepared remarks followed by a lengthy Q&A, Integral's CEO told long-time investors that the wait was finally over and that within the next 3 to 6 weeks there would be a series of 8-K's and press releases, spelling out what sounds to be a very large deal with one of their previously announced Tier-1 partners.

    CEO Doug Bathauer began the conference call by saying the company was on the cusp of significant change and after many years of loyal shareholder-base patience, global commercialization of Electriplast was finally at hand. Bathauer stated that for the last three months, Integral had been in intense negotiations with one of their key partners and that the soon-to-be-announced deal ensures Integral's execution of its business plan concerning global commercialization, a bold statement that obviously holds Bathauer's feet to the fire. That said, Bathauer's two-year reign as CEO has shown him to have met every promise that he's made to date, so there's definitely an anticipatory excitement in the air.

    Integral told shareholders that their recent manufacturing facility move has led to a 50% reduction in facility labor costs and a tenfold increase in capacity. This, combined with the marriage to Conductive Composites has given the company the ability to satisfy supply chain standards required by Tier-1's and OEM's. Integral said it planned to put out a press release within 7 days to further expand on their manufacturing move. It was noted that during the move, Q2 sales were interrupted, but with $92K in revenue in the previous quarter, shareholders aren't holding their breath for Q2 results, but banking on what they anticipate to be a game-changing announcement(s) within 3 to 6 weeks.

    When one caller asked how the current market cap of slightly less than $50 million stacked up against the strength of the coming announcements, Bathauer replied with by saying, "If we capture 5% of a $30 billion market opportunity that no one's captured at all, you can do the calculations as to what our market cap would look like." He stopped short of actually making that forecast, but it's obvious from the last two conference calls that Bathauer has his sights somewhere in that range.

    The same caller asked about recent exercising of warrants and it was noted by Integral that 6-month restricted shares were entering into the hands of long-time, committed investors who see this last method of fundraising as a sign that the company is close to ending its issuance of stock. There's no doubt that warrant holders are confident in what they see, as the somewhat lack of liquidity in trading would be a problem if something ever went wrong in what the company is hoping to accomplish. Bathauer also reiterated his prior commitment to not raising the fully diluted share count.

    In the coming weeks after the series of 8-K's and press releases are made known, I will come back and analyze what the company looks like then and just how significant the change was. Many investors, some being around for up to 17 years are ready for the global commercialization phase and are eager to see how it will be shaped. If Bathauer can pull this off, there may be many distressed companies looking to him for his services at some point.

    Tags: ITKG
    Feb 17 9:55 AM | Link | 2 Comments
  • Integral Technologies: Game Plan Intact After First-Ever Recorded Revenue In Q1

    When choosing to invest in the risky OTC sector, the most important thing for an investor to monitor are the words and forward guidance delivered by the CEO. Too often, OTC CEO's tell investors one thing and do another. This applies to future dilution, forecasts and current events. I have seen far too many unsophisticated investors swindled out of their money when a story suddenly changes, yet the individual investor's sentiment tells him to hang in there, as surely he or she can't be wrong. Sentiment turns from extreme confidence to finger-crossing hope and in investing, hope is never a strategy. Having the ability and discipline to distinguish fantasy from reality and acting accordingly is a lucrative trait that sets apart the haves from the have nots.

    There is one company that trades on the OTC looking to uplist to a senior exchange, whereby its new CEO has done everything he said he would do and more along the way in turning around a floundering, but very promising company with a much sought-after conductive plastic technology, Integral Technologies, Inc. (OTCQB:ITKG). Whether it's concerning the signing of new contracts, cost-cutting, elimination of toxic preferred stock, elimination of toxic convertible debt or reduction of debt in general, Doug Bathauer has either met or exceeded every projection he's made during his reign and shareholders have watched the stock double over the past year with expectations of much more.

    Most of my readers know that I've been monitoring this evolving story ever since Bathauer took over as CEO and that I've been documenting this evolution for the past year. They also know just how critical I am of the OTC sector in general and how it seems almost impossible to find a company that actually follows through with what they promise and forecast to shareholders.

    I recently pointed out whereby ITKG stated they were leaving the development stage, entering the commercialization stage and that revenues would finally start to roll in after nearly two decades. Last week's 10Q revealed that for the first time in the company's history, there was an entry in the revenue column. Revenues of $91K were derived from three different sources, a portion of the license fee from Hanwha, engineering services provided to East Penn Mfg. and sales of Electriplast.

    What really caught the eye of shareholders was not only the fact that revenues were finally coming in, but that the quarterly loss had been cut to $840K from $1.27 million YOY, as Integral's EPS rose to -.01 from -.02 with expenses being cut by 22%. Even more impressive is the fact that debt has been reduced to $1 million from $2.8 million since Bathauer took over as CEO and there's no way on earth you would see this type of behavior from an OTC CEO unless they expected a drastic change to the future financial condition of the company.

    During last week's Q1 conference call, Bathauer fielded a question from a long time investor that wanted to know how debt was being paid down so drastically when revenues had just started to flow. In other words, where was the money coming from to reduce the debt ? Bathauer noted that most of the people signed into the conference call were indeed long time shareholders, many of them very significant holders that were from time to time exercising warrants in exchange for common stock, yet firmly holding on to that stock that's also restricted. He also reminded listeners that insiders have participated heavily in private placements, as they are extremely confident as to what's in store for the company. He was also very adamant in reiterating that the fully diluted share count will not change and obviously thanks in part to the luxury of exercising warrants while putting the stock in strong hands that have been around for years. This is evidenced by the increase in the stock price.

    Investors that have held the stock for years are waiting for the big payday and if Bathauer can continue to deliver on what he says, there will certainly be cause for celebration. He noted on an October 1st conference call that one Electriplast application alone can produce $127 million in annual revenue by year five and that the company is working to provide solutions that will bring in tens of millions of dollars annually, aside from this application.

    While this remains to be seen, the projected 30% margins would result in a stock that investors would see scrolling across the CNBC ticker and everyone I know associated with this company truly believes this will be the outcome. Based upon what the CEO has accomplished to date that backs up everything he's ever said or projected, I continue to find the story very compelling. In forming partnerships with several multi-billion dollar, multi-national companies in slightly over a one year period, companies like BASF (OTCQX:BASFY), Hanwha, East Penn & Delphi (NYSE:DLPH), all it will take for ITKG to be a homerun is if just one of these companies decides to use Electriplast as a solution for making an existing product more efficient. Integral Technologies claims they have started providing these efficient, conductive plastic solutions and it's now a matter of when the solutions will be implemented, not if.

    Nov 24 1:25 PM | Link | 1 Comment
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