Terry Schumacher

International Absorbents: Undervalued and Attractive as an Acquisition

In their year end press release they indicated that they have significant excess production capacity, but they do not quantify this by for instance disclosing their current capacity utilization rate.

They state in their 10-K that they will not need to make significant capital expenditures in the near future. My estimate is $800,000 for the current fiscal year that ends January 31, 2010. This is not even half of their depreciation and amortization expense.

The tax rate was high for their recent fourth quarter, but it was 38.7% for the entire fiscal year, which is not an unusually high rate.

Terry Schumacher

On May 14 02:33 AM user1010101 wrote:

> Terry,
>
> I was wondering if you had an opportunity to speak with management.
>
> Do you have any insight into their current plant capacity and whether
> or not they are going to require large amounts of cap-ex?
> I also noticed that they have a very high tax rate - any insight
> here?
>
> Thanks
> -Ryan