Seeking Alpha

sseansully's  Instablog

Send Message
Retired investor. Entrepreneur who has started a half-dozen companies, former journalist, former IBMer, former Peace Corps staffer and volunteer who served five years in Africa. Presently live with wife in Connecticut.
  • Implant Sciences Corp. (IMSC) Conference Call 1 comment
    Nov 13, 2012 12:51 PM | about stocks: IMSC

    Someone requested a summary of the Implant Sciences Corporation (OTCQB:IMSC) conference call held last Thursday afternoon (Nov. 8, 2012). The call, on which were 125 investors, myself included, was led by CEO Glenn Bolduc and top staff, including the COO, CFO and senior VP for sales. Here are the highlights:

    Glenn Bolduc was at TSA Lab's testing facility earlier in the week for an "interim briefing", and was told that our product "was the best performing product the TSA-L has seen." All the feedback was very positive, and final-final approval is expected quite soon. I asked, why the delay? Glenn used the analogy of a house purchase, where a "punchlist" designates minor items to be dealt with. The TSA has a small punchlist for IMSC, which the company is handling. He also mentioned delays related to the Columbus Day holiday, the election and Hurricane Sandy (I believe the Lab is in New Jersey). Anyway, approval should come in the next week or two (my guess, NOT the CEO's).

    -- the TSA-Lab has over the years certified only two other products in chemical/narcotics trace detection. Both are offered by non-U. S. companies. An advantage for us.

    -- because the company does not have TSA approval yet, we are shut out of almost 50 percent of the market. TSA approval will provide instant credibility and open markets in the U.S., Japan and other major countries.

    -- the company's sales backlog numbers in the hundreds of units.

    -- we have 150 units built and ready to go once approval is obtained.

    -- ISMC's sales staff is in contact with hundreds of freight-forwarders, expediters and others who will eventually be responsible for air cargo security.

    -- our product line would be an obvious component in a comprehensive, integrated anti-terrorism platform. In other words, a piece of a complete, complex anti-terrorist solution integrated by a major defense contractor. ISMC would not play the role of systems integrator.

    -- we have a good relationship with the vendor who assembles our products. The VP of Manufacturing is in constant contact with this vendor. Another vendor has been identified and will be used if necessary. The company also has developed a (small) in-house assembly operation just in case.

    -- relations with the financial organization funding the company is excellent. They have a huge number of options at 8 cents!! and have every incentive to make the company a big success. Glenn says that in the 4 years they have been working together, the financiers have been nothing but supportive.

    -- the company has plenty of cash and credit to operate for some time.

    -- we have a big opportunity in the defense industry here and overseas. We've already sold products to the Spanish armed forces and are doing some last minute work on a contract with the Indian army. A U. S. military person was at IMSC recently to review our products, and his reaction was, "this is too good to believe!"

    -- Competitors use radiation (X-ray technology) to perform their tests. Our products are radiation free, a big advantage.

    -- The TSA cited "fast recycle" (as little as a few seconds) as a critical advantage for our products. Meaning, that after sniffing for chemicals or drugs, it's ready to do so again within a matter of seconds. The competition sometimes take hours, even days, to recycle.

    -- the company is working on advanced technology and ways to shrink its existing products to make them even more attractive.

    -- the company had 20 employees three years ago. Today it has 60. Glenn claims they are by far the best in the business. True or not, the top people have terrific pedigrees. They also have options at $1.40. They are HIGHLY motivated!

    -- the Dec. 3 deadline for inspecting air cargo is perceived by Glenn as the date the freight forwarders, agents and other responsible will begin identifying how to meet the law, not the date they will be held to it.

    The call ended with 125 participants expressing their happy thanks to management.

    That's the conference call. Let me add as someone with a substantial long position in the stock, that the shorts who bash the stock are partially right -- the balance sheet is a disaster. Anyone who would invest in IMSC after reviewing results to date would be out of his mind. But there are other reasons people invest in a company, future prospects being the most common. That's the reason for my investment.

    I believe present management has focused on the right industry with the right technology and the right products. Governments and industries (financial, petroleum, defense, etc,) need to protect themselves from threats that hardly existed 10-15 years ago. They are scrambling for answers. IMSC is a key resource in a mosaic of answers. And increasingly, it is being recognized as such.

    I don't know what motivates those shorting IMSC. They may be honestly serving the public, in their view. They may be manipulating the stock for personal gain. I have no idea.

    I must say, though, that last Thursday, when the stock dropped precipitously from $1.12 to 75 cents, the opportunity was there to make a fortune, on both the short side and the long side. One could make a fortune closing a short position. One could make a fortune buying in at 75 cents with the anticipation the stock would recover, which it did, rising to $1.14 as I recall. I've never been short IMSC, but when I saw the stock around 80 cents, I bought. And bought. I wonder who else did. Just say'en.

    I plan to stay the course, and if the stock plummets again, I'm buying again!

    Disclosure: I am long OTCQB:IMSC.

    Stocks: IMSC
Back To sseansully's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • mike mulligan
    , contributor
    Comments (8) | Send Message
    To me the biggest concern is their balance sheet. yes, yes they will see soaring revs down the road but will need additional financing sooner than that and thus my concern...What if their financing arm decides to call it quits now that the good news is out and calls in their demands for payment of all outstanding debt which is approx. 30 million dollars? Even if only a mere possibility that the company would be swallowed up by their main creditor and the common stock shareholder be left out, is enough to cause concern. You say it can't nhappe,,,,Take a look at Valiant Technology some six months back, a company referred to more than once on this website. yes, it could happen
    22 Jan 2013, 02:48 AM Reply Like
Full index of posts »
Latest Followers

Latest Comments

Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.