THE IHI STORY PART IV
Hi-Tech is building Tomorow's World Today.
to the 21st century.
It is no secret that IHI is one of my favorite long term investing themes.
Clearly a high risk, high reward play, nonetheless, I believe that this
will be one stellar company. In this section, I have put together
a number of previous and current IHI postings.
The following notes were written during my February 99 visit to Vancouver,
B.C., where I participated in the 1999 BC Home and Garden Show which starred
IHI's show home.
Friday February 19
1. IHI Staff dedication is evident. Everyone is pitching in and
many infamous all-nighters were done to be ready for the BC show.
From the steel welders to the project engineers and up, the quality of
work is OUTSTANDING.
2. One does not sell IHI houses: one takes orders. If
I were a real estate agent, I could have closed four to five home sales
3. Architects will prefer IHI because of its speed of completion from
design to finish as well as no structural problems - no columns used etc.
4. IHI Show home #2 will be relocated to 846 W. King Edward Avenue
in Vancouver for public display. It will be dis-assembled and redesigned
as a fully furnished home in the factory first. This will address
the two "primary" complaints at the demonstration house - no running water
and not enough closets. :)
5. "Seeing is Believing." For many years I have fore-seen
in my mind eye the incredible future for International Hi-Tech Industries.
But it was not YET ready to manifest. With this week's successful
demonstration of IHI building technology, materialization will follow.
Next month we will post our latest astrological forecasts for the company
and astro-technical projections for IHI stock.
Thursday February 18
I thought I was done reporting on the show, but EVERY day I learn more
about the superior benefits of IHI housing. Two today are:
One, IHI housing is sound proof. Everyone is commenting on how
quiet it is. You can have 100 people in your house on the ground floor
and not hear them on the second floor. There is NO vibration nor
will you hear virtually any street noise. In New York that is VERY important.
Two, in Vancouver and the Pacific Northwest, moisture damage is a factor
to worry about, but NONE with IHI housing.
I believe that despite being far cheaper to produce, IHI housing will
sell at par. There are too many benefits to consumers and builders
alike due to quality and speed of IHI construction. This will increase
IHI profit projections by 30% for the first three to four years.
Wednesday February 17
Reading about Dell today which has of course peaked for the century,
like most computer stocks, I note it rose almost 1000 times since 1990
split adjusted. All the IHI co-venture partners I spoke to yesterday
hope for similar results from Interntional Hi-Tech Industries, Inc. The
consensus is not to sell half as the stock doubles this next quarter, but
rather like myself, to sell 10% at $10, another 10% at $100 and a further
10% at $250. Because of Dell, I am going to suggest they also "consider"
selling another 10% at or near $1000! Of course, in truth, when IHI
has 25 factories in operation, we will review their current business plans
to see how they plan to grow to 100 factories, itself less than 1% of the
world market. 1pm today the show officially opens.
Tuesday February 16
Today was a typical "wet coast" day - rain, rain and more rain.
IHI show home far more magnificent in person; Web
photos hardly do it justice. Today, IHI stock had positive momentum.
We expect an attack of the psychologically important $1CD or $0.67US
price before end of this week. Whether it holds, bases and/or runs to $1.10
or $1.20 is a traders question. For long term investors, ANY IHI
stock priced under $1CD ($.67US) is a steal. Everyone is excited
about show opening tomorrow.
Sunday February 14th
After arriving last night in Vancouver, around 12:30 am PT (3:30
am ET), I was viewing the IHI show house at B.C. Place Stadium, courtesy
tour of Rene Rached. Wow! No wonder local contractors were
amazed how a 3000 square foot house could be erected in two days.
As is usual, IHI architectural excellence is evident. The BC Home
show is expected to have over 70,000 visitors this week. Clearly,
this should create demand for both IHI housing and its stock.
Today I spoke extensively with Marc Becker who is the representative
of IHI in Luxemboug. He reviewed my EPS projections for IHI which follow.
He pointed out that once in production, 25 million dollars one time revenue
will be due as per the contracts of the 25 factory licenses. Hence,
earnings could increase to more than $2 in 2000.
AFUND EPS Projections for IHI
Based on $20 million per production line and each factory is expected
to have at least 3 lines = greater than $1 per share. This presumes
two shifts and IHI receiving 51% of the profits. Assuming the Delta factory
begins production in the Summer 1999, and 2 more factories are finished
in 2000 and 5 more in 2001 and 10 more in 2002, I estimate their EPS as
Despite annoying delays, with IHI entering its production phase by the
summer, my enthusiasm for IHI continues unabated. IHI's 5 year business
plan is to build a total of 25 factories by 2004.
1999 $ 0.10
2000 $ 1.05+ $1 one time license fees = $2.05+
2001 $ 3.50+.
2002 $ 7.00+
Our internal price projections for IHI were raised this past month
from a five year possible target of $100 to $250. To compare,
a stock like AOL in a comparable time period sold for over $3500. This
of course assumes that IHI continues to progress with more rapid speed
than has been shown todate. Astrologically this is possible.
Time will tell if this remains just an astrological possibility, or whether
the Bermuda chart potential is materially manifest as I both hope and expect.
Nonetheless, it is easy to see why I continue to keep my wine cellar
ready to be stocked with champagne presents from clients and friends when
IHI stock reaches $30.
Monday February 15
Bob Carmichael of Hi-Tech America Development Corp pointed out beyond
the obvious benefit of IHI building better houses with more profit, the
speed of IHI housing construction means a builder can build 6 or 7IHI homes
the same time frame as one conventional home. The end result is an
increase in profits 6 to 7 times.
Ralph P Richard also of Hi-Tech America Development Corp added that
not only can an IHI house expand as your family grows, but you can also
dismantle your IHI home as the family decreases in size. Your daughter's
dowry can include her bedroom literally and she can build her first home
around it! He suggests your oldest child's bedrooms be furthest out!
IHI STOCK QUOTE
PS We are making vacation plans again for the beautiful city of
Vancouver BC this August.
Western Canada is so cheap with their "dollarette" currently under
67 cents US. The city is beautiful and the people are very friendly.
Mark IHI day: August 15, 1999 for their general shareholder
meeting, Delta factory visit and party.
See you there? My price projection for IHI then? MUCH higher
than today? YES!!
PART I: IHI
PART II: IHI
PART III: IHI
OUR FIRST IHI POST: IHI
The Astrologers Fund Inc., its director, employees and its clients maintain
large positions in this stock. In addition, International Hi-Tech
Industries is a major sponsor of our web site. While we usually do
not actively trade IHI stock as it is a long term hold for us, it is of
obvious benefit to us when others buy IHI stock. Always do your own
research and check with your licensed financial advisor or broker before
buying or selling on the recommendations of the Astrologers Fund, Inc.