Management

Jerry A. Minni is chairman, president, & CEO. He was one of the founding partners of the accounting firm of Minni, Bella, & Co., Certified General Accountants, in Vancouver. He has 17 years experience in business investments, corporate reorganization, finance, & funding of young businesses. .... Wendell R. Davis is CFO & COO. He was controller of Pillar Corp., & has extensive experience in technology based operations, business development, & finance, including 10 years with American Can (Ed. Note: I started my career in American Can in 1948). .... James P. Ringo is VP, Antimicrobial Division. He was VP operations for Bio-Cide International with extensive experience in research, development, product application development, regulatory affairs, program management, & technical expertise in the chemical manufactur-ing & marketing industry.

Financial Status (10/31/98)

Current Assets: C$3,222,961
Total Assets: C$8,823,120
Current Liabilities: C$1,411,571
Long Term Debt: C$1,234,000
Shareholders Equity: C$6,177,549
Revenue (Yr ended 10/31/98): C$7,473,696
Operating Loss: (C$42,175)
Non-Recurring Items:* (C$1,407,910)
Net Loss: (C$1,450,085)

* Includes restructuring costs,moving expenses, & development costs written off with respect to projects abandoned.

Recommendation

I recommend Raytec for long-term appreciation. With worldwide attention being given to food related illnesses, the demand for solutions is high. Raytec has developed an efficient system for responding to this serious problem, while at the same time reducing shrinkage & increasing profitability. Here are some other things I like:

  • Technology is in place & new applications forthcoming
  • Highly experienced management & technicians
  • Huge market potential
  • Growing revenues

Contact

Call Ron Birch or Luc Lesage at 800-533-6663, fax 604-683-4499, write 1104 - 750 West Pender St., Vancouver, B.C., Canada V6C 2T8, or e-mail: rbirch@idmail.com or llesage@i-dmail.com www.raytec-capital.com

Important Strategies

These comments apply to every situation mentioned in Conserva-tive Speculator. Special situation, low-priced, micro-cap, & high-gain-potential stocks have high risk. Fortunately, not many speculative situations turn out to be disasters, but some do -- that is a risk you must accept. "Winning Investment Strategies," my 60-page guide to speculative investing, is made available to every regular CS subscriber. Stated extremely briefly, here are three of my most important strategies:

1. Be prudent -- the total funds allocated to speculative stocks should be limited to a small percentage of your cash, certainly no more than you could lose without discomfort. I then suggest no more than 5% of that small portion be invested in any one stock, to spread your risk.

2. Do not accept my opinion as the reason to invest. Call the company. Get a feel yourself. If you are not totally comfortable, pass. I give you an ample number of possibilities. My task is to expose you to potentially profitable situations. You have the responsibility of making any investment decision. Do not give up that responsibility.

3. Since in a monthly newsletter it is not possible to tell you when to sell, apply a moving stop-loss strategy. If the price goes up, raise your stop-loss guideline point to something like 20% below the new price. Keep doing that as the price rises. If the price goes down to your stop-loss point, grit your teeth & sell. This limits loss, but lets profits increase.

Update Briefs

These are capsule updates on previously recommended companies that provided us with substantive news during the past month. I also include updates on some Sneak Previews where our investigation has resulted in additional pertinent information. I do not have room for all details, but always include the company's phone number so you can follow through.

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