Robo Here you go l found this go to the bottom of page. And read the whole page. We all knew it was 600 million shares. Hilal tells different stories to differnt people and cant keep track of what he told to whom. Then read post 4820 when Penny spoke to Hilal and that 600 million share figure has been tossed around 100 times.
Rounds SHM Notes....posted on yahoo. THANK YOU ROUND!!!
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HTI has been proven to be a very good acquisition.
The merger was completed in March and CTKH paid cash for them. No shares were used. Most of the price was for tangible assets. Very little was goodwill money.
Many of the HTI 80+ customers have now begun using CTKH ceramics.
They have many well know customers, the US Government, US military (jet fighters and tanks), Martin-Marrietta, Metronics to name a few (Sp?).
They are leasing the HTI building apparantly from that HTI Real Estate Associates, or some such name that we heard about in March.
HTI was started in 1980 and has been profitable almost from day one.
FH expects 15-20% growth per year for HTI.
They have an excellent management team right now, but it is shallow. FH is trying to hire second level management right now. They are advertising for them on some well known head hunter sight.
FH wants to fill two positions at a time and train them for 6 months begore hiring two more.
Right now, HTI is not geared up to handle high volume orders, so in addition to beginning the process of increasing their capacity, he has contracted with Korean and Chinese firms to take care of any excess, and they are looking into building in Puerto Rico, because of cheap labor costs.
Re: the CTKH buyback, FH said that thye did buy back some shares. But not as many as he wanted. He did not give the exact number but did not challenge my statement that the number was 300 million, give or take.
The SEC regs regarding buybacks say that the company cannot be the first or last trade of the day, must use only one broker, and must buy at last published price.
FH's advisors told him NOT to do the buyback since he was going to issue more shares and the company needed the cash. But he decided to do it to honor his word to the shareholders.
CTKH will not even try to move to the OTCBB this calendar year. And it is not certain that they will be ready even into next year. The reasons given were the costs and the work involved as well as the ongoing obligations that are very time and financially draining.
The filing requirements are 2 years of certified audits that have been certified by two unrelated SEC Registered accounting firms that will provide peer review for each other's work. That is over and above the normal cost of the CPA who does the initial accounting and annual audit. Plus a minimum of $50K in attorney fees. Once submitted, for the first 30-45 days the SEC will submit questions and comments asking for any clarification. At the end of another 60 days, whether or not
the questions have been asnwered, CTKH would be a reporting company, but if they have not answered all of the questions to the satisfaction of the SEC, they will be a reporting company that cannot move to the OTCBB yet. But they will still have to file all forms as scheduled and required by law.
After becoming a reporting company, there are 30-45 company events that must be reported to the SEC with 4 business days, i.e., death of CEO, change of accounting firm, etc.
So basically the requirements have made it difficult if not nearly impossible for a small firm to comply because of the costs.
That is why MANY BB, NAZ, NYSE, and AMEX companies have recently
decided to become non reporting pinkies.
In the end, the benefit is too small to justify the cost.
They have sold aluminum reclamation furnaces in the UK and Canada, and are now trying to create a market in the US via talks with Alcoa.
CTKH has 7000 shareholders according to the Transfer Agent. 220 of them are holding Certs in their own names.
But some shareholders,including one in Florida are having difficulty getting their shares issued to them in certificate forms. Their brokers are claiming that they cannot get the shares from the DTC.
It that is true, then CTKH has a serious naked short problem. And it is possible that multi Billion shares have been naked shorted. That would go a long way toward explaining why the pps has not gone up.
They have 12 old style oven in the Commerce St. buiding and 4 of the new ones. And they have purchased several trailers and put them in the pallet yard. They now store all of their raw materials in them. That has given them the space they needed for the new ovens.
Fh apparantly sold 600 millin shares of unrestricted shares to a stock promo company at 50% discount. The company rep who made the deal did not do much to earn the shares, and finally skipped town. FH is now trying to get the company to honor their deal and complete the work.
AI
