Replies to post #252 on Integral Technologies Inc. (fka ITKG)

[nysepick]

You are not alone, glt.
Your excellent question forms a conundrum for all who have paper profits in this and other equities. Ignoring paper profits is analogous to riding a tiger: we are afraid to stay on but, at the same time, afraid to dismount.

I have accumulated a six figure number of shares, one third of which rests in IRA accounts. As an exercise in profit-taking, I have looked at the impact (and tax advantages) of taking the equivalent of my original stake off the table at hypothetical levels of $5, $10, or more. And therein lies the conundrum; a sale at any level risks missing a run up to the next level.

So, I understand your concern about the "gravitational" pull of those two emotions greed and fear. They constantly play on my mind, yet I continue to hold. I have not sold any, even withstanding pressure from my wife during past run ups. But why do I contnue to ride the tiger?

When I look at the number of patents granted and in process, consider the overarching sectors for our patents, research the companies and industries in the sectors that the patents target, look at insider buying activity, and focus on institutional (Wellington and others) holding activity, I can only conclude that there is far greater value ahead than $10 per share.

In extreme moments in the past, I found myself hoping that a reasonable buyout would solve the conundrum of the the tiger ride once and for all, but I have always gone back to the rationale in the above paragraph.

Another problem, if you can call it that that clouds my judgment is that I have substantial assets and a lifetime pension (exFed), so I can afford to await the outcome of Integral's patent exploitation. For me, the ideal situation would be price appreciation to a point that would allow me to sell the minimum number of shares to retrieve my original stake, plus say enough to buy two BMWs--as a reward for staying the course--while still having enough to enjoy a powerful run up.

Again, thanks for the excellent question, glt. These are the kinds of issues I envisioned discussing here.

[Sputnik]

~11,000,000 shares have just been registered for resale. The Wellington group is part of that registration of selling securityholders. Their cost basis was ~$0.79 per share. Excerpted from the latest SEC filing...

The selling securityholder is an advisory client of Wellington
Management Company, LLP ("Wellington"). Wellington is an investment
advisor registered with the Securities and Exchange Commission under
Section 203 of the Investment Advisors Act of 1940, as amended.
Wellington, in its capacity as investment advisor, may be deemed to
have beneficial ownership of the shares of common stock of Integral
that are held of record by investment advisory clients of Wellington.
Beneficial ownership, as such term is used herein, is determined in
accordance with Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended, and includes voting and/or dispositive power
with respect to such shares.

We are registering the shares for resale by the selling securityholders in
accordance with registration rights granted to the selling securityholders. We
will file a prospectus supplement to name any successors to any named selling
securityholder who are able to use the prospectus to resell the securities.

All of the shares being registered for resale by the selling securityholders
were acquired from us in private placement transactions, which are summarized
below.

[Sputnik]

You need to factor into your evaluation the fact that ITKG is almost out of cash. ~$600,000 on hand March 31, burn rate of ~$350,000 per quarter (~$111K per month). $600K minus $444K means there is only a little over one month's cash left. There is only licensing fee ($1) that has not generated any cash. Look for additional dilution as outlined in the latest SEC filing for ITKG.
Excerpted from the SEC filing.....

IF WE DO NOT GENERATE ADEQUATE REVENUES IN OUR NEXT FISCAL YEAR, WE WILL NEED TO
RAISE CAPITAL TO CONTINUE OUR OPERATIONS. We estimate that we will require $1.4
million to carry out our business plan during our next fiscal year, which begins
July 1, 2006 and ends June 30, 2007. We had approximately $600,000 (unaudited)
in cash on hand at March 31, 2006. Unless we generate adequate revenues from
operations (we have had none to date) in the near future, we will require
additional financing to carry out our business plans next year, and such
financing may not be available at that time. If we require additional financing,
we may seek additional funds through private placements that will be exempt from
registration and will not require prior shareholder approval. If additional
funds are raised by issuing common stock, or securities that are convertible
into common stock (such as preferred stock, warrants, or convertible
debentures), further dilution to shareholders could occur. Additionally,
investors could be granted registration rights by us, which could result in
market overhang and depress the market price of the common stock. If we fail to
obtain sufficient additional financing, we will not be able to implement our
business plans in a complete or timely manner.