Replies to post #135501 on PCT Ltd (PCTL)

[skitahoe]

Snow,

I believe the PCTL Europe agreement constitutes far more than the 600 hospitals, so if we should equip all of them next year, it could still generate far more, but I don't necessarily expect those 600 will be done in the next year alone. It already appears that we've provided large HOCL generators to Europe, so it's being produced there with our equipment, and we're being paid for it's use, plus royalties on what it's producing.

I really believe we need to look at all distributors as profit centers, and I believe we'll be adding a lot of them. In the case of Level 1's and 2's, I don't know if any minimums apply, but we certainly know that those like ACE aren't restricted in their maximums. ACE has established numerous hospital installations and apparently has a major sanitation business that uses a lot of HOCL from the company, I would suspect that they're a multi-million dollar company themselves, and bring millions to PCTL. I would suspect that they're are largest Level 1 distributor, but don't know that to be a fact. GoldS is perhaps the newest Level 1 distributor, but he indicated his intent was going after Govt. business, if he's successful with one or more major Govt. contracts he too could be bringing in millions and the company would see a fair part of it.

Level 3's certainly have the greatest profit potential IMHO. People like D.E. have the potential of building multi-million dollar businesses, and again I believe that the company will see millions from them. This doesn't happen instantly, and not every Level 3 will be that successful, but my memory is that we currently have 9 Level 3's, I'd hope we'd add at least 1 more a month through the end of the year. While I'd like to hear goals from the company on how many Level 3's and others distributors they wish to add next year, but lacking that, I believe the goal should at least be substantially more than they've added this year. Success breeds further success and I believe we have a number of successful distributors, but much of the country doesn't have anyone nearby. I'm just suggesting we have tremendous room to grow, and the more we do, the easier it becomes to do so.

I asked the question that couldn't be answered in detail in the call about PCTL receiving an order from a Level 1 or 2 distributor, and asking a nearby Level 3 distributor to fill it. I didn't expect a precise answer, but I think it's clear that both the company, and the Level 3 distributor should profit nicely from the arrangement.

My point is that every distributorship is a profit center for the company, once established they cost the company little in delivering product to them, but profit nicely from having established that distributorship. I believe that PCTL is rather like a snowball running downhill, it gains mass with every revolution as PCTL gains profits with every quarter. Only time can determine how big, and how fast we'll grow, but I believe the growth is inevitable.

Gary