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Message: Recap: Hugh C. on BNN

Recap: Hugh C. on BNN

posted on Mar 31, 2008 04:55PM

TRANSCRIPT
http://broadband.bnn.ca/?vid=41823

Question:
What is your outlook for Active Control Technology for the next two years?

Response:
Coal mines is an area where they are already getting adoption. It's a massive market as you can imagine. There's been a significant push on the regulatory side to mandate 2-way communications systems for voice, data, etc. and these guys appear to be the only ones with a system that works. And right now, I've been saying for a while is sort of on the verge of becoming a potentially a core position. I own a reasonably sized chunk of the corporation...less than 10% though. And I'm waiting for a couple of things. MSHA approval I think would be a catalyst for just a whole pile of PO's to come through...MSHA approval would be a dam breaker for these guys...That's what a number of the companies are waiting for is to make sure that the MSHA, which has to approve all equipment which goes into mines...once that's done there's a state legislation requiring that, I believe in West Virginia, that all mines get outfitted with 2-way communication systems within a very short period of time, but that's not going to happen until the MSHA approval comes through. So, a couple of catalysts like that over the next three months and the stock will make a big move. You can start to get to...which I think is quite reasonable just assuming that the West Virginia mines and some of the mines in that area implement within two years, you're looking at I believe 10 cents per share of earnings numbers. So, it goes from looking very expensive to looking very cheap with one or two catalysts.

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