IBC Advanced Alloys (IB-X)

Had owned this in the past. They operate in an interesting area and have a very interesting alloy, a combination of aluminum and others. They can make and cast extreme precision parts. The company expects to be profitable in the next couple of quarters. Have done a lot of things to improve their processes, and are now approaching other clients in order to increase market capacity for their products. He owns warrants. Feels there are other small-cap companies that are better near-term opportunities.

It is a speculation. They have a technology that allows you to cast precision components, which is cheaper. The technology has been endorsed. If they can keep picking up orders they can keep going. He thinks they will eventually be acquired. It is not trivial to get a contract from a major defense contractor.

Has a significant contract with Lockheed Martin for an optical casting that sits in the targeting system of the F 35 fighter plane. Also, have a contract with an Asian company for $1 million. The technology allows companies to use parts using a combination of both aluminum and beryllium to create a part that is 20% lighter than beryllium and 3 times stiffer than beryllium. He is expecting that within 12 months there should be increased volume. His one-year target for the stock is $0.20.

Very interesting technology. Super strong, light weight materials that got the attention of Lockheed Martin (LMT-N). These big companies move a bit slowly, but there is no question of what they have. It is still speculative.

Have a technology that allows them to work with certain alloys and metals. They signed a contract to supply one of the big defence companies. The only negative is that it takes a long time to gain volume when you are dealing with defence contractors. If it does go, these guys can make a lot of money. He owns a little bit of this.

Their key is a combination of both aluminum and beryllium which gives a combination metal which can be up to 63% beryllium, giving you something that is lighter than aluminum, but 3 times stiffer. Stock is held back because they are expected to having a financing. They needed a 2^nd furnace to provide capacity for the new expansion they announced. New contracts are coming very quickly. The 1^st casting should be delivered within the next 30 days, which should be quite positive. Advantage of the 2^nd furnace is that it will be a lot more efficient than the existing furnace. All the prototype work can be done on the old furnace allowing for much more efficiencies. If they did a financing, he would be interested in participating.

They are developing an optical system for Lockeed. They have two sides of the business and then the existing one that has huge unused capacity in their factory. They may need a second smelter system for redundancy and as a result people are waiting for a financing. Once they get it you will see an improvement in the stock over the next couple of years.

There are 2 parts to the business. 1.) Beryllium, an extremely high strength additive to either copper or aluminum. 2.) A contract to provide a casting to replace a machined part, which would take a lot less metal and is a much higher functioning part, which is going into the F 35 program. They have a great opportunity to sell castings like this into other military type applications. Company has said they need to raise some additional money for a foundry in order to have a 2nd source of backup. Once they get that financing out-of-the-way, you should see reasonable growth in 2015-2016.

Recently sold his holdings, but continues to hold warrants. Their system uses beryllium allowing them to cast aluminium rather than boring it. Looking for a contract with Lockheed (LMT-N) for fighter jets.

Awarded a tooling contract for Lockheed Martin’s F 35 jet because it is part of the optical system. The material contains beryllium which is much stronger than the existing part that is machined out of gigantic block of aluminum. A greater rigidity allows for a much more accurate setting device. Doing financing because they need to spend some money for a 2^nd furnace. Speculative but a good opportunity over the coming year for them.