============================: TUE.OCT,991026 :============================16:15|  NYSBC(QUST)9910  Inventory Logistics Mngmnt . Harry`s @ Hanover|16:45| Bob Giordano , IR :  Internet potential for explosive growth ,Questron has grown from 7 - 100 M$ in 5 yr ,  150 next . Price % earnINGS ~  | 3 % .6 .65 |>| 5 4.62  No Tek risk . Business : Large Cos buying small parts .BobGubitosi : Pres & CFO : supply chain mngt . InventoryLogisticMngt . Railroad :  1B$ purchases :  12k items  750M$ for top 300 items  ;  5-6000 "C" items total just 50M$ purchases . Buy , stock & deploy to production line . So , more time to mng big $ items . `95 : Mission Stmnt : Defect free products , Partner w Clients . Grand Rapids  - SteelCase - small parts - 200k$ % yr expected savings .  found .18 increase in productivity -  1M sqFt facility .  Bin system @ production line . Revs ( M$ ) , last 5yr |   EAAGR  7.3 11 25.7 57.0 |>| 1.98   | avg growth . ebitda ( including 11 acq ) | EAAGR .8 1.2 3.7 9.2 |>| 2.26   | ProForma   74 - 110  rev , 7.9 -17.5 ebitda Growing from Traditional Distribution .Dom Polimeni : Top People came from acquisitions - avg indust exprience : 23yr Acqed  fastner distribution from old employer  Arrow  ( was CFO ) . fastners are ~ .5 of tot C item busn . OEMs turned to outsourcing sub assemblys 15-20 yrs ago .  Now Small parts  Industry has come into being in  last  half decade . Have Financed w Debt not Equity . Focus now on internal growth - only . Questron Distribution Logistics . 31 sales & stocking locations , many from March acq . Diversified customer industries - aerospace to consumer .  6K customers  "C" item mngt complex & labor intensive .  Nuts , bolts , Box labels , goggles packed w weed wackers . Custom Inventory systems . Like an Entemann bread route - keep the shelves stocked . .5 of admn time spent for .05 of production material costs . Supplier Base Reduction - 1 point of contact . " Prophet 21 " Acclaim Distribution System  Software .  Min/Max limits . ISO 9002 , SEMATECH qualified . Acqs all estabished bases .|17:12|  ?s :Abe : competitors ?  mainly existing Internal processes .  in mkt : Public  : PKOH , Park Ohio - mainly rust belt , auto.                     JIT Pentagon  , Aerospace                     Textron bought Flexaloy ( trucks ) . 2B$ fastners .                     TSX : Tristar Aerospace -           Private : Distribution Dynamics .                     Worth Grp  Not so much competition among OEMs because growing so much .  Have never shut a customer`s line down .  Gross margins : PKOH .28 , QUST .4 |  Net income .035 .| Liabilities  ?  Provide QC fn , but don't mfg . Have been dragged                  into 1 thru acq .| MichaelStorm : Mngt own  ?  > .5 among Top mngt frm acqs .                                3M of 6M float .    6 x 3 , 3+%8  |>| 18 18.75  | M $ mkt cap .    BG : 3q results w mark low for E%S , hi numbers next yr .| Me : Debt coverage ? 85M , pay down ,  2x debt coverage @ .12 tot costs .  Next Capital w be equity ,  want to get stock to 5 , then do secondary .| TedF poll : wait for Natnl listing or go AMEX ?   Majority  in room : hang for NMS Will Only do  A & B items  on fee basis . Sales staff done 44 presentation to  150M$ potential , closed ~ 10 already . 430 employees in 31 locations .  most via acqs . Some are engineers .  Offer good Health , dental , ESOP .  low turn over . Dilution - warrents 4M 5.75 2002 ( trade now .5$ ) ,   2.5 M  options out .  Fully diluted  13.5 shares , 9 float , Warrents would bring in ~ 30 M$ .| New inovations on 30 yr old cos ?   new Computer system .| All acqs distributors .| Asia ? source prods there , no competitors from there .| Suppliers ? not dependent on any 1 , SPS , Panduit , RAF .| Me : EDI  ?  w customers - looking to enhance w suppliers .|17:36|

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CoSy The NoteComputer

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Name : Questron ? never asked .