ECGOF: Anyone following this company? Message Board

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Gold/Mining/Energy : ECGOF: Anyone following this company?

ECX 1.880

0.0%

Jan 28 3:59 PM EST

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To: Francois H. Gaston who wrote (215)	3/28/1997 12:58:00 PM
From: david james	of 269

Yes, with much of my money in this stock, I would love to see a market shakeout where everyone starts to question their high p/e stocks which may or may not have the growth to support them. I see the worse case scenerio is one where the company earns only $1.20 this year (i.e., no Brown and Root contract - no surprise contracts), the company keeps this absurdly low P/E and is trading at $12/share at the end of the year. That's 50% growth - not a bad downside. Of course, if this company is discovered by the street and they land a couple more contracts, we could easily see $1.50 and a more representative P/E of 30 or so, where it would still be undervalued trading at $45/share. I do think I like those odds. With the CEO putting in $2.5 million of his own money into the stock - with possibly as much of a million on margin (therefore paying interest on that), I think we can bet the CEO is going to try and make it to the upside. David

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