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Gold/Mining/Energy : American Resources of Deleware (GASS)
GASS 7.960+2.7%Feb 6 9:30 AM EST

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To: tony mendoza who wrote (60)4/29/1997 11:48:00 PM
From: Ed Ajootian   of 172
 
Tony,

IMO cash flow determines O&G microcap prices more than earnings. I
agree that one looks for positive earings because that shows that the
company is able to keep growing on a sustainable basis. However as
long as earnings are positive then you look to cash flow. Average
market multiple is about 6 x annual cash flow I believe.

Would be thrilled to see GASS rise to a multiple of half of the average
market multiple.
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