American Eco (ECGOF, ECX on Toronto exchange) Message Board

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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange)

ECX 1.800

+6.5%

3:59 PM EST

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To: VALUESPEC who wrote (238)	7/20/1997 7:13:00 PM
From: david james	of 2841

Valuespec, The difficulty I have with your posts is that you are taking data from the filings and then adding your personal opinion as to whether the data are good or bad. You are providing no comparison data to other companies in the industry to allow anyone to determine whether these levels are unusually high or low. Previously, one of the posters did something similar, pulling out Eco's debt and claiming this was the reason why Eco was valued like it was. However, by comparing their debt to those in the industry it could be shown that Eco's debt was pretty typical and that increases in debt often resulted in an increase in share price. Indeed, my own interpretation is that Eco would do well to borrow more. You are dismissing the income from the lawsuit even though this income compensates for the income lost in the contract. You want to count the share dilution that it cost to buy MM Industra and MM Manufacturing, but do not want to include the NOLs which I believe they received for those acquisitions which obviously would have been part of the deal. So could you go back and show that when you say the company is below average, how that compares to others in the industry that receive more than twice the P/E of Eco? Is the cash situation unusual for a small cap that has averaged 83% growth in earnings the last 5 years? I also agree with Babe that you are not evaluating this company from the perspective of a company growing fast. This may be why you undervalued JBIL down around $10/share (I think I remember you selling at that level). Here's some help with data from Eco's two main competitors. From www.marketguide.com which I believe has not been updated with respect to the 10Q filings on Friday. Eco PHV OHM Share Price $8 $14.75 $8.43 EPS (TTM) $ 0.86(.95) 0.57 0.43 P/E Ratio (TTM) 8 26.12 19.39 Book Value (MRQ) $ 3.89 6.49 6.53 Price/Book (MRQ) 2.07 2.30 1.28 Sales Per Share (TTM) $ 9.87 12.11 20.06 Return on Assets (TTM) % 9.40 3.73 3.41 Return on Equity (TTM) % 17.93 9.57 6.84 Cash Per Share (MRQ) $ 0.62 0.09 0.23 Current Ratio (MRQ) 2.04 2.43 2.02 Total Debt/Equity (MRQ) 0.71 0.67 0.32 From First Call Earnings growth last 5 years 83% 28% NA Est. growth in 97 48% 44% 15%

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