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Microcap & Penny Stocks : EXSO -- Consolidated Eco-Systems (Exsorbet Industries)
EXSO 0.00010000.0%Mar 7 3:00 PM EST

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To: Razorbak who wrote (1374)8/14/1997 9:03:00 AM
From: tdl4138   of 5015
 
In every communication I have had with management over the past
2 months...the position has been the same on this qtrs earnings.
They will be "on plan". The 3rd and 4th will reflect the re-organization
this management team has implemented. I would expect write downs anywhere
they can. Especially concerning 7-7. As we know, 7-7 has some multi
year contracts in Europe. The costs associated with this start up will
be reflected in this qtr. Good, lets get it out of the way. Also, there are
costs and fees associated with the debenture conversions. This will
hurt this qtr also.
As Razor stated in an earlier post, the key to look for will be revenues.
I have stated in previous posts, increasing revenues are going to be more
important than earning a few pennys this qtr. Growing revenues can, and
in my opinion, be the "cure all" for this company. With increasing revenues
and sharp cost reductions...sooner or later makes profit. That will
come in the 3rd qtr...not now. If revenues continue to increase, the
share dilution will be eventually absorbed with a buyback plan...but you
need the revenue to do it with. The future of this company is hinged
to increasing revenue....it solves problems.
Any new investor that is expecting a profit....sorry...I think you
goofed...and thats just my opinion. This company will make a profit
but we're not quite there. Being overly optimistic here is not appropriate.
If the 3rd and 4th qtrs are not exceptionally better, I'd say we all
goofed...and anythings possible.
I like the company. The industry offers excellent growth opportunities
and new management seems to have a firm handle on things and getting
stronger by the week. But true value here won't be visible till the
3rd and 4th. Thats why my position is long term. My advice is to be patient
and wait till the 3rd results are out. We're already halfway there.
Then evaluate your positions. Thats what I'm doing.
Good things come to those who wait....as long as the wait isn't
too long.

Just my thoughts
Dave
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