HERC - It goes higher! Message Board

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Microcap & Penny Stocks : HERC - It goes higher!

HERC 0.00

Dec 18 4:00 PM EST

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To: Val H. who wrote (87)	9/27/1997 9:25:00 AM
From: Ralph Ulisse	of 341

At the August shareholders meeting, Steve said that the company had about 350k left in cash and that he was going to need cash by the end of the year. He said that he was looking for financing instead of offering more shares. He said he was determined to be profitable for the final 6 months and that he would begin to cut costs starting with top level management salaries. Based on the announcement, he was able to get 500k while having to give up 62k warrants two separate times. I'm not happy about the warrants, but at least he has the money to fund HERC's growth. I don't think he is going to use much of the money to support the Navy deal. I don't think the Navy would give him the business if they didn't think he could handle it with existing equipment. I think the money is going to help more on the municipality side. If you notice, HERC is writing their own press releases these days; the Equity Group has been fired. I am happy to see them go, they really didn't do much for the company while getting paid something like 4k per month plus 100k warrants. I think Steve is going to save the 48k for now and hire another firm after he makes a profit. Last word from Steve was that he thinks that HERC's 6 month balance sheet for the end of the year will show a profit and that he will be profitable every quarter next year. He is projecting a "conservative" $0.15 per share profit for next year. Remember, winter is coming so the Pipe Klean jobs in the Northern part of the country will come to a halt, but HERC still should be able to do jobs in the South. The Navy ships will continue to bring in money at the profit margins that KV likes to see, and the Coast Guard will "piggy back" off of the Navy contract. Don't forget the Consumer products either. I must admit that I am not happy with how slowly this is all progressing, but I believe that Steve has built an excellent foundation for growth. Those of us that hang in there will be rewarded. The key is as it always was, outside interest. Ralph

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