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Non-Tech : LL Knickerbocker(KNIC)/Pure Energy Corp

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To: Michael A. Johnson who wrote (713)10/31/1997 8:39:00 AM
From: Jimi Plym  Read Replies (2) of 1028
 
Thanks for your contributions to this thread. I bought my first KNIC shares last March, and I'm planning to keep my core holdings for at least another year. While I see real opportunities with Pure Energy and related ventures, I am concerned about the time that it will take to start seeing profits from large capital investments such as Arkenol Asia, etc. I am familiar with the economics of building new chemical plants, and the years that it often takes to break even. I hope KNIC's core business will be enough to help cover the startup costs. The sales growth has been spectacular, but the rise in earnings has not been. Will financing by the Shemano Group et al. be how they will be able to pursue their aggressive growth strategy? It seems to me that the promise of $Billions in 2-4 years is less important to Wall Street than solid earnings growth now. I would really appreciate hearing from you, Juan, Tom, and others on this thread who understand the KNIC business better than most of us.

Best regards to all,
James
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