I just got this e-mail from someone who is not an SI member. It has some good information, so I am posting it. I don't know the accuracy of all of the information as I am not the one who has done the research.
It was sent to me by Bob Hadley. If anyone has any questions on it, his e-mail address is:
bobhadley@hotmail.com
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If you wouldn't mind posting it, I'd appreciate it, as I don't have an
SI membership.TIA
I spent most of yesterday researching Coconino SMA (CSMA). I've
been following them for about four days now, and everyday it creeps
up a little more. It's just recovering off it's all-time low
of 15 cents, and since hitting rock bottom on Oct.9th, it's
recovered extremely quickly. Yesterday, it closed up 20%
and as of noon today, it's up an additionaly 45%. I finally
bought in today at 30 cents. It was at around $7 in April, and
was over $10 a few months before that. They have been busy
aquiring companies, and are expected to show profits
starting this quarter. If the float is only 1.6 million like my
research showed, it would hardly take anything to move it back to where it was a couple months back.
I was DDing and noticed that GMT newsletter picked it as their hot stock this week. They said it was extremely undervalued, and they have added it to their portfolio.
Here's my research. It'll take a while to read, but I'll guarantee you it took me hours more to research and type. I have not included
profiles of company executives; if you're interested, let me know, and I'll type them in for you. I finally had had enough of watching it climb, so I bought in this morning. I'm expecting it back at $1.00
within a few weeks. Please let me know what you think about it.
Here it is:
Coconino S.M.A., Inc. (OTC BB-CSMA)is a diversified marketing
and holding company, involved in the consumer product and
natural resource industries.
Market Makers: 5
-Hambrecht & Quist
-Smith Barney, Inc.
-Mayer & Schweitzer, Inc.
-Herzog, Heine, Geduld, Inc.
-Montgomery Securities Inc.
Contacts: -H.K. Elrod, President of Coconino S.M.A., 800-471-0171
-Mike Millis, Coconino company spokesman, 800-733-0087;
-Coconino Investor Relations: Fred Johnston of
-GFC Communications Corp., 513-248-9534
Number of shares outstanding (as of April) - 5.6 million
Number of shares in public float (as of April) - 1.6 million
52-week range -> .15 to $10.06
Currently -> Bid .22 Ask .24 Last .24 Change +.04 (20.0%)
Volume 560,000 (If float is still accurate, that's over 1/3
of float traded today. It's been moving steadily since
October 9 (the 52-week low))
- They are preparing to file its Form 10 and will soon become a
reporting company on a quarterly basis.
- Coconino projects that its operating results for fiscal 1997
will show a minor loss similar to fiscal 1996. (1996 loss was approximately($500,000) Results for the period ending
September 1997 are anticipated to be considerably stronger as a result of several developments:
-An institutional research firm, M3, Inc., has initiated research
coverage on CSMA. M3 will also assist the company in selecting
and funding oil and gas projects. M3 specializes in emerging, energy-related public companies. "We have great confidence in Coconino's management and their ability to identify and acquire income producing properties, "says Michael Pickens, president
of M3. "We have taken an equity position in Coconino as an expression of our commitment, and we look forward to working
closely with the management in exploring the tremendous
opportunities in the oil and gas industry."
According to Hamlin K. Elrod, chairman and president of
Coconino,"Mr.Pickens and M3 have an excellent industry and institutional following,and we are particularly fortunate to
have developed this affiliation. With M3, CSMA will receive the skilled support and recognition it deserves from a significant
force in the financial community."
M3 has expressed particular interest in the potential of
Coconino's subsidiary, Enviro-Tec, which operates a uniquely
situated disposal well in Northeastern Utah that services oil
gas operators. Enviro-Tec is working to upgrade its status
from a Class II to Class V. It has achieved full EPA approval
for Class V non-hazardous wastes. Michael Pickens, president of M3. and his associates possess extensive experience in energy
analysis.
- Coconino's president Hamlin K. Elrod said, "We have
strategicallypositioned Coconino in three high growth
industries to the benefit of shareholders. A strong-hold in each industry can provide shareholders with a unique protection from the effects of major market retreats in any single category."
SUBSIDIARIES
UINTA OIL GAS
-Last month, Coconino sold its Uinta Oil Gas unit in exchange for
shares of another fast-growing, publicly traded company. (The
actual amount of stock was not disclosed at the request of the acquiring company). The stock has a GUARANTEED sale price at maturity-This transaction also eliminated approximately
$677,000 in debt.
-Coconino PURCHASED Uinta for 185,000 shares of common stock last year,which were RETURNED to the company when they sold Uinta.
-The net results will provide a generous return to Coconino after
holding the property for only a year.
LPS LIMITED:
-Coconino aquired LPS in September for RESTRICTED stock.
-LPS added over $4 million in liquidity to Coconino's balance
sheet-LPS is a financial marketing organization involved in
personal financial education and the refinancing of mortgages.
-They are projected to contribute significantly to Coconino's
earnings in its first twelve months of operations.
AD-HATTERS INC.:
-They are urrently operating PROFITABLY and plans to introduce
a new air freshener product in November that is expected to
increase sales significantly-They manufacture and market
unique air fresheners (cowboy hats, boots, ski caps, baseball .
caps and angels). These look incredibly real (I've seen pictures). The cowboy boots have a real leather strap attached, and the
cowboy had has an actual feather sticking out.
-They manufacture other novelty items, including unique pewter
sculptures and American indian jewelery
-Sales increase 40% average/quarter
-Almost 2 million units sold to date
-Major national chain store accounts. Over 200 distributors with strong international sales
-In April, they received $2.25 million expanded credit facility to fund growth
ENVIRO-TEC INC.:
-Debt-free, currently have Class D, Type II license, but
currently undergoing Type V-Expects to report modest but
profitable results for the 3-month period ending in
August 1997.
-The company believes that Enviro-Tec's non-hazardous waste
disposal well offers very strong earnings potential.
-Coconino management believes that a newly implemented marketing plan
will generate impressive improvement in operating revenues over the
course of the next twelve months.
-They expect to announce the approval of their Class V permit next
Spring, which would result in greater revenue increases based on the
disposal fee increases allowable under the new permit designation.
-This will be the only Class V well in the State of Utah or within
400 miles.
-There a number of industrial waste-generating enterprises near the well that urgently need Class V disposal services.
-The state's Class V rating will allow Enviro-Tec to dispose of
commercial non-hazardous wastes and charge $16.80-$29.40 per
barrel, rather than the $0.40-0.70 per barrel it currently
charges. Enviro-Tec has applied for a 7,500 barrel per day permit.
-The region surrounding Enviro-Tec has several major commercial
facilities that produce an estimated 50,000 barrels of
non-hazardous man-made liquids per day. This includes salt
water from hide tanning, and lettuce juice and chicken fat
from food processing. Government regulation is forcing an end to companies who dispose of their waste fluids in ways that affect the environment, thus creating a large scale opportunity for Enviro-Tec.
-7500 barrels/day x conservative $20 x 365 days/year = almost $55
million dollars/year. If they are currently profitable charging only 50 cents, imagine the profit charging over $20.
COCONINO OIL GAS INC. (COG)
-COG has announced an aggressive acquisition plan designed to yield
significant bottom line results. If acquired, the properties under
consideration could generate impressive revenues for the 1998 fiscal
year.
-This is envisioned as only a modest beginning in what will entail an
increased involvement with well-financed, respected, and successful
industry partners. |
