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Microcap & Penny Stocks : NAMX -- North American Expl.-- Que Sera Sera!
NAMX 0.00010000.0%Mar 7 3:00 PM EST
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To: Sidney Reilly who wrote (1597)11/27/1997 11:26:00 AM
From: M. M. Jones  Read Replies (2) of 4736
 
Dear Bob,

Is it possible that the number of shares outstanding have increased to the maximum in order to get the funds to do all this drilling in Nebraska? Don't forget that we have been told repeatedly that new drilling would be financed by "off-balance-sheet financing," meaning limited partnerships from which NAMX will get only a portion of the profits -- 60% if they are lucky. (We have been told this in order to allay our concerns about massive stock dilution.) None of Marty's figuring and none of the comments made on the thread has taken that aspect of the financing into account, which again has been repeatedly emphasized by the company. All comments on the thread have been assuming that all of the profits will go to NAMX. But if the limited partnership financing has been dropped and is not being done, then the shares must have been diluted to the maximum in order to get the money to go ahead. That is, to 100 million shares. And what kind of EPS will that give? In fact, the earnings picture could really be bleak if NAMX has done both: i.e. resorted to limited partnerships AND to issuing the maximum number of shares!!

Of course, all of these speculations are made without knowing if the Nebraska site will be particularly productive. How productive will it be? How long will the reserves last? My information is that this is a previously-drilled site and this fact is likely to be negative for its productivity potential.

Regards,

Molly
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