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Gold/Mining/Energy : Markatech - MKD (VSE)

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To: SirVinny who wrote (133)1/15/1998 12:05:00 AM
From: Ted Kosokowsky  Read Replies (1) of 416
 
If you looked into the numbers of the CD deal, you would understand why there is so much support. If I had the money I would put up a bid of 100,000 shares at 6 cents too. Trouble is, right now I would have to bid at 7.

The numbers Lawrie would share with me on the CD deal are these:
38 cents hard cost/cd, that's polyethelene,aluminum,and sealer, rent, and wages (40K x 2 tekkies).

900cds/hour x 8 hours x 5 days/week x 52 x(1-.38) = about $1.2 million which = 12 cents/share.

That values the stock realistically between $1.20 and $3.00/share
at a PE of between 10 and 20.

Not bad for a stock at 7 cents.

Now here is the blue sky.
1. Its a machine that can run 24 hours a day.
2. Every other new plant has been able to buy another machine in 6 months from cash flow.
3. It's a new year and municipalities are looking at Autonet for this budget year.
4. The deal from Montreal is still on the table, which will "meet the budgetary requirement for the next year".

Not bad for a stock at 7 cents at all.
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