Well, I must admit that I find your comments "interesting". You make
it sound like the Evil Eco Empire was the source of all of DBCOs
troubles in the last 2 years. I don't think its likely the fall from
over 7 at the end of 95, to the low near 1 and the shareholder anger
near the middle of last year had anything to do with Eco. In
fact, it would be interesting to know exactly where this stock would
be right now if Deere Park had not been brought in to buy shares.
Maybe you can correct me, but I believe that some of the anger by
shareholders was a result of management voting to reduce the
conversion price on the options they owned.
The problems mentioned by DBCO in their filing also appear to be
related to poor fiscal management.
Message 3191443
I agree with you that with good central management, and decent funding
the subs have considerable potential. Its one of the reasons I think
Eco can do well with them. I have heard from a couple sources that the
most troublesome entity financially was the Lachine facility. However,
I had a chance to vist the site recently and definitely was under the
impression that business had picked up considerably with some major
contracts.
As far as Eco,
I previously mentioned the releases discussing the funding that Eco
had available for acquisitions.
Message 3255459
I guess the following is what you consider to be hype:
Earnings growth since Mike McGinnis took over as CEO
revenues earnings earnings/share
1993 $7.6 mill 322,000 .07
1994 $35 mill 903,000 .15
1995 $47 mill 2,852,000 .40
1996 $120 mill 8,763,000 .81
1997est $240 mill 18,400,000 1.20
1998est $400 mill 30,000,000 1.40 + acquisitions
ECGOF earnings have grown at an average of 83% the last 5 years, while
the average company in the industry has grown at 11% (First Call). I
believe that it currently has the highest 5 year growth rate in the
industry but is currently trading at a P/E of 7.5 based on current 98
estimates. That is close to the lowest P/E of the industry.
Where exactly are you suggesting that the stock should be if it is
to be valued fairly from their numbers alone without any "hype"?
In no way do I consider McGinnis track record to be a 'Miracle'. His
five year track record is more likely related to management skills.
He's done a good job with his senior management. I believe you will
find that most of the Eco subsidiary Presidents have a lot of respect
for McGinnis (I've talked to two). Do you think that DBCO sub
presidents would say the same about their senior management? If the
sub presidents are as excellent as you state, I hope they stay on if
they are acquired by Eco.
You have made an excellent case that there is likely to be a lot of
value in DBCO if managed properly. I've owned shares in DBCO for
several months now and hope I can recoup what I paid. However, if
Eco's offer is accepted (whatever it is), I think the only way to
realize the value will be to invest in Eco. And yes, of course, I'm
heavily invested there.
David |
