Dominion Bridge Corp. (DBCO) Message Board

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Microcap & Penny Stocks : Dominion Bridge Corp. (DBCO)

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To: Jay Arkay who wrote (501)	3/6/1998 1:42:00 PM
From: Baoho Chang	Read Replies (1) of 535

Hello, Jay. I agree with you on the assessment of DBCO. The biggest risks are whether the deal will consummate and if it does, whether Eco will be able to pay off the notes at the end of the 3 years since the balance sheet of Eco is clear very leveraged. It seems to me there are some problems with clear.thinker's thinking. The annual compounding rate for $1 to appreciate 50% in 3 years is at least 14%, not 10% or less as CL suggested. Secondly, the 7.5% interest on $3 face value should translate into about 11% annual interest income for people holding DBCO at the cost of $2. So, the combined annual yield before tax should be around 25%. This is a return that is higher than that of any junk bonds today. Regards, Baoho

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