American Eco (ECGOF, ECX on Toronto exchange) Message Board

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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange)

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To: MARK BARGER who wrote (2346)	4/8/1998 4:48:00 PM
From: Nero	Read Replies (1) of 2841

There is little reason to buy ECGOF now. Trading a week ago was a dead cat bounce -- technical buyers, bottom feeders and bargain hunters that didn't understand the depth of the $1.20 disappointment. I'm worried about the effect the DBCO debacle will have on 1st quarter balance sheet. I assume others are worried too. McGinnis has wasted a great deal of trust and goodwill. He and ECGOF will take a couple or three quality quarters to earn it back. In the meantime, why would anyone invest new money in a dead money stock? Since there is a dearth of buyers, the price will drift to levels that are too enticing to resist. Unfortunately, the bottom may be in the 6s if DBCO impacts the bottom line substantially. Mid to long term, I feel ECGOF may still be an extremely profitable player -- that's why I'm still a stockholder (though I have regrets). I will not eat this loss. 12-18 months from now I expect ECGOF to be back around 12-14. That's a 50% return. I can wait. nero

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