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Microcap & Penny Stocks : Cade Industries

CADE 39.80

+0.5%

Nov 26 3:59 PM EST

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To: Sergio H who wrote (2485)	6/12/1998 10:09:00 PM
From: Cary C	Read Replies (2) of 3563

Sergio I know when I spoke to you today that you hadn't had a chance to call the company yet so I have another question for you to ask if you wouldn't mind. This was from a previous news release.... Actual amounts expended increased by $1,484,000 ($792,000 attributable to Cenco) from the first quarter of 1997 to the same quarter of 1998. Factors contributing to the higher dollar level of administrative expenditures (excluding Cenco) were increased marketing costs, professional and consulting fees relating to development of internal production and information systems, certain insurance costs, administrative staff and related costs and travel-related costs incurred to support the higher current and expected sales volumes. .... I'm curious as to how much of the Cenco charges were one time charges and how much of the costs that were incurred in anticipation of the current and expected sales increases were one time charges. If they weren't one time charges, to they anticipate them growing at the same % of newer revenues If as lot of the charges were one time charges we would have a nice little windfall to the bottom line come next earnings report. They did mention that they anticipated growing income 60% to 50% revenues next year so this may have something to do with that Cary

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