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Gold/Mining/Energy : Mosaic Group (MGX.TO)

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To: WhySoSoon who wrote (4)6/23/1998 9:07:00 AM
From: Biff  Read Replies (1) of 67
 
IW

The Lombardi Publishing Newsletter is printed on a monthly basis. I subscribe to all their newsletters. They cover approx. 15 small caps and really have in depth research and coverage on their stocks. I can send you more info on Mosaic if you wish. The newsletter has an annual return of 66%. It is fantastic. I have been following it for two years.

They say Mosaic does carry a little too much debt, which is reflected in the financial ratios. Price/Book is 3.22, Price/cashflow is 18.25, and cashflow/debt is .25. They believe Mosaic is a buy, regardless of their debt load because of their high cashfloww and cash reserves. What concerns me is future dilution of shares being issued in these purchase.

Biff
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