Liteglow (LTGL) Message Board

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Microcap & Penny Stocks : Liteglow (LTGL)

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To: lakers17 who wrote (2643)	7/29/1998 1:20:00 AM
From: Eric G. Erpenbeck	Read Replies (2) of 4715

L-17, As for the 100M authorized you should feel lucky that you did not have to suffer through all the dilution all of us have... Look at it from that perspective for a minute and feel lucky to have the chance to pick shares up in the 2-3 cent range.... I also looked in my Smart Money Magazine for August 1998. If you go to Pages 70 and 71 there is a small add on Liteglow there (nothing amazing). It is a short paragraph about LTGL. As for a reverse split versus a buy back etc... A buy back would be fantastic no mater how it is implemented. It is my hunch this will not happen (I don't think the company will use earnings for a buy back at this stage) and a Reverse Split (RS) will be inevitable. However a RS could be very benificial if LTGL earnings are present to support the new stock price after the split. If not then a RS will be as others have posted and/or if dilution would continue after RS. But there are way we as investor can watch for that... What we need is the audited results for 1997 and audited figures for 1998 to date. I believe with this information it will be very easy to evaluate LTGL. IF earnings for 1998 are as indicated, we are looking at a Net Income of 200K for 1998 (per past two earnings releases for 1998). A RS of 1 share for 10 would put our stock price at 33 cents (versus the current .033) and the number of Outstanding shares would be reduced from approximately 100M down to 10M. Hence Earning Per Share (EPS) = .02 cent per share and at 33 cents the PE ratio would be 16.5. So a RS would not indicate an overvalued stock in my opinion based on this PE. This is asssuming earnings are as stated in recent news releases by LTGL and assuming straight line earnings for the remainder of 1998 (no increase from quarter to quarter which I am sure is very conservative with Pep Boys and Radio Shack sales just coming on line). This is why we need audited results so badly!!! A RS is no big deal if it is done right and earnings are present in 1998 or soon after. We will know much more with Audited results, hence for now I am just holding and waiting. Do what is right for you. Seems like a decent risk to me at this level, if you aren't betting your life savings, JMHO. Good luck where ever you chose to invest. You might look at DCTC it has some interesting action if you get a chance and some interesting possibilities. Good luck, Eric

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