Earthshell Corp. (ERTH) Message Board

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Non-Tech : Earthshell Corp. (ERTH)

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To: Drake who wrote (71)	8/20/1998 2:09:00 PM
From: Paul Berliner	Read Replies (1) of 409

I still have many reasons why the stock will fall, aside from the 9/20 sell-off that will occur. But first, I never heard of it taking a stock higher. Please explain Drake. Some curious things in the 10-Q: 1) ERTH recently signed a contract w/an equip mfg. which forces the Co. to expend $35M over the next 5 years on equipment. This spells death for the Co. should the McDonalds agreement somehow fall through. 2) Regarding the Mcdonalds agreement, it says 1.8 Billion containers is the stated minimum purchase by McD. Now, how much can a container cost if a Big mac is say, a couple of bucks? The container can't possibly cost Mcd more than 10 cents if its to be competitively priced, though I'm not a packaging guru. Anyway, that would be $18M in revs. to Sweetheart, and ERTH is supposed to get royalties. If ERTH has already spent a total of $15M on the leasing of equip. & installation @ Sweetheart, how will the royalties cover future costs? ERTH isn't getting the full $18M. What kind of return on investment is ERTH getting for their capital expenditures? Zilch, it seems. Ex.1 + Ex.2 = ERTH having a cash crunch sooner rather than later.

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