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Gold/Mining/Energy : LGS Group Inc. Y/2000

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To: alan holman who wrote (3)1/2/1997 9:44:00 PM
From: Chris Kay   of 169
 
Alan, I don't know enough about Forecross to compare it. A quick search shows it has revenues of about $3million and lost about .04 cents/share recently.

LGS, on the other hand, is an established company with revenues over $50 million, pays a small dividend, trades at a price/sales ratio less than .60, and has consistently been making money apart from the expected increase in business resulting from the Y2000 problem.

I believe LGS is also listed on the TSE though it trades primarily on the MSE. Forecross is a very small VSE listed company, as you know. So the risk is, in my experience, much higher. I'm not saying Forecross is a loser, and the recent private placement they did will at least keep them going for awhile. I'm just saying that LGS is a safer bet, but as always, do your own research. There is, of course, no sure thing in the stockmarket.

Chris
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