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Microcap & Penny Stocks : ALANCO ENVIRONMENTAL: ALAN
ALAN 0.00Mar 8 4:00 PM EST

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To: Johnny X who wrote (15)1/9/1997 12:10:00 PM
From: Daniel Schulman   of 402
 
The reason for the big jump from FY 96 to FY 97 is the Fry Guy. At the end of FY 96 (June 96) I believe they only had the recently installed 200 test fryers in some Walmarts, by the end of calender 1997 they have close to 1200. I don't know how much they get for each unit nor what the royalty stream from each one is, but it is my understanding the turn around is largely based on these numbers. In addition, the pollution control division selling a few units should be less of a drain on earnings.

The big question is how much of the Salubre distribution was accounted for in the numbers. What did they know in June that wasn't announced until December. If 1200 Walmart fryers is a big deal than the Salubre is incredible. They plan to install 500 fryers in just the first two months of calender 1997 and 500-1000 per month there after. In other words there should be at least 7,000 fryers installed by the end of calendar 1997, each generating a royalty stream.

This does not take into account the food distribution in China or any of the pollution control stuff.
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