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

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To: Timothy R. West who wrote (45)2/14/1997 12:07:00 PM
From: Daniel Schulman   of 402
 
Another way to compute orders per day
is to work backwords from known revenues. The Jan 13 press release stated that revenues were $572,000 for the month of Dec. We know that there were about 1100 fryers installed, so that's $520 per fryer. At $.13 per order, the average fryer had 4000 orders over the month. Thirty-one days on the month of Dec. gives an average of 129 orders per fryer per day.

I have previously stated that I think Dec. is a seasonally high month given greater X-mas traffic through Walmarts, but since I've never been to a Walmart I have no idea how much higher the Dec. month might be.

I have a question for your figuring of the profit margin. You give a guessitmate of 80%--I was wondering your rationale for this number. Since Alanco neither manufacturers the food nor sells it, I was wondering what their costs might come from. I guess they might have a fixed administrative cost, but I don't see why revenue after covering administration wouldn't be pure profit.

Also, one quick note on marketing CDSI in China. A few people on this board seem to think the Chinese market is a lesser strategy to the domestic or Eastern Europeon. This is understandable given Chinese instabilities. However, it needs to be noted that the Coal China is using to fuel their massive industrial expansion is of a far lower grade than what we use in the US. Chinese coal is soft-coal (AKA brown coal) which contains much more sulfur and has a much lower energy equivelence than domestic coal.
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