Gator's Picks from the Swamp Message Board

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Microcap & Penny Stocks : Gator's Picks from the Swamp

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To: Chris Kozaczka who wrote (469)	4/13/1999 5:03:00 PM
From: Gator	Read Replies (1) of 616

Great CRNC conference call. Summary: 2nd qtr earnings ending March will be about a penny a share (first profit ever). 10Q's and 10K's should be completed within three weeks. Stock swap to complete Florida Machine and Welding will be completed this Friday, April 16th. Will add $450K in revenues in third qtr. CRNC is putting $250,000 into the company, which is expected to increase revenues to $5 million, with 15% net profits. Frontline Consulting. You can tell he's excited about this one. Major, major contracts on the table. Definitive agreement should be signed by Friday of this week. Said there will be several exciting announcements forthcoming after the definitive agreement is signed which will add tremendous profits to the company. Seminole Scrap acquisition is on the backburner right now as they focus on FMW and Frontline. Have to do a lot more due diligence on this one, books a bit more difficult to review. $2 million dollars in funding has been obtained. It is a $2 million convertible debenture at a fixed cost of $2/share, 12% interest rate. This is not one of those convertible debentures where the holders get additional shares if the price drops under $2 (basically encouraging them to short the stock to drive the price down to get more shares). This is fixed at $2, the most shares that will be issued is 1 million shares. They have a 5 year execution period, so it's essentially like a $2 warrant. Debentures can also be converted for cash in lieu of shares. $800,000 of this will be used to close the Frontline deal. Whitman acknowledged that the interest rate was a bit high, but wasn't concerned (sounds like he plans on eliminating this debt once cash flow starts pouring in after the acquisitions are completed). Gator

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