Well...
Here we go. I guess I'll try to get some discussion going on this.
First, we have a $1,250,000 cash purchase of this Air and Space company that makes a gyroplane having nearly ZERO sales. Gyroplanes are really cool machines, but for some reason, they just haven't caught on again in these modern times. You can't land a gryoplane in a hovering controlled fashion the same way you can with a helicopter, so many companies can't see buying one. Anyway, I really don't know what to make of this other than the fact that our CEO is using DAWC to SPECULATE. I would like to know the details of this "CASH" payment.
Secondly, they've sold Berwyn Holdings, a company that might be profitable now if taken alone without the other divisions. DAWC received $1,750,000 for Berwyn, which isn't bad at all. If we look at the Air and Space deal combined with the Berwyn deal, we see a $500,000 gain for DAWCIN INTERNATIONAL. If there are about 2mil shares outstanding (I'm not sure about this), perhaps you could say that this should have a $4 effect on the stock price.
Third, and more importantly, First Equities has been spun off from DAWC. As I noted in an earlier post, this actually occured in late '96, but is only now being announced openly. It would appear that post-split shareholders of December 10, 1996 will receive 144 shares for every share of DAWC. This is still a bit confusing since we still have not received the warrents for the most recent reverse split. This spin-off might be very positive for some of us since First Equities seems to be, in itself, running nearly at a profit.
The problem here is that the announcement today is vague and lacks detail. I'd like to see something from the CEO that explains the big picture here.
I like the concept of using DAWC to develop companies that are later spun-off when profitable, but DAWC might always have problems with cash flow.
Anyway, my comments here are based on what I feel to be limited information. Therefore, I put them out to just get things started. Perhaps this makes more sense to you all.
My immediate questions...
What will the share price be for the new First Equities shares? What is the value (assets minus debts) of First Equities? Will they file the needed SEC papers this week? Or three months from now? What are the current sales figures for "Air and Space". They must be very low if this aircraft company costs only $1,250,000. [Doesn't a modern helicopter cost about $450,000?] For shares bought after Dec 10th, how will those shares be rewarded since the company has been diluted by the spin-off of First Equities and the sale of Berwyn?
Oh well, it's only money.
David W. Tucker
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