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Microcap & Penny Stocks : LGOV - Largo Vista Group, Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: dusty who wrote (4361)	7/24/1999 3:06:00 PM
From: Clyde Stone	Read Replies (1) \| Respond to of 7209

"so far,I like what I am finding out" < really ???> <Ok, so here's part 1 of clyde's summary of lgov...> Problem 1: LPG glut Since no companies were prepared or able to supply a sufficient amount of LPG to this new consumer market, a number of government owned or operated companies were set up. Now LPG inventory exceeds demand. And the lack of sufficient storage facilities has also resulted in cut-throat pricing and other poor business practices. These factors caused an unstable and chaotic market that has prevailed over the past 18 months in Yunnan, and has hampered Xinmao from operating efficiently and achieving profitability. The glut of LPG in the market place, along with the need of the government owned companies to reduce excess inventories, enabled the evolution of a "black market" for LPG which allowed many consumer abuses to arise, prices to plummet, and fly-by-night distributors to plunder the market. Problem 2: cut-throat pricing In the Tertiary market are the many small independent distributors and individuals who operate illegally in what is referred to as the "black market" - some without a license, others violating safety laws, others unfairly profiting by short-filling LPG bottles. The Kunming LPG Administration is aware of these abuses, but, unless a blatant case is presented to it, it is ignoring the problems until the market consolidates to a greater degree. However, as of April 15, 1999, the Kunming LPG Administration established "minimum pricing" regulations which set a base price for both wholesale bulk and bottle sales, and retail bottle sales. This regulation will help stop the uncontrolled cut-throat pricing competition that occurred over the past 18 months. It will be incumbent upon the nine major LPG companies to form task forces to assist the LPG Administrator in enforcing these regulations. Also this practice of cheating the consumer has been prevalent over the past several years. Xinmao is now challenging customers, by means of a "weighing program" to "be aware" of what they are paying for. Problem 3: unregulated competition Retail or direct distribution is accomplished by the ten major LPG companies who deal directly with the end user. Nine of these companies are government owned and operated to some degree, leaving Xinmao as the only privately owned and operated company. The only concern these Government companies have had has been to provide LPG to the consumers, regardless of cost. These companies have neither management experience nor financial expertise, and are not motivated to make a profit. The government companies are content to expand their reliance on distributors rather than to market for retail business. In addition to licensed companies, there are hundreds of small independent distributors that purchase from other distributors. The Company does not have any Government contracts. Probelm 4: little contact with big companies Xinmao generally purchases from domestic sources inside China because of the availability of guaranteed price contracts for one year, lower transportation costs and ease of distribution. On occasion it also purchases from Mobil Oil Hong Kong and Caltex. Problem 5: indebtedness Revenues for fiscal 1998 of approximately $2.2 million decreased to approximately $1.4 million in fiscal l999. Operating Loss $(1,095,991) $(2,732,268) $(1,598,242) Identifiable Assets, Net $0 $0 $0 Additionally, current liabilities exceed current assets by $4,873,675 at March 31,1999 The Company also has litigation contingencies. As the Company has not generated taxable income since inception no provision for income taxes has been provided. From inception (January 16, 1987) to date (April 24, 1999) the United States entities of the Company have had no assets, no revenues and no operations. During this period however, the United States entities have incurred significant losses. < how did they manage to do that!!> Problem 6: limited time vs uncertain political climate The Operating Agreement was made between Xinmao and the Hong Kong Company on August 28, 1992, for a term of ten years, ending on August 28, 2002. Trade conflicts are trends that might lessen the prospects for the Company's Success in China.

To: dusty who wrote (4361)	7/24/1999 3:16:00 PM
From: Clyde Stone	Read Replies (2) \| Respond to of 7209

pt 2 of 2 Problem 7: Dang Deng ( Deng does not appear on the list of company shareholders,.....why not.....? ) Beneficial Percentage Name and Address Ownership of Class Daniel Mendez 14,420,473 7.82% Albert Figueroa 2,237,733 1.21% All current directors and officers as a group (3 persons) 16,658,206 9.03% ( Dang Deng is missing from the list here,.......the missing 3rd person perhaps....did he sell those ONE Millliioon shares...?) (or maybe this) Proton Technology Corp., Ltd. = Shan Deng, the sole shareholder of the company Proton/ Deng, the former owner of 123 million shares has effectively sold 34 million shares in the last year (= 28% of holdings) ( ever wonder why the price won't stay up? ). (Dang still has 85.5 million shares left to dump) Problem 8: future indebtedness During the term of the operating agreement, Xinmao is to pay KUNMING FUEL GENERAL CO.(Chinese Government Owned) 9 million Yuan = 1 million dollars. Xinmao agrees to purchases more than 51% of Hubei gas company and to invest no less than one million US dollars within next six months and guarantees the availability of the funds used for tile development of LPG pipeline projects and other possible acquisitions; Also, Xinmao agrees to purchases more than 51% of Guangxi gas company and to invest no less than one million US dollars within next six months and guarantees the availability of the funds used for tile development of LPG pipeline projects and other possible acquisitions; (uh, let's see, .... $3 million plus buy 51% of two companies,...how much will that cost,.....how many new shares will they have to print....?) Problem 9: Y2K Largo Vista and its subsidiaries could be adversely affected if Year 2000 issues are not resolved by Largo Vista or its significant customers, suppliers, business partners or equity invests before the Year 2000.