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Gold/Mining/Energy : Envoy Communications Group (TSE : ECG) -- Ignore unavailable to you. Want to Upgrade?

To: bafan_57 who wrote (249)	11/6/2000 8:27:17 AM
From: Cush	Respond to of 274

Envoy acquires one of the world's top creative advertising agencies, Leagas Delaney newswire.ca Billings soar to $750 million and Gross Margin run rate doubles to $165 million From within the news release- Financial Highlights The acquisition is immediately accretive to Envoy's earnings. Leagas Delaney is a growth company, achieving a 50% compounded growth rate over the last 2 years. The addition of Leagas Delaney to the Envoy Group will double the Company's gross margin run rate to CDN $165 million, push Envoy's billings to close to CDN $750 million, and will enhance the Company's ability to cross-sell its 'best-of-breed' services internationally. The purchase is worth a total consideration of up to approximately CDN $132 million. The down payment consideration is approximately CDN $55 million, of which approximately CDN $19.8 million will be satisfied by the issuance of Envoy shares valued at $8.00CDN. The balance of the purchase price is up to approximately CDN $77 million and is subject to meeting annual profit targets over a period of four years. Two-thirds of the balance of the purchase price will be satisfied by the issuance of Envoy shares valued at $8.00. The deal, subject to financing, is expected to close by the end of January, 2001.

To: bafan_57 who wrote (249)	12/14/2000 11:04:39 AM
From: Cush	Read Replies (2) \| Respond to of 274

Hi bafan. I see the fundamentals here as strong, and growing stronger. There's a fairly good summary of the cc, on StockHouse at stockhouse.com I listened to the CC, and came away more impressed than ever. In my career, I listened to heavy-duty bs on an almost daily basis. If these guys are bs-ing, they're really good at it. I believed what they were saying, and didn't sense they were hiding anything. As I heard it, without including the LD acquisition, they are projecting net revenues of $90 million which would be a 55% increase. Without the LD numbers, they project, EBITDA of $17 million, a 70% increase. and EBITDA per share of $.74, a 40% increase. I was glad to hear they've backed up the closing of the LD deal to March. I was sorry to hear they're considering using Canadian financing. As I see it, the share price has been beaten down by the very houses who would benefit from a lower share price in a financing. At these prices, and lower if we go there, I am definitely not selling. I may acquire more.