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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (17211)	4/5/2006 11:26:02 AM
From: Ken W	Respond to of 23958

Sergio "I also put Ken's FUEL on my reading list. Ken cited their debt issue and that's the first thing that I noticed. But, he's got some solid points on ethanol distribution." A good part of the debt issue was their recent takeover of another company that upped their rev's considerably. That is a one time charge. The other issue is margins, that should improve with the expansion of fuel prices coming this summer. On another note: EZM continues to make new highs with copper prices still risingg. Stopped out of the NVAX short at 6.50, I'm going to wait for this relief rally to subside and hit it again on the dark side. GNBT had more downside that I missed..dang! TGB looks to be making a new base between 2.20 and 2.30. The 69mm in expenditures has people nervous, but the price of copper should at least offset some of that cost. They are totally non hedged, which I like. Congrats on TST, however have you seen the 424b's filed by Merrill? I still don't quite understand the PPE IPO that they did on the bonds. Ken

To: Sergio H who wrote (17211)	4/5/2006 12:14:03 PM
From: Ken W	Read Replies (1) \| Respond to of 23958

Sergio From FUEL's last report. "At the same time, we are pursuing alternatives to convert or retire a substantial portion of our long term debt which would significantly reduce interest expense, after a one-time, non-cash write-off of the related debt discount and deferred debt costs, and should materially improve our bottom-line performance. It is important to note that during the quarter and six month periods we incurred increased interest expense in connection with our outstanding long-term debt and bank line of credit of $964,000 and $1,639,000. The increases over the same periods last year included non-cash interest expense amortization attributable to capitalized deferred debt costs and debt discount of $260,000 and $516,000, with $127,000 and $227,000, being related to the long-term debt we incurred in connection with the acquisitions of Shank and H & W. The current periods also include non-cash charges for stock option amortization expense related to the implementation of FASB 123R amounting to $102,000 and $194,000, which were not incurred last year." Ken