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To: MyStoxGoUp who wrote (2432)	10/22/1997 11:24:00 PM
From: david james	Read Replies (1) \| Respond to of 95453

Phil, Over the last year, I've watched ECGOF go up on no news just when the chart was looking ugly and drop when it was looking like it was about to skyrocket. So I've given up on trying to trade it on the short term and am holding it long since I am quite confident where its going in the long term. Its now at 12 5/16. I suspect that over the next three months as we approach earnings, the stock will move up near 20 as it becomes clear that the company is really expecting to meet their $1.20 goal. $24/share would be a P/E of 20 on 50% growth. Right now, I think the potential buyers are mostly waiting to see how low it will go before jumping in. The intraday movement of the last few days show that the volume starts to pick up whenever it begins to move up, so I would expect to see some good volume and movement before long. There have been several institutional buyers of late. The Presidential Group bought some 600,000 shares, and Groome Capital Advisory bought some 700,000 followed by a strong buy rating (no surprise). I also heard from 3 different sources that there was considerable buying by Smith Barney brokers. Groome Capital has since brought in several other insitutional buyers and set up some presentations for McGinnis. IR has also said that the insititutional interest and requests for information has increased dramatically. The company is planning some sort of Bond deal with what is rumoured to be a major financial house and will be using the cash to make acquisitions that will be accretive to earnings. HJ Meyers has put out an estimate of $1.80 in 1998 (50% growth). Although the company has stated only that they are setting goals of $1.50 to $1.60, I have heard that $1.80 is possible if the acquisitions go through. So with all this going on, I think a P/E of 20 is quite rational which I think we will have on 1998 earnings within 12 months. That would be a price of $30 to $36 is well within reach. And with continued growth institutional interest, I think a P/E of 30 is not out of the question. this would put the stock in the range of $45 to $54 by the end of 1998 where it would still have a PEG under 1.0 where the PEG of the industry is near 1.6. So as you can see from my expectations, I am not going to worry a great deal about whether we drop a half point here. I have very high expecations and don't think it will be long before we start heading in the right direction. David the link to the thread Subject 14538