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Non-Tech : LL Knickerbocker(KNIC)/Pure Energy Corp -- Ignore unavailable to you. Want to Upgrade?

To: Dale Geffrey who wrote (720)	11/10/1997 12:11:00 PM
From: Juan Dominguez	Respond to of 1028

Dale. I don't know what analyst estimates you are talking about. The only analyst that has an estimate out is from a firm called Research Works and they had KNIC with a slight profit in the 3rd Q of, I believe, $.05/share on $21M in sales. Both obviously were not made, however, Research Works has estimated 4th Q revenues of about $33M, so it looks like KNIC will load some profits and revenues into the 4th Q. According to my calcs., if KNIC has 4Th Q revs. of $40M, net profits should be around $11M(assumming SGA remains at the current rate of $6M/quarter and advertising expense at $2m/quarter) and EPS should be at $.60/share giving KNIC EPS of $.30-.35/share for 1997. Keep in mind though, that these estimates are only as good as my assumptions that they will keep SGA and advertising expenses comparable to the trailing 3 quarters rates. I have not talked to the company on this matter, but intend to do so. This company is in dire need of and earnings blowout quarter and I hope management is astute enough to know this. The Ontro, IPO if completed in the 4th Quarter ( which I doubt) should add a "one time gain" of $.20-.25/share to the 4th quarter, that will bring 4th quarter EPS to $.80-.85/share and FY 1997 EPS to $.50/share. IMHO though, given the fact that not many IPO are done in the Holiday months of Nov and December, it is more probable that the Ontro IPO will be consumated in the company's 1st quarter of 1998 fiscal year. Regards to all patient Longs Juan