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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Durrington who wrote (483)	11/15/1997 11:34:00 AM
From: TraderGreg	Respond to of 11708

Regarding your point about treatment of proceeds from the sale of Uinta: According to my guru, when a company sells an asset at an increased value re:prior reporting period, the profit certainly will show up as an increase on the BALANCE sheet and it will also show up as extraordinary EARNINGS if cash is received. For example, I sell a HOLE valued at $100 MM for $200MM in cash. I can call the $100 MM profit on the hole as extraordinary/one-time earnings. But if sold for stock and other non-cash, I don't know how the CPAs treat it. CAN ANY OF YOU CPAS OUT THERE OFFER AN ANSWER HERE? In any event, though, analysts ALWAYS back out extraordinary earnings or charges. For example, XYZ earned 1.05 per share excluding one time charges of .70 per share. But do not fret Durro. The sale of an asset at a "perceived" or real windfall profit will greatly enhance share value even if the bean counters don't add it directly to Earnings Per Share. This is especially true in this case where CSMA holds shares in ERHC and will receive collateral benefit as that company grows its business. Growth rates, (potential for growing the asset) are also significant. Otherwise, Amazon Books, Netscape and AOL would never have taken off as they had. Finally, keep this in mind. At the point when some Wall Street boy or girl wonder are covering Coco and pontificating about EPS, we will probably already be at: FIFTY BAG CITY ARIZONA, MARYLAND, AND UTAH!! and you Durro will be partying hardy in Dharain !!! Sing the mantra: A lump of coal for Shorty this Christmas. TraderGreg